Lifespan has agreed to pay Providence $1.5 million lieu of taxes, the first payment the nonprofit health system will make to the city since 2021.

A yearlong deadlock over voluntary tax payments from Lifespan Corporation to the city of Providence appears to have ended under a tentative agreement unveiled Tuesday. The payment-in-lieu of taxes agreement marks the first time since 2021 that the state’s largest hospital provider will give the capital city anything in exchange for hosting its three Providence

Lifespan — soon to be Brown University Health — has agreed to pay Providence $1.5 million over three years as part of a new arrangement for payment-in-lieu-of-taxes, commonly abbreviated as taxes. The agreement still needs to be signed and will be presented to the City Council on Thursday.

After not making a payment-in-lieu-of-taxes in three years, Lifespan has agreed to do so for at least the next two years.

Providence Mayor Brett Smiley and Lifespan President and CEO John Fernandez announced a proposed Payment in Lieu of Taxes (PILOT) agreement between the city and the company Tuesday.

The financial contributions from this agreement would represent the largest annual voluntary payment Lifespan has made to Providence in over a decade and would finally ensure t