CANTON – Progress toward building a new village center received a half-million dollar boost on Friday when the governor’s supplemental budget set aside the money.

“This is really wonderful news,” said Diane Ray, special projects coordinator for moving much of the village from the flood plain to higher ground.

She said the $500,000 will go toward the estimated $2.2 million needed to build roads, install utilities and extend water and sewer pipes.

So far, she said $1 million in a no-interest loan has come from Maine State Housing. That money will be repaid when homes in the new village center are built and sold. She has other grant applications in for the rest of the money, including a half-million-dollar one from the federal Community Development Block Grant program.

The most recent state money was the result of an effort by Sen. Bruce Bryant, D-Dixfield, with his bill, L.D. 2010, according to a news release.

Bryant said state funds will help ensure that the town is eligible for federal matching dollars.

Momentum grew toward the relocation of the village after a December 2003 flood caused nearly $2 million in damage. Since then, Ray, along with the Special Projects Committee, has been working to buy up to 65 homes along routes 140 and 108.

Demolition has been ongoing for at least a year, while money is being raised to build a new village center on about 30 acres off Edmunds Road, just north of the village along Route 108.

As of the end of January, with nearly $5 million from state and federal sources, 35 homes have been bought and five more will be soon.

The half-million dollars from the state will start the infrastructure work.

“We expect to be pushing dirt this spring,” Ray said.