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Cottage Club's tax exemption denied

More than two years after filing an application with the New Jersey State Department of Environmental Protection, the University Cottage Club was denied its petition to attain property tax-exempt status.

In July 2001, Cottage attorney Thomas Olson filed a petition for historic property certification that would exempt Cottage from local property taxes.

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DEP Commissioner Bradley Campbell notified Olson of the state's negative decision on Oct. 17.

"As a private club, the building and property of the University Cottage Club are not and cannot be freely accessible on a regular basis to the public," Bradley Campbell wrote to Olson.

Princeton Borough Mayor Marvin Reed took notice of Cottage's bid in 2002. The Borough's tax assessor received a letter from the DEP's Office of Historic Preservation recommending acceptance of Cottage's application.

But Cottage represents about $50,000 worth of property taxes a year, Reed said. He said that if Cottage's request were granted, the other eating clubs on Prospect Ave. would likely follow suit in the future, and the Borough could lose close to half a million dollars of property tax revenue used to finance public education.

"The amount would have to be made up by raising other residents' property taxes," Reed said.

Reed said he immediately began inquiring at the state level about Cottage's application.

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"We protested [the application] quite vigorously and approached a number of legislators," Reed said. "Basically, I was assured that the recommendation would be dismissed when it got to higher authorities."

One of the legislators with whom Reed communicated was State Assemblyman Reed Gusciora.

"Reed expressed concern," Gusciora said. "It was a state issue, but he was most concerned that [Cottage's tax-exemption] may provide a precedent for the other clubs."

He said the lack of public access to the club was ultimately the reason Cottage was denied the designation, though, because the public is not benefited by the club's historic property.

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"Essentially, it comes down to the fact that the eating clubs are looking for a free ride," Gusciora said. "That's fine if you want to be a historical designation, but the public should be allowed to participate. I should be able to be invited to the parties if I'm a Princeton Borough taxpayer helping to maintain Cottage Club."

Campbell told Olson that any future applications that do not meet "objectively reasonable standards of public accessibility" would also be denied tax-exempt status.

Cottage is not the first eating club to file for tax-exempt status. Tower Club filed for — and won — tax-exempt status in 1972 by hosting University preceptorials. Since that time, Tower has remained the only tax-exempt club on the Street.

"Ever since that time, we've been especially aware that nothing like that slides by again," Reed said.

Neither Cottage Club president John Richmond nor Olson could be reached for comment.