Preston nears goal of phasing in development at 390-acre site

Hartford - The quest for permission to develop the former Norwich State Hospital in phases - and for the town of Preston to avoid being on the hook for millions of dollars worth of bonds - could be fulfilled.

Town representatives and their counterparts from Norwich met with state elected and appointed officials Tuesday morning to discuss the request, which would make it easier to develop the 390-acre Preston portion of the property.

The meeting is just one in a series that have been held over the past few months, but Preston First Selectman Robert Congdon called Tuesday's gathering a significant step in getting the proposal approved.

The meeting was hosted by state Rep. Tom Reynolds, D-Ledyard, and Sen. Andrew Maynard, D-Stonington, at the state Capitol.

In a news release, Reynolds said the meeting enabled officials from Preston's state delegation to stress that making the former hospital property viable once again is a "critical priority" and that there is some urgency because of developers waiting in the wings for the outcome of the process.

He said the approval process will require the amendment to go through the same seven state committees and offices as the original agreement. He said there is no reason to try another avenue as long as the parties involved continue to make a good faith effort.

Lawyers for the town and the state Department of Public Works have been working on an amendment to the original Purchase and Sale Agreement between the state and town for several weeks.

The agreement currently requires the town to post a bond equal to the amount it will cost to clean the entire property's groundwater and soil contamination, which could cost between $7 million and $10 million, if any section of the site is developed.

Town officials hope that an amendment could specify that the property can be developed in sections so long as any revenue made is reinvested into the site to continue with the remediation. Preston Redevelopment Agency Chairman Kent Borner said this process would continue until the entire property is contaminant-free.

To clean the entire property, including removing asbestos, lead and other contaminants, it could cost between $27 and $30 million.

Borner said it took two months for the original agreement to be approved. Because the amendment focuses on changing just one clause in the agreement, he's hopeful that this time it will take no longer than a month to be passed.

The agency is currently in the final stages of creating a conceptual development and management plan for the property, now known as Preston Riverwalk.

The group met with members of the Preston Board of Finance Monday night and has been meeting with local planning officials about the two sections devoted to the finance and development of the site.

Borner said the group intends to present the final proposal at a special town meeting scheduled for Jan. 14, with residents set to vote on the proposal at a referendum as soon as the following week.

The town purchased the property in March, and the state agreed to pay for the bulk of the financial obligations associated with the maintenance, insurance and security of the property for one year. With that commitment running out in three months, the agency is trying to get permission to develop the site parcel-by-parcel in time for it to apply for and receive multiple grants and be able to meet with several developers that have expressed an interest.