Officials cobble together $3.5M to pay judgment in eminent domain case involving golf course land
LlWER MAKEFIELD - The township will borrow up to $3.5 million from township funds to pay off a judgment in an eminent domain case involving Lower 0DNefieOd’V 1999 DFTuLVLWLRn RI WKe 166-DFre DDOJewLFz FDrm Rn Woodside Road, the current site RI WKe 0DNefieOd HLJKODndV GROI Course which opened in 2004.
$W WKe -une 19 meeWLnJ, WKe board of supervisors voted 5-0 to borrow the money from several township sources: the general fund, the sewer fund, the sewer FDSLWDO reVerYe Iund Dnd WKe WrDIfiF impact fund.
The exact amount of the judgment is not known, but is expected to be between $3.3 million and $3.5 million. The township is waiting for the attorneys representing WKe DDOJewLFz IDmLOy WR SreVenW D calculation, which will include the interest that has been accruing at mRre WKDn $10,000 D mRnWK VLnFe the 2008 jury award.
“:e’re nRW Ln Dny wDy, VKDSe or form trying to move the shells around,” said Supervisor Dan McLaughlin. “We need to get this obligation behind us.
“:e need WR mRYe TuLFNOy EeFDuVe we’re DFFruLnJ LnWereVW,” Ke added.
According to township soliciWRr -eII GDrWRn, LRwer 0DNefieOd is allowed to make interfund loans if they are done through a formal resolution at a public meeting and the loans are paid back to those funds within the calendar year. The township must also repay the borrowed money with interest at the current rate.
Currently, the township is preSDrLnJ WR refinDnFe LWV ERndV wKLFK through a new issue planned for August. Township manager Terry Fedorchak advised getting the money ready now, before the bond issue, because the township is payLnJ EeWween $13,000 WR $14,000 every month in accrued interest on the court judgment.
$W WKe 0Dy 1 VuSerYLVRrV’ meeWLnJ, GRrdRn :DONer RI 3uEOLF FLnDnFLDO 0DnDJemenW (3F0), WKe WRwnVKLS’V ORnJ-WLme ERnd DdYLVRr, reFRmmended WKDW RIfiFLDOV refinDnFe $4.24 mLOOLRn Ln JROI course bonds which become due in 2022 through 202T.
Walker also had suggested that LRwer 0DNefieOd VKRuOd Ddd DERuW $5 mLOOLRn mRre WR WKe refinDnFLnJ package, so that township can get the lowest variable interest rate possible.
Anticipating all along that it could exhaust its court appeals, the township has accounted for the damages award and interest Ey WDNLnJ VWeSV WR refinDnFe WKe golf course debt, so that residents would not be hit with any tax increase, according to Fedorchak.
“2nFe we SDy WKe DDOJewLFzV,” he explained, “it will allow us to pay ourselves from the bond money that will be forthcoming in the next few months.”
During the May meeting, severDO VuSerYLVRrV nRWed WKDW ERnd refinancing would also give the townVKLS D finDnFLDO FuVKLRn Ln FDVe it lost its pending state Supreme CRurW DSSeDO RI D ODwVuLW fiOed Ey WKe RwnerV RI WKe DDOJewLFz IDrm that the township condemned in 1998 WR EuLOd WKe JROI FRurVe.
That high court decision eventually was handed down a few weeks ODWer Rn 0Dy 29.
In a unanimous ruling, the jus- tices held that the township owed the property owners at least an additional $3.3 million, which also includes the accrued interest.
:LWK WKe 3ennVyOYDnLD SuSreme Court ruling, the total purchase price now stands at more than $T.3 million in principal and interest WKDW LRwer 0DNefieOd wLOO Ee SDying for the land. The township had DOreDdy SDLd WKe DDOJewLFz IDmLOy $4 million as a result of condemnation proceedings.
After a six-day trial in November 2008, a Bucks County jury had determined that the tract was wRrWK $5.85 mLOOLRn, nRW WKDW $3.99 million that the township had paid WR DFTuLre WKe SrRSerWy. LRwer 0DNefieOd WKen DSSeDOed WKe DwDrd, FODLmLnJ WKe Mury’V YDOuDtion on the land was too high.
More than four years of legal wrangling ensued, with two state appellate courts siding with the plaintiffs.
7Ke DDOJewLFz IDmLOy Rwned WKe 166-DFre WrDFW Rn :RRdVLde Road in the northeast corner of the township near the Scudder Falls Bridge. The property was condemned under eminent domain in order to build a public golf course.
According to the landowners, they had received several offers from developers ranging from $5.1 mLOOLRn WR $8 mLOOLRn, Dnd KDd argued that the township had drastically undervalued their property.
In setting the purchase price, the Bucks County Board of siew, which oversees eminent domain proceedings, took into account assessments provided by the WRwnVKLS Dnd WKe DDOJewLFzV Ln determining that the property was wRrWK RnOy $3.99 mLOOLRn.
But because the township and the family were unable to agree on a purchase price, the matter proceeded to a jury trial.
:LWK WKe 3ennVyOYDnLD SuSreme CRurW’V ruOLnJ, WKe Mury DwDrd stands.
$W WKe -une 19 meeWLnJ, WKe Vupervisors also agreed to extend the agreement of sale of the Satterthwaite property for use as a horse hospital until the end of the calendar year, as recommended by the township solicitor.
DrV. $my BenWz Dnd BrDd HROmsten, a husband-and-wife veterLnDry WeDm, ERuJKW WKe 5.14-DFre parcel for $255,000 in lctober, and the sale had to be consummated by mid-June.
