Mystic — The stalled Masonicare at Mystic project will resume construction at the end of this month with a new contractor, according to Masonicare spokeswoman Margaret Steeves.

She said company officials met Tuesday with people who have placed deposits on units as well as Stonington First Selectman George Crouse to give them an update on the 179-unit project located on a portion of the former Coogan Farm off Clara Drive.

She said Masonicare has signed a letter of intent with C.E. Floyd, a construction firm that has offices in Middletown and Bedford, Mass., and that has worked on other Masonicare projects. She said the project is targeted for completion in the fall of 2016.

“This is good news. We’re excited to get things moving,” she said.

Worked ceased on the project March 12 when the original contractor, Klewin Construction of Mystic, said that Senior Living by Masonicare LLC owed it more than $1.9 million for work it had completed.

Klewin has filed a mechanic’s lien and also a lawsuit against Senior Living By Masonicare LLC and project architect Bessolo Design Group seeking damages and possession of the property and improvements. Those actions are pending in Superior Court.

According to a document on file in Stonington Town Hall, Senior Living by Masonicare obtained a $38.2 million construction mortgage in May 2014 from M & T Bank of Buffalo, N.Y. But Kyle Klewin, a partner in the Mystic-based firm, has said Senior Living by Masonicare repeatedly failed to provide his firm with any evidence of adequate bank financing, which he said was a breach of contract.

Steeves said Tuesday that Masonicare has written commitments from banks for the financing it needs.

“There are no issues with the financing,” she said.

The project calls for 81 independent living apartments, 50 assisted living and 48 units dedicated to memory support. Steeves said 33 people have placed deposits on units.

The town has supported the project by waiving the $136,000 building fee for Senior Living By Masonicare LLC, which is a partnership between Masonicare and BROM Builders of Norwich.

Masonicare of Mystic, which will own and operate the facility, will make annual payments in lieu of taxes of $140,000 and is expected to fall under the umbrella of the nonprofit Masonicare organization, according to Steeves and Stonington Tax Assessor Marsha Standish.

Crouse welcomed the announcement that construction would soon restart.

“I’m very happy this project is going again because it’s very important to the area economy that it gets underway again and is completed,” he said, adding there will be many residual benefits of the project to local businesses.

j.wojtas@theday.com

Twitter: @joewojtas