From the Towns: Hopewell Township Committee Statement Regarding the PILOT and the Upcoming School Referendum

As a part of Hopewell Township’s state-mandated plan to meet its affordable housing obligation, and to ensure that neighborhoods that include an affordable housing component are financially feasible, the Township entered into a Payment in Lieu of Taxes (PILOT) agreement with Lennar, the builder of the new inclusionary neighborhood at Hopewell Parc.

In light of the Hopewell Valley Regional School District (HVRSD) Referendum that will be in front of voters in September, residents have raised questions about the PILOT and how it may impact the HVRSD. Here, we aim to answer these questions and clarify some misconceptions that are circulating in the community.

The HVRSD and the Board of Education have noted that their bond Referendum contemplates improvements at all schools in the District, including roof and HVAC maintenance that have nothing to do with growth from any of the planned inclusionary neighborhoods. It also includes replacement of the trailers at Bear Tavern Elementary School, which have been housing students since 1994, with the construction of a new wing. This new construction will allow for expanded pre-K programs, in addition to accommodating additional students from our new inclusionary neighborhoods.

The estimated cost of construction of the new Bear Tavern wing is $17.1 million, which represents approximately 19.6% of the total amount of the Referendum.

The Hopewell Township Committee noted in 2016, and has reinforced over the years, that it is committed to using a significant portion of the funds from the PILOT to offset any costs of improvements at Bear Tavern Elementary School that may, at least in part, stem from any additional students that will come from our court-approved affordable housing plan. In fact, the PILOT agreement with Lennar itself specifically notes using PILOT funds to support the HVRSD and the new Senior and Community Center.

The roadblock in putting specific numbers to this commitment is the current pending litigation initiated by Hopewell Borough and Pennington Borough against Hopewell Township (Hopewell Borough, Pennington Borough et al. v. Hopewell Township et al.) that seeks to invalidate the PILOT agreement. The Township has already won the case in the lower court, but the case is currently on appeal to the Appellate Division. So long as there is ongoing litigation surrounding the PILOT agreement, the Township Committee is unable to commit to any specific funding plan.

If the Referendum passes, and the appeal is decided in Hopewell Township’s favor (and is not appealed further), the Township can have substantive conversations with the HVRSD about a specific dollar amount for a contribution towards improvements at Bear Tavern.

Finally, outside of the Referendum, it is important to note that the HVRSD sets their annual operating budget and the amount to be raised by taxes each year, and the tax collector raises these funds from taxpayers, both residential and commercial, and sends them to the HVRSD. The PILOT has no impact on this process, and the District receives 100% of the amount requested, no matter what.

The Hopewell Township Committee, the HVRSD, and the Board of Education collectively have a productive working relationship, including our recent partnership on a joint demographic study, and we look forward to continuing to work together for all of the residents of the Hopewell Valley.

For more information about the HVRSD bond Referendum, the District has provided information at www.hvrsd.org/vote.