Sam Heller showcases Duke Respect Durham pamphlets calling for a PILOT agreement with Duke.
Story by Erik Haynes
Photo by Madeline Nguyen
LEAD: At Duke University… the 2024-25 academic year marks a celebration of its centennial. But for some Durham residents… it marks a century of inequity in the city’s relationship with the University. Erik Haynes takes a closer look at one organization pushing for change and what it could mean for the city.
TRT: 2:39
TRACK 1: Federal tax law classifies Duke University and its healthcare system as nonprofits… exempting most of their land from property taxes. In 2022… Duke paid $3.7 million in property taxes. However… some Durham residents claim full taxation would amount to $50 million annually.
Sam Heller SOT 1: “Everybody else in the city and the county has to shoulder that burden. Also, some of their entities do operate as for profit entities. And so it doesn’t really make sense that the rest of the Durham community has to make up for what Duke is not paying.”
TRACK 2: Sam Heller represents Duke Respect Durham… a coalition urging Duke to make voluntary payments in lieu of taxes… known as PILOT.
NAT POP: “If Duke is not paying property taxes then all the other property owners in the city are paying way more.”
TRACK 2: They argue the additional revenue could eliminate Durham Public Schools’ budget deficit and fund vital public services students rely on.
Kevin Georgas SOT 2: “Duke benefits from all of the infrastructure of Durham. From our city buses to housing and sanitation needs of all of those, thousands and thousands of students who are in the city.”
STANDUP: We reached out to Adam Klein, Duke’s Associate Vice President for Economic Development, for comment. While he initially agreed to a video interview, he canceled due to an urgent matter and opted to provide a written response instead.
Duke Statement TRACK 3: In his statement… Klein said Duke generates 23% of Durham’s jobs and pays $2.5 billion in wages… which he claims drives $8.9 billion in local revenue through taxes and spending. He added that in 2023… Duke spent $233 million with Durham businesses and contributed more than $10 million to local nonprofits.
TRACK 4: Despite the impact Duke’s presence has on spurring the Durham economy… residents like Mark Gutay believe decisions about financial contributions shouldn’t rest solely with the university.
Mark Gutay SOT 3: “I think it’d be important for the community have like a binding input on how things are done. So that’s why I think PILOT where this it’s dispersed to the city and they get to make decisions would be an effective way for Duke to actually help Durham.”
TRACK 5: Klein says Duke will launch a new economic inclusion effort in January to expand its impact as an employer and purchaser in Durham. Even with the university’s contributions through jobs, business partnerships, leased properties, and local funding… Duke Respect Durham remains determined to negotiate a PILOT agreement. I’m Erik Haynes, reporting.
TRT: 2:39
TAG: PILOT agreements between universities and local communities are not uncommon. Institutions like Yale, UPenn, and Cornell make such payments, with Yale making the largest annual payment of $23 million.
