It appears that a $1.5 million capital allocation that has been pending for several years as the Newtown Hook & Ladder fire company secured and planned to build a new headquarters could be restructured as a grant, with terms. Until recently, officials were describing the assistance being provided so the volunteer fire company to establish its independent headquarters as a “gift.”

On September 8, the Board of Finance reviewed language that member John Godin created and labeled as a grant, and unanimously voted to recommend the administrative change to the Board of Selectman and Legislative Council for approval.

Town Finance Director Robert Tait explained after the meeting that in the unlikely event the fire company closes or fails to continue operating under its current charter, the town needs a process in place to recover some or all of the funding granted for the development of its new building.

The fire company announced in May that it had successfully negotiated the purchase of property from Trinity Church, and that a planned new headquarters would be developed on the vacant parcel off Church Hill Road between Queen and Main Streets.

Mr Godin said the intent is to set some general terms including a schedule of payouts for the grant, which would commence in three $500,000 phases as soon as fire company officials completed the purchase of their new property.

“Upon the closing of the land purchase for the firehouse, that’s grant number one; at the point of issuance of the full certificate of occupancy [CO]; and within six months after the issuance of the certificate of occupancy,” Mr Godin suggested, adding that the final payment would occur provided all remaining post CO punch list items are completed related to the construction.

“From what I heard the last time they were here, at least the [first disbursement] would help them buy the property,” Mr Godin said. “The half-million when they obtain their certificate of occupancy will help pay down the mortgage, and then there is motivation to get in and bring all the apparatus down — then you’re good to go [for the final payment].”

The only other provision is the town will be the beneficiary on a property insurance policy if anything happens to the building itself. The grant term would be 30 years, Mr Godin said.

Town Attorney David Grogins said it was a good idea to make the town a second interest in the property. He said while the town was hoping to hear from Hook & Ladder representatives regarding the plan, but fire company representatives had not responded to a request for comments.

According to the draft grant, the town can suspend or terminate the grant if Hook & Ladder makes ineffective or improper use of funds; use of the building outside what is permitted in the grant, of failure for any reason of the fire company to fulfill its obligations under the grant.

The proposal suggests a 30-year amortization schedule, but any final details on that aspect is yet to be determined.