City of Boston and Northeastern University Announce New Five-Year PILOT Agreement and New Ten-Year Institutional Master Plan, which include Historic Commitments on Housing and Community Benefits

The City of Boston and Northeastern University today announced landmark agreements on an Institutional Master Plan (IMP) and Payment-in-Lieu-of-Taxes (PILOT), which include unprecedented housing commitments and community benefits for the City and neighborhoods around Northeastern. The IMP includes approximately $62.5 million in community benefits over the next 10 years, as well as $16.5 million in community benefits and $6 million in linkage associated with the Matthews Arena redevelopment. The new PILOT agreement includes a commitment of more than $49 million in cash and community benefits over the next five years. 

“Boston thrives when our leading institutions match their global reach with a deep commitment to our neighborhoods,” said Mayor Michelle Wu. “Through these landmark agreements, Northeastern will deliver much-needed on-campus student housing, redevelop the historic Matthews Arena for its next chapter in this city of champions, invest tens of millions for affordable housing and community benefits, and respond to important neighborhood feedback with improvements to public access at Carter Playground and resources for planning and beautification in Nubian Square. Our five-year PILOT agreement sets a new standard for higher annual cash payments and community benefits at a time when Boston taxpayers need relief. This agreement is proof that even in an uncertain time, Boston can come together with our institutional partners to move the city forward.” 

“Northeastern’s Institutional Master Plan represents a balanced approach that allows the University to invest in its institutional growth with a renewed commitment to housing stabilization for the surrounding communities,” said Chief of Planning Kairos Shen. “I look forward to working with Northeastern to realize the historic and transformative plans in this IMP.”

The IMP enables eight new projects that the University plans to pursue over the next ten years, including on-campus student housing, the long-planned redevelopment of Matthews Arena, and academic spaces. Significant investments in housing, jobs, and community development are associated with these proposed projects, each of which will go through the Article 80 development review process run by the City’s Planning Department.

"The approval of the new Institutional Master Plan marks a significant milestone in the ongoing development of Northeastern University's Boston campus to support our academic mission,” said Northeastern VP & Chief of Planning, Real Estate and Facilities Kathy Spiegelman. “We look forward to working closely with the City and our community partners as we bring this vision to life, ensuring that our physical campus continues to meet the evolving needs of our students, faculty, staff, and the broader Boston community." 

Housing Commitments

Under the IMP, Northeastern will contribute $10 million over the next ten years to invest in housing stabilization in the city. This money will be allocated to the City’s Housing Stabilization Fund, Acquisition Opportunity Fund, or other City housing programs. In addition, in response to calls from the community Task Force that Northeastern reduce the demand for off-campus housing, which impacts surrounding neighborhoods, the University made specific commitments to bring down the off-campus student population. Building on the momentum of the new 1,215-bed residential tower at 840 Columbus, which broke ground in August, the University set a further target to deliver an additional 1,000 new student beds in the next five years. The City will continue monitoring students’ off campus housing impact through the University Accountability Ordinance report. For the first time, should the University increase its off-campus student population, the City will require Northeastern to develop a mitigation plan and seek City approval through a public hearing at the BPDA Board. 

“Reclaim Roxbury thanks both Mayor Wu's Administration and Northeastern University for negotiating a stronger and more equitable Institutional Master Plan that reflects our community’s advocacy. We’re proud that our collective efforts helped secure $1,000,000 annually to support housing stabilization for Roxbury residents” said Reclaim Roxbury Executive Director and Northeastern Task Force Member, Armani White. “We also appreciate Northeastern’s responsiveness to community and City calls for greater transparency, accountability, and partnership, resulting in stronger commitments to build more on-campus student housing, hire local and MWBE contractors, and expand community access to Carter Playground and the Field Bubble. These wins are proof that when residents, the City, and our institutions work together, we can achieve shared prosperity rooted in equity and respect.” 

Redeveloping Matthews Arena

The IMP also includes the long-planned redevelopment of Matthews Arena, which is set to begin immediately. Matthews was built in 1910, burned down in 1918, and was replaced with the current structure in 1920. Previously known as Boston Arena, this facility was the original home of the Boston Bruins and Celtics; hosted rallies for Presidents Teddy Roosevelt, Howard Taft, and FDR; receptions for Charles Lindbergh and Amelia Earhart; and the funeral of Boston sports icon Reggie Lewis. While the historic integrity of this structure was significantly impacted by renovations and additions in 1950, the redeveloped arena will preserve and incorporate the terracotta arches still remaining from the original 1920 arena. The new arena will include basketball and hockey facilities, general fitness and recreation space, and create new athletic and recreational opportunities for community members. The project will include public realm improvements including new sidewalks and landscaping on St. Botolph Street and Gainsborough Street. 

