The $11.5M Bypass Land Deal: From Failed Sewer Plant to Townhouses

A major multi-year land dispute on the Newtown Bypass is officially taking a new direction. The Newtown Bucks County Joint Municipal Authority (NBCJMA aka Newtown Sewer Authority) has voted to approve an $11,500,000 agreement of sale for its 17.5-acre parcel to local developer DeLuca Newtown, LLC.

Here is a quick breakdown of how we got here and what happens next:

• The History: The property was originally condemned via eminent domain for $11.5 million to build a new wastewater treatment facility (read "#NewtownPA Sewer Authority Purchases Land for Sewage Treatment Plant"). Following strong resident opposition, the Newtown Township Board of Supervisors withdrew its support (read "#NewtownPA Supervisors to NBCJMA: 'Abandon Plans for Sewer Plant!'"), forcing the Sewer Authority to cancel the project and secure court permission to liquidate the asset.
• The Development Plans: DeLuca Newtown, LLC plans to construct a townhouse development on the site. Newtown Township has previously denied the construction of townhouses on this property before it was acquired by the Sewer Authority via Eminent Domain. Read “Developer Challenges #NewtownPA Zoning to Allow 245 Unit Apartment Building in OR District”. As noted below, the sale is contingent upon the buyer getting township approval of its “new” plan, which - if I read the "Assignment Claus" correctly - can be the same KRE plan that the township denied back in 2023!

• Contingencies & Timelines: The sale is far from a done deal. The agreement includes a 75-day due diligence window followed by a 365-day approval period. DeLuca must successfully secure a zoning change, preliminary land development approval, and sewer capacity (EDUs) from Newtown Township to move forward.
• The Ratepayer Question: To fund the original land purchase, the Sewer Authority implemented a 26.1% rate increase. While the Authority states this sale is designed to "protect our ratepayers from the continuation of debt," this rate increase remains in effect today, and it is highly uncertain if or when it will be rescinded once the sale is finalized. According to Authority Chair Jerry Schenkman, a substantial portion of the sale proceeds is expected to be used to satisfy the loan associated with the property. The Authority also must account for closing costs, taxes, interest and legal expenses. Mr. Schenkman said the Board would consult with its financial advisers after the sale is completed to determine whether it can “lighten the load” for sewer customers.
• Public Access: The full, executed purchase agreement was officially released on August 7, 2026, in response to a Right-to-Know request filed by resident John Mack who will continue to monitor the township planning meetings as DeLuca begins its due diligence and presents its initial sketch plans.