The town of Windham is scheduled to pay an additional $100,000 for the sewer project approved last December with the town of Gorham and the Maine Correctional Center that is located between the two towns.

Michelle Clements, public relations manager at the Portland Water District, said the total estimated cost for the project was originally $7.5 million, but is now $7.9 million.

“That’s what we’re anticipating, and we’re nearly complete, so it’s a pretty good estimate,” said Clements.

The rest of the $300,000 over-budget cost will be paid for by Gorham and the correctional center.

Clements said the Maine Department of Environmental Protection changed some of the requirements for permits, and the costs of acquiring land and paving were higher than expected.

I was surprised and a little disappointed to hear about overruns,” said Windham Town Manager Tony Plante. The town originally was slated to pay $2 million and received a $200,000 grant from the federal government.

Plante said the contract the town signed put a cap on how much the town will pay, and what the Portland Water District is asking for exceeds that cap by $75,000. There will be a meeting between the town and the Portland Water District on Dec. 4.

“This doesn’t change anything as to the benefit for the South Windham village,” said Plante. He said the sewer project is part of a 10- to 15-year revitalization development for South Windham that will encourage businesses and home sales.

South Windham includes the infamous eyesore Keddy Mill that the Questor real estate company plans to tear down to make 85 condominiums.

The sewer project was criticized by Donna Chapman, an associate broker for ERA Today Realty, when it was passed last year. She is now a member of the town council and maintains her stance that the project will cost the town a lot of money.

“I don’t think we’re ever going to recoup that loss,” said Chapman. She said there isn’t a market for new homes right now and the town will lose money. She said a large impact fee would be the only way that potential South Windham residents could make up the cost for the sewer project.

Chapman said the correctional center, which is paying less than $500,000 for the project, is funded by state taxes and should be paying a larger share of the bill. She said that people from all over the state are sent there, and it’s not fair to Windham to divide the cost so unequally.

Plante said that the prison got involved because they needed a new sewer system at the time that Windham and Gorham were already looking at upgrading their systems, which were in danger of exceeding capacity.

“Everything happened just at the right time to make things happen,” said Plante. He said the final numbers will be in in the spring.