Newtown Sewer Authority Agrees to Sell Lower Silver Lake Property to DeLuca Newtown LLC

NEWTOWN, PA — On July 22, 2026, the Newtown Bucks County Joint Municipal Authority, also known as the Newtown Sewer Authority, voted unanimously to approve an agreement of sale for its Lower Silver Lake Road property to DeLuca Newtown LLC for $11.5 million.

The 6-0 vote marks a major step away from the Authority's abandoned plan to construct a wastewater treatment facility on the property. The proposed sale price matches the amount the Authority originally paid for the land.

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However, questions remain about whether the transaction will lead to lower sewer rates or refunds for customers who have been paying higher bills while the project was under consideration.

Lower Silver Lake Road Property Sale

The Authority has reportedly been negotiating the sale for approximately eight weeks following a court order permitting it to dispose of the property.

Buyer and Development Status

DeLuca Newtown LLC is believed to be affiliated with DeLuca Homes or DeLuca Design Build, a Bucks County homebuilder with operations in the Newtown area. The company has used single-purpose limited liability companies for individual property acquisitions and development projects.

The sale remains subject to a due-diligence period. During that time, the buyer may evaluate the property and submit applications to Newtown Township.

The Authority's solicitor clarified that the word "settlement," as used in the motion approving the agreement, referred to a real estate closing and not the settlement of a legal dispute.

Abandoned Wastewater Treatment Plant

The property had been associated with a proposed wastewater treatment plant that the Authority ultimately abandoned.

For background, read: Newtown Sewer Authority Scraps $128 Million Wastewater Treatment Plant.

The Authority borrowed money to purchase the property for $11.5 million and has paid interest on that debt for several years. Although the proposed sale price equals the original purchase price, the final financial outcome will depend on the remaining loan balance, legal fees, closing costs, taxes and other expenses.

Residents Press for Sewer Rate Relief

During public comment, residents questioned why sewer rates remain elevated now that the wastewater treatment plant will not be built.

Several speakers argued that customers have been paying higher rates to support a project that has since been abandoned. They asked whether the proceeds from the sale could be used to provide refunds or reduce future sewer bills.

Residents also questioned whether the Authority attempted to obtain a sale price higher than $11.5 million to offset the interest, legal expenses and other costs associated with the land purchase.

Requests Raised During Public Comment

• Refunds: Return some of the money collected through past sewer rate increases.
• Lower Rates: Reduce future sewer bills after the property sale is completed.
• Full Accounting: Disclose the remaining loan balance, interest costs, legal fees and anticipated net proceeds.
• Expense Accountability: Explain whether customers will be responsible for costs not covered by the sale.

Authority Says Final Numbers Are Not Yet Known

Authority representatives said they cannot determine how much money will remain until the transaction closes and all obligations are paid.

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.

Authority Chair Jerry 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.

The Board also said financial records, including debt information and Authority bills, are included in its monthly meeting agendas and minutes.

What Happens Next

The buyer must complete its due diligence and satisfy the conditions contained in the agreement of sale. The transaction will not be final until the real estate closing occurs.

Only after closing will the Authority know the net proceeds available after paying the outstanding debt and transaction-related expenses.

The central question for Newtown sewer customers remains unresolved: Will the sale of the Lower Silver Lake Road property result in refunds, lower sewer rates or other financial relief?