NORWAY – The state has rejected the town’s application for a $400,000 grant to help redevelop the vacant C.B. Cummings dowel mill in downtown Norway.

Separate applications were approved, however, for $100,000 in downtown Norway facade improvements and a $100,000 micro-loan program for the Oxford Hills.

All of the applications were made under the Community Development Block Grant program of the state’s Department of Economic and Community Development.

“You win some, and you lose some,” said Brett Doney, president of the Growth Council of Oxford Hills. Referring to the plans for the dowel mill, Doney added, “This one in particular is a blow.”

Norway Town Manager David Holt said he and others plan to meet soon with CDBG officials to find out why the project didn’t score high enough for funding.

“I’m disappointed, of course,” Holt said. “But I don’t think anybody thought this would be easy or quick.”

Holt noted that only one town – Guilford – was awarded the $400,000 under the downtown revitalization program among five that applied.

Almost a year after the Cummings mill closed, the growth council purchased it for $100,000 last fall. Over a series of meetings, the growth council worked with interested residents, members of Norway Downtown Revitalization and Norway selectmen to come up with a redevelopment plan by the Jan. 15 deadline for block grant applications.

The $400,000 would have been used to demolish several buildings, create a parking area and make other infrastructure improvements in order to encourage private developers to become involved in redeveloping seven of the buildings.

Holt said that given the high burden already on taxpayers in town, he’s doubtful selectmen would favor taking on the mill redevelopment as a town-funded project.

“Without a grant in hand, I don’t see them making that commitment,” Holt said.

Doney was optimistic that the mill redevelopment would eventually move forward.

“We’ve got a great project and it’s just a delay,” he said. The town can reapply for CDBG funding next year, and it’s possible that federal funding could be secured, he said.

The growth council has invested a total of $160,000 in the mill project to date, and Doney said, “we’ll be doing some things to lower the carrying costs” of owning the property. Maintaining electrical service at the mill, for example, costs $800 a month, he said.

Doney said the grant for $100,000 in facade improvements will allow downtown property owners to compete for funding for improvements such as signs, awnings and landscaping. The limit is up to $10,000 per property, and the growth council will offer low-interest loans to help with additional costs.

The $100,000 in micro-loan/grant funds will be targeted to start-up businesses that are proposed by several people who lost their jobs when the mills closed.