Preston — The Mohegan Tribal Gaming Authority announced details of its potential $600 million development plan for the former Norwich Hospital property Saturday, which includes a marina, hotel, sports complex, large retail center, senior housing and indoor and outdoor recreation facilities.

The announcement was made following an hourlong, closed-door meeting of the Preston Board of Selectmen and Preston Redevelopment Agency at Town Hall on Saturday, as the negotiation period to reach a purchase and sale agreement with the Mohegan tribe winds down. The parties set a Feb. 19 deadline for having a final deal approved by both the Mohegan Tribal Council and Preston residents.

A news conference with Gov. Dannel P. Malloy tentatively is planned for Tuesday to announce details of the plans, and the tribe will present plans to the Preston Planning and Zoning Commission at a special meeting at 6 p.m. Tuesday at Preston Plains Middle School. The meeting will provide "the first glimpse" of the plans, First Selectman Robert Congdon said Saturday.

Two public informational meetings tentatively are planned for Feb. 2 and 4 for Preston residents, with a tentative town meeting date of Feb. 9, Congdon said. If that schedule holds, the earliest voters could be asked to approve the sale at a referendum would be Feb. 21, Congdon said.

In a news release issued Saturday, Mohegan Tribal Council Chairman Kevin Brown, also chairman of the MTGA Management Board, called the announcement a “major step in finalizing the Property Disposition and Development Agreement with the town of Preston.”

The tribe will present plans to the Preston Planning and Zoning Commission, calling for “the potential for $600 million in development of tax paying amenities.” The list included a marina, indoor and outdoor entertainment facilities including a theater, indoor water park and RV park, timeshare units, a sports complex with a hotel, a senior living center with residential units and a “large retail and entertainment venue.”

The Board of Selectmen and PRA have met in executive session to discuss negotiations in recent weeks, and PRA officials also discussed in closed session draft zoning regulations the development might need with town planning and zoning officials.

Tribal and town officials announced last May that the tribe planned to purchase the entire 393-acre former Norwich Hospital property in Preston with plans for $200 million to $600 million in development. The parties initially set a six-month negotiation period to finalize the deal, but extended that to Feb. 19 in November.

The preliminary deal announced in May also included a commitment by the state for the final $10 million needed to complete the environmental cleanup of the former state mental illness institution.

“The redevelopment of the former Norwich Hospital property is great news for the region and for the state,” Gov. Malloy said in the release issued by the tribe. “It has been a priority of mine, not only for the direct benefit that remediating this brownfield will have to the local community, but also for the future economic development potential that this valuable property can bring to the entire region.”

Malloy added that the project would cement southeast Connecticut as a “premier tourism destination” and would add to the region's appeal to visitors. Malloy also touted the estimation that the project would bring hundreds of jobs to the region.

The release announced the project would generate “at least 750 construction jobs and hundreds of permanent full-time positions.”

Congdon, who plans to retire after 22 years in the position in November, credited the “incredible leadership and vision” of the Mohegan tribe, the PRA and Malloy, the state Department of Economic and Community Development and the Department of Energy and Environmental Protection for bringing the project to fruition.

Since the town agreed to take over ownership of the former hospital property in 2009, with its dozens of abandoned, decaying buildings, town agencies have obtained about $15 million in state and federal grants to clean up the property, and used about $1.5 million in scrap metal value to offset further cleanup costs, PRA Chairman Sean Nugent said Saturday.

"The voters of Preston took a huge leap when they voted to take this property," Congdon said Saturday after the closed-door meeting. "A lot of people said 'you're never going to climb that mountain.' We wouldn't be here today if the townspeople didn't take that leap."

In the news release, Congdon called it "a monumental step in turning a blighted brownfield into a major economic engine for Preston, southeastern Connecticut and the entire State of Connecticut, creating needed jobs and tax revenue.”

In the initial memorandum of understanding approved by the tribal council and Preston residents at a town meeting last May, construction would have to start within three years of the real estate closing and must be completed within five years.

At the start, the tribe would post $11 million in a line of credit that the town would receive if nothing is developed after five years. That total would cover the town's $6 million invested in the cleanup, marketing, legal fees and other expenses over the years, town officials said at the time.

The tribe also agreed to pay up to $600,000 to cover the town's legal fees for the sale negotiations. The town still would be responsible for completing the environmental cleanup, using the pledged $10 million state grant through the DECD.

The state also agreed to convert the town's $2 million state loan to Preston into a grant if 200 jobs are created.

“This agreement has been produced after cooperative work between State, PRA and Mohegan planners and Bob Congdon personally,” Brown said. “I’m proud to say we are providing a tangible example of how regional partners can prioritize the importance of cooperative regional solutions.”

c.bessette@theday.com

Development plan details

The Mohegan Tribal Gaming Authority announced development plans for the former Norwich Hospital property in Preston Saturday. Highlights envision a concept with the potential for $600 million in development of tax-paying amenities including:

Outdoor and indoor entertainment attractions and theater

Indoor water park with outdoor attractions and adjacent hotel

Life-style mixed use retail/entertainment center

Senior living center

Sports complex with hotel

Large-format retail and entertainment venue

Sports retailer venue

Time share units

Marina

RV park and other amenities

Additional retail, restaurant and convenience store/fuel service for town residents and customers

At least 750 construction jobs and hundreds of permanent full-time positions