The PILOT program between Tufts University and the City of Medford is a voluntary financial arrangement meant to offset the university’s tax-exempt status, but its lack of formal documentation and transparency has raised concerns—especially when compared to Tufts’ more structured agreement with Somerville.

🏛 What is the PILOT Program?

The Payment In Lieu Of Taxes (PILOT) program allows Tufts University, a nonprofit institution exempt from property taxes under Massachusetts’ Dover Amendment, to make voluntary financial contributions to the cities of Medford and Somerville. These payments help compensate for city services Tufts benefits from—such as police, fire protection, and infrastructure maintenance.

💰 Benefits to Medford

Tufts currently pays Medford:

• $450,000 for its main campus
• $250,000 for the Joyce Cummings Center
• $759,100 in property taxes on taxable buildings
• Part of $5.8 million in annual community benefits shared between Medford and Somerville

These contributions support city services and help reduce the financial burden on Medford residents.

** Shortcomings of the Medford Agreement

• No written contract: The most recent PILOT agreement, negotiated in 2018, was a verbal “handshake deal” with no formal documentation.
• Transparency issues: Residents and officials have struggled to access records. Public records requests were met with high fees and labor estimates, prompting legal concerns.
• Limited community input: The agreement was negotiated without broad public engagement, leaving many residents unaware of its terms or impact.

** Comparison with Somerville
In contrast, Somerville’s PILOT agreement with Tufts is formalized and publicly accessible. It includes:

• Monetary contributions
• Student support programs
• Access to athletic fields for youth
• Structured community feedback: Somerville held public meetings and surveys to gather input before renegotiating the agreement.

This structured approach has made Somerville’s PILOT more transparent, inclusive, and responsive to community needs.

Summary
While Tufts’ PILOT payments benefit Medford financially, the lack of a written agreement and limited public oversight undermine its effectiveness. Somerville’s model offers a more accountable and community-driven framework that Medford officials and residents are now pushing to emulate.

Sources: The Tufts Daily City of Somerville