The Hopewell Valley Regional School District told families Friday it is moving forward with a two-question Nov. 4 bond referendum while welcoming an appellate court ruling that could eventually mean Hopewell Township PILOT dollars are contributed to the Bear Tavern Elementary expansion.
In an email to families, Superintendent Rosetta Treece said the decision means Hopewell Township “can proceed with its plan to contribute $16.1 million from PILOT funding toward the Bear Tavern expansion,” but emphasized that voter approval is still needed to fund work district-wide and to secure state aid. The district also issued a release framing the ruling as “good long-term news,” while stressing that the referendum “remains the quickest, most certain path” to complete Bear Tavern and other improvements.
What’s on the ballot Nov. 4
The referendum is split into two questions. Question One covers HVAC and roofing replacements and security enhancements across all schools; Question Two funds additions at Bear Tavern and Toll Gate to address space needs tied to enrollment growth. Estimated costs, state aid and annual tax impacts are:
• Question One — Cost $58.4 million; state aid $19.9 million; estimated annual tax impact: $248 (Hopewell Borough), $284 (Hopewell Township), $294 (Pennington Borough).
• Question Two — Cost $25.8 million; state aid $333,321; estimated annual tax impact: $164 (Hopewell Borough), $188 (Hopewell Township), $194 (Pennington Borough).
(Impacts are based on average assessed values of $408,445 in Hopewell Borough; $477,718 in Hopewell Township; and $488,135 in Pennington Borough.)
District leaders say they structured the referendum to tackle aging infrastructure with many of the items in Question One considered critical to the buildings, increase classroom capacity, and unlock more than $20 million in state aid if both questions pass—aid that would be in addition to any future PILOT contribution used to offset Bear Tavern debt service. They also note there is no confirmed timeline for PILOT transfers and an appeal of the ruling is possible.
Pennington Borough Mayor Jim Davy said that they were reviewing the appellate court’s decision and had not made a decision on petitioning the NJ Supreme Court to appeal. Hopewell Borough had already indicated they were no longer going to pursue the lawsuit through a resolution at their May meeting.
A virtual town hall on the referendum is scheduled for Oct. 9 at 6 p.m.; project lists by school and FAQs are posted at hvrsd.org/vote. You can read MercerMe’s past coverage of the school district referendum here.
How PILOT could intersect with school funding
In April, the Township passed a resolution and pledged up to $16.1 million in PILOT revenue toward Bear Tavern’s expansion, citing state law that allows municipal PILOT dollars to be used to support school facilities projects. The PILOT commitment was contingent on the litigation between the boroughs and the Township. Thursday’s decision moves the process one step closer.
Mayor Courtney Peters-Manning said “there is a new state law designed for exactly this situation; municipalities paying for school district improvements with PILOT funds. It is brand new, so there is a lot to still figure out, but the mechanism is clearly there.”
The district notes that even if both referendum questions pass, PILOT revenue would apply only to Bear Tavern, while Question Two also funds Toll Gate’s addition. That’s one reason officials say the second question remains necessary for space relief at both schools. Question 2 allows the district to move forward on an addition to Toll Gate that would allow the district to tear down the trailers and bring all of the students inside the building.
What the court decided—and what’s next
On Aug. 21, a two-judge Appellate Division panel affirmed a lower-court ruling upholding Hopewell Township’s ordinance approving a long-term tax-exemption agreement for the Hopewell Parc redevelopment. The unpublished opinion by Judges Gooden Brown and Smith leaves the ordinance in place unless the New Jersey Supreme Court agrees to hear a further appeal.
Following the decision, the township said it can move forward—absent any further appeal—with providing up to $16.1 million for Bear Tavern improvements.
Under New Jersey court rules, a party seeking Supreme Court review must notify the court within 20 days of the Appellate Division decision; a full petition for certification is typically due within 30 days. That filing does not guarantee review.
Bottom line for families
District officials say the ruling may lower the long-term local share on Bear Tavern by applying PILOT dollars to debt service, but the immediate, most certain path to fund building upgrades and add classrooms across the system remains the Nov. 4 referendum. If both questions pass, the district expects to pair state aid with any future township PILOT contribution to reduce the long-term tax burden while delivering the necessary critical infrastructure repairs to all of the buildings and address the increased capacity needs.
