MONTAGUE — Town officials discussed a financial hurdle on Monday night after Tighe & Bond engineers presented estimates for demolition of the former Strathmore mill complex at 20 Canal St.

Tighe & Bond is estimating a $7 million price tag to demolish 10 buildings at the complex and stabilize Building 9, which houses a hydroelectric turbine operated by Eagle Creek Renewable Energy. The other option presented, just to demolish and completely rebuild Building 9, would cost $10 million, which is equal to the total amount the town has available for the Strathmore project.

Montague’s $10 million budget for demolition of the entire complex comes from a $4.92 million grant from the U.S. Environmental Protection Agency and a $5 million from the Massachusetts Department of Conservation and Recreation. Were the town to spend $10 million specifically on Building 9, it would leave the rest of the derelict complex still to be dealt with.

While town officials have known about the logistical complication involved with preserving Building 9, these cost estimates are new to the town and present an added layer of work toward the long-awaited demolition goal.

“The engineers’ updated estimate came through just a couple of weeks ago,” Assistant Town Administrator Chris Nolan-Zeller said on Tuesday. “And it’s been since then that we’ve been having to take a step back and figure out how we can address this from a project-wide perspective.”

So far, the town is still in the process of working with Tighe & Bond to create a demolition design for the complex, Nolan-Zeller said. However, figuring out a financial estimate will inform demolition specifications for the project going forward. The timeline for demolition in summer 2025 is still on track, Nolan-Zeller confirmed.

When cost discussions came up during Monday’s Selectboard meeting, Town Administrator Walter Ramsey said the town is working with Eagle Creek Renewable Energy to consider its options.

“Those are big numbers. … That’s why we are looking at all the options and talking about cost-sharing options as well,” Ramsey explained, adding that there is some flexibility in the scope of work for demolition design, as plans have not been finalized.

According to Eagle Creek Renewable Energy’s website, the hydroelectric turbine is a 937-kilowatt facility that shares the canal with FirstLight Hydro Generating Co. The turbine produces more than 2 million kilowatt-hours of energy in a typical year.

An Eagle Creek Renewable Energy representative could not be reached for comment by press time on Tuesday.

The Strathmore mill complex is a former paper mill along the Connecticut River that was constructed in 1874 and expanded on through 1970. The mill ceased manufacturing in 1994.

A 2007 fire, determined to be arson, destroyed Building 10 and damaged two other buildings. Montague acquired the site for redevelopment in February 2010, but due to the complex’s deteriorating nature and presence of contaminants in the buildings, the town must demolish it before any work can be done.

Erin-Leigh Hoffman can be reached at ehoffman@recorder.com or 413-930-4231.