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Officials say state payment delays are stalling Main Street and River Mill projects

June 05, 2026 | Thompson, Northeastern Connecticut Planning Region, Connecticut


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Officials say state payment delays are stalling Main Street and River Mill projects
Misra, who opened the special meeting on June 5, told members that the Main Street reconstruction and related grant-funded work are effectively stalled because contractors will not proceed until the town receives reimbursements from the state. "We are dead in the water on this project until somebody releases a payment," she said, describing payment requisitions that were sent weeks ago but routed to the wrong state contact.

The update covered multiple grant streams. Misra said parts of the CIF grant (interior work at 65 Main and work at Swanson Park) could move forward if reimbursements arrive, but other elements — including abatement work tied to the River Mill brownfield grant — are stuck. She described a recent back-and-forth with state attorneys and project partners in which the town expected a $350,000 release but was later told the amount would be $100,000. "June 15th, I'm back in my office and if I don't see things in my inbox that are forward moving, I am going to be DEEC's least favorite person on earth," she warned.

Members noted how inflation and escalating market prices have increased project costs since initial awards: "We went from 2 million to 2.3 million because of inflation," one participant said, and that increase, combined with delayed disbursements, reduces the real purchasing power of already-awarded funds. The committee said that without timely reimbursements the town cannot move forward with contractor work and may need to reallocate internal grant balances to cover critical tasks.

The committee also discussed procurement and cost-control steps for specific work. Members questioned an apparent construction estimate from Silver Petrachelli that felt far higher than market expectations; they plan to seek a revised construction estimate and an explanation from the firm before moving to formal bidding. "We're going to get to a reasonable construction estimate before we go out to bid and it's going to come in line with what I have grant money to cover," Misra said.

On the River Mill site, the committee received a draft settlement agreement with the WPCA tied to sewer back fees, but participants said action on the agreement (and on assignment of a tax lien) is contingent on the town's budget process and will likely wait until later this year. Misra said that several contractors have paused work until funds are released and that the town has limited leverage beyond continued escalation to state officials and their aides.

The meeting closed the funding discussion with a commitment to press state contacts and to seek clearer timelines for any promised disbursements. No new formal votes or binding decisions on project contracts were taken at the meeting; the committee reiterated that work will resume only once reimbursements are confirmed and contractors have clear payment assurances.

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