The Hopewell Valley Regional School District said it welcomed a Superior Court ruling Thursday that removed an obstacle to receiving PILOT funding, but reminds the public that a Nov. 4 bond referendum will proceed as planned.
The Hopewell Valley Board of Education has approved two questions for the November ballot to improve building infrastructure and expand space. Question One includes HVAC and roofing replacements and security enhancements. Question Two covers expansions to accommodate current needs and enrollment growth at Bear Tavern and Toll Gate elementary schools.
Hopewell Township pledged $16.1 million toward the Bear Tavern expansion from a PILOT (Payment in Lieu of Taxes) agreement that is expected to drive enrollment growth. Pennington Borough sued the township over the PILOT contract, with the courts siding with the township in May 2023. The borough appealed, and on Thursday, Aug. 21, the Superior Court of New Jersey upheld the ruling.
“We continue to appreciate Hopewell Township’s commitment to our students and are happy to hear this good long-term news for Hopewell Valley schools,” assistant superintendent Robert Colavita said in a statement issued by the district. “The November bond referendum, which will provide upfront funding with voter approval, remains the quickest, most certain path to complete the BearTavern expansion and improvements that impact all district schools. We expect the PILOT funding to eventually pay down debt service for the Bear Tavern expansion.”
Even if the board wanted to change the Nov. 4 ballot, it would be too late to do so. But district leaders say there are numerous benefits to staying the course.
“We moved forward with the bond referendum because it is the most comprehensive approach to district-wide needs,” said Rosetta Treece, superintendent of schools. “The board has been approved to receive a contribution from the state in the amount of $20.2 million toward the $84.2 million cost of the projects. That’s in addition to PILOT revenue that also would be used toward debt service. The combination of state aid and PILOT revenue maximizes the funding for school improvements. We are working to arrange meetings with Hopewell Township and Pennington Borough to discuss next steps.”
The district says the reasons to proceed with the bond referendum include:
• $20.2 million in state aid if voters approve both questions.
• Upfront funding to improve schools. There is not yet a confirmed timeline to receive PILOT funding, and an appeal of the court ruling is possible.
• Voter approval of Question Two would fund building additions for both Bear Tavern and Toll Gate schools. PILOT funding would be applied only toward the Bear Tavern project costs.
The funding breakdown for Question One is:
• Cost: $58.4 million
• State aid: $19.9 million
• Estimated annual tax impact: $248 for Hopewell Borough; $284 for Hopewell Township; $294 for Pennington Borough
The funding breakdown for Question Two is:
• Cost: $25.8 million
• State aid: $333,321
• Estimated annual tax impact: $164 for Hopewell Borough; $188 for Hopewell Township; $194 for Pennington Borough
The estimated tax impact does not factor in potential PILOT revenue. The estimates are based on the average assessed value of $408,445 in Hopewell Borough, $477,718 in Hopewell Township and $488,135 in Pennington Borough.
“This is another positive development in the ongoing plan to improve Hopewell Valley schools,” said Board President Anita Williams. “With Hopewell Township’s upfront commitment to funding and state aid from a voter-approved bond referendum, we can provide students with the learning environments they need and deserve.”
See more about the bond referendum, including a list of projects by school and FAQs at hvrsd.org/vote. And save the date for a virtual town hall on the referendum on Oct. 9 at 6 p.m.
