NEWTOWN TOWNSHIP - The board of supervisors informally
agreed to explore whether the Newtown Corporation, which the township assumed
control of earlier this year, should be used to help with economic development
in the area.
At the Nov. 26 board meeting, Supervisor Ryan Gallagher unveiled his detailed proposal to use the non-profit group to develop an economic strategy to help bring businesses to the borough and township.
“I don’t think that there can be anything more important on this township’s agenda, at least from an economic development issue, than to find a replacement for Lockheed Martin,” Gallagher said, referring to the recent announcement that the company plans to close its Newtown Township facility by mid-2015.
“Seventy million dollars in salaries is leaving this area,” he said. “What can we do to get that ball rolling?”
According to Gallagher, the name could remain the Newtown Corporation because of the association’s past prominence, or it could be changed to the Newtown Economic Development Corporation, in order to denote a newly revitalized organization.
Under Gallagher’s plan, the group would have a nine member board of directors consisting of two township supervisors, one planning commission member, a representative from both the Newtown Business Commons and the Newtown Business Association, two business owners-at-large, and two township residents.
All representatives would have to be approved by the supervisors.
According to Gallagher, the group would have its office in the township building, and an executive director would also be appointed to run the day-to-day operations.
In addition, Gallagher proposed that the supervisors and township solicitor would approve the group’s goals, and the township would cover all administrative costs.
He said that private donations could also be sought, with the township providing funding additional funding, if need be.
“I think this could work,” said Supervisor Matt Benchener. “There was a lot of issues with the Newtown Corporation, there was no clarity,” Benchener explained. “This would provide them with one direction.”
However, the financially-ailing Newtown Corporation’s recent slide into financial despair and political unrest raised questions whether keeping the name would be a hindrance to future economic development efforts.
Supervisor Chairman Mike Gallagher noted that “the negative impact of the name and history” could be a problem, and he suggested that the group might be better suited as a township committee, with the possibility of eventually be designated as a non-profit entity.
“I think that what you established here is a pro-active committee,” Mike Gallagher said of his fellow supervisor’s proposal.
“There’s so much potential to what you laid out here ... it’s a good starting point but I don’t think it’s to the point of appointing people to the board yet,” he cautioned.
Meanwhile, township manager Kurt Ferguson explained that while it’s easier to maintain the group as a township committee, it’s harder to get outside funding when it is not a non-profit organization.
Even as a non-profit, grant money is hard to come by, noted Ferguson, who has managed non-profit groups in the past and said that he “would be happy to get [this one] off the ground.
“I don’t think you’re going to go out as a non-profit and get $100,000 or $150,000,” he noted.
But Ferguson said that procuring “seed money” is a possibility.
The supervisors agreed that if such a group was eventually given the task of attracting business to the area, developing the soon-to-be vacant Lockheed Martin property should be the first undertaking.
“What can we do to get that ball rolling,” Supervisor Ryan Gallagher said. “Lockheed Martin would be a good project for them to take.”
While supportive of the idea, Supervisor Phil Calabro argued that the group should be a township committee, rather than the Newtown Corporation, because of “its negative connotation in recent years.
“Do it as a [township] committee of qualified people who donate their time like other committees,” Calabro said. “Maybe it should also have a Newtown Borough liaison.”
The supervisors agreed to further discuss the proposal at a future work session.
In August, the supervisors unanimously voted to appoint all five supervisors, along with the township manager, to serve on the Newtown Corporation's 11-member board of directors.
By holding six seats, the township maintains the controlling interest, as well as a quorum.
The move was necessary so that the restructured non-profit group could continue to operate, as well as pay its bills and file federal tax returns.
Earlier this year, the supervisors agreed to be the sole partner with the organization and indemnify Newtown Borough from any of the Newtown Corporation’s liabilities after the borough had formally cut ties with the group.
Hard times had hit the organization, with its bank account dwindling from $100,000 several years ago, to roughly $2,000.
For several years, the township had contributed $20,000 annually to Newtown Corporation’s funding, while the borough put in around $5,000 a year. The funding stopped a few years ago.
Newtown Township and the borough had partnered with the non-profit since its formation as the Joint Downtown Newtown Corporation (JDNC) more than a decade ago to enhance the economic climate of the two municipalities, while preserving the historic nature of State Street in Newtown Borough.
During that time, the JDNC, which later became the Newtown Corporation, managed a highly successful ‘Main Streets’ program. It had won statewide acclaim and had brought thousands of dollars in grant money to State Street under the leadership of Chris Ortwein.
When the Main Streets program ended in 2009, the Newtown Corporation board voted not to renew Ortwein’s contract and to move away from the Main Streets focus, instead concentrating on business development in the Greater Newtown area.
That move didn’t sit well with the leadership of the borough at the time, which began the process of separating from the organization.
Over the past few years the group’s influence’s subsided, and the number of sponsored events ceased under a political cloud of uncertainty.
In 2012, it had sponsored an October ‘Brewfest’ at the Newtown Athletic Club, the only event that it held that year.
