Newtown taxpayers will foot the $29,000 bill to demolish what is left of a burned-out home, and to clean up the now abandoned and blighted property at 31 Great Hill Road in Hawleyville.

The remains of a 3,400-square-foot home and surrounding property littered with debris, owned by Anita Pettengill according to town records, has been the subject of neighborhood scorn and countless complaints since a June 24, 2011, blaze.

The issue first came up during a September 2 Board of Selectmen’s meeting when the officials unanimously passed a transfer authorization to move $29,000 from a town contingency fund to the Land Use Department to cover the anticipated demo and cleanup costs.

The town has secured three bids for the work, according to Land Use and Planning Director George Benson, who also appeared on the matter before the finance board September 8. First Selectman Pat Llodra explained to her board that the remaining structure has posed both a public safety and health risk since shortly after the fire.

On questioning by finance officials, Mr Benson said the fire was deemed “suspicious.”

Mrs Llodra and Mr Benson told selectmen and finance officials that while the cause of the blaze remains undetermined, the homeowner’s insurance company is refusing to settle a claim and the mortgage holder has refused to help.

“We reached out to the bank, the Mellon Bank of New York,” Mrs Llodra told the finance board. “The $100 per day blight penalty [on the property] does not scare them at all.”

Mrs Llodra said the owner, who along with Dan Telesco operated the former Make a Home Foundation, declared during court proceedings that she had no ability to pay for the demolition and cleanup. As a result, legal action on the part of the town to force her to pay was unsuccessful.

The court did, however, extend Newtown an order permitting the town to handle the demolition and cleanup.

Town Attorney David Grogins, who was at the finance meeting on another matter, assured officials that the court order protects and indemnifies the town against any future action by the property owner following the demolition.

“The insurance company didn’t honor their claim,” Mr Benson said. “The owners just walked away. We see no end to it, we’ve exhausted every legal avenue [to secure demolition underwriting] and we’ve got nowhere to go but to ask the town for the money.”

When Selectman James Gaston asked if the town might eventually recover some funds by issuing a lien on the property, Mr Benson responded that the town would be the third or fourth in line to file such an action, and that any hope of recovering money is slim.

Mrs Llodra said that the prolonged process has created a “great deal of anxiety in the neighborhood.” Mr Benson added that the property is now attracting animals, and has an open and accessible swimming pool which is partially filled with filthy water.

“There’s a lot of health issues. I think we’re obligated by circumstances to act,” the land use director added.

During his finance board appearance, Attorney Grogins said the recently enacted town blight ordinance helped during the legal gyrations.

Mr Benson said the situation was extremely unusual in that no party is coming forward, including the bank, to assist in eliminating the health and safety hazards.

“In all my years I’ve never seen a situation like this,” he said.

Final approval on the $29,000 transfer goes before the Legislative Council September 17.