Alexander, who is developing the project with Northland Enterprises Inc., a real estate development and management company also based in Portland, said late last year that changes in the project’s funding terms delayed demolition and environmental work. But he said this week that developers continue to make progress toward implementing a full redevelopment plan.

“For better or worse, the timeline for these types of projects is driven largely by the funding sources which add a lot of regulatory complexity to the process,” he said. “We certainly appreciate everyone’s patience and continued support for the work that we’re doing.”

Two buildings that would be part of Head of Falls Village planned for downtown Waterville are shown in this rendering, looking north from City Hall at Temple Street in the foreground and Front Street, obscured to the right. The multiuse project is to include more than 60 housing units. (Courtesy of Todd Alexander)

Josh Benthien, CEO of Northland, is working on the commercial, office and retail aspect of the project, while Alexander focuses on housing. New sidewalks, parking areas, access drives and a pedestrian plaza are part of the project plans.

Acting City Manager Cornell Knight said Thursday that the project would be another shot in the arm for downtown development.

“The mix of housing, both affordable and market, plus retail, commercial and the art walk connection to Main Street, makes for a nice entry to the Head of Falls Park and the Kennebec River,” he said. “Todd and Josh have recently made great progress on the site with the removal of the blighted buildings, grading the lot and now environmental remediation.  I’m very pleased to hear they plan to start building next year. A lot of exciting things are happening in the city of Waterville.”

The Waterville Planning Board approved a site plan for the project July 2023, and the developers bought the properties, totaling about 1.7 acres, four months later.

Buildings demolished on the site, besides the Bob-In, had housed Universal Bread, Damon’s Beverage & Redemption, Creative Sounds & Video Systems and a former office building known as the Heath House at 60 Front St. that abuts Appleton Street.

As part of the project, a 33,800-square-foot building is planned facing Temple Street, with about 15,000 square feet of office space on the first and second floors and 18 apartments on upper floors, funded partially by MaineHousing. They would be regulated under a program that limits occupancy to residents with household incomes at or less than 80% of the Kennebec County median income.

Rent for the workforce housing cannot exceed a threshold determined by the area median income. As it stands now, a one-bedroom unit would rent for about $1,285 a month and a two-bedroom unit about $1,445, Alexander said.

The 45 units off Front Street would be offered at the market rate.

The 49,400-square-foot building facing Front Street and the river would have about 6,600 square feet of retail space on the ground floor and 45 apartments on upper floors, with about 90 on-site parking spaces. A two-way drive between the buildings would connect Temple and Appleton streets and double as a social space for cultural events, farm markets, pop-up cafes and other activities.

Both private and public money is needed for the project and developers applied for funding under the Renewal Affordable Housing Program through Maine Housing, a program intended to provide funding for workforce and affordable housing.

The project received a grant of nearly $200,000 from the Maine Department of Economic and Community Development’s Community Development Block Grant program to help with demolition and remediation.

The third phase would involve constructing the building facing Temple Street and the fourth phase, construction of the building facing Front Street. Depending on financing, the buildings could be built simultaneously.

Alexander grew up in Waterville and graduated from Waterville Senior High School in 1988 and Colby College in 1992. His professional background is in developing and financing housing projects in underserved communities through public-private partnerships.