Last December's Holiday Parade, once a Newtown Corporation event, was instead organized by the Newtown Business Association, which will also hold this year’s event.
At the Nov. 26 board meeting, Supervisor Ryan Gallagher unveiled his detailed proposal to use the non-profit group to develop an economic strategy to help bring businesses to the borough and township.
“I don’t think that there can be anything more important on this township’s agenda, at least from an economic development issue, than to find a replacement for Lockheed Martin,” Gallagher said, referring to the recent announcement that the company plans to close its Newtown Township facility by mid-2015.
“Seventy million dollars in salaries is leaving this area,” he said. “What can we do to get that ball rolling?”
According to Gallagher, the name could remain the Newtown Corporation because of the association’s past prominence, or it could be changed to the Newtown Economic Development Corporation, in order to denote a newly revitalized organization.
Under Gallagher’s plan, the group would have a nine member board of directors consisting of two township supervisors, one planning commission member, a representative from both the Newtown Business Commons and the Newtown Business Association, two business owners-at-large, and two township residents.
All representatives would have to be approved by the supervisors.
According to Gallagher, the group would have its office in the township building, and an executive director would also be appointed to run the day-to-day operations.
In addition, Gallagher proposed that the supervisors and township solicitor would approve the group’s goals, and the township would cover all administrative costs.
He said that private donations could also be sought, with the township providing funding additional funding, if need be.
“I think this could work,” said Supervisor Matt Benchener. “There was a lot of issues with the Newtown Corporation, there was no clarity,” Benchener explained. “This would provide them with one direction.”
However, the financially-ailing Newtown Corporation’s recent slide into financial despair and political unrest raised questions whether keeping the name would be a hindrance to future economic development efforts.
Supervisor Chairman Mike Gallagher noted that “the negative impact of the name and history” could be a problem, and he suggested that the group might be better suited as a township committee, with the possibility of eventually be designated as a non-profit entity.
“I think that what you established here is a pro-active committee,” Mike Gallagher said of his fellow supervisor’s proposal.
“There’s so much potential to what you laid out here ... it’s a good starting point but I don’t think it’s to the point of appointing people to the board yet,” he cautioned.
Meanwhile, township manager Kurt Ferguson explained that while it’s easier to maintain the group as a township committee, it’s harder to get outside funding when it is not a non-profit organization.
Even as a non-profit, grant money is hard to come by, noted Ferguson, who has managed non-profit groups in the past and said that he “would be happy to get [this one] off the ground.
“I don’t think you’re going to go out as a non-profit and get $100,000 or $150,000,” he noted.
But Ferguson said that procuring “seed money” is a possibility.
The supervisors agreed that if such a group was eventually given the task of attracting business to the area, developing the soon-to-be vacant Lockheed Martin property should be the first undertaking.
“What can we do to get that ball rolling,” Supervisor Ryan Gallagher said. “Lockheed Martin would be a good project for them to take.”
While supportive of the idea, Supervisor Phil Calabro argued that the group should be a township committee, rather than the Newtown Corporation, because of “its negative connotation in recent years.
“Do it as a [township] committee of qualified people who donate their time like other committees,” Calabro said. “Maybe it should also have a Newtown Borough liaison.”
The supervisors agreed to further discuss the proposal at a future work session.
In August, the supervisors unanimously voted to appoint all five supervisors, along with the township manager, to serve on the Newtown Corporation's 11-member board of directors.
By holding six seats, the township maintains the controlling interest, as well as a quorum.
The move was necessary so that the restructured non-profit group could continue to operate, as well as pay its bills and file federal tax returns.
Earlier this year, the supervisors agreed to be the sole partner with the organization and indemnify Newtown Borough from any of the Newtown Corporation’s liabilities after the borough had formally cut ties with the group.
Hard times had hit the organization, with its bank account dwindling from $100,000 several years ago, to roughly $2,000.
For several years, the township had contributed $20,000 annually to Newtown Corporation’s funding, while the borough put in around $5,000 a year. The funding stopped a few years ago.
Newtown Township and the borough had partnered with the non-profit since its formation as the Joint Downtown Newtown Corporation (JDNC) more than a decade ago to enhance the economic climate of the two municipalities, while preserving the historic nature of State Street in Newtown Borough.
During that time, the JDNC, which later became the Newtown Corporation, managed a highly successful ‘Main Streets’ program. It had won statewide acclaim and had brought thousands of dollars in grant money to State Street under the leadership of Chris Ortwein.
When the Main Streets program ended in 2009, the Newtown Corporation board voted not to renew Ortwein’s contract and to move away from the Main Streets focus, instead concentrating on business development in the Greater Newtown area.
That move didn’t sit well with the leadership of the borough at the time, which began the process of separating from the organization.
Over the past few years the group’s influence’s subsided, and the number of sponsored events ceased under a political cloud of uncertainty.
In 2012, it had sponsored an October ‘Brewfest’ at the Newtown Athletic Club, the only event that it held that year.
Last December's Holiday Parade, once a Newtown Corporation event, was instead organized by the Newtown Business Association, which will also hold this year’s event.
Source: BucksLocalNews
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