Stonington— Though one half of the historic William Clark Company Threadmill was converted into The Threadmill Apartments in 2016, the other half, owned by Pawcatuck Riverview LLC, has continued to deteriorate and even saw part of its roof collapse last fall.

The blighted property may soon see residential redevelopment after receiving a $200,000 grant from the state Department of Economic and Community Development.

At Wednesday’s Board of Selectmen meeting, First Selectman Danielle Chesebrough thanked Selectwoman Debbie Downie for advising the town on the brownfield assessment grant application and said she was excited about the prospect of adding more housing in town.

The town, in collaboration with the developer, Lee Properties of Haverhill, Mass., applied for the grant this spring to conduct environmental assessments on the property.

The grant, one of 15 Municipal Brownfield Grants awarded by the state, will pay to determine the extent of remediation necessary to redevelop the 5.5-acre property into the The Mill at the Marina, a 58-unit apartment complex in the vacant half of the building.

According to the grant application, the property and building are known to be contaminated with hazardous materials such as asbestos, lead paint, polychlorinated biphenyls, or PCBs, and various solvents among others due to the property’s various industrial uses since its 1899 construction.

“The Mill at the Marina is a tremendous opportunity to redevelop the historic 1892 William Clark Company Threadmill into fulfilling unmet housing needs in the region,” said Susan Cullen, the town’s director of Economic and Community Development on Wednesday.

She explained that in 2018, the region was calculated to need 7,180 units of housing, prior to Electric Boat’s announcement that it would be hiring 18,000 workers by 2030.

“This redevelopment of the dilapidated property will clean up an existing brownfield, provide much needed housing in the region, utilize existing utilities and provide walkable housing units to downtown Pawcatuck/Westerly including a connection to the train station. This is an efficient example of utilizing the infrastructure already in place and not adding miles of water or sewer lines that would have to be maintained for future generations at a significant cost to Stonington taxpayers,” she said.

Cullen said that the town is committed to the project, which will bring a mix of one-, two- and three-bedroom apartments to the area and will continue to partner with Lee Properties to pursue funding for remediation of the property once the extent of contamination is determined.

Downie suggested cautious optimism for the project, pointing out the grant only pays for the assessment of contamination but not the actual cleanup.

The Lee Properties website indicates The Mill at the Marina project will work with preservation experts to maintain the historic integrity of the exterior.

Conceptual designs for the property submitted to the planning department show a drastic transformation of the property, to include a pool, a potential bocce court and putting green, two outdoor kitchens with dining areas and a dog park.

The interior of the building would include elevator access to all floors, and 6 of the 58 market rate units would be handicapped accessible. The proposal also boasts amenities such as an exercise room, internet café, communal lounge, Zen garden, roof deck and a 40-space parking garage.

The developer will present conceptual plans to the Planning and Zoning Commission on July 18 at the former Pawcatuck Middle School.