Mechanic/Repair shop, and qualified Body Shop (for paint) are two different things.
There are some larger shops that can, and do, both. Others are one or the other. There is a lot of routine mechanical work that many qualified independent repair shops familiar with German cars can handle; it's some of the nuanced things like the fuel injection that experience comes in. Any good body shop with experience in painting higher-end foreign can do a Pagoda. They just may need a little help and guidance--but prep of the car, spray, block/sand are the same pretty much regardless.
Start making some phone calls to others with older Mercedes around; poke around on other forums. Do a little sleuthing with the information I gave you for the places in Huntington; I used to see Pagodas there, so those mechanics went somewhere.. Don't be afraid to take a ride, see and talk to these folks and network.
If Lou is too costly, I don't think you want to go to Gernold...and while w113NY suggests taking the ferry he's still a long way from New London or Bridgeport!