The former Pineland Lumber Co., foreground, along the banks of the Androscoggin River in Lewiston, is the site of the proposed “Residence at Great Falls” housing development. The project so far has been plagued by delays. Russ Dillingham/Sun Journal file

LEWISTON — One of the largest housing developments in the city’s recent history is idling, as the developers behind “the Residence at Great Falls” are still working to secure financing amid higher than anticipated construction costs.

The 244-unit development, at the former site of Pineland Lumber on Avon Street, was originally slated for completion in the spring of 2022. Heading into 2023, there’s no sign that a groundbreaking is eminent.

City officials said recently that developer Saxon Partners has continued to seek financing, but like many construction projects, have been navigating high construction costs and supply chain issues that are causing uncertainty.

The Massachusetts-based Saxon Partners has billed the development as market-rate studio and one-bedroom units geared toward medical workers at the nearby Central Maine Medical Center, as well as college professors and “single professionals.” It’s part of the company’s “Marek” development program, which according to its website, offers “specialized multi-family developments located near major medical centers across the country.”

Lincoln Jeffers, director of economic and community development, said Saxon is currently moving ahead with its Marek project in Lebanon, New Hampshire near the Dartmouth Hitchcock Medical Center, after securing financing.

Saxon Partners did not respond to questions on its Lewiston development by the Sun Journal’s print deadline Monday.

The Lewiston project is planned to consist of two, four-story buildings that are connected in the middle by a two-story “amenity structure.” While the project was originally approved in 2019, by 2020 it was clear that the pandemic was causing delays.

Last year, city officials approved changes to the financial agreement with the developers, amending a tax increment financing agreement with Saxon and extending the timeline for construction. Throughout the process, Saxon officials have said the company intends to “make it work.”

In July, Saxon went before the Planning Board to extend its development review approval by two years, to June of 2024. It gives the company until that time to begin construction and to have the development completed by 2029. It was approved by a 5-2 vote.

At the time, a staff memo said construction had not begun because of “the many issues related to the Covid-19 pandemic that have occurred over the past two years. In addition, labor costs, material pricing, construction material availability, and construction loan interest rate volatility to finance their project has created additional challenges.”

During the meeting, Planning Board member Josh Nagine, who lives in the neighborhood, shared concerns over the safety of the vacant buildings at the Pineland Lumber site.

At the time, Tom Greco, director of multifamily development for Saxon, said a property manager looks after the buildings, and a fence has been installed. He said demolition of the old buildings is planned.

When asked if Saxon had a back-up plan in case the project doesn’t work, Greco told the board that their intent is to make it work. He said they were hoping to see costs start to come down, but that rising interest rates weren’t helping.

Interest rates have only increased since then.

Nagine said Monday that since July, neighbors have been put in touch with the property manager, and that the site has “been better managed.”