A dispute over a property tax exemption is threatening the proposed construction of a new dorm at East Stroudsburg University.
The university says it'll be lucky if it can open the planned 500-room residence hall in September 2014.
The university created a separate nonprofit entity to build the residence hall and received a tax exemption from the county worth about $650,000 annually. But the local school district and borough say the university is trying to avoid local property taxes.
The planned 500-bed facility is the second phase of a two-part project. The first phase, a 1,000-bed facility, has already been built. Officials had thought the facility to be tax exempt, until the university received a bill from the local tax assessor for a yearly tax of about $700,000.
University Vice President Richard Staneski said the project could be canceled if the district or borough appeals the decision.
The school district board is scheduled to discuss a possible appeal Monday.
East Stroudsburg tore down two old dorms in July and opened new suite buildings in January.