WORCESTER – A report for presentation to the Worcester City Council on Tuesday, Nov. 18, shows colleges and universities purchased 32 properties in Worcester since 2019, with a current assessed value of nearly $120 million.
Just short of two-thirds of that value, $78.8 million, is exempt from taxation while $41 million is taxable.
Five universities account for all 32 properties purchased by colleges or universities in Worcester.
Like most educational institutions, all five schools are non-profit organizations, which makes them exempt from most taxation, including local property taxes.
See the full list of properties purchased by colleges and universities since 2019 at the bottom of this page. at the bottom of this page.
Gateway Park Hotels
Properties purchased by universities became a conversation in Worcester after city officials announced in August that Worcester Polytechnic Institute (WPI) planned to purchase two hotels, the Hampton Inn at 65 Prescott St. and the Courtyard Marriott at 72 Grove St. The two hotels account for about 25 percent of the hotel capacity in Worcester, and about 100 jobs.
The hotels sit within Gateway Park, a project that sits on top of former brownfields. Public and private investment of $170 million cleaned up the area to make way for the project
In late August, WPI confirmed it would proceed with the acquisitions of the hotels, then owned by a subsidiary of the publicly traded investment firm Blackstone, Inc. See more about the history of the property (contains commentary).
Another item on the city council agenda for Tuesday, Nov. 18, includes a report from City Manager Eric Batista that outlines a new agreement with WPI.
On the current Hampton Inn and Suites property, at 65 Prescott St., WPI agreed to pay property taxes through June 30, 2029, the end of fiscal year. From 2029 through 2034, WPI will pay 50 percent of the property taxes. The school expects the property to be converted to student housing starting in 2026.
On the Courtyard by Marriott property, at 72 Grove St., WPI agreed that the property wouldn’t be converted to student housing before 2030. It will pay taxes on the full assessment of the properties until then. After conversion to student housing, the school will pay 50 percent of the assessed taxes through 2034.
Properties Purchased by Colleges and Universities 2019 to 2024
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