Cape Elizabeth voters passed a hotly contested $86.5 million school project by a vote of 2,479 to 2,171 on Tuesday.

The money will be used to rebuild the town’s middle school and do renovations and additions at the elementary school.

“We deeply appreciate the support of our schools by our citizens,” Superintendent Chris Record wrote in a statement to the Press Herald on Tuesday. “It is exciting to consider the benefits for students and staff of building the first new school in Cape Elizabeth in 50 years.”

The bond packs a 12.3% tax increase to be spread over several years.

“We know this investment in our students comes from every household in Cape and we do not take that lightly,” Record said. “We hope to make everyone proud of the new middle school we will build, the upgrades to Pond Cove Elementary, and the subsequent benefit to the children of Cape Elizabeth for years to come.”

Voters also authorized the district to raise $1.7 million through gifts and grants toward solar panels for the new middle school, with 3,128 votes in favor and 1,486 against.

More work is slated for the elementary school and the high school in the town’s capital investment budget over the next 10 years.

It was the third attempt by the school district to gain voter authorization for a new school in as many years, following a $116 million referendum failure in November 2022 and a $95 million bond that failed last November.

Advocates for the project said building a new middle school is the most financially responsible plan, “resetting the clock” on one of the district’s aging buildings, with long-term plans to address needs at the elementary and high school.

Opponents argued that the town can do with just renovations and additions at a lower price point, and that the estimated 12.3% tax increase is too much for the community to swallow.

Voters also approved zoning amendments, originally passed by the Town Council earlier this year, by a vote of 2,688 to 1,919.

The amendments allow multifamily housing developments in the town center district if they are located at least 125 feet from a road.

The amendments apply to five properties in the town center, including a site next to Town Hall where a 33-unit senior housing project, Center Court, is proposed.

Under the amendments, the multifamily developments meeting the 125-foot setback requirement will be allowed to build one unit per 1,500 square feet rather than one unit per 3,000 square feet. It also permits a building’s footprint to be up to 12,000 square feet, rather than 5,000, and the building’s height to be up to 50 feet, rather than the previous 35-foot maximum.

The first floor will not have to be reserved for commercial space, as previously required, among other tweaks, such as regulations around roof pitch.

Voters also approved a $36.3 million school budget that comes with an estimated 2.9% tax increase by a vote of 3,041 to 1,574.

A major challenge of this year’s budget, according to the district, was the loss of roughly $800,000 in state subsidies.

Additionally, voters decided to continue the school budget validation process by a vote of 3,034 to 1,508.