CANTON – More than 50 people listened Monday night to the financial considerations in developing a village of homes to replace those lost when the town center flooded five years ago.

The hearing was the first of three on the stalled Village Ridge housing development on Edmunds Road, which is estimated to cost between $6 million and $7 million. The town bought the 30 acres and cleared it, with intentions of getting water and sewer lines installed for about 40 homes it would build and sell to those who lost theirs.

Financing for the relocation effort was approved by residents in 2004 but later rescinded in three town meeting votes. However, the project itself was never turned down, coordinator Diane Ray has said previously.

Recently, a citizens’ petition with the signatures of 121 town voters was approved by selectmen, forcing three hearings this month on The Lazarus Project.

Water resource specialist Arthur Astarita told residents Monday night that after the flood, 17 percent of the town water users were no longer on the Canton Water District books. The district is carrying a 30-year $400,000 loan at 4 percent interest for construction of a water treatment plant, and Astarita said he was able to get the loan refinanced for 30 years at no interest. He said a $15,000 note due in December will be paid out of the reserve account of $17,000.

Astarita said reliable water is necessary for the town to grow and more customers are needed now.

Mark Jacobs, manager of the Victorian Villa Rehabilitation and Living Center, said, “Safe water is critical for us to stay in business.”

Canton Water District Trustee Debbie Hutchins said the nursing home is the town’s top employer.

Waste water plant engineer John Cronin said the facility is in compliance and if 40 more houses were added to the system, it would still be in compliance.

John Holden and Bobbi Arnold with the U.S. Department of Agriculture told the gathering that a USDA grant and loan package of $882,000 has been authorized and is available to the town to pay for installing the water and sewer lines for the project. All the town has to do is vote to accept the money, they said.

The worse case scenario, they said, is that the town sells no houses and has to pay off the loan.

A few residents asked questions and seemed satisfied with the answers given by the speakers.

Jeff Preble of the Greater Brunswick Housing Corp. told the crowd that the company has all the permits for the village and wetland mitigation plans. He said everything is in place to start work.

Selectmen previously agreed to work with the Greater Brunswick Housing Authority for the development plans for the village.

The housing corporation will make its presentation at the second hearing scheduled for 6:30 p.m. next Monday, Sept. 15, at the municipal building.

The third hearing to discuss the impact of the project on taxes is set for 6:30 p.m. Monday, Sept. 22, at the municipal building.

On Tuesday, Sept. 23, from 10 a.m. to 8 p.m. voters will decide whether to accept four grants and loans from USDA Rural Development for the housing project. They are:

• $336,000 grant for sewer work;

• $448,000 loan for sewer work;

• $355,000 grant for water lines; and

• $434,000 loan for water lines.