Norwich YMCA redevelopment project hits funding snag
Jun. 2—NORWICH — A $4 million plan to redevelop the former YMCA on Main Street into the new headquarters for a Baltic construction company suffered a setback when the city learned recently it would not receive a requested $850,000 federal environmental cleanup grant for the long-vacant building.
The city did receive a $2 million Community Challenge grant from the state Department of Economic and Community Development earlier this spring, an award celebrated with a visit by Gov. Ned Lamont, who stepped inside the rundown building damaged by years of weather leaks and vandals.
Mattern Construction of Baltic submitted the only bid in response to a request for development proposals after the city took ownership of the building last summer. The YMCA, at 337 Main St., closed suddenly in April 2009 and has sat abandoned since then, becoming a highly visible blighted property on the downtown gateway.
Mattern plans to demolish a rear portion of the building to create parking, leaving a horseshoe-shaped structure to become the commercial construction company's new headquarters. Additional space will be marketed for a restaurant, coffee and sandwich shop or brew pub.
Company Vice President Eric Mattern said Wednesday the setback has not deterred the family-owned business from the project.
"Between our side and the city side, we're both still very enthusiastic and optimistic we can make this work," Mattern said Wednesday.
The Matterns have been meeting weekly with city officials and representatives from the federal Environmental Protection Agency and the state DECD, said Kevin Brown, president of the Norwich Community Development Corp.
Brown said the project might qualify for a different EPA grant, or the city could seek approval to use a portion of the $2 million state development grant for the cleanup. The money had been dedicated to the renovation project itself, not the environmental cleanup, Brown said. That would leave a hole in the project financing, however, Brown said.
The developer is putting $500,000 in equity into the project, as well as obtaining $700,000 in loan financing. The city's contribution is the building and land, to be turned over to Mattern at no cost.
"We are going to get this thing over the finish line one way or another," Brown said.
