The Town of Hillsborough and the owners of the Colonial Inn have agreed to a settlement over eminent domain proceedings regarding the town’s historic property.

Officials said in a release that mediation on April 14 ended with the proposal to settle. That agreement was then approved by the Hillsborough Board of Commissioners during a closed session on April 24.

The Colonial Inn dates back to 1838. The building has fallen into disrepair under the primary ownership of Francis Henry, which started the eminent domain proceedings last July.

“We agree on many of the important things,” Mayor Tom Stevens said in a release. “Specifically, we all want to see this important structure in Hillsborough restored and put to some use. I greatly appreciate the cooperation from Francis Henry in finding a way forward toward that goal.”

The agreement will mean the eminent domain proceedings will be voluntarily dropped by the town.

Matthew Suczynski, attorney for the owners, said, “It was good to see Mayor Stevens and Mr. Henry get to sit down and talk about the inn. After all these years, it was encouraging to see how much everyone involved cares for the inn and wants it to be restored.”

The owners are now able to attempt to sell the property at 153 West King Street. Under terms of the agreement, the town can also pursue the purchase of the property “in an expedited manner if the current owners do not select a suitable buyer.”

The former inn is listed in the National Register of Historic Places and is considered a structure contributing to Hillsborough’s historic district.

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