Norwich - The city received two development bids Friday, both from Norwich firms, for the former Arruda Sign building and a neighboring vacant lot on Chestnut Street.

Xuare LLC of Norwich is proposing a four-phase project calling for converting the garage portion of the building into a fabrication and assembly operation for "automated advanced manufacturing equipment," city Purchasing Agent William Hathaway said.

The first phase of the project would clean up the property at 105 Chestnut St. and the vacant 0.3-acre lot across the street at 122 Chestnut St., and renovate the derelict building. No project value was listed in the proposal.

The second proposal was submitted by neighboring construction and demolition business owner Mel Wiese, who proposes renovating a portion of the former sign company building into a commercial retail business for "buying, selling and restoration of antiques and unique objects," Hathaway quoted from the proposal.

Wiese would demolish a portion of the building, retaining a 40-by-42-foot concrete section for the project. He estimated the value of the first phase renovation at $100,000. The second phase would clear the overgrown vacant lot and grade and pave it for parking, estimated to cost $10,000.

The two properties were taken by the city in lieu of back taxes and had been included several years ago in a multi-property development plan by a Providence developer. The first two phases of that project were completed - a renovated brick tenement building at 88-98 Chestnut St. and a new 10-unit apartment building at 93-99 Chestnut St. - before the city revoked preferred developer status, citing lack of progress.

The Chestnut Street Committee of Sale, whose members also comprise the Board of Review of Dangerous Buildings, will review the proposals and make a recommendation to the City Council by its Nov. 17 meeting.

The city would transfer ownership of the properties for $1, but only after the work is complete. The developer would have one year from signing a contract to finish the project.

c.bessette@theday.com

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