PRESTON — The town of Preston has reached a tentative agreement with the Mohegan Tribe for the purchase and development of the former Norwich State Hospital property.
Preston officials announced Thursday that a memorandum of understanding between the town, which is the site’s current landowner, and the tribe will be put to a vote at a special town meeting on May 19.
Redevelopment Agency Chairman Sean Nugent says the Preston Riverwalk project calls for an investment of between $200 million and $600 million in mixed-use development and 200 to 700 permanent jobs. The site has been earmarked for high-quality, non-gaming development.
The agreement requires the tribe to pay $11 million to acquire the property, but they will have the opportunity to recoup some expenses if certain benchmarks are met.
