Reconstruction of a busy intersection in Gorham by a developer could get under way Friday.

Gorham Planning Board Monday gave Hans Hansen, developer of the Stargazer development, the green light to upgrade the intersection of County Road (Route 22) and South Street (Route 114). Hansen was required to improve the intersection in connection with town approval of his $5 million-$6 million development.

Hansen estimated his costs of the intersection upgrade, which includes a new traffic signal, at $150,000. “It’s a huge, huge benefit to the town of Gorham,” Hansen said after Monday’s meeting.

Hansen, who owns Hansen’s Farm Market at the intersection, has been approved by the planning board to build six, single-family homes on Blue Ledge Road, which is already constructed from the intersection into his site. The homes would cost $400,000 each.

Plans also call for a day care for 49 children, three greenhouses and a farm utility building.

The project’s engineer, Tom Greer of Pinkham and Greer, said following Monday’s meeting that a pre-construction meeting with the town would be held Thursday at the site. Greer said no travel lanes would be closed during commuter rush hours.

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Hansen said Shaw Brothers Construction Inc., of Gorham is the contractor. Construction is expected to be completed in about two weeks.

Greer also said the state plans reducing the speed limit from 45 to 35 mph east of the intersection along the stretch of highway where routes 22 and 114 overlap.

The intersection upgrade, which has been approved by the Maine Department of Transportation, includes a left turn lane onto South Street from Route 22; a wider corner turning right onto Route 22 from South Street; and changes to the present right turn lane from Route 22 onto South Street. Left turns onto Blue Ledge Road from Route 22 will be prohibited.

In other planning board action, Nappi Distributors Inc., received approval for landscape changes and a sign at its multi-million headquarters and warehouse under construction on lower Main Street (Route 25).

Planners are allowing Nappi to add a 16-foot diameter gazebo and an electronic message sign displaying time and temperature, which is already in place. Nappi was originally approved for a monument sign.

Planning board member Tom Hughes liked the sign the company installed but faulted the company for erecting it without approval. “I think you should have your hand slapped,” Hughes said.