Stonington — The town is expected next week to apply for an approximately $140,000 state grant to better assess the contamination at the former Connecticut Investment Casting mill property on Stillman Avenue in Pawcatuck.

"Once we know what's really in the ground, we will be able to better assess the future uses of the property," First Selectwoman Danielle Chesebrough said Wednesday.

In April 2019, the town was forced to demolish the mill and haul away the contaminated debris after a portion of the structure collapsed into the Pawcatuck River during a heavy rainstorm. Its owner, Worcester, Mass.-based Pawcatuck Landing LLC, refused to take any action or return the town's numerous phone calls. The building debris contained lead, PCBs and asbestos.  

The town, which spent $700,000 on the cleanup, placed a lien on the property. Pawcatuck Landing LLC also owes back taxes to the town. The town is reluctant, however, to foreclose on the property and take ownership, because of the cost of an eventual environmental cleanup, the liability of owning a contaminated site and the possibility it has limited redevelopment potential. Chesebrough also said the town would be in a better position to obtain various grants if it does not yet own the property.

Before being torn down, the building, which began its life as a woolen mill in the early 1800s, had been vacant for decades. In 2005, the Planning and Zoning Commission approved a plan by Pawcatuck Landing to build 15 condominiums in the former 18,000-square-foot, four-story brick mill at the north end of the site along the Pawcatuck River. An additional 24 units would have been located in two new buildings.

Those plans never came to fruition, as Pawcatuck Landing was unable to line up money for environmental cleanup of what it said is PCBs, lead, mercury and other industrial contamination on the 1.2-acre site.

In January 2011, the roof of the southern portion of the mill collapsed, and the site then became overgrown with the building in serious disrepair. For years there has been evidence that people have been trespassing in the building and town and fire officials feared it would catch on fire or trespassers would be injured.

There have been various studies of the property over the years but the town does not have a current in-depth study of what is in the ground and what it will cost to remove it. The site lies along the banks of the Pawcatuck River, which has been designated a Wild and Scenic River by the federal government.

Chesebrough said one potential redevelopment option might be a boutique hotel, taking advantage of the riverfront location and access to nearby Grey Sail Brewing and downtown Westerly.    

Chesebrough said that after an initial phone call she had with one of the property owners shortly after she took office 18 months ago, she has since been unable to reach them. Pawcatuck Landing was an entity created by Investar Redevelopment but that organization's website, which once listed the Connecticut Casting plan among its projects, can no longer be found. 

While she said Pawcatuck Landing refused to give access to federal Environmental Protection Agency officials last year, Chesebrough said the state Department of Energy and Environmental Protection and Department of Economic and Community Development have said they can go on the site to conduct the assessment because Pawcatuck Landing owes money to the town. 

She said she is hopeful the town will receive the grant, as she said DEEP officials have expressed interest in the project. 

Chesebrough thanked Selectwoman Deborah Downie, a licensed environmental professional, with lending her expertise in helping to prepare the grant application, which was written by town Economic and Community Development Director Susan Cullen.

The state is expected to announce the grant recipients in June. There is also state funding available for the actual cleanup of the site. 

j.wojtas@theday.com