Princeton University has made its first payment of more than $50,000 in lieu of taxes for its farmland-assessed “Sarnoff frontage” property, in accordance with a memorandum of understanding recently approved by the West Windsor Township Council.
The PILOT (payment in lieu of taxes) agreement, approved in October, stems from a verbal agreement made in 2002, when the university purchased the 81-acre property fronting Route 1 from the Sarnoff Corporation. Until 2008, when the property was downgraded to farmland assessment, the university paid taxes on the parcel. The agreement guaranteed a minimum payment to West Windsor of $50,000 each year plus added costs for inflation.
The township announced the university has actually paid $51,900 for 2009, adding $1,900 for inflation, based on the percentage change in the consumer price index the prior 12 months.
Prior to 2008, the university had been paying taxes on the property at a much higher rate than the $50,000 approved in the agreement. Now because it is assessed as farmland, the township can not legally receive as much money for the property, unless it is through voluntary contributions.
