NEWPORT — A change in attitudes and continued growth, in spite of a lack of cooperation, may be the keys that finally bring Palmyra and Newport selectmen to the bargaining table to promote new development to benefit both communities.

The common border of the two towns crosses the busy triangle commercial zone, where Routes 2, 7, 11 and 100 intersect, placing neighboring businesses in different communities. The area has been a source of controversy since 1991, when Newport police were barred from crossing the town line to assist with complaints and problems at Palmyra businesses, often when the problem was within view of the officer.

The restriction on Newport police was reversed at a later date.

Newport selectmen agreed this week to meet with Palmyra selectmen at 6 p.m. Wednesday, Sept. 16, to continue discussions on common issues. It will be the third year in a row the groups have scheduled meetings in the fall to discuss collaborating on services, development or purchases.

Last year, the group worked out an agreement for Palmyra to maintain Woodpecker Avenue with grading in the summer, while Newport would plow it in the winter. Newport also has access to Palmyra’s grader for summer work on gravel roads for a minimum fee.

At least one Palmyra selectman, Mathys Van Dam, is poised for a larger commitment for cooperation with the neighbors. Newport Town Manager Kenneth Knight said people on his side of the town line are open to a renewed discussion.

In 1993, the two boards discussed the benefits of a tax sharing district, where both communities would benefit from the taxes on new development. There was no agreement on how such a district might work at that time, with each community claiming the other would get the better end of the deal.

Each time the tax sharing district has come up, Newport offers its services, including sewer, water, fire and police protection. The only thing Palmyra has to offer is land, field after field bordering Route 2 just waiting for development, according to whomever is talking.

An interlocal agreement would make utilities available for development of the Palmyra land by extending water and sewer lines. In return for the services, Newport would expect a percentage of taxes from the new development. The share would be compensation for the expense Newport taxpayers put into water and sewer systems originally, and continued support for fire coverage and any police coverage.

Palmyra currently pays $18,000 a year for fire protection from Newport. That figure would have to change for a shared development district, Van Dam said. Knight said Palmyra is getting by quite reasonably with the current arrangement, given the costs of actually running a town fire department.

Cooperation for police coverage could be a thorny issue with two counties, two towns, two sheriffs’ departments and two state police troops to add to the mix, according to Newport Selectman Al Worden.

“If they allow unrestrained development out there [past the Palmyra town line], it creates pressure on our budget,” said Knight, citing additional costs for the fire department. For that, Newport should receive a portion of the benefits, he said.

The potential development and the promise of new jobs and revenue is enough motivation to continue the discussions, Van Dam said.

“But it has to be fair for everyone,” he added, explaining there should be benefits for both towns.

Worden is not as easily convinced. “In the long run, I don’t know if it helps. If you’re taking more in in taxes, it hurts on your school subsidy. It would almost be better to have them [Palmyra] develop the area and buy the services.”

It’s changes in the boards and the attitudes of those individuals that make an agreement a possibility, he said.