Pawcatuck’s Mill at the Marina

A rendering of the proposed $35 million Mill at the Marina project in Pawcatuck. (Courtesy of Lee Property Developers Inc.)

Carrie Czerwinski, Special to The Day

Stonington — With an infusion of a $4 million state grant, the long blighted portion of a historic property in Pawcatuck is on the road to rehabilitation.

The town, in partnership with Lee Property Developers Inc., of Haverhill, Mass., the developer of the anticipated $35 million Mill at the Marina project, has received the award from the state Department of Economic and Community Development to complete environmental remediation on the dilapidated half of the building.

Though one half of the historic William Clark Company Threadmill was converted to The Threadmill Apartments in 2016, the other half, at 21 Pawcatuck Avenue, owned by Pawcatuck Riverview LLC, had continued to deteriorate and even saw part of its roof collapse in late 2022.

Lee Property owners, brothers Joshua and Jonathan Cozzens, purchased the limited liability company earlier this year, giving them ownership of the property.

The town previously received a $200,000 grant to conduct environmental assessments on the historic property, which found that the building, and to a lesser degree the soil, is contaminated with hazardous materials used on the property since the building’s 1899 construction — including asbestos, lead paint and polychlorinated biphenyls (PCB’s).

“This is a great opportunity for the town, and we are looking forward to seeing the Threadmill property cleaned up and redeveloped as much needed housing,” Selectwoman Deborah Downie said on Tuesday, noting that the town would be involved in the oversight of the project.

While Lee Property will complete the remediation, the town will administer the grant, and at Wednesday's Board of Selectmen’s meeting, Downie said she would like to see the town hire a licensed environmental professional to assist with oversight of the project.

First Selectwoman Danielle Chesebrough said she believed the award was the largest grant the town had ever received.

“This grant was a major steppingstone to the next phase,” Andrew Thorson, Lee property director of development, said Tuesday. 

He explained that the project posed many hurdles, including the required remediation and structural issues, and the grant was one piece that needed to fall into place to keep the project financially viable. The 12-year-old company exclusively renovates old mill properties, including the recently completed renovation of a former mill and jewelry factory in Attleboro, Mass.

The Planning and Zoning Commission approved a master plan for the property in October 2023, and conceptual designs show a drastic transformation, to include a pool, a potential bocce court and putting green, two outdoor kitchens with dining areas and a dog park.

The interior of the building would include elevator access to all floors and would boast amenities such as an exercise room, internet café, communal lounge, zen garden, roof deck and a 40-space parking garage.

The town has approved a plan with 58 apartments, but Lee Properties currently anticipates building 53 units, 11 of which would be considered affordable.

Affordable housing is defined as housing that is affordable for individuals earning 80% or less of the area's median income. For Stonington, that figure is $63,000 per year or less.

On Tuesday, Jonathan Cozzens said that the National Park Service, which provides tax incentives for preserving historic structures, had already approved plans for the building which are based on the park service’s standards for restoration.

“A lot of the things, the beams and the ceiling rafters and the brick walls, all that is staying just like it is now,” Cozzens said.

He noted that all the windows in the building would be replaced with modern windows custom made to be identical to the existing windows at a cost of approximately $1.5 million.

He said the company anticipates it will take between five and 10 years for the project to recoup the cost of the renovation.

Year-long remediation work is anticipated to begin in the spring, and construction will take approximately 18 months, with occupancy possibly beginning in late 2027.