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    Friday, May 03, 2024

    State Bond Commission meeting canceled, delaying Norwich Hospital cleanup funds

    Preston — The state Bond Commission has canceled its Jan. 27 agenda, causing what is expected to be a slight delay in state approval of the final $10 million in cleanup money for the former Norwich Hospital property.

    Following Tuesday’s news conference at the Sky Tower Hotel at Mohegan Sun, Gov. Dannel P. Malloy anticipated that the Bond Commission might meet in early February rather than next week, and he pledged approval of the $10 million at the upcoming meeting. At the news conference, the Mohegan Tribal Gaming Authority unveiled its concept plan for a $200 million to $600 million development on the 393-acre former state hospital property in Preston.

    Preston Redevelopment Agency Chairman Sean Nugent said he was informed by officials at the state Department of Economic and Community Development that the Jan. 27 Bond Commission meeting would be canceled. A new date for the Bond Commission meeting was not posted Friday afternoon on the state Office of Policy and Management website.

    Nugent and First Selectman Robert Congdon both said Friday that the state’s delay would not directly affect the tentative schedule to hold public informational meetings in Preston on the draft Property Disposition and Development Agreement now in the final stages of negotiations with Mohegan tribal officials.

    But firming up the proposed dates of Feb. 2 and 4 for informational meetings and Feb. 9 for a town meeting, will depend on whether the draft agreement can be completed in time for those meeting dates, Nugent said.

    The parties set a Feb. 19 deadline to approve the development agreement.

    Congdon said if the state Bond Commission hasn’t met by the time Preston is ready to vote on the purchase and sale agreement, the town could approve the agreement on condition that the state provide the $10 million in cleanup money. The memorandum of understanding signed by tribal and town leaders in May contained the provision of state cleanup funding as well.

    c.bessette@theday.com

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