Norwich — The future of the long-vacant Reid & Hughes Building is in question again, after the developer dropped its plan for a $6 million renovation project.

The Massachusetts-based Women’s Institute for Housing and Economic Development had won a hard-fought battle in 2017 to become the city’s preferred developer for the 1880 building at 193-201 Main St. previously slated for the wrecking ball. The agency was the lone bidder in the city’s request for proposals for the building, which has sat decaying for decades under the city’s ownership.

The proposal called for converting the building into 20 affordable housing apartments, including several reserved for veterans. The Women’s Institute took ownership of the building July 30, 2018, and, using grants and a $150,000 contribution from the city, conducted a $500,000 stabilization project, shoring up the exterior walls and installing a new roof.

“After several years of effort, the Women’s Institute has made the difficult decision not to proceed with the redevelopment of the Reid and Hughes building in Downtown Norwich,” Women’s Institute Chief Operating Officer Loni Willey said in an email response to questions by The Day. “Despite our best efforts, we have not been able to secure the necessary development and permanent financing to successfully complete the project.”

Willey said the institute has informed its funding sources and the city of the decision and hopes to find a developer interested in taking on the renovation project.

“We are pleased that the Women’s Institute’s efforts were successful in stopping the deterioration of the historic Reid & Hughes Building and preventing its imminent collapse,” Willey wrote. “Environmental work was completed, a new roof was installed, and the structure has been stabilized. We are hopeful that another developer will have an interest in building on this foundational work in order to complete the project.”

Mayor Peter Nystrom, Alderwoman Stacy Gould and City Historian Dale Plummer all said they were disappointed at the setback. But unlike the situation a few years ago, the owners, city officials and building preservation advocates said there’s time to find a new developer for the building deemed key to the Main Street streetscape.

Nystrom said he was “very disappointed” that the project fell through. He said the city would not want to take back ownership but would help market the building and try to find a new developer. The city does have a $150,000 mortgage on the property, as does the Connecticut Trust for Historic Preservation, both of which provided funding for the stabilization costs.

“I think the city certainly can try to help them move it forward,” Nystrom said, “but I don’t know what the project is now. Maybe the short-term rental market is a possibility because you create income every weekend, if someone has that vision.”

Gould said she feels the city still has some responsibility for helping to find a new developer, including perhaps overseeing a new request for proposals to solicit interest in a new development. “It costs us nothing to see if there are interested people out there,” she said.

Plummer led the preservation effort in lobbying the City Council and others to cancel the proposed demolition and try for what was termed in 2017 as the last chance to save the Reid & Hughes. He said that part was successful, as the building has been saved from decay and demolition, its façade windows boarded up and neatly painted, its roof weather-tight.

“It’s just another challenge,” he said of the Women's Institute's decision.

Plummer still likes the idea of creating affordable veterans’ housing in the downtown building, which is close to veterans’ services, city and state agencies and commuter bus routes.

“There are a lot of veterans in this area,” he said, “so there’s still an opportunity there. And veterans housing is really needed. We have aging veterans who need places in an urban setting. A suburban setting is not as good if they need services. People have been discovering the advantages of living downtown.”

c.bessette@theday.com