Construction on three new Davis Island condominiums is expected to begin this week. The Edgecomb Planning Board conditionally approved The Village at Sheepscot’s subdivision proposal on July 2 to build units on the corner of U.S. Route 1 and Eddy Road.

The proposal was submitted by land developer Anthony Casella in April. The planning board is expected to approve Casella’s subdivision building permit on July 16 after he meets three final conditions.

Those conditions include reviewing a maintenance agreement between the four homeowners association who use a tax increment financing (TIF) district’s utility lines and a privately-owned pumping station; connecting a back-up generator to the main pumping station; and receiving the code enforcement officer’s review and approval.

Casella’s latest Davis Island land development proposal is to build the three condominiums on a 10.03 acre parcel. The property already contains the Sheepscot Harbour Village and Resort office and another commercial building. The property is not part of the TIF district nor is it currently connected to the utility lines.

According to Casella’s consultant, Karl Olson of Karl Olson & Associates, the condominium units would each encompass 1,133 square feet. Each unit would have three bedrooms and bathrooms.

Casella said on July 13 that he expects to meet the final three conditions.

“I expect to get the permit on Thursday. I have an excavator waiting on the property, and will begin construction Friday,” he said.

Casella expects the units will built within 90 days. He said all three units have been sold for $75,000 each. Casella also said he is one of the owners.

The planning board conditionally approved the proposal following a public hearing.

According to Planning Board Chairman Jack French, about 12 residents attended the July 2 hearing. The proposal didn’t receive any public opposition. The one concern raised was whether an abutter would have access to the utility lines once he developed his property. French said the abutter was satisfied after learning he would have access.

Last month, the planning board issued 28 conditions for the developer to meet. Most of those conditions centered around the ownership and maintenance of the Davis Island TIF district’s utility lines and privately-owned pumping stations.

The board wanted a maintenance agreement between Casella’s latest land development venture with three other nearby housing developments. The parties involved in the agreement are the Sheepscot Harbour Village and Resort, The View Association, and Community Housing of Maine.

The agreement clarifies ownership of the utility lines and creates a cost-sharing formula for the system’s future upkeep.

A TIF district was created in 2005 after the Sheepscot Harbour Village Resort was proposed. The TIF paid for installation of water and sewer lines from Davis Island to Wiscasset. For years, the Sheepscot Harbour Village Resort assumed the majority of the maintenance costs.

The planning board took the opportunity of Casella’s latest proposal to clarify ownership of the various sewer and water lines. The board also wanted assurances from the four homeowner associations that each would share responsibility for maintaining the Davis Island system’s maintenance.

The agreement calls for: a maintenance budget to be prepared annually; creation of a reserve account for capital expenditures; and the joint purchase of a $1 million liability insurance policy.

Casella believes the planning board’s diligent work benefited all parties.

“I really think they did a good job. They had some concerns about the ownership and maintenance of the system. So they brought us together, and we put together an agreement that works for everybody,” Casella said.

The planning board will meet next at 6:30 p.m. on Thursday, July 16, in the municipal room.