PROVIDENCE, R.I. (AP) — Brown University will voluntarily payProvidence $31.5 million more over the next 11 years to helpaddress financial problems that Mayor Angel Taveras has warnedcould put the city on the brink of bankruptcy.

Taveras and Brown President Ruth Simmons announced the landmarkagreement Tuesday at the Statehouse, backed by Gov. Lincoln Chafeeand top lawmakers who helped shepherd both sides through the oftendifficult negotiations.

The deal caps months of contentious dialogue between thetax-exempt Ivy League school and its struggling host city and handsTaveras a key victory in his efforts to resolve a $22.5 millionbudget deficit.

"We face tremendous challenges," Taveras said. "We've cometogether to make some very difficult decisions. We need each otherto be successful."

Simmons, who plans to step down later this year, said Brown is"deeply concerned" about Providence's finances and understands thatits future is tied to that of the city.

"It's easy to be myopic," she said. "(But) it would be foolishof us not to understand the context in which we exist today."

Under the deal, Brown will agree to contribute an additional$3.9 million this year, on top of the $4 million the university hascontributed each year in voluntary payments and taxes on newerbuildings and those not used for educational purposes.

In exchange, the city agreed to give up some streets adjacent tocampus — meaning they will become Brown's — and provide 250 parkingpermits to allow Brown employees to park for extended hours oncertain streets near campus.

The deal, which must be approved by the Providence City Council,delighted Chafee and lawmakers who worked on the negotiations.

"In tough times everyone has to chip in a little bit. ... Brownstepped up to the plate," said House Speaker Gordon Fox,D-Providence.

Taveras has been seeking $7.1 million more from tax-exemptinstitutions including Brown to shore up the city's budget. Thecapital has been struggling to close a $22.5 million deficit in thefinal months of this fiscal year.

Health care provider Lifespan has voluntarily agreed tocontribute $800,000 to the city annually for the next three years.Johnson & Wales University agreed in February to at leasttriple its annual voluntary payments to $958,000.

The first-term mayor is also seeking to reduce thecity's pension costs. On Monday, the City Councilapproved and Taveras signed a plan to save $16 million by freezingautomatic cost-of-living adjustments for retired municipalworkers.

Taveras had sought $40 million more from Brown over 10 years,but the city reduced the amount during negotiations. Taveras saidthe $31.5 million figure agreed to by Brown was higher than thecity's final request.

Simmons said university faculty and students may question whyshe agreed to commit an additional $31.5 million to the city inexchange for "modest" concessions. But she said it will be worth itif in 10 years the city is fiscally sound.

Brown's future success as a research institution will depend onsupport from local and state officials, Simmons said. She saidBrown's willingness to help Providence shows the university isserious about the town-gown relationship.

"We have to have everyone's support, not their resentment," shesaid.

Chafee, himself a Brown University graduate, stepped in whennegotiations with the university broke down, Taveras said.

The governor, an independent, said his message to both sides wassimple: "Make peace."

"Rhode Island and Providence share a history and future withBrown," he said.

The deal will reduce pressure on Brown in the Statehouse, wherelawmakers have suggested legislation to allow cities to chargetax-exempt institutions for police, fire protection and other cityservices.

Those bill probably aren't going anywhere now, Fox said.

Rep. John Carnevale, a Providence Democrat who sponsored some ofthose bills, said the deal with Brown is "a good step," but hethinks cities should have the authority to requirecontributions.

If Brown paid property taxes on all its property, it would paythe city $38 million annually, according to city calculations.