The Norwich Building Committee on Tuesday heard that the state has rejected the city’s grant application for a proposed central-office facility because the design includes an adult-education component that, under the state’s current interpretation, disqualifies the building from reimbursement.

Project staff told the committee the state’s reviewer ruled that an adult-education facility either must be a standalone building or part of a school to be eligible for reimbursement; commingling adult-ed space and central-office space in a single structure removes the project from the state reimbursement program. Staff said they plan to pursue legislative relief and are coordinating with Sen. Kathy Austin’s office to explore options.

The ruling leaves the committee with three main choices, presenters said: redesign the Huntington central-office scope to remove the adult-education portion, accept the project as non-reimbursable and fund the shortfall from contingencies or other local sources, or seek a change in referendum language through a future ballot measure. Bond counsel and committee members emphasized that the original referendum called for delivery of the stated components within the $385,000,000 bond total and that the city has limited authority to add funds beyond that amount.

Committee members pressed staff on possible budget and scheduling impacts. Staff noted that program contingencies across early projects were expected to cover some variability but estimated the shortfall to be in the low tens of millions if the adult-education component must be carried locally. They also said that reshaping the scope could require revisiting architect agreements and, potentially, rebidding elements if changes are substantial.

For now the committee agreed to continue procurement and selection activity for other projects while staff pursues legislative options and provides a clearer cost breakout for the Huntington components. The committee scheduled follow-up briefings as new information becomes available.