WPI Community Update: Collaboration with the City

The following message was sent November 15, 2024:

Dear WPI Community,

We are writing to let you know that WPI and the City of Worcester have reached an agreement regarding the university’s purchase of the Hampton Inn and Courtyard Marriott hotels. The agreement supports WPI students and the university’s broader mission while enhancing the vitality of the larger Worcester community.

For 159 years, WPI’s mission has centered on collaboration and cooperation, a shared commitment to creating value for all members of the community, and an enduring goal of fostering mutual success with our partners. One of the most prominent examples of this is the development of Gateway Park, where WPI has invested more than $140 million in the last two decades. 

Here are some details of the new agreement that address housing needs, economic considerations, and collaboration to support city-wide and academic growth.

• While they continue to operate as hotels, both the Hampton Inn and Courtyard Marriott will remain on Worcester’s property and hotel occupancy tax rolls and will generate hotel tax revenues for the City. 
• The Hampton Inn will be converted to student housing in 2026. 
  • WPI will make payments equal to pre-conversion property taxes through June 30, 2029. 
  • WPI will also make voluntary payments equal to pre-conversion hotel occupancy taxes through 2029.
  • After 2029 WPI will make voluntary payments at 50% of the pre-conversion property tax rate through 2034.
• The Courtyard Marriott will remain a hotel through at least 2030. This will help meet the City’s lodging needs. During this time WPI will pay full property taxes. If converted to student housing after 2030, WPI will make voluntary payments at 50% of the pre-conversion property tax rate through 2034.
• WPI and the City will collaborate to attract developers and partners on the remaining development of Gateway Park.
• WPI will build upon its two decades of project work in the city through its Worcester Community Project Center with the creation of a new Academic Civic Collaborative. This partnership establishes plans for up to four City-identified projects annually, making the City a premier partner in Worcester-based student projects.
• WPI will support the City in its efforts to identify new hotel projects.

As a reminder, here are some key facts we shared in two prior emails about the purchase of the hotels:

• Initially, both properties will continue to operate as hotels, with the same capacity. 
• Upon the acquisition of the hotels, WPI retained the current management company and its employees. We will work with the management company to retain any employees impacted by the conversion of the hotels to student housing, subject to WPI’s hiring practices.
• The Worcester housing market is extremely tight, with ever-increasing apartment rents and a vacancy rate of 1.7%, one of the lowest in the country. This situation puts considerable strain on our students’ ability to find affordable housing and adds pressure to the city’s housing crunch. 
• Our plans to increase our on-campus housing will not only help our students, they will also create space in the market for families and other renters impacted by the housing shortage.  
• WPI has been a hub of transformational education, research, and economic development since 1865. WPI students, faculty, and staff play a vital role in supporting local businesses, enriching the city’s culture, and reinforcing Worcester’s position as a thriving, forward-thinking community. Of note:
  • WPI’s current annual PILOT (Payment In Lieu of Taxes) payment to the City exceeds $815,000. 
  • Since 2009, we have paid the City $9 million under the PILOT agreement.
  • Over the course of the PILOT agreement (through the year 2034), WPI will have paid the City of Worcester a total of approximately $18 million. 
  • The WPI 2023 Community Impact Report highlights additional contributions to the City, such as: 
    • Tens of thousands of hours of community service by students and employees.
    • $5.6 million in grants and scholarships for Worcester residents.
    • Nearly $14 million in business for Worcester suppliers and vendors. 
    • Support, training, and tutoring in Worcester K-12 schools.
    • Partnerships on public safety initiatives.

In addition, nearly 450 WPI employees reside in Worcester, and, as of 2023, WPI technologies and resulting local and regional spin-out companies have employed more than 400 Worcester residents and raised approximately $1 billion in investment. 

We have engaged with the City in open dialogue, identifying shared goals, and implementing thoughtful strategies that reflect our commitment to our students, our campus community, and our city. We believe this agreement embodies WPI’s collaborative spirit and dedication to our collective success.

Sincerely,

Michael Horan CPA, EdD  
Executive Vice President & CFO

Philip Clay
Senior Vice President for Student Affairs & Enrollment Management