With the Hopewell Valley Regional School District Bond Referendum vote approaching on September 17, Hopewell Valley residents have concerns about the Payment in Lieu of Taxes (PILOT) 30-year tax abatement agreement between Hopewell Township and Lennar, the developer of the new inclusionary community.
PILOT Agreement Raises Community Concerns
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.
Earlier this year, MercerMe reported on the PILOT agreement. However, concerns about its potential relationship with the referendum lead Pennington Borough, Hopewell Township, and the Board of Education administrations to offer further clarification.
Local Leaders React to PILOT Agreement
In a letter addressing Pennington Borough residents this month, Pennington Borough Mayor, James Davy, expressed his disapproval of the Township’s administration decision.
Davy said, in part: “The developer’s PILOT payments will solely benefit the Hopewell Township municipal government; not the School District or the Fire District. Under the State’s redevelopment law, the County government will receive a mere 5 percent of the allocation. So, while a $25 million burden will shift to Pennington and Hopewell Borough taxpayers, Hopewell Township will generate approximately $387 million in funds from the developer, which is almost 6 times the amount it would otherwise receive from conventional property taxes.
“Further, the PILOT monies Hopewell Township will receive are ‘unrestricted.’ In other words, the Township Committee can use the money any way they want. Meanwhile, costs for the District will expand as the new development generates new students. This is what makes the Township’s refusal of the District’s request so disappointing.”
You can read the full letter here Pennington Mayor Calls Out Hopewell Township for Shifting School Tax Burden to Boroughs. https://mercerme.com/pennington-mayor-calls-out-hopewell-township-for-shifting-school-tax-burden-to-boroughs/
HVRSD Addresses High Costs and Financial Strategy
The Superintendent of HVRSD, Dr. Rosetta Treece, confirmed during the BOE meeting on August 19, that the Township does not have any additional obligations created by this PILOT with the District and cannot be forced to assist with the cost of the projects listed under the Referendum.
MercerMe last covered the bond referendum in the article Hopewell Valley Prepares for $87.5 Million School Upgrade Vote.
In response to Davy’s letter, Hopewell Township Mayor, Courtney Peters-Manning countered “That is just not true. We [Hopewell Township] clearly stated many times over the years, most recently just last month, that we are committed to helping fund the addition at Bear Tavern, should the litigation be decided in our favor and we have PILOT revenue.”
You can read Peters-Manning’s statement in this MercerMe article Hopewell Township Responds to Pennington Mayor’s Concerns Over School Funding.
Pennington Borough Council, Dr. John J. Valenza II, added “Any municipality that enters into a development agreement as large as Hopewell Parc (1000+ units) must also commit to addressing the associated financial impact on the critical services (school, fire, police, emergency response) the municipality provides or contributes to, especially the School District.
The Township should have planned for or negotiated an agreement with the developer to address these costs as part of the development agreement. Repeated comments by the Hopewell Township Mayor suggest this commitment is/was not in place.”
Board of Education Clarifies $15 Million Reserve
Former Hopewell Township mayors and long-time Hopewell Valley residents John Hart and Vanessa Sandom, shared their concerns with MercerMe readers in a joint Letter to the Editor.
Hart and Sandom said “HVRSD schools have the highest per pupil costs in Mercer County and among the highest in the state, with Valley families paying an average of $23,774 per enrolled student per year as of 2022-23, according to the NJ Department of Education. Believe It or not, in the most recently approved budget, HVRSD costs surged to well over $26,000 per pupil!”
At the BOE meeting on August 19, Dr. Treece explained, “Our per pupil cost, which is separate from the Bond Referendum but is part of our general budgeting, is high because of our smaller class sizes, program offerings such as special programs, AP, electives, clubs/sports, mental health support, STEAM, and healthcare and benefits we offer.”
Also, Hart and Sandom noted that “the HVRSD District has over $15 million in audited reserves as of last June. Yes, you read that right – we’ve got $15 million in the bank – more reserves or “cash in the bank” than all like-sized Mercer County school districts. Still, they want to charge another $87 million to our credit cards.”
At the August Board of Education meeting, Assistant Superintendent for Finance and Board Secretary, Robert Colavita spoke to the $15 million reserve
During the BOE meeting Colavita said, “The $15.9 million total funds balance as defined by the stat, was a snapshot of our position on June 30, 2023 during our audit. Eight million dollars is money sitting on our capital reserve, sort of our emergency fund should a boiler break or other things happen outside the realm of a Referendum. We will be using some of these funds to address Timberlane pipe issues.”
For the full recording of the Board of Education meeting on August 19, and additional explanation on the total funds balance use, click here.
Community Forum and Special Election Details
As the public vote date for the referendum approaches, the Board unanimously approved the referendum plan authorizing the submission of a bond proposal question to the School District voters at a special school election to be held at one polling location on September 17, 2024, at the Pennington Fire Company on 120 Broemel Place in Pennington
Here are some information you can use to learn more about the Bond Referendum and upcoming special election:
- Watch this video about the Bond Referendum
- Visit HVRSD Bond Referendum website
- Watch this recording of the community forum and Q&A held earlier this year
- Attend the second community forum. See details below:
This Town Hall will offer the community a chance to ask questions in person and online. The hybrid event will start at 7 p.m. on Monday, September 9 in the Hopewell Valley Performing Arts Center at 259 Pennington-Titusville Road, Pennington.
To participate online, this webinar link will be shared through the website hvrsd.org/vote, social media and email shortly before the event. Can’t make it? The webinar will be recorded and available for later viewing on the hvrsd.org website.
Editor’s Note: Hopewell Borough was reached for comment and did not offer a response by the time of this publication.
