NORTH ANDOVER — Two years ago, Merrimack College President Richard Santagati promised both North Andover and Andover an annual donation of $50,000 to hire public school teachers.
But when Santagati retired earlier this year, each town found its donation out the door as well.
The Rev. Joseph Calderone, interim college president, sent a letter in late spring, telling officials not to expect further monetary gifts from Merrimack, citing a tough economy and restructuring at the college.
Town leaders in North Andover aren't taking the news lightly. Selectmen are calling for a meeting with the college's newest president, Ronald Champagne, who took over for Calderone last month. They will press him to honor the obligation.
"I think Merrimack College owes the town of North Andover an explanation," Selectman Tracy Watson said.
The donation was the only money the town was receiving from the college, which is a nonprofit institution and exempt from taxes. Institutions typically offer payment-in-lieu-of-taxes deals to their host communities to offset the cost of town services, such as police and fire coverage.
The North Andover Fire Department responds to about 100 calls at Merrimack College every year.
The portion of Merrimack College in North Andover is assessed at more than $60 million. If taxed at the residential rate of $11.40 per $1,000 of valuation, the college would pay more than $685,000 per year in property taxes.
"They don't pay taxes, and they receive a hell of a lot of services from the town," Selectman Daniel Lanen said.
Two selectmen were so irked with the college Monday night that they voted against granting a one-day liquor license for the school's upcoming homecoming weekend.
Selectman Mark Caggiano said he would vote against giving the college anything in the future until the issue is resolved.
He said the town had budgeted for the money, and it was wrong for the college to renege.
"Merrimack College has decided they don't owe us anything, and I'm in the same opinion toward them," Caggiano said. "I consider this to be a big deal."
Lanen also voted against giving the liquor license. But three other members — Watson, Chairman Rosemary Smedile and Richard Nardella — voted to approve the license, saying they didn't want to punish alumni and students over a disagreement with administrators.
Smedile said it was frustrating to see the donation vanish.
"I sat across the table and fought long and hard on that," she said.
Lanen said the town needs to re-evaluate its relationships with schools like Merrimack and Brooks School.
Brooks School, off Great Pond Road, has donated money to purchase police cruisers in the past. It allows the town to use its fields for youth sports and the skating rink at no charge for weekly public skating.
Some argue that the schools offer North Andover prestige.
"I think we're providing more services than we're receiving from them," Lanen said.
Phillips Academy has an agreement with Andover to voluntarily pay more than $100,000 a year to cover its share of town services.
While Andover also was receiving the $50,000, it has not yet taken a stand like North Andover. The college campus has a North Andover address but sits partially in Andover.
Andover Town Manager Reginald "Buzz" Stapczynski said he was not aware of the college's move. Superintendent Claudia Bach did not return phone calls and e-mails for comment yesterday.
Santagati had said the donations would keep coming, barring any financial troubles at the college. Merrimack saw its largest freshman class this year in more than a decade.
Calderone wrote that the college was in the middle of a strategic planning process, "shaping our priorities" and "re-examining our strategic investments."
He did send both towns a $50,000 check for the 2007-2008 school year.
"It is imperative that you do not depend upon future gift monies as we work through this time of transition and repositioning of Merrimack College," Calderone wrote. "Please accept my very best wishes to you and all your students as we move toward the remainder of this semester."
When asked for comment yesterday, Heather Notaro, a college spokeswoman, said Merrimack officials would be willing to meet with town officials in an effort to continue being a good neighbor.
"Although we no longer can provide the gift to North Andover, we will continue our support of the town in other ways," Notaro said in a statement. "Our students and faculty will continue to contribute many hours of service in North Andover schools, assisted living facilities, nonprofit agencies and more."
North Andover Town Manager Mark Rees was awaiting a call back from the college yesterday afternoon.
