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Northeastern, Boston strike landmark agreements on PILOT and campus expansion
“Boston thrives when our leading institutions match their global reach with a deep commitment to our neighborhoods,” Mayor Michelle Wu said in a statement.
Boston and Northeastern University struck “landmark” agreements Thursday that clear the way for a major campus overhaul — including the redevelopment of Matthews Arena — and secure more than $130 million in payments and community benefits.
The new Institutional Master Plan includes $62.5 million in community benefits over 10 years, along with $16.5 million in community benefits and $6 million in linkage funding to support affordable housing and workforce training explicitly tied to the Matthews Arena project.
A separate Payment-in-Lieu-of-Taxes agreement commits Northeastern to more than $49 million in cash and additional benefits over the next five years.
“Boston thrives when our leading institutions match their global reach with a deep commitment to our neighborhoods,” Mayor Michelle Wu said in a statement.
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Through the “landmark agreements,” Wu said that Northeastern will deliver much-needed on-campus student housing and invest tens of millions of dollars in nearby affordable housing and community benefits.
The IMP also enables the long-planned redevelopment of Matthews Arena and will allow upgrades to academic spaces. Each project will undergo an Article 80 development review.
After hearing neighborhood feedback, Northeastern is also improving public access at Carter Playground and is planning a beautification effort in Nubian Square.
Wu said the PILOT agreement came at a time when Boston taxpayers needed relief — especially since her home-rule petition to shift a greater portion of the tax levy to commercial properties continues to fail to pass. The city has since refiled the legislation.
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Boston homeowners were hit with double-digit property tax increases in early 2025 due to the decline in commercial property values and the rise in residential property values.
The city states that Northeastern is a long-standing partner in the PILOT program, which launched in 2012, that governs annual voluntary cash and community benefit contributions from the city’s largest private, non-profit, and tax-exempt institutions.
The new agreement is the first written PILOT agreement between the city and Northeastern in decades, creating a predictable and reliable schedule of benefits.
Under the five-year agreement, the university’s payments will rise from $1.9 million in fiscal year 2024 to $2.6 million in fiscal year 2030 — a 36.8% increase over the current PILOT contribution, which has remained unchanged since 2020.
“This agreement is proof that even in an uncertain time, Boston can come together with our institutional partners to move the city forward,” Wu said.
The approval of the IMP “marks a significant milestone” in the ongoing developments of the university’s campus, said Kathy Spiegelman, Northeastern VP & chief of Planning, Real Estate, and Facilities, in a statement.
She continued, “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.”
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