WINDHAM — The Planning Board Monday reviewed a 34-unit subdivision project proposed for a site north of Depot Street across from the Keddy Mill site in South Windham.

The subdivision on the currently vacant 2.1-acre lot will feature two 12-unit apartment buildings and eight townhouses that will be sold at “market rate,” according to Dustin Roma of DM Roma Consulting Engineers, who is representing the applicant MCL Realty.

The units will be neither luxury nor low-income, but reasonably priced, Roma said in an interview. They may be converted to condos sometime in the future.

In addition to creating a new subdivision, the applicant has been working with the town and the Windham Economic Development Corporation to replace a failing sewer pump station on the property to serve the surrounding area.

According to Roma, the town has secured partial funding for the new pump station through a Community Development Block Grant and will raise the rest of the necessary funds through other means.

The site is also home to approximately 12,000 square feet of wetlands, so the applicant will have to obtain a DEP permit for wetland fill.

Board members responded favorably to the proposed project.

“I think it’s a great idea,” said Vice Chairman Keith Elder.

Chairman David Douglass encouraged Roma to work on “developing the character of the buildings” and creating a nice neighborhood with large trees for the families that will move in.

“There’s a lot to work with here. I think it’s potentially going to be a really good project,” he said.

The board voted unanimously to hold a public hearing and a site walk for the project. The town planner will schedule those events at a later date.