Newtown Borough Council voted Tuesday night to authorize eminent domain proceedings to acquire 22 Liberty Street, the building that has housed the borough’s police station for 25 years under a lease agreement with the Newtown Fire Association.
The resolution passed after Council President Emily Heinz said there were months of unsuccessful negotiations between the borough and the fire association over a new lease agreement.
The current lease expires in August.
“This is a step that we are not taking lightly,” said Council Vice President Kris Bauman, who made the motion to adopt the resolution. “It’s not our first choice, but as the solicitor has indicated, it’s the appropriate step to take at this point in time.”
Borough Solicitor Greg Heleniak explained that eminent domain allows municipalities to acquire property for public purposes, in this case to house the police department. The process requires the borough to pay “just compensation” equal to the property’s fair market value, determined through certified appraisals.
“The acquisition of a property through eminent domain transfers the title to the borough, but it also requires the borough to compensate the property owner what’s called just compensation,” Heleniak said.
The dispute centers on the fire association’s proposed rent increase for the police station lease.
According to Heinz’s summary of negotiations, the fire association presented new lease terms in March that the borough considered fiscally irresponsible.
The borough commissioned a professional appraisal through Indian Valley Appraisal Company, which assessed the property’s fair market value “significantly below the NFA’s interpretation of value presented in their lease proposal,” Heinz said.
In April, the borough offered to purchase the property outright.
The fire association declined and maintained its original lease proposal with no room for negotiation, according to borough officials.
“The NFA requested a copy of the borough’s appraisal which we shared with them in good faith on May 13,” Heinz said. “The borough next received a letter sent on behalf of the NFA on May 22 which restated the original lease proposal, provided no room for negotiation and advised that the NFA was not interested in selling the building at that time.”
The fire association’s letter stated that if the borough did not accept their terms by June 30, it would need to vacate the premises by July 31.
Bill Wise, who spoke on behalf of the Newtown Fire Association, criticized the borough’s approach during public comment.
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“For over 25 years, we have leased 22 Liberty Street to the borough for use as a police station at a rent far below market value,” said Wise, who serves as secretary on the fire association’s executive board.
“The rent we proposed wasn’t for profit. It’s to buy radios. It’s to replace aging equipment, to maintain fire engines and the facilities that house them,” he said.
Wise described the eminent domain proceedings as “an act of aggression and a portrayal of decades of goodwill” and questioned what message the action sends to volunteers who serve the community.
Several residents spoke during public comment, with some supporting the fire association and others urging both sides to continue negotiations.
Caroline Bennett, who lives on Liberty Street near the police station, raised concerns about the impact of police operations on neighborhood residents.
“The location of 22 Liberty is not appropriate for a police station because of the negative impact and the safety issues brought about for the life of the residents,” Bennett said, citing issues with parking, traffic, and noise.
Councilmember Julia Woldorf spoke of the borough’s fiscal responsibility to taxpayers.
“It is important that the borough and the NFA maintain good relations, but it is even more important that the borough do its due diligence and exercise responsible fiscal management of taxpayers’ money,” she said.
The borough sent a letter to the fire association on July 15 offering a six-month extension of the current lease to allow more time for negotiations.
Bauman clarified that any negotiated rate adjustment could be made retroactive.
“We understand that there needs to be an adjustment and we proposed that whatever that adjustment that gets negotiated could be then retroactive to the point of the extension because it’s not our intent simply to hold on to the building at the old lower rate,” Bauman said.
Heleniak stated that adopting the resolution does not immediately transfer ownership but begins the legal process.
“There is still after this resolution sometime for the other letters that have been sent,” he said. “There is plenty of time to change course.”
The borough, according to officials, currently supports fire services through multiple means beyond the building lease, including an annual donation payment to the fire association, a fire services agreement with the township for Newtown Fire-Rescue, and workers’ compensation insurance coverage for the volunteers.
The resolution authorizes the borough manager, solicitor, and engineer to prepare and file necessary documentation for the eminent domain process.
Borough officials expressed hope that negotiations could still produce an agreement without proceeding to the next steps in the legal process.
The police station has operated from 22 Liberty Street since the early 2000s when it moved from Borough Hall.
The building is located in the borough’s historic district and was built in 1889 as part of a row of brick houses.
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