Montville - Now that the Town Council has voted to seek state funds to pay for a new wastewater treatment system on the grounds of Rand-Whitney Containerboard, the mayor has said further research is needed for the town and the paper manufacturer to move forward on the project.

"I think moving forward there has to be more dialogue on what the gains and losses are for everybody involved," Mayor Ronald K. McDaniel Jr. said. "I think in the long run what we're trying to make sure we do is to have enough capacity at (the town) treatment plant to support future economic development."

A recent study, commissioned by environmental engineering firm Wright-Pierce on behalf of the town, determined the new wastewater treatment system would have benefits for Rand-Whitney and the town.

Nonetheless, many residents are still trying to grasp exactly what the new system would mean. And many had pause after learning the Wright-Pierce study said it could cost the town as much as $1.1 million in lost Rand-Whitney revenue each year if the new system is put in place.

The town and Rand-Whitney, whose chief executive officer is Robert Kraft, the New England Patriots owner, have spent the last two years trying to mend a relationship that often led both parties to the courtroom.

The two sides engaged for years in a legal dispute over wastewater fees and eventually a judge ordered the town to pay an $11.7 million settlement to Rand-Whitney.

Last June the two sides reached an agreement that in part required both to explore upgrades and infrastructure improvements to a wastewater treatment facility on the paper manufacturer's grounds.

The study said this new system would allow the paper manufacturer to treat its wastewater on site more efficiently and as a result it would ease the costly burden on the town's wastewater facility on Pink Row.

It also may keep the town from spending additional funds - perhaps millions - the state would require before it could upgrade its wastewater treatment facility in the event of development in town.

Yet some residents became skeptical of the proposal because of the Wright-Pierce study's findings. McDaniel said he didn't believe that everything was completely vetted in the study. He also reiterated that the Town Council's vote last week to accept a plan that would allow the town to seek a $5 million grant from the state Bond Commission to help fund the new system is simply a starting point.

The Wright-Pierce study said the new system would mean additional annual operating costs of $362,000 for Rand-Whitney. It also said the town could stand to save substantially by keeping Rand-Whitney on a standard commercial rate - the other accepted term of last June's agreement - and halting the need for the Water Pollution Control Authority to budget $500,000 per year in legal fees.

Water Pollution Control Authority Administrator Brian Lynch acknowledged there would be reduced revenues for the town if the new system goes into place, but he has also cited its long-term benefits and the importance of keeping last June's agreement with Rand-Whitney intact.

"What we do know is this project will not be funded by the ratepayers. This is grant money. That needs to be emphasized," Lynch said. "This is grant money being given to us from the state of Connecticut to help spur economic development. It's also to help the wastewater treatment plant. There's positive sides for both entities."

Patrick Kinney, spokesman for Rand-Whitney, also underscored the benefits to both sides and said the next step would be for the town to estimate what savings it would realize through the new system.

McDaniel said that's what the town intends to research. He also acknowledged that the town's past relationship with Rand-Whitney also continues to play into peoples' fears of working with the company in the future.

"There's no way that can be discounted. We'll probably have that for years and years to come based on the fact that we've had such protracted litigation with them," McDaniel said. "You don't kiss and make up in one day."

jeff.johnson@theday.com