BU signs $104M PILOT agreement with city, the largest in Boston history

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This is BU’s first PILOT agreement in more than 25 years.

People walk through Boston University’s campus near Marsh Chapel. Jessica Rinaldi/The Boston Globe

Boston University and the city of Boston have finalized the largest payment-in-lieu-of-taxes (PILOT) agreement in the city’s history, officials said. 

Mayor Michelle Wu’s office announced the five-year deal, which includes more than $104.3 million in voluntary cash contributions and community benefits, on Tuesday.

City officials said this marks the first written PILOT agreement between Boston and BU in more than 25 years. The initiative requests that major, tax-exempt entities provide voluntary financial donations to help cover the costs of city services they use.

“Boston’s success has always depended on strong partnerships between the City and our anchor institutions, rooted in the shared understanding that thriving institutions and a strong, well‑resourced city go hand in hand,” Wu said in a statement. “This agreement reflects Boston University’s continued investment not only in innovation and education, but in the communities we call home.” 

Under the new agreement, BU will pay the city $8.3 million annually through fiscal 2030, a roughly 32 percent increase from the university’s current PILOT contribution of $6.3 million, which has remained unchanged since fiscal year 2019, according to Wu’s office. 

BU has also pledged to provide annual PILOT “community benefits” with a total worth of $66.8 million, city officials said. 

“Boston University is committed to Boston, its communities, and the PILOT program,” BU President Melissa Gilliam said. “This new five-year agreement reflects the priority we place on service and partnership with Boston.” 

Both the university and the city hope to renew a “mutually agreeable” agreement before the current agreement’s terms expire in June 2030, Wu’s office said. 

BU fell 23 percent short of meeting all its PILOT requests in fiscal year 2025. However, none of the five universities from which the city requested the most money gave the full requested amount, city data shows.

Northeastern University signed a PILOT deal with the city last fall, agreeing to pay more than $49 million in cash and community benefits over the next five years.

Earlier this year, the city settled a five-year agreement with Wentworth Institute of Technology. Over the course of the agreement years, the school committed to providing more than $5.6 million in cash and community benefits.

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