Agreement for former Norwich Hospital property to go to voters next month
Preston — A purchase and sales agreement between the town and Mohegan Tribal Gaming Authority for a plan to redevelop the former Norwich Hospital property will go before voters next month.
A special town meeting and public hearing will be held April 6 at 7:30 p.m. at the Preston Veterans' Memorial School.
The meeting will adjourn to a referendum vote on April 18 at Town Hall. Voting will be held between noon and 8 p.m., unless townspeople vote at the town meeting to open the polls before noon. The polls can open no earlier than 6 a.m.
The redevelopment proposal for the 393-acre property calls for a marina, an outdoor theme park, an indoor water park, hotels, and senior housing, among other features.
The proposal means economic development, jobs and tax base growth for the region and the state, First Selectman Robert Congdon said after Monday's Board of Selectmen meeting. The selectmen unanimously approved the dates of the town meeting and referendum vote.
"It helps diversify our tourist attractions in Southeastern Connecticut," he said. "I just think it makes us a much more viable tourist destination going forward."
The Preston Redevelopment Agency approved on Friday the Property Disposition and Development Agreement, already approved by the Mohegan Tribal Council and the Mohegan Tribal Gaming Authority, that spells out the terms and conditions for the transfer of property to the MTGA.
The tribe would have to place $11 million in a letter of credit that would be paid to the town if no development occurs. The tribe would be able to deduct from the fund as development grows to the anticipated $200 million to $600 million level. A property tax phase-in schedule also is spelled out in the agreement.
Provisions in the document would prevent the Mohegans from attempting to annex the property as reservation land. And while the town would be responsible for the remaining environmental abatement and remediation, expecting to cost $10 million to $12 million, the gaming authority has agreed to do the actual demolition of the remaining nine buildings. The state Bonding Commission already has approved a $10 million grant for the cleanup, and town officials are negotiating an additional $2 million low-interest loan if costs exceed $10 million.
The Preston Redevelopment Agency will hold public informational meetings on the agreement at 7 p.m. on Wednesday and March 29 at the Preston Veterans' Memorial School.
Absentee ballots for the referendum will be available from the Town Clerk's Office.
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