Newton-Wellesley Hospital offers Framingham more money

By James O'Brien
Globe Correspondent

Newton-Wellesley Hospital has offered over the next five years to pay Framingham the full amount the town would lose in property taxes if the hospital is approved to develop a new a new outpatient screening and surgical facility along Route 30.

While the move was enough for the Framingham planning board to begin drafting a decision regarding project approval, not all board members were satisfied.

And in Newton, where the hospital is based, a spokesman said that the change in payments to Framingham would not alter Newton’s approach to the hospital and whether it should provide more revenue to the city.

Greg Pauly, a vice presudent for Newton-Wellesley vice president, told the Framingham board that the hospital would now pay $92,000 to Framingham annually for five years, an increase of $42,000 and a lengthening of the payment period by two years from its previous offer on March 19.

Other increases to its offer include $120,000 in one-time offsite mitigation, up from its previous offer of $61,500.

Added together with all other mitigation, fees, expected new jobs, and benefits, Pauly said the hospital's offer represents a total contribution of approximately $3.3 million to the town.

The April 16 offer comes in response to the board's demand last month for financial compensation to offset the annual $92,000 in property taxes Framingham would no longer collect on the 3-acre Route 30 parcel if the nonprofit hospital implements its proposed 24,000-square-foot facility.

Meanwhile, officials in Newton have closely monitored the process between Framingham and the hospital. Newton-Wellesley Hospital maintains a 26-acre campus along Route 16.

Jeremy Solomon, spokesman for Newton mayor David Cohen, said the hospital's new offer to Framingham did not, however, represent a certain trigger that Newton would come forward with similar demands.

"I don't really think so," Solomon said. "I would say the development in Framingham, and this arrangement, has no immediate bearing on what we've had in place with Newton-Wellesley Hospital for years. We're satisfied with the partnership we have."

Newton Wellesley Hospital pays Newton $530,000 annually in taxes on a parking garage and various offices and residences in the city. The hospital is Newton's 10th highest taxpayer, according to Solomon.

With the offer in hand, the Framingham planning board voted to close the public hearing with Newton-Wellesley Hospital and begin deliberation on a final decision.

"I don't think it's overly complex," said John W. Grande, director of the board. A draft decision could be ready for vote within the next two weeks, Grande said.

Not all members thought the board's search for payments in lieu of taxes was finished, however.

On March 19, board member Susan Bernstein called for payments in lieu of taxes as a "permanent fixture as part of the hospital's operations in town."

And while she did not reiterate that condition on April 16, after the hearing closed she said: "From my perspective the discussion is not over. It will come back up in the board's decision-making process."

Hospital spokesman Brian O'Dea said that Framingham “has no mechanism in place to collect (payment-in-lieu-of-taxes) payments.

"As one nonprofit in Framingham, if the town comes up with a uniform and formal policy we'd be willing to discuss it.," he said.

Bernstein said she was pleased that the hospital would pay the $92,000 for five years. She said that during that period of time, the Board of Selectmen could explore a town-wide payment in lieu of taxes system, should they so choose.

"It's up to them to decide where this fits," Bernstein said.