NORWAY — Selectmen have signed a memorandum of understanding with Norway Savings Bank that details the financial commitment and other issues involved in the joint construction of a parking lot on Danforth Street.

“They will continue to pay for everything including the gravel,” Town Manager David Holt told selectmen Thursday night. The only exception will be the lighting for the lot, which will be a shared cost, according to the memorandum of agreement unanimously approved by the board.

According to the memorandum, Norway Savings Bank will provide the financial resources to complete the construction of the parking lot.

The property is between the town office and the bank and was purchased by the town in 2001 for $75,000. A house on the site was torn down April 19.

The agreement also stipulates that the town of Norway will provide the manpower and equipment “when available and appropriate” to minimize the cost of the project. Gravel fill from other town road and utility projects will also be used to fill the lot when available. Once the surveying and design concepts are completed by Pine Tree Engineering, the town should have a clearer understanding of the overall project costs, Holt said.

Fifty percent of the lot, which is currently owned by the town of Norway, will be conveyed to the Norway Savings Bank for its financial contribution to the project. But the memorandum mandates that the bank can not sell its interest in the property without first offering it back to the town at no cost. The reverse is true if the town wants to sell its half of the property in the future.

“What we had before was a building we couldn’t afford to tear down,” Holt said.

The plan would free up funds that had been previously saved to redevelop the site. That money might be used to fix the town garage roof and possibly create needed storage.

“It’s a good deal for both,” Selectman Warren Sessions said.

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