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Resolution of the Mayor and Council of Princeton Authorizing a Shared Services Agreement with the Board of Education of the Princeton Public Schools
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WHEREAS, the Municipality of Princeton (the “Municipality”) has entered into a Financial Agreement, pursuant to the Long-Term Tax Exemption Law, N.J.S.A. 40A:20-1, et seq. (the “Tax Exemption Law”), with SC Residential Urban Renewal, LLC (“Financial Agreement”) for the Thanet Development-Avalon Bay Project (“Development”), located on what is currently shown and designated as Block 5502, Lot 4 on the Municipality’s Tax and Assessment Map; and
WHEREAS, the Financial Agreement requires that SC Residential Urban Renewal, LLC, including its successors and assigns, make quarterly annual service charge payments to the Municipality, which is calculated as a percentage of its gross annual revenue, as more particularly described in the Financial Agreement (the “PILOT Revenue”); and
WHEREAS, the Municipality has pledged a portion of the PILOT Revenue to pay the debt service on bonds issued in connection with the development of the Princeton Senior Living Project (the “Debt Service”); and
WHEREAS, pursuant to the Tax Exemption Law, the Municipality is obligated to transfer five (5%) percent of the PILOT Revenue to the County of Mercer (the “County Payment”); and
WHEREAS, the Board of Education of the Princeton Public Schools (the “Board”) is the school board for the Princeton Public Schools, a comprehensive community public school district for the Municipality that serves students from pre-kindergarten through twelfth grade (the “School District”); and
WHEREAS, the School District operates and maintains certain public facilities within the Municipality that are utilized for the School District’s educational needs as well as by the Municipality and its residents for civic and club activities, athletic and recreational activities, election polling, and other public needs (the “Public Facilities”); and
WHEREAS, the PILOT Revenue presents a unique opportunity for the Municipality to provide the School District with funding for the purpose of sharing in the cost and expense of maintaining the Public Facilities; and
WHEREAS, the Municipality is willing and able to provide a portion of the PILOT Revenue to the School District to assist with the operational costs of the Public Facilities; and
WHEREAS, the Municipality and the Board desire to enter into an agreement to set forth the parties’ rights and obligations with respect to the payment of the PILOT Revenue (the “Shared Services Agreement”); and
WHEREAS, the Mayor and Council of the Municipality of Princeton desire to authorize the execution of the Shared Services Agreement to provide for the payment of the PILOT Revenue to the Board.
NOW, THEREFORE, BE IT RESOLVED by the Council of Princeton, County of Mercer, State of New Jersey, as follows:
1. The Shared Services Agreement, in substantially the form attached hereto, is approved. The Mayor is hereby authorized to execute, on the Municipality’s behalf, the Shared Services Agreement in substantially such form, with such editorial changes as the Mayor shall determine, in consultation with counsel, such determination to be conclusively evidenced by his execution of the Shared Services Agreement. The Municipal Clerk is hereby authorized and directed to attest to the execution of the Shared Services Agreement and to affix the corporate seal of the Municipality to the Shared Services Agreement.
2. This Resolution shall take effect immediately.
3. The foregoing recitals are hereby incorporated by reference as if fully repeated herein.
4. A copy of this Resolution and the executed agreement shall be placed on file in the Clerk’s Office and shall be available for public inspection.