A request to amend a developer’s agreement for The Waxwood building on Quarry Street, in the historic Witherspoon-Jackson district, was the topic of a work session at a meeting of Princeton Council Monday night.

Architect/developer J. Robert Hillier (a Town Topics shareholder) has asked Council to modify an amendment to the original agreement, which dictated that the rental units would be sold after a period of five years. Mr. Hillier told Council that should the units be converted, he feared tenants would not be able to afford to buy them.

But one resident of the building said he objected to Mr. Hillier’s request and has been looking forward to purchasing his unit since signing his lease in 2004. “It was my understanding that in 2009 I would be granted the opportunity to purchase,” said George Cumberbatch. If the terms were changed, “It would be denying qualified residents home ownership in the Jackson-Witherspoon neighborhood.”

Mr. Hillier converted the building, originally a school for black children and later a nursing home, to 34 condominium units in 2002. Three of those units were designated low-or-moderate income, while another five were for neighborhood residents who didn’t meet state income requirements for affordable housing. They were assisted by the Waxwood Foundation, which Mr. Hillier created to assist direct descendants of longtime residents or people who had lived in the neighborhood for a minimum of 10 years.

The former Borough Council amended the agreement to allow the developer to rent the units for five years instead of selling them. In 2010, the governing body extended that amendment to keep the units as rentals, because of economic hardship caused by the downturn in the housing market. The units were scheduled to be converted to for-sale condominiums as of last month.

Mr. Hillier told Council that the building has been successful as a rental. Some tenants have been there for 12 years while the average stay is five-and-a-half years. Tenants were notified by mail that he would be asking the town to change the original agreement to keeping the rental status. Four wrote letters in support of the proposal.

Should the units be converted, residents would pay an average of about $3,000 a month in total costs as opposed to about $2,150 that they currently pay. The Waxwood Foundation, as part of the original agreement, would pay the 20 percent down payments for those purchasing the three affordable housing and five additional units. “The place has become home to a lot of people,” Mr. Hillier said. “If it were to go on to the market I’m afraid it would lead to more gentrification of the neighborhood and investors coming in. There is a very strong rental market and rental need in Princeton. It goes better as a rental for the neighborhood.”

Mayor Liz Lempert asked Mr. Hillier, who estimated that the dwellings would cost around $400,000 if converted, if he could consider a hybrid of rental and for-sale units. But Mr. Hillier said that wasn’t a viable idea. “The two don’t mix well, and right now we have a nice, stable community in the building. And I’d like to keep it that way,” he said.

Neighborhood resident Leighton Newlin told Council during the public comment period of the meeting he was in favor of keeping the units as rentals until the issue is further explored. “How many people who presently live in the eight units would be able to stay?,” he asked. “I would say maybe one or two. People need rental units in Princeton because they can’t afford the high market prices to buy, so please keep that in mind.”

Mr. Newlin praised Mr. Hillier for being “a very likeable and amenable friend to the community,” he said. “He kept the integrity of the Waxwood and made it what it is today, keeping the history of the town in mind.”

Local resident Elizabeth Bates questioned the developer’s motives. “Mr. Hillier has asked that it be a rental and now he’s complaining that it’s going to cost so much money to be a condominium,” she said. “He got his wish, now he doesn’t like it. He is asking us as a town to take in less money so he has a better business deal. That seems rather questionable to me.”

Council president Lance Liverman said he was torn between the idea of honoring Mr. Hillier’s request or sticking to the idea of selling the units. “The ideal situation would be to lower the cost of the units, and I know you can’t do that,” he said.

Councilman Bernie Miller said that whatever way the issue is resolved, someone will get hurt. “And I also believe that a contract is a contract,” he added. “He entered into a contract in good faith. Now it’s being proposed that the municipality abrogate that contract. I’m bothered by this.” Mr. Miller proposed that there might be a solution that protects both sides, allowing those renting now to continue to do so, and those that want to buy their units to be permitted to do so.

Council will take up the issue again at its next meeting on Monday, December 5, when more facts and figures will be made available.