Emerson College is expanding its campus in the Theater District.
The performing arts school has purchased 1-3 Boylston Place from Boston entertainment guru Patrick Lyons for $6.5 million. The alley that leads to the state transportation building is home to a restaurant, a nightclub and office space.
Jacqueline Liebergott, the school?s president, declined to comment on the college?s latest acquisition. Spokesman Andrew Tiedemann said Emerson has no immediate plans for the buildings. He acknowledged they could be the site of dormitories, classrooms or faculty offices.
For now, the Sweetwater Cafe and Estate can stay put. Emerson said they negotiated a two-year lease with the tenants while the school determines what to do with the properties.
The city will lose out on more than $100,000 in real estate taxes, because schools are not taxed. The sale comes as the city is establishing a formalized payment in lieu of taxes, or PILOT, program to ensure that nonprofits pay something in exchange for city services.
Under the proposal that would be phased in over five years, nonprofits would contribute 25 percent of their properties? tax assessment for city services. Nonprofits would get a credit for community benefits that could reduce the payment.
Emerson contributes less than $140,000 to the city for its properties, but could ultimately owe an estimated $600,000 if PILOT is approved by the Menino administration.