By Anne Levin

At a meeting of Princeton Council on Thursday evening, December 19, the governing body voted to approve an ordinance granting a payment in lieu of taxes (PILOT) agreement to the redeveloper of the former Tennent-Roberts-Whiteley campus of Princeton Theological Seminary.

Herring Properties plans to build a 238-unit apartment complex, with 20 percent designated affordable, on a 4.8 acre site. The PILOT agreement exempts the developer from taxes for 30 to 35 years, during which 95 percent in special payments are made to the municipality, and 5 percent to Mercer County.

In a letter to Council earlier in the day, Princeton Board of Education President Dafna Kendal asked that money from those payments be shared with the public schools.

“We hope the Council will consider our heartfelt recommendation that PILOT payments for residential development be shared with the schools, in order to help us support additional schoolchildren while lessening the cost to taxpayers of maintaining the high level of teaching and learning, robust programs, and other educational services that are expected by our community for all students,” said Kendal.

Council members defended the terms of the PILOT, agreeing that those terms are necessary for the project to be completed. But they said that they are eager to work together with the school system on their issues.

Council President Mia Sacks commented that under New Jersey’s Mount Laurel framework, municipalities have a constitutional obligation to provide their fair share of affordable housing, and public school districts have an obligation to provide “a free and appropriate education to each resident student enrolling in their schools.”

She expressed frustration that the state does not provide an efficient mechanism for coordination between housing and schools.

“One of the things that troubles me is that because the state framework is so inadequate, municipal officials and school boards are often pitted against one another,” she said. “We should be working together to advocate for our legislature to provide solutions that are less piecemeal and more effective than what we have available to us now.”

Councilwoman Eve Niedergang pointed out that if the project was done without a PILOT, it would not benefit the schools in any way, “because the schools present a bill to the town, and the town pays that bill by taxing the residents,” she said. “We’re kind of talking apples and oranges to say the PILOT is in any way taking money from the schools. That’s really not the case.”

According to a memo by Mayor Mark Freda recommending the agreement to members of Council, the project “will result in significant benefits for the health, welfare, and financial well-being of the municipality and its citizens.” In addition to the 20 percent affordable housing set-aside, Freda noted a $200,000 contribution by the redeveloper to the town’s Sustainable Transportation Fund, the enhancement of the gateway into town, and the creation of jobs during the project.

During public comment, former Councilwoman Jo Butler, who lives next to the campus, criticized the Council for passing such important legislation during a time when many people are distracted by the holidays. “I would urge you to postpone this decision for a few weeks to give the public more time to get through the holidays and give this the attention it deserves,” she said.

Resident Wassim Abida, who lives on Ober Road, commented that the decision affects those in all areas of the town. “I haven’t heard a good argument for the PILOT. I’d like to understand why this is necessary,” he said, adding that the AvalonBay development at the former Princeton Hospital site did not require such an arrangement.

Niedergang said the town “took some lessons away” from that project, in which those who live in the affordable units still are required to pay for some of the added costs charged to those living in market rate units. “With a PILOT, we can inspect the books upon request to the developer,” she said.

Councilwoman Michelle Pirone Lambros urged people to read the FAQ (frequently asked questions) that is available in the agenda packet for the meeting (at princetonnj.gov) to clarify the terms of the PILOT. “It’s complicated, and it’s a lot, but it’s there,” she said.

Commenting further on Friday, Lambros said, “We support doing the right thing for the community in general. This really is a good deal for the town on so many levels. We just want to see it built and do the right thing for the community.”

Council’s next meeting is scheduled for December 30 at 10 a.m.