NORWAY — The Board of Selectmen voted 4-1 Thursday to sign a $400,000 bond anticipation note with Norway Savings Bank for renovating the storefronts in the Norway Opera House.

The action paves the way to sign a contract with H. E. Callahan of Auburn to begin the estimated $1.1 million project on the six first-floor retail spaces.

Selectman Irene Millett abstained from voting because of her employment with the bank.

“We haven’t been able to sign a contract (with the general contractor) because we couldn’t assure them we would be able to pay the bills,” Town Manager David Holt said.

The town recently transferred ownership of the Opera House to the nonprofit Norway Opera House Corp., which is in the process of raising additional money to cover the entire renovation costs.

The $400,000 is temporary funding that’s expected to be repaid through a $400,000 Communities for Maine’s Future grant that Gov. Paul LePage has promised to release to Norway by June 21, 2015.

The note has an annual interest rate of 3.75 percent.

Before the vote was taken, Selectman Warren Sessions Jr. said despite the chance that LePage could pull back his promise to release the grant, the board needs to take the risk.

“We shouldn’t let that kill the project,” he said.

The next step takes place Wednesday when officials meet with the general contractor to review cost savings options to meet the slightly higher than anticipated bid. The final budget number will be tallied and the scope of work documented. The full contract will then be written up and signed.

Jake Keeler of Lachman Architects and Planners in Portland who has been working with the town and Norway Opera House Corp. on the project has advised local officials that they should start marketing the six units and select a property manager and broker.

The 1894 Norway Opera House — for years the center of community activities — has remained vacant since the partial roof collapse in September 2007. The town took possession of the three-story brick edifice on Main Street it after it was deemed a public hazard.

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