The town of Redding is threatening to pull the plug on a project that was once hailed as a national model for redevelopment.

Developers had planned to build 400 homes, as well as restaurants and stores, at the site of the old Gilbert and Bennett wire mill in the town's Georgetown section.

Almost no work has been done after 11 years, causing Redding First Selectman Julia Pemberton to move forward with foreclosing on the property. She says the decision is a "nuclear option" that she still hopes could be avoided.

The town now says developers owe the town $3 million in back taxes, plus millions more in bond debt.

A representative with the developer told News 12 that they are actively negotiating with all creditors, and they are confident the issue can be resolved before the foreclosure goes through.