Tuesday, January 29, 2013

Township and Richard Stockton College to Begin Discussions on New PILOT Agreement for Stockton Seaview Hotel is the first entity to report that Township Officials have now confirmed discussions will commence in the upcoming weeks between Galloway Township and Richard "Stockton" College. The $300,000 PILOT Contribution made by Stockton College over the past three years will now expire in 2013. Without a new agreement the Township will begin 2014 with a $300,000 guaranteed deficit.

Township Manager Arch Liston and Mayor Don Purdy have both confirmed that the Township will begin discussions with Stockton College in the upcoming weeks. However, Liston and Purdy would not confirm if the Township will seek the same monetary contribution amount for the new agreement. 

Request for comment from Stockton College official Charles Ingram went unanswered at the time of publication.

In December 2010 the Township and Richard Stockton College entered into a three (3) year agreement for Payment In Lieu of Taxes. The agreement as released below states Richard Stockton College will make a $300,000 payment to the Township by March 1st of each year. The agreement included years 2011, 2012 and 2013. 

A stipulation in the agreement states, "Galloway and Stockton will reevaluate this Agreement prior to it expiration and shall discuss the appropriate contribution to be made in future years based upon the nature of the activities being conducted at Seaview. Stockton's financial situation at the time, and the municipal resources used by Stockton, as well as the services provided by Galloway."

Stockton College has their own Police Department, however at the time of discussions with the Township in 2010, Township Officials were concerned about other Township services Stockton Seaview would be utilizing. Those services included the Township Fire Company and Galloway Police Department on calls for service. Township Officials including former Mayor Keith Hartman and then Deputy Mayor Don Purdy meet with Stockton Officials for two hours in September 2010 before the $300,000 contribution was agreed upon. 

Stockton purchased Seaview Hotel and converted multiple rooms into dorms for some of their elite students that would participate in the Hospitality Program with the College. Stockton also spent millions of dollars in renovations before hosting their first LPGA Tournament. 

Stockton also has another PILOT agreement with the Township for residential houses they own within the Township.

We are confident with the relationship between the Township and Stockton College, that they both understand even in these tough economic times a new agreement with a similar amount is needed for future years.


Anonymous said...

When a college starts buying up formerly private properties as investments they should pay taxes, again the law needs to be changed!!

Anonymous said...

I certainly understand the concern raised by anonymous regarding taxation. Current tax law addresses "unrelated business income tax" for nonprofit entities that engage in taxable transactions. I do beleive the tax code needs to be changed in other areas, but I beleive the code addresses UBIT adequately. I think we'll see negotiations regarding PILOT resume because the Township and the College appear to have a good relationship based on the article.

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