Preston receives state approval for reduced loan package
Preston – Town officials received state approval this morning for a $2 million low-cost state loan that would have to be matched with a $2 million town bond, a package that will be presented to voters tonight at a town meeting.
Preston Redevelopment Agency Chairman Sean Nugent said he will have a document from the state Department of Economic and Community Development to present to the PRA and the Board of Finance during special meetings tonight prior to the 7:30 p.m. town meeting at Preston Veterans’ Memorial School. The PRA will meet at 6 p.m. and the Board of Finance at 6:30 tonight at the school.
Voters on Nov. 27 rejected a proposed loan package that called for a $4 million low-cost state loan with a $4 million town bond to match.
The new proposal cuts the package in half in the hopes of winning voter approval. Nugent said the state has agreed to the same terms, including a 1.5 percent interest rate, with both interest and principal deferred for five years. And for every 100 permanent jobs created by future development on the property, $1 million of the loan would be forgiven.
Nugent thanked DECD Commissioner Catherine Smith, Deputy Commissioner Ronald Angelo and Gov. Dannel P. Malloy for working closely with town officials over the past week on the new loan proposal.
“They did an exemplary job of turning this around since last Friday,” Nugent said. “It’s a clear demonstration of their desire and intent to work with the town on the cleanup and revitalization of the property.”