Stonington - The developer of the long-stalled rehabilitation of the Thread Mill on River Road said Thursday he plans to close on the property "within days" and begin construction soon after.

Ken Olson, president of POKO Partners of Port Chester, N.Y., said the $25 million project will take 18 months to complete and will result in 58 one- and two-bedroom apartments and 9,000 square feet of retail space.

"We're very excited. It was a long haul but we believe in this project," he said. "It will have a meaningful effect on Pawcatuck and the community."

In 2006, POKO obtained zoning approval to develop the Thread Mill into 58 condominiums and commercial space. As POKO experienced delays in financing, the mill fell further into disrepair. In 2012, Pawcatuck Fire Marshal Kevin Burns and Fire Chief Tom Long told the town they were worried about the condition of the property and the risk it poses to neighbors.

Olson said Thursday that POKO has obtained tax-exempt, low-interest bonds from Connecticut Housing Finance Authority, state and federal tax credits, $750,000 in state brownfields funding as well as funding from the state's Competitive Housing Assistance for Multifamily Properties.

Crews have been on the site for several weeks cleaning up contamination from the property's historic industrial use.

The removal of a leaking 10,000-gallon underground oil tank several weeks ago coupled with the rupture of a 12-inch water line for fire protection resulted in some additional cleanup work for POKO.

Burns said a contractor on the site ruptured the water line, causing 50,000 gallons of water to flow into the hole where the leaking tank had been removed, worsening the contamination.

Olson said the water line was quickly repaired and that although more contamination overall was discovered on the site than originally thought, "it was not a huge issue."

He said the site cleanup is continuing.

Bill Warzecha, a supervising environmental analyst for the remediation division of the state Department of Energy and Environmental Protection, said Thursday that POKO has taken advantage of a state law that allows it to voluntarily begin the site cleanup without first having its plan approved by the DEEP. Officials from the DEEP have been to the site and discussed the work with POKO.

He said the DEEP will closely review the remediation report after the work is done to make sure the work was done safely from an environmental and public health standpoint.

He said POKO has excavated contaminated soil and installed recovery wells.

j.wojtas@theday.com

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