Town officials secure PILOT deal with newly merged Tufts/Harvard Pilgrim

The mood was upbeat at Tuesday evening’s Select Board meeting as officials announced a final agreement with Tufts Health Plan and Harvard Pilgrim Health Care to establish a new combined headquarters at the former Reebok property, since renamed The Block. The agreement could net the town at least $1.6 million in tax revenue annually.

A view of the main lobby of The Block building (Photo courtesy of Spear Street Capital)

Also, the town is slated to receive $125,000 annually over the next five years from the Drug Free Communities grant program to support the work of the Canton Alliance Against Substance Abuse (CAASA), and Finance Director Randy Scollins announced better than expected cash reserves, which will be used in part to finance the FY22 municipal capital plan.

Tufts Health Plan and Harvard Pilgrim Health Care, who officially completed their merger on January 1, is expected to move into the 42-acre corporate campus off Royall Street beginning in the fourth quarter of this year.

As part of the Payment in Lieu of Taxes (PILOT) agreement reached with the town of Canton, Tufts/Harvard Pilgrim has agreed to pay $1.6 million annually over a 30-year term with 3 percent annual increases. If the company decides to move out of Canton, the deal would be null and void. As a nonprofit company, Tufts/Harvard Pilgrim is exempt from paying real estate taxes but still voluntarily agreed to the PILOT deal following negotiations with town officials.

“We are excited to be part of the Canton community and appreciate the hard work and extraordinary collaboration we received from Canton town officials in helping us make this new campus our home,” said Tom Croswell, CEO of the combined Tufts/Harvard Pilgrim organization.

“We looked at several locations across the region and The Block campus and the Canton community were clearly the most outstanding fit for our organization,” Croswell added.

“We all know the good work done every day by Tufts Health Plan and Harvard Pilgrim Health Care and it’s an honor to have them join us here in Canton,” said Canton Select Board Chair John Connolly. “The newly combined organization is going to be a huge addition to our community, not only through its PILOT payment, but by an injection of new energy and civic engagement in our region.”

Select Board Vice Chair Mike Loughran said the 1,500 employees employed by the new company will be a shot in the arm for merchants in Canton and surrounding towns once the pandemic allows a return to shopping and dining out.

The agreement was negotiated over seven months …

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Posted by Mike Berger on Jan 15 2021. Filed under Business. Both comments and pings are currently closed.