The University will contribute $2.75 million to the town of Princeton’s municipal budget in 2014, an increase of over 10 percent from last year’s contribution of $2.475 million.
The new agreement, which was announced on Thursday afternoon, is to last seven years, with an annual increase in contribution of 4 percent. The contribution over the seven years will total $21.72 million by 2020, the University said in a press release.
The payment is voluntary because the University does not pay taxes on most of its property due to its educational status. Town officials have long argued for either a larger contribution from the University or that it start paying taxes on all of its property.
In addition to its annual, unrestricted contribution, the University will make a one-time transaction valued at $2.59 million for a range of new community facilities, which will include a $90,000 for the municipality’s freeB bus service and a University-owned parking lot valued at $1 million that will be donated.
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