HRweYer, EeFDuVe RI WKe RnJRLnJ KeDrLnJV wLWK WKe WRwnVKLS’V ZRnLnJ HeDrLnJ BRDrd IRr VLx YDrLDnFe reTueVWV, WKe VDOe FRuOd not be concluded by the original deadline.
The extension was granted in a 4-1 mRWLRn, wLWK SuSerYLVRr -eII Benedetto opposing it.
2n -une 18, WKe zRnLnJ ERDrd held its fourth hearing since February on whether to approve the YDrLDnFe reTueVWV IRr WKe SDWWerthwaite property to be used as an eTuLne YeWerLnDry FOLnLF.
The parcel, which lies along Newtown-Yardley Road (Route 332) Dnd 0LrrRr LDNe 5RDd, FRnWDLnV WKe SDWWerWKwDLWe HRuVe, SDrW RI wKLFK dDWeV WR WKe 1730V, as well as a nearby historic barn, NnRwn DV D 3ennVyOYDnLD EDnN barn because it has a dirt incline OeDdLnJ WR WKe VeFRnd flRRr.
Most residents oppose the SODnned uVe DV Dn eTuLne IDFLOLWy, wLWK WKe neLJKERrV’ FRnFernV Fentering on several key issues such DV: LnFreDVed WrDIfiF DORnJ 0LrrRr Lake Road, possible waterway contamination because of animal waste runoff, and noises and smells from horses which would be housed on the property. Light emissions and landscape buffering also are concerns.
Meanwhile, a number of residents, including Donna Doan, a long-time opponent of the Satterthwaite sale, have asked the superYLVRrV WR WeOeYLVe WKe fiIWK zRnLnJ board hearing scheduled for July 16 DW WKe WRwnVKLS EuLOdLnJ Rn Edgewood Road.
According to Doan, the meeting is important, because it will mostly focus on the public comment portion of the proceedings.
HRweYer, SuSerYLVRr CKDLrmDn 3eWe SWDLnWKRrSe dLVDJreed wLWK televising the hearing on cable Ts, saying that the decision is up to the ZRnLnJ HeDrLnJ BRDrd memEerV, not the supervisors, who can only approve the cost to televise it.
“Not televising the hearing until now would not be fair to the appliFDnW,” Ke VDLd, nRWLnJ WKDW WKe fiIWK, Dnd SRVVLEOy finDO KeDrLnJ, wRuOd contain mostly public comment against the proposed project.
Supervisor Kristin Tyler, a lawyer, agreed.
“,W’V unIDLr WR VWDrW WeOeYLVLnJ LW at this point,” she said. “It should have been televised from the beginning.”
In other news, the supervisors heard from the new township audLWRr wKR SreVenWed WKe 2012 DudLW RI LRwer 0DNefieOd’V finDnFeV.
$FFRrdLnJ WR C3$ 3eWer 3ODFe RI LRSez, 7eRdRVLR & LDrNLn, LLC, WKe WRwnVKLS’V finDnFeV were rRVy last year, and he noted that the real estate transfer taxes were higher WKDn Ln 2011, mRVWOy EeFDuVe RI the increase in home sales.
The supervisors said that was good news, with township manager Fedorchak noting that the real estate transfer tax revenues for FDOendDr yeDr 2013 mLJKW Ee EeWWer than anticipated.
“,’m FDuWLRuVOy RSWLmLVWLF WKDW we mLJKW EreDN $1 mLOOLRn IRr WKe firVW WLme Ln fiYe yeDrV,” FedRrFKDN
would be housed on the property. Light emissions and landscape buffering also are concerns.
Meanwhile, a number of residents, including Donna Doan, a long-time opponent of the Satterthwaite sale, have asked the supervLVRrV tR tHlHvLVH tKH fiItK zRnLnJ board hearing scheduled for July 16 at the township building on Edgewood Road.
According to Doan, the meeting is important, because it will mostly focus on the public comment portion of the proceedings.
However, Supervisor Chairman Pete Stainthorpe disagreed with televising the hearing on cable Ts, saying that the decision is up to the woning Hearing Board members, not the supervisors, who can only approve the cost to televise it.
“Not televising the hearing until now would not be fair to the appliFDnt,” KH VDLd, nRtLnJ tKDt tKH fiItK, Dnd SRVVLEly finDl KHDrLnJ, ZRuld contain mostly public comment against the proposed project.
Supervisor Kristin Tyler, a lawyer, agreed.
“It’s unfair to start televising it at this point,” she said. “It should have been televised from the beginning.”
In other news, the supervisors heard from the new township auditor who presented the 2012 audit RI LRZHr 0DNHfiHld’V finDnFHV.
According to CPA Peter Place of LRSHz, THRdRVLR & LDrNLn, LLC, tKH tRZnVKLS’V finDnFHV ZHrH rRVy last year, and he noted that the real estate transfer taxes were higher than in 2011, mostly because of the increase in home sales.
The supervisors said that was good news, with township manager Fedorchak noting that the real estate transfer tax revenues for calendar year 2013 might be better than anticipated.
“I’m cautiously optimistic that we might break $1 million for the firVt tLPH Ln fivH yHDrV,” FHdRrFKDN asserted.
Meanwhile, the township’s newly-invigorated Historical Commission is seeking members tR fill tKrHH vDFDnFLHV. CDndLdDtHV are encouraged to send their resumes to the township for consideration.