Between 2005 and 2006, Stonington's Planning and Zoning Commission approved plans for rehabilitating three mill properties in town.

It was the height of the real estate boom, and the renovations of the Thread Mill and Connecticut Casting Mill in Pawcatuck into apartments and commercial space and the construction of luxury condominiums at the former Mystic Color Lab property were celebrated as ways to save the mills from disrepair.

But entering 2012, all three projects remain stalled.

Work on the Thread Mill and Connecticut Casting Mill projects never started because developers have been unable to obtain financing in the depressed real estate market and the mills have continued to deteriorate. The old Mystic Color Lab property was demolished and site work and an environmental cleanup was completed. Now, brush and weeds have reclaimed the site.

Frustrated with the inactivity, the town has taken steps to try and force action on the part of the owners of the Thread Mill and Connecticut Casting Mill to at least secure the structures so they do not fall victim to fire or vandals.

Recently, First Selectman Ed

Haberek, whose administration has made it a priority to force the owners of blighted buildings to make improvements, said the town is planning to cite the Thread Mill's owners, POKO Partners LLC of Port Chester, N.Y., with violating the town's distressed buildings ordinance. POKO would then have the choice of making repairs and securing the building or tearing it down.

POKO Partners has approval to turn the northern half of the River Road mill into 58 apartments and commercial space. Today, windows are broken and the building is falling into disrepair.

"I keep reaching out to them and they say 'Money is tight, money is tight.' The windows are open and it's becoming a relic. We'll give them a period of time to board it up or they'll have to tear it down," said Haberek, adding such mills are at risk of fire, squatters and vandalism.

He pointed out that other mills in town have been successfully rehabilitated or reused such as American Velvet Mill and the just renovated Allen Spool Mill in Mystic. The Old Mystic Mill and Stonington Commons are other mill success stories in town.

"We're trying to raise the standards so people will take care of their multifamily or commercial properties," said Haberek, who added such improvements then make their neighborhoods more attractive to investment.

Last week Ken Olson, POKO's president and CEO, said he is optimistic about obtaining financing in 2012.

He said his firm has spent $3 million on the Thread Mill project so far and will not tear it down.

"We're not walking from this project," he said.

Olson said that it was unfortunate that just as he obtained approvals for the project the financing market collapsed.

"That's the only thing that stopped us from getting in the ground," he said.

Olson, who said he understands the town's concerns about vacant mills, said his firm has recently obtained financing for projects in Bridgeport and Norwalk, and is close to obtaining financing to redevelop the Thread Mill.

"We think it will happen in 2012, but I'm not sure if that will be at the beginning, middle or end of the year," he said. "We have a very good feeling about this."

The town has already cited 17 multi-family and commercial properties under its distressed building ordinance, which voters approved 18 months ago. Some property owners have made repairs or cleaned up their properties, while others are accruing hefty fines or have been taken to court by the town because they refused to comply.

The town has already cited the owner of the dilapidated Connecticut Casting Mill on Stillman Avenue and forced it to tear down a section damaged by a snowstorm last winter.

Investar Redevelopment of Worcester, Mass., which obtained zoning permits to turn the Connecticut Casting Mill into 39 apartments, has been thwarted in part by a costly environmental cleanup.

Haberek said there are no plans to cite the owner of the now overgrown and excavated Mystic Color Lab property on Masons Island Road where all but one exterior wall of the former mill has been torn down. The development firm which brought the property from the unsuccessful condominium developer has no immediate plans for it.

And while Yardney Technical Products is moving out of its mill on Mechanic Street, Haberek said other companies have expressed interest in leasing space there.

"We went to keep these mills active," he said.

J.WOJTAS@THEDAY.COM