Share PILOT Money With School​ District, Princeton BOE Tells Council

PRINCETON, NJ — The president of the Princeton Board of Education on Thursday called on the Council to share funds from payments in lieu of taxes (PILOT) for residential redevelopment projects.

BOE president Dafna Kendal said the funds will help accommodate more students while maintaining the quality of programming in schools.

Princeton Council has set a vote on whether to approve an application for tax exemption and PILOT agreement with the redeveloper of the former Princeton Seminary tract on Thursday evening.

HP 108 Stockton Urban Renewal LLC plans to build a multi-family residential development of 240 units, which includes 48 affordable housing units.

“We appreciate the work of our colleagues on the Council, and we want to ensure that together we plan effectively for the future of a community that prioritizes the success of our school children,” Kendal said in a statement.

“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.”

The seminary agreement would be the fourth PILOT agreement to be approved by the Council in the past few years. To date, none of the agreements have provided funding for the school district, officials said.

Through its Master Plan projects, Princeton projects the population to increase by approximately 10 percent in the coming years.

“We reasonably expect the number of school children to grow proportionately with the overall population,” Kendal said.

“Yet the school district is limited by state law to a maximum tax levy increase of 2 percent per year, with some exceptions. PILOT monies could help us pay additional teachers and sustain academic programming and student services. The state doesn’t require municipalities to allocate a portion of PILOT payments to schools, but in cases where redevelopment will yield additional housing units, it makes sense to do so.”

During the last Council meeting, Mayor Mark Freda told council members the seminary project would result in significant benefits health, wealth, and financial well-being of the Municipality and its citizens.

He also told the Council that after discussing with the finance department he found the agreement “fair and equitable."

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