The NH Business Finance Authority has approved a loan of up to $3 million to help fund remediation of the Mohawk Tannery Superfund site in Nashua and its eventual redevelopment into a 546-unit residential community.

The Mohawk Tannery site is a former leather tannery that produced tanned hides from 1924 to 1984. As a by-product of this operation, the tannery produced sludge and acidic residues that were disposed of on-site in a series of lagoons.

Once the site has been fully remediated, Thorndike Development will purchase the property and build a 546-unit residential housing community, consisting of a mix of condos and apartments. Some 20 percent of the units will be designated as affordable housing.

“This project will have a significant positive impact on the Nashua community,” said James Key-Wallace, executive director of the BFA. “In addition to much-needed housing units being developed, a long-time Superfund site that posed a risk to the local environment will be remediated.”

Remediation is expected to take a year to complete, with the housing built in phases shortly thereafter.

“This is an exciting step forward for Nashua,” said Nashua Mayor Jim Donchess. “To have the former Mohawk Tannery site finally cleared up and transformed into usable and much-needed residential property is a huge win for the city.”