University, College Township
agree on tax settlement

Penn State will work cooperatively with College Township to implement an impact fee on some non-athletic events held at the Bryce Jordan Center and Beaver Stadium as a means for the township to collect revenue.

The 20-year agreement will go into effect retroactively to Sept. 1, and officials on both sides say it brings closure to the issue of implementing a tax on certain events at the Bryce Jordan Center and Beaver Stadium. Collection of the impact fee will not start until Jan. 1, 1997. Until then, the township will receive the funds it would normally expect to receive as part of an earlier agreement it signed with the University along with the other area municipalities, the county and the State College Area School District. College Township withdrew from that agreement on July 1.

College Township will leave the amusement tax ordinance on the books, but will not pursue it relative to Penn State.

The terms of the agreement include:

For concerts, family entertainment and special events conducted at the Bryce Jordan Center and Beaver Stadium for which tickets are sold, Penn State will collect and pay an impact fee to College Township.

Tickets priced at less than $10 will have no impact fee.

Tickets costing $10 to $19.99 will have a 50 cent impact fee.

Every additional $10 increment will add another 50 cents to the impact fee.

The University will make payments to the township quarterly.

The impact fee will exclude college football and basketball games and other sporting events, such as possible PIAA competitions.

Other events such as University academic convocations, religious gatherings, banquets and similar food-related events will also be excluded from the impact fee.

"We're pleased that negotiations have led to an agreement that does not introduce an amusement tax to the community," said Gary Schultz, senior vice president for finance and business/treasurer. "I appreciate the fact that township officials met us half-way and we hope that the resulting agreement will better benefit the community, the University and the visitors to the community who attend events at Penn State."

"This was the most rewarding negotiation I've every participated in," said Lee Shields, representing College Township. "Both sides identified their goals early in the process and worked diligently to achieve them. The University was responsive and forthright. There was progress at each meeting which resulted in an agreement that addresses the needs and concerns of both parties and strengthens the town-gown relationship."

In signing the agreement, the township pledges not to pursue the amusement tax with Penn State. Township officials also agree not to oppose the University's efforts to obtain agreement with other parties in modifying the existing settlement agreement.

Penn State officials met in recent weeks with officials from the other area municipalities that have been part of an in-lieu-of-tax agreement for several years and have indicated the University's desire to abide by that agreement.

The other municipalities involved include Centre County, State College Area School District, State College Borough, and Patton, Harris and Ferguson townships.

Penn State would like to have the original agreement with the other municipalities slightly modified, in particular to lengthen the period covered so that it coincides with the new College Township agreement, set to expire on Dec. 31, 2016.

In 1992, Penn State executed an agreement with surrounding municipalities to pay $600,000 a year in lieu of property taxes. In addition, the University provides $200,000 worth of services to the county, and pays approximately $100,000 a year, in lieu of real estate taxes, for family housing on campus. Fees in lieu of real estate taxes are also paid for non-University for-profit entities that rent space or land from the University.