University to increase Borough contribution to $1 million

On the 250th anniversary of the University's relocation to Princeton from Newark, the University and the Borough have reached a new agreement that raises the University's 2006 voluntary contribution to $1 million and provides guidelines for future increases to that amount.

The plan, which will be in effect for three years, stipulates that the University's contribution will increase by the same percentage as the Borough's tax rate, and that the University will also provide additional funding for every tax-exempt building it constructs in the Borough.

In addition to voluntary contributions, the University currently pays about $1 million in sewer taxes and $3 million in property taxes, including property taxes for Berlind and McCarter theaters and other buildings, though they are legally tax-exempt.

In total, the University will provide 20 percent of the Borough's operating revenue, which will bring the University's financial contributions into equilibrium with its ownership of 20 percent of the Borough's land, University Director of Community and State Affairs Pam Hersh said.

"I'm pleased with the outcome of this particular agreement," Borough Mayor Mildred Trotman said, "[especially] because there will be a formula that provides increase."

"It's a good agreement and a fair agreement," Hersh said.

The University had previously given money to the Borough as part of an agreement made with the late Mayor Joseph O'Neill. That agreement expired at the end of 2005.

After O'Neill passed away in October, Trotman succeeded his post and took over negotiations of the new plan, Hersh said. The University had already promised O'Neill an increased contribution, but the exact details had not been settled.

The process became complicated in light of affordable housing obligations — created in part by new University construction — that the Borough needed to address.

Council members had accused the University of not contributing enough toward affordable housing. Hersh characterized the actions of the Council as political posturing, saying they had not contacted the University directly about their concerns before making public complaints.

Eventually, "the University decided to go forward with the promised donation, exclusive of whatever obligation we will have with affordable housing," according to an email from Hersh.

Trotman finalized the terms of the agreement, including the escalator clauses, and announced it as part of her State of the Town address at the Borough Reorganization meeting on Jan. 4, Hersh said.

"It certainly matches what [O'Neill] would have expected," Hersh said. "We think the contribution, in addition to the revenues from the properties we leave on the tax rolls, is fair compensation to the Borough."

But Trotman said the agreement is not a permanent solution because unforeseen issues could require renegotiations. "We'll see where we go from here," she said.

In other Borough news, Barbara Trelstad was selected Tuesday night to fill a vacancy on the Council, after being highly recommended by the Princeton Borough Democratic Committee. The other nominees were Tobin Levin and Mark Salzman '07.