University gives funds to Borough

The University announced last week that it will contribute an additional $250,000 toward capital improvements in Princeton Borough this fiscal year.

The contribution is in response to a letter Borough Mayor Joseph O'Neill wrote President Tilghman in August, revealing a shortfall in the Borough's finances and requesting a renewed "sense of partnership" between the two groups.

The $250,000 is in addition to the scheduled $350,000 payment arranged between the University and Borough, as well as a $141,000 donation arising from McCarter Theatre's expansion.

"I think the University has responded in a commendable way," O'Neill said. "The gift is very timely and very welcome. It's recognition that the University and the town have mutual interests and mutual concerns."

The current payment agreement between the University and the Borough was negotiated in 2002 and will expire in 2006.

It provides for an annual gift in the range of $350,000, some of which is in lieu of taxes that the University, as a nonprofit organization, is not required to pay.

In recent years, the University has donated an additional $500,000 to both the regional public schools and the Princeton public library. Futhermore, taxes on properties the University leaves on tax rolls make the University the largest taxpayer in the Borough, the University's Director of Community and State Affairs Pam Hersh said.

"We give tremendous amounts of money to the community every year," Hersh said. "We try to be as supportive of the community as we possibly can. It's certainly in everyone's interest to have a healthy and vibrant town."

Support nonprofit student journalism. Donate to the ‘Prince’. Donate now »

In his letter to President Tilghman, O'Neill urged further consultations between the Borough and University so that "we might accommodate your growth and development in an atmosphere of cooperation, not conflict."

"It's great that your employees and visitors shop at our stores and eat in our restaurants," he wrote. "But the State, not the Borough, benefits from the sales-tax revenue they generate. The costs of congestion, the wear and tear on our roads, and parking are borne by the Borough."

As a result, O'Neill said he wants to "begin a new chapter in the relationship of town and gown."

"What I'm hoping is that the Borough and the University can form a new partnership in which we recognize each other with a great deal of respect," he said. "The University means a great deal to us, and we hope that the town means a great deal to the University."

Get the best of the ‘Prince’ delivered straight to your inbox. Subscribe now »

One example of such a partnership could be the building of additional affordable housing in the Borough.

This housing may be required by new state regulations that base the number of affordable units on job creation in the region, O'Neill also stated.

The University has more employees than the Borough has permanent residents.

"As the University builds its campus, it also incurs liability for us in terms of affordable housing," O'Neill said. "We're discussing going into a partnership in which the University helps build that . . . It would be a very fruitful partnership."

Beyond fundamental improvements in infrastructure, possible partnerships facilitated by the $250,000 contribution include the beautification of Nassau Street, O'Neill said.

A portion of the money may fund weekend street cleaning and additional flowers.

Vice President and Secretary Robert Durkee '69 announced the contribution in a letter to O'Neill on Sept. 16.

In the letter, Durkee mentioned another consideration for the timing of the payment: Next year is the 250th anniversary of the relocation of the College of New Jersey — Princeton's original name — from Elizabeth, N.J., to Princeton.

"We've been in Princeton for 250 years, and we're gonna stay here," Hersh said.