BOSTON— The City of Boston and Northeastern University have finalized a new five-year PILOT agreement and a 10-year Institutional Master Plan (IMP) that include some of the most significant housing, campus development, and community-benefit commitments ever made between Boston and a local university.
The agreements include $62.5 million in community benefits over 10 years, $16.5 million tied to the redevelopment of Matthews Arena, $6 million in linkage payments, and more than $49 million in cash and community benefits through the new PILOT agreement.
Mayor Michelle Wu said the agreement demonstrates how Boston institutions can support neighborhood needs while continuing to expand.
“Through these landmark agreements, Northeastern will deliver much-needed on-campus student housing, redevelop Matthews Arena, invest tens of millions for affordable housing and community benefits, and respond to important neighborhood feedback,” Wu said. “Our five-year PILOT agreement sets a new standard at a time when Boston taxpayers need relief.”
Eight New Campus Projects Planned
Under the IMP, Northeastern plans to advance eight major projects over the next decade, including:
- More on-campus student housing
- Redevelopment of Matthews Arena
- New academic and campus facilities
- Each project will go through the city’s Article 80 review process.
Kathy Spiegelman, Northeastern’s VP & Chief of Planning, Real Estate and Facilities, said the IMP supports long-term campus needs while addressing community concerns.
Major Housing Commitments
Northeastern will:
- Contribute $10 million over 10 years to Boston housing stabilization funds.
- Add 1,000 new student beds within five years, in addition to the 1,215-bed tower under construction at 840 Columbus Avenue.
- Face new accountability rules if off-campus student housing numbers increase, requiring a mitigation plan and public review.
Community group Reclaim Roxbury described the agreement as a significant improvement secured through neighborhood advocacy.
Matthews Arena Redevelopment
Construction on the long-planned redevelopment of Matthews Arena will begin immediately. The new facility will:
- Include hockey and basketball facilities, recreation space, and public realm improvements.
- Preserve key architectural elements, including terracotta arches from the 1920 structure.
- Contribute $5.02 million in affordable-housing linkage and $977,600 for workforce training.
- Add bike parking, a bikeshare station, and make nearby accessibility upgrades.
- Incorporate geothermal wells and solar panels.
Community Access and Programs
The IMP extends and updates several community commitments:
- Expanded hours and improved access for Carter Playground fields and tennis courts for BPS teams and neighborhood groups.
- Better signage, restroom access, and annual reviews of field usage.
Renewed procurement goals:
- 20% of discretionary spending to SLBEs
- 12% to MWBEs
- 30% of design/construction to MBEs
- 10% to WBEs
Northeastern spent $335.54 million with underrepresented businesses in FY24.
The University will also operate a new community programming space at 840 Columbus Avenue, supporting workforce development, small business assistance, and community organizations.
New Five-Year PILOT Agreement
The new PILOT agreement provides:
- An increase in Northeastern’s annual cash payment from $1.9 million in FY25 to $2.6 million in FY30 (a 36.8% increase).
- $37 million in PILOT community benefits over five years.
- Investments in Nubian Square, including beautification and community-led initiatives.
The agreement is the first formal written PILOT contract between the city and Northeastern in decades and establishes predictable annual contributions through 2030.
Both sides have committed to renewing a voluntary PILOT agreement before the new deal expires on June 30, 2030. The IMP projects will move forward through individual city reviews over the coming years.
City officials said the combined agreements underscore a new level of accountability and collaboration between Boston and one of its largest private institutions.
