FARMINGTON — Selectmen voted Tuesday to have Town Manager Richard Davis pursue a Northern Border Regional Commission grant to help pay for the construction of a sewer main on Knowlton Corner Road.

The sewer main would serve the proposed Woodlands Memory Care of Farmington.

The grants are up to $250,000. The town could provide the $50,000 in matching funds from the Franklin Printing Tax-Increment Financing District for economic development, Davis said. The grant application is due June 17. The application is already in the works.

Woodlands Senior Living LLC, headquartered in Waterville, has taken an option to buy the Thomas J. Daku and Janice E. Daku property on Knowlton Corner Road and Cricket Lane, Davis said.

There are about 38 acres of land.

The company proposes building and operating a $4 million, 36-bed specialized residential care facility serving individuals with Alzheimer’s disease and related memory impairments.

It proposes to dedicate 26 of the beds to serve individuals receiving MaineCare subsidies and 10 beds would be available for residents paying with private funds, according to a letter from Woodlands to Davis.

There is no sewer or water in the area, Davis told selectmen.

Woodlands is willing to pay for engineering for the sewer main, which he estimated to cost between $8,000 to $10,000.

Davis said he spoke to Tom Holt, superintendent of the Farmington Village Corp., and it would run waterlines.

Even if the town does not get the grant for the sewer project, it would pursue other options for funding, including borrowing some money.

“I don’t think it will cost more than $300,000,” Davis said.

It also affords the town an opportunity to pick up more sewer customers from the area, he said.

Selectmen tabled action until their next meeting on Woodlands’ request for a 100 percent tax-increment financing agreement for 10 years, until the board has more information. Woodlands would like the TIF to help the company as the facility is built and begins operation.

The high cost of acquiring property is one reason for the request for the TIF, Matthew Walters of Woodlands Senior Living told selectmen in December.

Selectmen plan to go into executive session to discuss negotiations of the agreement.

Lon Walters and his son, Matthew Walters of Woodlands Senior Living, presented their proposal for the project to the board last year.

The contract to purchase the Dakus’ property is contingent upon Woodlands Senior Living receiving approval of a TIF from the town, according to the letter from Matthew Walters to Davis.

“We offer to use the tax increment revenues in support of the project in the following manner,” he wrote.

Until the end of the tax year that includes the 10th anniversary in support of the project’s opening, “we would propose that 100 percent of the incremental tax revenues be returned to the owner. We understand that TIF benefits can continue for up to 30 years, but we are prepared to have our participation terminate after 10 years. If the town sees a benefit in continuing the TIF beyond 10 years for municipal purposes, we would certainly be amenable to that approach,” the letter reads.

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