The town of Newburgh is considering purchasing a piece of property bordering the Hudson River and the Anchorage subdivision for use by the town’s consolidated water district.

The property would cost the town $1.1 million. Of the total ticket price, $736,000 would be allocated for the water district, $364,000 for park lands. Other costs, including environmental impact studies, taxes, and legal fees would be included in this price.

The property consists of two parcels located off Oak Street and situated on either side of the railroad along the Hudson river shoreline, totalling a little over 20 acres. The property had been considered in the past for a restaurant, condominiums, and even boat slip access, none of which had come to pass. According to the town, the properties were appraised at $2.35 million in 2018.

The reason for the town’s interest in the property is the result of well-testing and geological studies which indicate the site’s sandy, gravel soil is best suited as a groundwater well source. A municipal well on the property could yield nearly 500,000 gallons of water a day for public consumption. Since the town currently purchases the majority of its water from New York City’s aqueduct, the rates of which keep increasing, the town is interested in investing in its own groundwater supply.

“It’s one of the larger sand and gravel deposits that we have in the town of Newburgh, and sand and gravel wells tend to be more productive than bedrock wells,” said town engineer James Osbourne.

The town board negotiated a 1.1 million dollar price tag, but this would not include the groundwater rights. The water rights would be held by the current landowner for a maximum of 25 years or $600,000, and would be leased to the town at the cost of one dollar per 1,000 gallons of water.

“The town would be under no obligation to draw water. The ground water rights would transfer to the town on the earlier of the payments, the total rent of $600,000 or twenty-five years,” said town supervisor Gil Piaquadio. “If we do not use the property we can declare it surplus and then sell it, actually. The water district portion,” added Piaquadio.

The town’s goals for the property purchase are two-fold: a future groundwater source for the consolidated water district, and a future passive park along the Hudson. The details of the park would be finalized after the property purchase, but Piaquadio mentioned a river-access point for hand-carried water craft and a picnic area, both of which would be determinant upon railroad crossing safety.

At the June 10 public hearing to discuss the town’s purchase of the property, multiple residents expressed hesitation at the price.

“At one time there was a [railroad] crossing,” said Middle Hope resident Ron Hughes. “We should look to continue that service….Otherwise, without that crossing, this property is pretty much worthless.”

Hughes also cautioned about surrounding contaminated land that could have seeped contaminants into the groundwater shared by the site. Supervisor Piaquadio responded that purchase of the property would be contingent upon the railroad company CSX putting in a railroad crossing on the site as promised.

Another town of Newburgh resident and property owner in the Anchorage area said he felt the town was tremendously overpaying for the property and simply bailing out the developer, to which several audience members stated “yes,” in agreement.

“I can tell you very honestly that for me, I like it for the well,” stated Piaquadio. “Because we all need water.”

The town will not move forward on a vote on the property purchase until it receives the results back on soil sample tests checking for contaminants.