The Hooksett Town Council is allowing the land planning and engineering firm working on the Cabela’s development to apply for a $3 million grant from the state that would go to major road improvements at the project site.

This is the first step of many after a special vote on Tuesday, Oct. 23, when 89 percent of Hooksett residents voted in favor of Warrant Article 1, which reduced the size of the development’s TIF district by 200 acres and decreased the town’s general obligation bond to $2 million from the $18 million passed in March 2006.

New England Expedition– Hooksett LLC will pay back the $16 million difference in private loans through the taxes the development generates over the next 20 years. Payments will be made in $1 million installments per year, and any excess tax revenue goes back to the town. According to projections, the first year will generate $150,000 for the town.

“We are going to be moving very swiftly,” said Deborah Brewster of TF Moran at a Town Council meeting on Wednesday, Nov. 7, adding that the grant application is just a small step in the process.

The total state aid highway project, which includes the addition of lanes and traffic signals at the intersections of Hackett Hill Road and Route 3-A, and Hackett Hill Road and Exit 11, will cost a total of $4.5 million.

The town’s portion, the remaining $1.5 million not covered by the DOT grant, is included in the $16 million the developer will fund privately.

The application asks that the $3 million be paid out over three years, $1 million each year in 2010, 2011 and 2012.

Town Councilor Jason Hyde contended the grant application should not be submitted to the state until the town’s bond attorney reviewed the final draft.

Hyde said there should be more extensive plans for the application.

“Why should we be applying for state aid when we don’t have an agreement with anybody?” Hyde said.

Brewster said it is important to get the one-page document to the state quickly so that the application process can be hastened before Charles O’Leary, the commissioner of the Department of Transportation, retires in December.

Once the application is processed, the DOT will prepare a municipal-state aid highway agreement and submit it to the town for review.

“Our hope is that the commissioner would be there to assist with that draft agreement,” said Brewster, adding that O’Leary has been an integral part of the process thus far.

Town Councilor James Gorton said counsel would thoroughly review the draft from the DOT, adding that the initial application to the state needs to be sent out to get to that point.