Norwich — One of several pending Main Street development projects received a major push forward this week, with $4.95 million in private financing approved for the planned $8.8 million renovation of two large buildings at 77-91 Main St.

The two-building complex was the site of a proposed heritage museum in the 1990s that eventually fell through after receiving state grants to stabilize the 1880 buildings.

Kevin Brown, president of the Norwich Community Development Corp., told the NCDC board of directors Thursday that project developer and building owner Norwich Luxury Apartments LLC received a commitment letter Wednesday for the loan.

The City Council last September approved $800,000 in American Rescue Plan Act funds for the project, split into a $400,000 loan and a $400,000 building code corrections grant.

“We’re excited to get started,” project attorney Abraham Gordon said Thursday. “We submitted permits now. Once we get that approved, we will jump right in, sometime next month. We definitely feel it will be a great addition to Norwich downtown.”

Brown called the announcement a milestone for downtown and said the project should be joined by several other developments soon that will help transform Main Street. Norwich Luxury Apartments will occupy two historical buildings across from the city’s Main Street parking garage. The buildings front on Main and Water streets. In addition to the apartments, the plans unveiled last summer called for eight retail spaces on Main and Water street levels.

Other projects slated to receive city support through ARPA funds include a pending purchase and redevelopment of the Reid & Hughes building at 193-201 Main St. for 17 apartments and two commercial spaces; a boutique hotel planned for the former Elks Club building at 352 Main St. and redevelopment of the former YMCA at 337 Main St. into the headquarters for Mattern Construction.

NCDC, which administers the city’s economic development ARPA funding, will turn over the $400,000 no-interest city loan to the project as soon Norwich Luxury Apartments closes on its private financing. The $400,000 code correction grant will be turned over after the project is completed, as reimbursement for work done.

Gordon said construction is expected to take eight to 12 months, given anticipated delays in obtaining supplies and construction materials.

The project briefly ran into a snag last summer, when the City Council directed NCDC to limit ARPA-funded economic development projects to a maximum of $300,000 each. A month later, the council approved a specific grant/loan package to Norwich Luxury Apartments LLC.

c.bessette@theday.com