THE CLOCK IS TICKING PRESTON

BY JANUARY 5, 2009, THE TOWN OF PRESTON MUST FIND A COMPANY TO TAKE OVER THE 419 ACRE FORMER NORWICH HOSPITAL PROPERTY.

FIRST THERE WAS UTOPHIA STUDIOS WHO HAD PROPOSED A THEME PARK, TWO HOTELS, APARTMENTS, AND A MOVIE STUDIO AMONG OTHER THINGS. THE DEAL SUPPOSEDLY FAILED WHEN UTOPHIA DID NOT COME UP WITH THE FUNDS.

AFTER UTOPHIA WAS NO LONGER IN THE BIDDING FOR THE HOSPITAL PROPERTY, THE TOWN STARTED THE BIDDING PROCESS ALL OVER AGAIN. THE NEW BIDDERS WERE NARROWED DOWN TO NORTHLAND INVESTMENT CORP. AND PRESTON GATEWAY PARTNERS, LLC. PRESTON THOUGHT THE PRESTON GATEWAY PLAN WOULD CAUSE THE TOWN OF PRESTON TO PROVIDE MORE SERVICES AND RECEIVE LESS TAXES THAN THE NORTHLAND INVESTMENT PROPOSAL.

IN JULY VOTERS, VOTED TO NEGOTIATE WITH NORTHLAND TO TAKE POSSESSION OF THE NORWICH HOSPITAL PROPERTY. THE PROPOSAL WAS FOR A HOTEL, A GOLF COURSE, HIGH END HOUSES (ONE MILLION DOLLAR PLUS), APARTMENTS, AND A SHOPPING CENTER. NORTHLAND WAS ALSO SUPPOSED REQUIRED TO GET INSURANCE TO INSURE THE ENVIRONMENTAL CLEAN UP. THE CLEAN UP HAS BEEN ESTIMATED TO BE AT LEAST $40 MILLION DOLLARS. THEY WERE TO TEAR DOWN THE EXISTING BUILDINGS.

IN THE RECENT NEGOTIATIONS NORTHLAND ONLY PROPOSED IN THE FIRST PHASE ONE CALLED FOR 750 APARTMENTS AND NORTHLAND REFUSING TO BUY INSURANCE FOR THE ENVIRONMENTAL CLEAN UP.

PRESTON'S BOARD OF SELECTMAN VOTED TO SEND A TERMINATION NOTICE TO NORTHLAND. THEY CAN STILL NEGOTIATE, BUT IN MY OPINION THE DEAL IS PROBABLY DEAD.

SANDRA EWING, HOSPITAL ADVISORY COMMITTEE MEMBER SAID," THE HOTEL, GOLF COURSE, MARINA, CONDOS, GOLF COURSE HOMES, COMMERCIAL (ASPECT) - WHAT'S BEING PROPOSED NOW IS NOT THAT PACKAGE,NOT WHAT WE ENVISIONED. AND IT HAS DRAMATICALLY CHANGED."

NORTHLANDS CHAIRMAN LAWRENCE GOTTESDIENER, IN A LETTER SAID, "THE COMMITMENT AND RESOURCES TO DEVELOP PRESTON GREEN, EVEN IN THE FACE OF THE NATIONS'S WORST FINANCIAL CRISIS SINCE THE 1930'S. THE ADVISORY COMMITTEE CHOSE TO IGNORE THE LIQUIDITY FREEZE AND THE SIGNIFICANT UNCERTAINTY PLAGUING THE NATIONAL AND REGIONAL REAL ESTATE MARKETS, BY INSISTING ON FINANCIAL INSTRUMENTS, THAT ARE NO LONGER AVAILABLE IN THE MARKETPLACE."

THE SECRETARY OF THE STATE OFFICE OF POLICY AND MANAGEMENT, ROBERT GENUARIO SAID IN A LETTER, THAT THE STATE WOULD NOT GRANT PRESTON AN EXTENSION.

PRESTON SHOULD KEEP IN MIND THE CLOCK IS TICKING. THEY NEED TO GET A DEAL FINISHED BEFORE JANUARY 5, 2009. HOW WILL THIS LATEST EVENT, EFFECT THE MOHEGAN SUN CASINO DIRECTLY ACROSS THE RIVER?