Pennington Borough Council voted Sept. 2 to move forward with an appeal of the Hopewell Parc PILOT case, announcing after a closed executive session that it will petition the New Jersey Supreme Court to review last month’s appellate ruling in favor of Hopewell Township.
On Wednedsay, the Borough issued a press release to residents vowing to continue the fight for what officials called “fair treatment of regional taxpayers” and warning of millions in additional costs for Pennington families over the next three decades.
Mayor James Davy said the appellate decision “fundamentally undermines the principles of fairness and regional cooperation,” while Council President Nadine Stern argued that “our residents will pay more to subsidize Hopewell Township’s development decisions in which we had no voice.”
Township Calls Move “Disappointing”
Hopewell Township Mayor Courtney Peters-Manning said Pennington’s decision is disappointing and delays the Township’s ability to deliver on its $16.1 million commitment toward expanding Bear Tavern Elementary School.
“Of course, this will hold up that funding, because we can’t spend money that we don’t know we will have,” Peters-Manning said.
Schools Urge Focus on Referendum
Hopewell Valley Regional School District Superintendent Dr. Rosetta Treece said the Borough’s decision underscores the need for residents to support the district’s two-question bond referendum this November.
“A voter-approved bond referendum remains the only guaranteed path to securing upfront funding for critically needed building improvements,” Treece said. She emphasized that Question Two, which funds additions at Bear Tavern and Toll Gate, remains essential. “Without the ability to add elementary space, our class sizes will continue to grow, redistricting will occur, and students will continue to learn in aging modular trailers instead of inside their schools.”
Treece said the District is grateful for the $16.1 million PILOT pledge, litigation makes the timing uncertain. When available, she added, the money would reduce debt service and lower taxes across all three municipalities.
Hopewell Borough Steps Aside
Hopewell Borough has already withdrawn from the litigation. Mayor Ryan Kennedy said his council previously authorized attorneys to remove the Borough to allow the Township’s school-funding commitment to proceed.
“While we have come to a different conclusion than Pennington on how to proceed, we do share their objection to the rising school costs from the Township’s developments and the disproportionate impact those new costs have on taxpayers in the Boroughs,” Kennedy said. He described the Township’s contribution as “a first small gesture” toward fairness, adding, “Paying for the construction anticipated at Bear Tavern does not come close to achieving that fairness, but it is an important start that Hopewell Borough has stepped aside to help facilitate.”
What Happens Next
Pennington must file its petition for certification within 20 days of the Aug. 21 Appellate Division decision. The Supreme Court receives more than 1,000 petitions each year and agrees to hear only about 100. If the court declines to take the case, the appellate ruling stands, leaving the Township free to proceed under the financial agreement with developer Lennar.
If the justices accept review, the case could remain unresolved for a year or longer. In the meantime, the Township’s PILOT agreement stands, and the school district will move forward with its two question November referendum regardless of the outcome.
History of the Case
- 2021: Hopewell Township approved Ordinance 22-1766 authorizing a 30-year Payment in Lieu of Taxes (PILOT) agreement with developer Lennar for the 1,077-unit Hopewell Parc project off Scotch Road, including 216 affordable units.
- 2022: Pennington and Hopewell boroughs filed suit, arguing the PILOT unlawfully diverted school tax revenue and imposed unfair costs on regional taxpayers.
- Aug. 21, 2025: A two-judge Appellate Division panel upheld the Township’s PILOT, finding the Township acted within the Long Term Tax Exemption Law and emphasizing deference to municipal legislative decisions. The opinion was unpublished and not precedential but left the Township’s financial agreement intact unless the Supreme Court grants review.
- Sept. 2, 2025: Pennington Borough voted to petition the New Jersey Supreme Court for review.
