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Harvard May Offer Contribution

University to Await City Statement on DeWolfe Street Tax Payments

Harvard officials are waiting for a response from the city of Cambridge on their proposal to make fiscal contributions for the luxury DeWolfe Street undergraduate apartments.

The University has offered to make payments in-lieu-of taxes (PILOT) to the city for the tax-exempt portion of the DeWolfe property that is being used as undergraduate housing.

Sally C. Powers of the city's finance department said that the 20 percent of the DeWolfe buildings which is reserved as private housing for professors will be taxed.

But Powers said she did not know if the city would request in-lieu-of tax contributions on the remaining portion of the building.

Under federal and state law academic buildings, including most dormitories, are tax-exempt. But Harvard officials said they are unclear on whether or not Cambridge will send them a tax bill.

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"I would hope that the verbal agreement for PILOT comes about," said Kathy A. Spiegelman, Director of Harvard Planning Group. "In May we will know whether Harvard will receive a tax bill or will pay PILOT."

Harvard intends to consider the DeWolfe Street property as affiliate housing, according to Spiegelman.

Harvard has traditionally made contributions to city coffers on affiliated housing that is not taxed, but not on College dormitories.

"DeWolfe was designed as apartment buildings, and since it's not clear that it will always be used as undergraduate housing, we will treat it as affiliated housing," said Spiegelman.

The University and city government reached a landmark agreement in November 1990 to increase Harvard's voluntary contributions.

Under that accord the University agreed to make contributions for ten years on all properties it took off of the tax rolls in 1990.

The committee agreed to deal with subsequent properties that it converts to academic use and takes off of the tax rolls on an individual basis for the next ten years.

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