1. DONNA FAULKENBERRY, CURT STOLLEN,
SPOTSWOOD BOARD OF EDUCATION and BOROUGH
OF SPOTSWOOD
v.
BOROUGH COUNCIL OF THE BOROUGH OF
HELMETTA, BOROUGH OF HELMETTA PLANNING
BOARD and KAPLAN AT HELMETTA L.L.C.
DOCKET NO. MID-L-6185-11

2. 1) Helmetta was previously a send and receive
district. In 2008-2009 paid $11,785 per student.
2) As a result of legislation, Spotswood and
Helmetta are combined into a consolidated
school district.
3)Equalized value formula is utilized based on
assessed property values, which results in
78/22 split for the most current year.

3. 1)Kaplan group purchases property for
redevelopment project, age restricted housing.
2) As a result of economic downturn, attempts to
move under conversion statute for non age
restricted housing. Helmetta Planning/Zoning
Board denies application with assistance from
Spotswood and case is appealed.
3) Proposed settlement is reached for 200 non- age
restricted one and two bedroom units.
4) Currently pending before the Board is
Whispering Woods to approve settlement.
5) All zoning is in place to proceed.

4. 1) Last year, Borough of Spotswood and
Spotswood BOE joined forces and filed suit.
2) Completely novel legal theories advanced. One
municipality has never stopped another
municipality from development based on impact
on schools.
3) Successful in early going because of numerous
procedural errors by Helmetta Board.
4) Have successfully delayed construction for a
year.
5) Only chance of success might be with the NJ
Supreme Court.

5. 1) Mayor Martin approached Spotswood months ago
to discuss settlement. Talks were unsuccessful.
Kaplan stepped in and talks progressed.
2) Final proposal was presented last week. Helmetta
Board is set to vote on July 2nd.
3) Most observers consider it likely that Board, despite
almost universal opposition to project, will vote to
approve it, causing lengthy litigation to commence and
offer to be withdrawn or changed unfavorably
4) Spotswood has reviewed offer and finds it advisable
to consider accepting after community hearing.

6. 1) From PILOT payment of $275,000, Spotswood
BOE will receive half after payment to County.
Minimum of $130,000 per year for 22 years =
$2,860,000.
2) Per student cost calculated by adding the total
amount of Spotswood and Helmetta
students(1,198+291) and dividing it into the tax
levy. $13,254,758/1489 = $8,901.78.
3) Spotswood share of the PILOT will pay for
almost 15 students.
4) If PILOT goes up, after taking into account
County’s portion, Spotswood gets half of all of it
until it has paid for 19 students.

7. 5) For every student from 20 on, Kaplan pays the per
pupil cost according to the formula.
6) Kaplan will execute and record a memorandum of
the details of the settlement agreement, including
the payment agreement by Kaplan to Spotswood
BOE, along with Release of the lawsuit agreeing to
the terms. Agreement will run with property if
sold or transferred
7) Kaplan will provide title search of property to
confirm no existing mortgages, judgments, etc.
8) Helmetta will amend the redevelopment
agreement to memorialize Spotswood’s share of
the PILOT payment.

8. 1) Any guarantees? What if Kaplan goes bankrupt?
The title is clear.
Kaplan’s long business record and the filing of the
memorandum that agreement runs with the
property.
Upon any transfer of property, a Bankruptcy Court
could always void any agreement.
Worst case is it goes on tax rolls. If assessed at
$15.5 million it would generate approximately
$199K in school taxes, which would cover about 22
children. However, if influx of children is greater
than 22 children no mechanism for getting more
money, unlike with Kaplan proposal.

9. 2) How many students are going to be generated?
Spotswood expert says 66, Kaplan’s and
Helmetta says 20-26.
No one can predict, but Kaplan is wagering a
lot of money and are confident their numbers
are right.

10. PROS CONS
1) Minimum Revenue 1) Uncertainty of
stream of $2.8 Million. number of children and
2) Kaplan to pay per costs of special needs
pupil cost of every children.
student over 20. 2) Concern if Kaplan
3) Unlikely success of went bankrupt
litigation.
4) Better than if it is on
tax rolls

11. HOWEVER, EVERYONE AGREES IT IS IMPORTANT TO
EDUCATE THE PUBLIC, ANSWER ANY AND ALL
QUESTIONS, ELICIT FEEDBACK AND ACT IN AN OPEN
AND HONEST MANNER AS TO WHAT IS BEST FOR THE
TAXPAYERS OF THE BOROUGH AND THE CHILDREN
WHO WILL BE ATTENDING OUR SCHOOLS