OXFORD — The town will hold a special town meeting on July 14 to see if voters will approve a $1.5 million capital improvement to extend water to the south end of Route 26.

In a special meeting Tuesday evening, the four present members of the Board of Selectmen voted to set the meeting for 6:30 p.m. on July 14 at Oxford Elementary School.

Town Manager Michael Chammings said Tuesday that the timing comes as Black Bear prepares to begin drilling wells on the Pigeon Hill site. Black Bear has offered to pay $500,000 toward the project, which would pipe water to the site of the resort casino.

In June, the Board of Environmental Protection ruled that Black Bear must prove it has a viable water source to meet the casino’s needs. At that meeting, Black Bear said connecting to town water could be used as a last resort.

Chammings said the town needs to expand its water availability, and the project would expand water about 6,500 feet up Route 26. The proposed project includes a 500,000 gallon holding tank, which would be located under a deeded easement on property owned by Black Bear.

“It’s a win-win situation all the way around,” he told selectmen.

Black Bear Entertainment has offered to give the town $500,000 for the project, and Black Bear partner Bob Bahre is willing to loan the town another $1 million.

“Bob Bahre is very enthusiastic,” Chammings said.

Chammings said he and members of Black Bear Entertainment, as well as a consultant from Main-Land Development discussed the project last Friday.

The motion to hold the special town meeting passed 4-0. Selectman Roger Jackson was not in attendance.

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