At the end of the last Town Council meeting in Chestertown on Monday night, Ward 4 Council Member Marty Stetson made the suggestion that the town and Washington College should meet to determine an appropriate fee or contribution to support Chestertown with its annual operational expenses.
Very quickly, Ward 1 Council Member Liz Gross reminded the council that she had taken on an independent study of colleges and how they supported their communities. She asked to complete her work and present her findings before the Council started talks with school officials. The Council expects to see those results very shortly.
Ms. Gross’ findings will be important to share with the community as well. Over the last decade, towns and cities, financially damaged by the great recession but still tasked to keep their municipalities functioning, have turned to their colleges and hospitals, or other large nonprofit businesses, to help fill the gap in funding critically needed infrastructure projects, public safety, and maintenance. As a result, there are now a number of case studies that show some very creative ways that these non-taxable institutions have pitched in to help their hometowns.
The time seems right to have that kind of conversation with Washington College.
It is also interesting for the community to know how Washington College has supported the town in the past, which has been quite a bit. For decades, perhaps centuries, the college has been the principal economic engine of Chestertown. With hundreds of employees, many of whom pay local taxes, and now close to 1,400 students using area restaurants, convenience stores, shopping centers and health services, its positive financial impact for our area cannot be overstated.
In addition, the College has provided invaluable community service with students interning at public schools, faculty and staff serving on town and county commissions, nonprofit boards, or tutoring young people.
The College should rightfully be acknowledged for those high-value contributions. Without this level of involvement, Chestertown would be a facing a far greater hill to climb in economic development and quality of life.
But it is also important to note that no matter how positive these examples of engagement have been, and no matter how grateful the entire community might be that Washington College has done so, it does not take away the painful reality that the town still needs cold hard cash to operate.
And that need for cash grows as the town seeks to maintain high-quality community standards. In fact, to survive, the town must spend even more regarding capital projects and infrastructure to stimulate retail and economic growth while also remain competitive with tourism. It is hoped that Washington College’s leaders will understand this plain truth and work collaboratively and strategically to protect and promote one of the most unique communities in America.
Genevieve Coyle says
I live in Cambridge MA and part time in Chestertown Md. There are many large universities in Cambridge and Boston. They are all listed as non-profits and do not pay taxes to the cities. They do make voluntary contributions in lieu of taxes. Since the last recession the cities have requested that they increase the payments, but I do not know if they did. I am sure that in Cambridge Harvard University and MIT make voluntary payments and others may also. I do not know which ones make payments in Boston, but many do. I hope that Washington College will follow their lead.
Genevieve Coyle
Fletcher R. Hall says
I do not believe equating the city of Boston and Harvard, with its significant endowment, is applicable to Chestertown and
Washington College. I have long believed that the revenues brought to Chestertown by WC are
extremely beneficial to the town, and have been so for years. The college is the largest employer in town
and Chestertown should be especially cognizant of this fact.
Fiscal data from the municipality and the college should be employed in analysis undertaken in this matter. Both town representatives and collage
representatives must be included.
Fletcher R. Hall
WC’63
Ted Newcomen says
Fletcher
I don’t think anyone has equated Boston & Harvard with Chestertown & the college – The issue isn’t about endowments – its about fiscal transparency & fairness for the entire community.
However, you raise some interesting objections to the introduction of a PILOT agreement between the town and Washington College.
I would draw your attention to my OP-ED piece in the Spy which I believe answers most of your points
See link https://chestertownspy.org/2016/01/06/op-ed-a-payment-in-lieu-of-taxes-proposal-for-wc-chestertown-by-ted-newcomen
Steve Payne says
https://www.cityofboston.gov/images_documents/FY15%20PILOT%20Results%20for%20Web_tcm3-51686.pdf
Eliott Fuhrman says
School has already bailed out county by buying useless ground across from Walgreen ,paying money buy a building that such be demolished ,armory, build a new building where non used school building sat empty. Now in saying this the school can not take our most valuable property ,water front and Stepny manor off market and warehouse this land that together has a current value to develop 100,000,000 and college has to pay potential water front. Taxes in leu of taxes on highest best use , and turn stepney manor ,50 acres build able to be developed NOW
Carol Schroeder says
Asking WC for payment of cash instead of taxes would have to be delicately handled, obviously. What the college brings to Chestertown (and let’s not forget community access to Miller Library, athletic facilities, WC-ALL, lectures) adds to Chestertown’s attractiveness. It is why we moved here instead of another ES town ten years ago. However, all of the above is different from cold hard cash. How does the city say we know WC contributes so much to our town but now we need money in lieu of taxes? Also, I think the fiscal analysis and comparison with other small towns and their small colleges would have to be done BEFORE presenting the idea to WC. But I cannot imagine asking WC for the full tax burden…maybe a quarter or something like that? Certainly WC knows a vibrant town attracts students to apply so they should also be interested in maintaining Chestertown’s attrativeness. I would, however, understand completely if WC decides its presence here is “help” enough.
Ted Newcomen says
Carol
You raise some interesting points ;-
1) Community access to WC facilities – A valid point but unlike most college towns we still have to pay for the use of these facilities – they are not all free to locals
2) Its not just about ‘cold hard cash’ – we need to have a full and open debate about what the college brings to the town & what we pay for in return. This topic has been lying in the ‘too hard’ basket for too long.
3) By all means lets look at other small towns & learn from them. The current President Shelia Bair is familiar with the PILOT concept, she was previously on the faculty of the University of Massachusetts- Amherst which had had such an agreement with the local community since 1999!
Thomas Hayman says
I believe the town should be very careful how they deal with this issue. I believe the benefits the college brings and gives to the town already more than makes up for the property tax money the town loses on land owned by the college. During my run for mayor, I was in favor of working with the college and its students to make Chestertown (or at least parts of it) a college town in which more outside businesses and areas would be more attractive to college students and families and thus increase cash flow from the students to the businesses and town as a whole. If the town council and mayor are not delicate with this proposed source of revenue for the town, I fear that Chestertown will become a town with a college rather than a college town. The college could very well stop its community service and open up options on campus for students to eat, shop, etc. and the town and the businesses in town could lose out on the benefits they are receiving from the college and its students already.
Thomas Hayman
WC ’07