Discussion Needed Between Town, University Relating To Donations As Part Of Tax Exempt Lawsuit Settlement: Report

Princeton, NJ -- Discussion is needed between Princeton University and the Town of Princeton concerning nearly $7 million the university said it would give to the town as part of its recently settled tax exemption lawsuit, the Princeton Packet reports.

The settlement calls for $3.48 million contributions from the university to the town in both 2021 and 2022, the two years after the current seven-year agreement between the municipality and the school expires, according to the report.

However, during a press conference on Monday, Princeton Mayor Liz Lempert said that as far as she knew “there was nobody there from the municipality advocating on behalf of the municipality for that agreement,” according to the report.

Council President Lance Liverman was also at the press conference, and said the town will have to see the specifics of the agreement before answering any questions or making any comment about the settlement, according to the report. The town and the university will have to negotiate when it comes to the second phase of their agreement, Lempert said.
The municipality was neutral in a lawsuit filed by a group of residents that challenged the tax-exempt status of some of the University’s buildings that are used for commercial use, such as eateries.
Lempert and Councilwoman Heather Howard had recused themselves from closed session discussions during litigation.
The agreement was announced days before the trial was slated to begin, on Oct. 17.
The university agreed to contribute $2 million next year and $1.6 million for each of the next five years to a fund that will help lower income residents pay their property tax bills.
It will also make three contributions to the Witherspoon Jackson Development Corporation each year, for the next three years, according to the report.
There is a provision that calls for 50 percent of the benefits to be pulled back if there is another challenge to the university’s tax exempt status.
After six years, if the sides can’t reach an agreement to extend or replace the tax relief program, there could be a lawsuit from the university.

Patch file photo