Mohegans to Develop Former State Hospital Site
The Mohegan Tribal Gaming Authority has reached an agreement to develop the former Norwich State Hospital site, directly across the Thames River from its Mohegan Sun casino.
The 400-acre site has a checkered history. It ceased operation in 1996, and lay abandoned for years.
It was bought for next to nothing by the town of Preston back in 2009 with the hope of making it into a taxpaying asset. But since then, a concrete deal to redevelop the site has proved elusive, although the town has leveraged funds to pay for cleaning up the contaminated land.
Now the Mohegans will pay $11 million for an option to buy and develop the site.
They said they’re planning a mixed-use entertainment and residential development that could include retail, hotel, time share and recreational elements.
The MTGA has 180 days to put together a master plan for the site.