NEWRY – The euphoria from getting a $120,000 federal transportation grant quickly turned to shock Thursday afternoon for town officials.

That’s when Selectmen Chairman Stephen Wight and Administrative Assistant Sylvia Gray learned that Newry must front the $120,000 plus a $24,000 match to create a new recreational parking lot off Route 26 on Eddy Road.

“We all entered into this rather quickly with a sense of euphoria,” Wight said at the 1:30 p.m. special meeting of the Route 26 Scenic Byway Committee and Maine Department of Transportation in the town office.

Town officials and Scenic Byways co-chair Michael Broderick learned about the grant less than 24 hours before its deadline, Wight said. Broderick then wrote the grant application overnight to beat the deadline.

Shortly after Wight and others present Thursday congratulated Broderick for getting the award, MDOT officials Bret Poi and Bob LaRoche tempered their elation.

Poi, a project manager with MDOT’s Scenic Byways Program, and LaRoche, a landscape architect, explained the transportation enhancement fund’s working parameters and MDOT expectations.

The grant is a federal money reimbursement program, meaning that Newry must incur all costs associated with the project, then submit statements to MDOT to get up to $120,000 back, Poi said. The transportation agency then submits its documents for federal reimbursement.

This was unsettling news to Wight and Gray, who had not yet seen the grant application Broderick submitted.

“We’re not real clear on what we agreed to. We have a willing landowner, but he’s in the dark as much as we are,” Wight said.

But that money won’t be available until October when the U.S. Department of Transportation authorizes the award, LaRoche said.

However, “between July 1 and Oct. 1, we may be able to start things proceeding,” he added.

The proposed parking lot, which leaves Route 26 4.7 miles north of Route 2, will have an initial capacity for 15 to 30 cars. Construction of the site, which is currently on land owned by Bob Stewart, was driven by the opening of a 17.1-mile section of the planned 42-mile Grafton Loop Trail.

Grafton Loop Trail Coalition consultant Jerry Bley of Creative Conservation in Readfield, said the site has three uses:

• Both day and overnight parking for the new loop trail.

• A Route 26 Scenic Byway information pullout, complete with restroom facilities that are handicap accessible.

• Recreation.

Bley said traditional use includes swimming in the nearby Bear River and picnicking.

“We’re not picturing this as a turnpike oasis,” Broderick said. “It should blend in with the scenery and meld in with the environment.”

“This is totally uncharted water for us. Right now the area is used sporadically by locals and people from Rumford who come here to party overnight. It’s our euphoric dream that this beautiful area could be set up to not be used for overnight parties,” Wight said.

But, if MDOT does the project’s right-of-way work – estimated to take six months – the state would incur the $120,000, leaving Newry to pay the grant’s required 20-percent match of $24,000, LaRoche said.

“If the town doesn’t buy the (parking lot) parcel, I don’t think DOT will buy it, develop and maintain it,” he added.

Wight then noted that Newry officials will need to conduct a special town meeting to authorize selectmen to use town funds for the project.

“We now know that we need to raise $24,000 and be prepared to deal with maintenance and costs involved,” he added.

The groups agreed to meet at 1 p.m. on July 15 in the town office to further discuss the issues.