The New Jersey Supreme Court has declined to hear Pennington Borough’s appeal challenging Hopewell Township’s PILOT agreement tied to the Hopewell Parc development, bringing the long-running legal dispute to a close.
In a brief order, the court denied Pennington’s petition for certification, allowing the Appellate Division’s ruling in favor of Hopewell Township to stand. With no further appeals available, the litigation is now officially over.
The decision clears the way for Hopewell Township to move forward with its previously announced commitment of up to $16.1 million to support the Bear Tavern Elementary School expansion in the Hopewell Valley Regional School District.
Hopewell Township: litigation ends, funding can move forward
Hopewell Township officials welcomed the Supreme Court’s decision, describing it as the end of a costly and uncertain process that stretched across multiple years and court levels.
Mayor David Chait said the ruling allows the township to focus on next steps rather than continued legal proceedings.
“We are pleased that the Supreme Court’s decision brings this long-running matter to a close,” Chait said. “The litigation created unnecessary cost and uncertainty for Hopewell Township residents, and this ruling allows the Township to move forward responsibly and uphold the provisions of the PILOT agreement. It is a positive outcome for our residents and students.”
Township attorney Steven Goodell told the Township Committee that the Supreme Court’s denial means the Appellate Division decision remains binding and that the township’s 2022 financial agreement with the developer is now settled law. Committee members noted that the legal uncertainty had delayed the township’s ability to release funds pledged to the school district.
Committee member Michael Ruger, the township’s liaison to the school district, said steps are already underway to finalize the funding mechanism.
“Thanks to the Supreme Court’s decision, Hopewell Township can finally unlock up to $16.1 million to support the Bear Tavern Elementary School construction project,” Ruger said during the committee meeting.
School district: project approved, funds will reduce borrowing costs
While the court decision removes a major legal obstacle, the Bear Tavern addition itself was already approved by voters.
Hopewell Valley residents passed a school construction referendum in the fall, authorizing the Bear Tavern expansion independent of the PILOT litigation. As a result, the township’s $16.1 million contribution will be applied toward debt service relief, helping reduce long-term borrowing costs as the project moves forward.
“We welcome the opportunity to finalize the funding agreement with Hopewell Township and proceed with the Bear Tavern addition,” said Superintendent Rosetta Treece.
District officials have said the funding will cover the cost of construction of the new addition. However, the money does not cover ongoing operational and personnel expenses that make up most of the annual school budget.
Pennington: case over, concerns remain
Pennington Borough leaders acknowledged the legal finality of the Supreme Court’s decision but expressed continued frustration with the outcome and its long-term implications.
In a statement issued by the borough, Mayor Jim Davy said the lawsuit was never intended to block affordable housing but to challenge what Pennington views as an unfair redistribution of school costs within the regional district.
“This was about fairness and protecting Pennington and Hopewell Borough taxpayers from a significant cost shift,” Davy said, arguing that the PILOT agreement removed more than $300 million in assessed value from Hopewell Township’s tax rolls while directing PILOT payments almost entirely to the township rather than to the school district.
In an interview, Davy said the litigation exposed structural gaps in how New Jersey’s long-term tax exemption law interacts with regional school districts.
“The PILOT itself isn’t the problem,” Davy said. “The problem is how it was applied. It altered the regional partnership for funding public education in the Hopewell Valley, and that’s not right or equitable.”
Davy acknowledged that the case is over but warned that the financial effects will continue to be felt.
“Short of legislative change, this is now court-sanctioned,” he said. “That doesn’t make it ethical, and it doesn’t make it fair.”
Pennington estimates that the cost shift could total $25 million or more over 30 years, largely driven by operational school expenses rather than capital construction costs. Borough officials said they plan to monitor assessed values as homes are sold in the development and to advocate for state-level reforms to require greater transparency and regional consultation in future PILOT agreements.
Moving forward
Despite lingering disagreement, officials across the region said they are turning their attention to next steps.
Hopewell Township leaders emphasized the importance of moving students out of temporary trailers and into permanent classrooms. School district officials are focused on advancing the Bear Tavern project while managing long-term costs. Pennington leaders said they remain committed to regional cooperation but believe the case highlights the need for changes to state law governing PILOT agreements.
With the Supreme Court’s decision, a three-year legal battle has ended — but the debate over how development, taxation, and regional school funding intersect in the Hopewell Valley is likely to be an ongoing topic.
