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    Friday, May 10, 2024

    Preston, Mohegans will miss targeted negotiation deadline

    Preston — The Sunday deadline for reaching a purchase and sale agreement between the town and the Mohegan Tribal Gaming Authority will not be met, town and tribal officials said, but the parties will meet Monday to review what both say are only "technical" issues that remain unresolved.

    For the past two weeks, Preston town officials have said the proposed roughly 150-page Property Disposition and Development Agreement has been in the final stages of negotiations. The document is in the hands of attorneys for both parties, and First Selectman Robert Congdon said Thursday he still anticipates receiving a final agreement soon from tribal officials.

    Chuck Bunnell, chief of staff for the Mohegan tribe, said Friday that tribal leaders will meet Monday with Congdon and Preston Redevelopment Agency Chairman Sean Nugent to discuss the technical issues raised by the attorneys for both parties. He said he did not expect a final agreement to be ready following the Monday meeting, but said it should be shortly thereafter.

    Neither Congdon nor Bunnell would disclose what technical issues were being discussed.

    "Everybody is committed and enthusiastic that we will get through the technical issues remaining," Bunnell said. "We are meeting on Monday to do that. Everyone involved is very enthusiastic."

    Tribal leaders unveiled plans for the entire 393-acre property on Jan. 17 that call for a 40-acre theme park, indoor water park, synthetic ski slope, large sports training complex, a major chain outdoor-theme retail store, hotels, senior housing and timeshare units and a marina on the Thames River, with possible water shuttle to the Mohegan Sun across the river. The plans also include a public park near the river.

    The state Bond Commission on Feb. 1 approved a $10 million grant to Preston to complete the environmental cleanup of the property.

    But the delay in completing the agreement meant that the Board of Selectmen could not hold a special meeting this week to schedule dates for a town meeting and referendum vote on the project, pushing those dates into March.

    The memorandum of understanding signed by both parties last May called for a six-month negotiation period that was to have expired in November. At that time, the parties agreed to a 90-day extension to Feb. 19. Both parties expected that with the bulk of the negotiations completed, no additional extension would be needed.

    Congdon said missing Sunday's deadline means only that the period of exclusive negotiations with the tribe will end. Once that deadline passes, Congdon said the town would be “obligated” to contact other parties who have expressed interest in the property. Town officials have not talked to any other parties during the exclusive negotiation period with the tribe, which started last May.

    Nugent said he knows of only one other party who has contacted the town regarding the former Norwich Hospital property, and "I informed them we are in negotiations with the tribe."

    “We have every intention to continue our good-faith negotiations with the tribe,” Congdon said Thursday. “We expect to receive a final agreement with the tribe.”

    While public information sessions, a town meeting and referendum had to be postponed, the PRA is moving forward with its public hearing at 7:30 p.m. Thursday at Town Hall on the master development plan proposed by the Mohegan Tribal Gaming Authority for the former Norwich Hospital property.

    Bunnell said tribal staff involved with the project will attend Thursday's public hearing.

    The Planning and Zoning Commission voted Jan. 31 that the tribe's plan complies with the town's Plan of Conservation and Development and any inconsistencies could be resolved as concrete development plans emerge.

    c.bessette@theday.com

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