Norwich ― Nearly $11.9 million awarded to the Norwich Community Development Corp. by the state to build the first half of an access road into the proposed second business park in Occum will come as reimbursement for work done, prompting the agency to seek a line of credit from a local bank to cover the initial work.

Along with that loan will be interest payments, and Norwich Public Utilities agreed Tuesday to pay up to $125,000 in interest payments for an estimated three years to get the project started.

The Board of Public Utilities Commissioners voted unanimously Tuesday to approve a resolution authorizing NPU General Manager Chris LaRose to enter into an interest funding agreement with NCDC for up to $125,000.

NCDC received the $11.4 million grant from the state Community Investment Fund and a $500,000 Urban Act grant to cover the construction of the access road, infrastructure and utility installations from Route 97 in Occum westward into the business park property, ending just past the Canterbury Turnpike intersection. NCDC is seeking additional funding for the second half of the proposed road from Canterbury Turnpike to Lawler Lane.

NCDC President Kevin Brown told the utility commission that NCDC is negotiating with an as-yet undisclosed local bank on an $11.9 million line of credit to pay the upfront engineering and construction costs. He said the process calls for NCDC to submit invoices to the state and be reimbursed through grant money.

LaRose said NCDC would have to submit invoices to NPU for the loan interest money as well.

LaRose said the business park project and the new road will benefit the utility with new electric, natural gas, water and sewer lines into the new business park.

The road design is undergoing state and local permit reviews this fall. NCDC has selected the national firm, Cushman & Wakefield Commercial Real Estate Brokers to market parcels in the business park for development.

c.bessette@theday.com