Dive Brief:

• Princeton University has agreed to pay the town of Princeton, NJ, $21.7 million over seven years to help with the municipality’s costs.
• The university will pay $2.75 million in the first year, and subsequent payments will increase 4% per year.
• The school will also pay a total of $2.59 million separately for five specific municipal projects, such as a $90,000 bus that provides free rides through the university and town during commuter hours.

Dive Insight:

Princeton University is tax exempt, though it is also the largest taxpayer in the town, leaving some properties on the tax rolls that could qualify for exemptions under state law, according to The Times of Trenton. The newspaper reported that residents who have been challenging the university’s tax-exempt status are unhappy with the agreement because of the seven-year term and its modest increases. The other one-time payments will be $250,000 for a Department of Public Works equipment storage facility, $500,000 to help build a rescue squad building, $250,000 to expand a fire station, and $500,000 to buy fire-fighting gear.