Princeton University has agreed to contribute more than $24 million over the next seven years to the town of Princeton.

Princeton University (William Thomas Cain, Getty Images)

The deal was announced Thursday and is set for consideration by the town government's approval on Monday.

The university and town officials frame it was as a way to resolve an age-old issue in college towns where much of the land is university-owned and thus tax-exempt.

Under the deal, the Ivy League school would pay $2.6 million toward several specific departments, including a storage facility for public works equipment and a new first-aid building.

 

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The school would also make yearly unrestricted payments and would continue paying property taxes on graduate student housing that could be tax-exempt.

 

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)