By Anne Levin

Princeton Council voted unanimously in favor of creating a Special Improvement District (SID) at its meeting Monday night, February 28. The vote came after a few hours of comment from several members of the public — several opposed; fewer in favor — and discussion by members of the Council.

The SID, of which there are nearly 100 in New Jersey, is a defined area authorized by state law and created by a local ordinance to collect an annual assessment on businesses in that area. A nonprofit, separate from the municipality, collects the assessment, which goes toward improving the economic, physical, and social values of the district.

The nonprofit overseeing the SID will be known as the Princeton Business Partnership. The steering committee that has crafted the ordinance will cease to exist. “There is room for any property owners or business owners and residents to join,” said Councilmember Michelle Pirone Lambros, who has been instrumental in creating the SID. “It will be run and managed by the business community. All business partners will be stakeholders.”

Most of the comments by those opposing the SID came from business owners who operate outside of the central business district, do not rely on visitors and walk-ins, and don’t feel they should be assessed.

“There is nothing this SID could do for me, ever,” said Chip Crider, whose scientific instrument company operates outside the central business district in an area included in the ordinance. “I see the majority of these folks who are pushing this SID are interested in monetizing every aspect of Princeton for their gain. You’re giving a private, unrepresentative group the ability to do tax rates. If you want to help businesses in Princeton, stop meddling. I oppose this.”

Real estate owner and former Councilmember Lance Liverman said he is in favor of the SID, but it shouldn’t be town-wide. “There is very little the SID could do for me and my business,” he said. “I think the lines should be drawn to make it more advantageous. Making it town-wide is putting too much pressure on folks that may not be able to pay.”

Developer Jamie Herring, who served on the steering committee, said the assessment should be looked at as an investment rather than a tax. Council members concurred, saying the SID would make the business community more vibrant and attractive, which would benefit most businesses and residents.

Lambros said the estimated budget for the SID is $400,000, though it won’t be officially set until a board is put together. “That would be the maximum, and there is lots of time between then and now for discussion,” she said.

Councilmember Leighton Newlin said his opinion in favor of the SID is shaped partially by a sense of history, recalling that at one time there were over 100 businesses in the Witherspoon-Jackson neighborhood, “and some of them, quite frankly, rivaled businesses on Nassau Street,” he said. Referring to the toll that the pandemic has taken on the town, Newlin said the central business district and businesses all over Princeton need help.

“Not only is [the SID] the right thing to do, it is necessary and will create greater synergy between the organization and the municipality toward Princeton becoming more vibrant, more entertaining, more diverse, and more welcoming for all who come here. Rather than think about this as a gift to business, let us look at this as an investment in our infrastructure and sustainability, which it most assuredly is.”

The SID ordinance contains a sunset clause, allowing the town to disband it in five years should it be determined that it doesn’t work.