Mystic — Work has ceased on the $32 million Masonicare at Mystic assisted living project on Clara Drive after the project’s construction management firm said it was not being paid and left the site.

Last week, Klewin Construction of Mystic filed a suit against Senior Living By Masonicare LLC and Bessolo Design Group in New London Superior Court, saying it is owed more than $458,000.

The suit states that the contract between Klewin and Masonicare calls for Masonicare to make monthly payments to Klewin for work it completed.

Klewin stated it performed the work in strict compliance with the contract and plans for the project despite interference and “improper acts” by Masonicare and Bessolo. It stated it also did work, outside the scope of the contract, upon the direction and approval of Bessolo.

Klewin alleges that Masonicare failed to make payments for work it did in January and February and it ceased work on March 12.

Klewin further alleges that Masonicare “conspired” with Bessolo to “manufacture groundless reasons” to resubmit applications for payment in an effort to stall the payments. It also alleges that Masonicare and Bessolo failed to provide proper plans in a timely manner, which affected the progress of the work and forced Klewin to incur greater costs. The suit also charges that Masonicare has breached its contract with Klewin.

Klewin has now placed a mechanic’s lien on the property. A judge has slated a hearing on Masonicare’s request to discharge the lien on April 6.

Stonington First Selectman George Crouse said that Masonicare officials have requested to meet with him Friday morning.

Crouse said he was concerned about the impact the work stoppage would have on the town. He said it came just a few weeks after he was excited to hear that Masonicare planned to build phases I and II at the same time.

“This project will produce a lot of economic benefit to our area and any delay pushes that impact down the road,” he said. “I’m hopeful they can reach a resolution to continue the project.”

Masonicare, which is based in Wallingford, did not return a phone call on Thursday.

Gates to the site were locked Thursday and the Klewin sign has been removed from the fence. The site, which is located on 18 acres of the former Coogan Farm, has been cleared and a portion of foundation installed.

Last spring the town waived $136,000 in building permit fees for the project and approved a 67 percent tax break. As a nonprofit entity, Masonicare is tax-exempt, but it agreed to make a $140,000 annual payment in lieu of taxes to the town.

The PILOT fee is 33 percent of what Masonicare would pay if it were a for-profit entity. Former First Selectman Ed Haberek negotiated both the building permit waiver and the PILOT payments for the town.

The first phase of the project, which calls for 81 independent living apartments, 50 assisted living and 48 dedicated to memory support, was slated for completion this fall. Among the amenities are an indoor pool, cafe, gift shop, fitness and wellness centers, indoor pub with liquor license and hair salon.

j.wojtas@theday.com

Twitter: @joewojtas