Norwich - The city has several options for dealing with the long-vacant former Reid & Hughes building, ranging from letting it sit idle and decay to using the building as the centerpiece of a broader redevelopment of the Franklin Square area, Norwich Community Development officials said Monday.

NCDC President Robert Mills and Vice President Jason Vincent presented the council with the report the council requested about the condition of the building and an analysis of development options - all of which would cost the city money.

The roof on the lower three-story portion of the split-level building has decayed and is leaking badly. NCDC estimated the cost of temporary repairs at $67,000, noting however, that the final cost could not be known until construction drawings are done.

NCDC leaders said building experts have expressed concern that this could be "throwing good money after bad," because the repairs would be torn up if the building either is demolished or renovated.

The City Council delayed action until the Sept. 3 meeting to allow time to review the report.

Along with options either to save the façade with new construction behind it or seek rehabilitation proposals for the entire building, NCDC proposed a plan that could see the entire economically depressed Franklin Square area redeveloped.

By writing a Municipal Development Plan, the city could propose a development plan that would encompass the Reid & Hughes, the adjacent Strand building, other neighboring buildings, all privately owned, and Franklin Square across the street.

A conceptual plan included in the 17-page report presented Monday called for a parking garage behind the Main Street block of buildings, a pedestrian walkway behind that along the Shetucket River - a plan city officials have expressed interest in for years - and a more pedestrian friendly, shady Franklin Square area at the intersection of Main and Franklin streets.

The Municipal Development Plan could be written by next summer, the NCDC report said, but NCDC officials said the City Council would have to agree to pursue the plan, select a project manager and a time schedule.

More conventional redevelopment of the Reid & Hughes would involve advertising for development plans for either a complete renovation of the building or construction of a new building with the historic 1890s façade preserved.

The city's contribution in cash, matching grants, enterprise zone tax breaks and possible utility connection and building fee waivers could top $1.1 million.

The project automatically would qualify for up to $100,000 in a matching building upgrade grant through the downtown revitalization program and a seven-year property tax phase-in period through the downtown enterprise zone.

It also would qualify for a 50 percent reduction of the sewer connection fee.

The City Council would have the option to approve up to $800,000 in bonded city money to the project - the maximum allowed without a referendum. The city also could waive building permit fees.

NCDC quickly recommended against a "do nothing" approach of putting off any action. NCDC estimated the lack of productivity at the former department store has cost the city more than $1.75 million in lost tax and utility revenue over the past 20-plus years.

Demolishing the building entirely would cost $574,000, and the constricted 7,100-square-foot site might be too small for new construction.

The city also would lose the historic streetscape "continuity" along Main Street.

c.bessette@theday.com