Preston, Mohegan Tribe May Redevelop Former Norwich Hospital Site

Officials of Preston and the Mohegan Tribe announced on Thursday that they have drafted a proposal to redevelop the former Norwich Hospital.

“This is a proposal that will bring jobs and revenue to our town and clean up the site. I want to thank everyone for their work so far and urge all residents to support this truly historic opportunity for our town,” said Preston First Selectman Bob Congdon.

The proposal said the plan would create up to 700 permanent jobs and invest to $600 million into the property, the announcement read. 

A town meeting to vote on the proposal will be held on May 19. The proposal requires the Mohegan tribe to set aside $11 million for the property and "gives them the chance to recoup some of that expense when certain benchmarks ... are met." 

According to the announcement, the agreement also provides $2 million loan to the town in order to amend debt owed to the state by Preston. 

In addition to the proposal, the Department of Economic and Community Development agreed to contribute up to $10 million of brownfield funding to support the remaining abatement and redemption of the site. 

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