LAKEVILLE — The developers of proposed housing at the former Lakeville Hospital site on Main Street told the Lakeville Select Board Monday that they need state funding to continue the project.

“This project won’t happen, this site won’t get cleaned up, unless we find a creative way to make that happen,’’ said John O’Leary, senior manager for the project developer, Rhino Capital.

Rhino Capital plans to build 190 units of senior living, including memory care and assisted living; 200 units of multi-family housing and 68 units of 55 and older homes on the site. 

Lakeville residents had previously rejected plans for a warehouse at the location. 

O’Leary cited three “extraordinary costs’’ that are part of the work. These include the removal of the landfill on site, the demolition of the existing old hospital buildings and the construction of a wastewater treatment facility for the homes that will be built.

O’Leary asked the town’s support of a Brownfields Redevelopment Fund state grant, which supports brownfields cleanup and redevelopment.

A brownfield is abandoned land that carries a risk of pollution from industrial use. Asbestos-related construction debris at the site is a "contaminant of concern,’’ O’Leary said.

If approved, this grant would fund the removal and remediation of the landfill on the site, which has been an ongoing issue in town for years. “The common theme we’ve heard across the board is, Clean up the site,’’ O’Leary said.

He estimated the landfill work cost at about $2.16 million.

A private developer cannot apply for the grant, which is why Rhino reached out to the town. Rhino would do all the application work but the official sign-off would have to come from the town, he said.

The town would not be responsible for any costs related to the grant, O’Leary said.

Select Board Member Brian Day questioned why financial concerns had not been mentioned before. “We were hopeful we would make it work, but we knew we were up against significant costs,’’ O’Leary responded.

Select Board Member Brynna Donahue said she would support the town giving approval to the grant application so the work can move forward. “If you need help, we should be helping you out,’’ she said. 

The Planning Board and Zoning Board have approved the work and that the Conservation Commission has issued a series of conditions. O’Leary described the permitting process as “substantially complete.’’

The deadline to express interest in the grant process is March 26. 

The issue will be revisited at the March 10 Select Board agenda. Select Board members asked Town Administrator Andrew Sukeforth to get feedback from Town Counsel. Rhino representatives were asked to provide an economic analysis of the project and information on similar work in other communities.