The multi-purpose arena project will contribute $5,025,800 in Linkage funding in support of affordable housing, and $977,600 in Linkage funding in support of workforce training. The project will fund an expansion of the pedestrian space on Gainsborough Street and accessibility improvements to a nearby MBTA station. The arena will also include bike parking, a bikeshare station, and a $130,200 contribution to the Boston Transportation Department in support of the bikeshare system and expanding access to alternative forms of transportation. The terra cotta arches marking the entrance of the existing building will be salvaged and reinstalled in the lobby of the new building and there will be exhibits on the history of the arena to preserve its importance to the University and City. The new arena will also be sustainably designed with the use of geothermal wells and solar panels.

IMP Community Benefits

Northeastern will extend a broad range of community benefits negotiated in its last IMP. The University remains committed to its partnership with the Boston Public Schools, including meeting the full demonstrated need of all admitted students and offering pre-college programming to ensure BPS students are college-ready. The City and the University will engage and collaborate on consolidating, adapting, and creating new innovative programs to ensure that what is offered remains effective and of value to the community.

The University is also renewing its commitment to the local and MWBE procurement goals from the 2013 IMP. These goals include 20% of all University discretionary spending to SLBEs and 12% to MWBEs as well as 30% of design and construction spending to MBEs and 10% to WBEs. Northeastern’s combined FY24 supplier spend across all underrepresented businesses totaled approximately $335.54 million. As part of this renewed commitment, the University has agreed to contract with a consultant to explore methods and tools to achieve these spending goals within this new IMP term. 

Under the IMP, the Boston Parks Department and University will amend their decade-old license agreement Carter Playground in response to community feedback to expand the evening and weekend hours of BPS and community use of the athletic fields and tennis courts, which are maintained by the University. The revised agreement will expand afterschool, evening, and weekend hours on the fields during all seasons, and under the winter Bubble, allowing more BPS teams and community clubs to make active use of these facilities. The agreement will also improve signage and scoreboard and restroom access to make the fields a better resource for all community members. Northeastern has also committed to annual reviews of this arrangement, and future negotiations after the completion of the new arena to further expand community access.

“Carter Playground is a public park and one of the busiest and most important athletic facilities in Boston,” said Interim Parks Commissioner, Cathy Baker-Eclipse. “We are pleased that the updated agreement will give BPS student athletes and community groups even more access to these excellent facilities, during all seasons, and we thank Northeastern for their continued partnership.”

Community Space

The University will operate a space with community focused programming on the ground floor of their new dorm building at 840 Columbus Avenue which is currently under construction at a cost of approximately $20 million over the next ten years. Programming in this space will support educational access, jobs and workforce development, small business support, and building capacity for existing community organizations that address economic development. 

Landmark PILOT Agreement

Beyond commitments included in the new IMP, Northeastern has agreed to a new five-year Payment-In-Lieu-of-Taxes (PILOT) agreement with the City, which includes cash and community benefits commitments of more than $49 million over this period.

Northeastern has been a long-standing partner with the City of Boston through Boston’s nation-leading PILOT program, a system launched in 2012 that governs annual voluntary cash and community benefit contributions from the City’s largest private, non-profit, and tax-exempt institutions. This partnership is based on the mutual understanding that a welcoming, safe, and financially stable City which delivers high-quality essential services is critical to the continued success and financial health of Boston’s large nonprofit institutions.  

The new agreement is the first written PILOT agreement between the City and Northeastern in decades, creating a predictable and reliable schedule of valuable partnership benefits for the City.  

As part of the new five-year agreement, Northeastern will increase its annual PILOT cash payments to the City from $1,900,000 in FY25 to $2,600,000 in FY30. This represents a 36.8% percent increase over Northeastern’s present-day PILOT contribution baseline which has not changed since 2020. 

Investments in Nubian Square

Incremental cash contributions will support city-wide priorities, and include community investments and planning in Nubian Square and Roxbury in response to the Wu administration's priority of investing in the vitality and opportunity in Nubian Square. Funds will support beautification and other community-led initiatives for the Square.

PILOT Community Benefits

Additionally, Northeastern commits to contributing annual PILOT community benefits valued at a total of $37 million over the term of the 5-year agreement, benefits that will be reported annually to the City and subject to annual review to align with city and community needs. This amount reflects Northeastern’s commitment to sustain and grow its baseline community benefit commitments to support public education, housing, community access to public and institutional spaces, and a mutually agreed list of other shared City and institutional priorities. Community benefits eligible to be counted toward this goal are quantifiable, directly benefit City of Boston residents, are not included in other arrangements such as IMP and Article 80 agreements, and are not part of the core mission and services of the institution.  

Northeastern and the City commit to renewing a mutually agreeable voluntary PILOT agreement before expiration of the proposed five-year agreement on June 30, 2030.