PRESTON TO NORTHLAND: NO DEAL

ON FRIDAY, OCTOBER 3, 2008 THE PRESTON NEGOTIATING TEAM TOLD NORTHLAND THAT THEY WERE CEASING NEGOTIATIONS ON THE NORWICH HOSPITAL PROPERTY.

NORTHLAND HAD ORIGINALLY PROPOSED TWO HOTELS, A MARINA, A GOLF COURSE, AND HIGH END HOMES. IN PHASE ONE, NORTHLAND WAS GOING TO BUILD ONE HOTEL, GOLF COURSE, AND OTHER RESORT AMENITIES. NORTHLAND WAS ALSO IN PHASE ONE, GOING TO CLEAN UP THE ENVIRONMENT AND TEAR DOWN AND REMOVE THE BUILDINGS AT THE NORWICH HOSPITAL PROPERTY.

THE DEAL BEING OFFERED BY NORTHAAND WAS DIFFERENT FROM WHAT WAS ORIGINALLY PROPOSED. IN PHASE ONE, AN APARTMENT COMPLEX (750 APARTMENTS), WAS GOING TO BE BUILT. THE REQUIRED INSURANCE TO MAKE SURE THE ENTIRE SITE WAS CLEANED WAS NOT BEING PROVIDED AS PROMISED. IN PHASE ONE, NORTHLAND WAS SUPPOSED TO TEAR DOWN AND REMOVE THE DEBRIS OF ALL THE EXISTING BUILDINGS. ALL NORTHLAND WOULD SAY IS THAT, THEY WOULD HAVE IT ACCOMPLISHED SOMETIME WITHIN THE NEXT 15 YEARS.

NORTHLAND WANTED THE CLEAN UP DONE TO COMMERCIAL STANDARDS NOT THE RESIDENTIAL STANDARDS THAT PRESTON HAD REQUIRED FROM DAY ONE. BUILDING 750 APARTMENTS WOULD HAVE PUT MORE OF A DRAG ON THE TOWN OF PRESTON'S BUDGET AND PRESTON'S SCHOOL SYSTEM. I BELIEVE NORTHLAND ALSO WANTED TAX CREDITS AND WANTED PRESTON TO ACCEPT TAXES ON THE PROPERTY BASED ON THE BUILDING COSTS OF THE DIFFERENT PROPERTIES INSTEAD OF THE PRICES THAT THE DIFFERENT THINGS SOLD FOR. THIS IN MY OPINION WOULD HAVE BEEN QUITE COSTLY TO PRESTON. .

MAYBE, THE STATE SHOULD HAVE SOLD IT TO THE MOHEGANS. THE MOHEGAN TRIBE WOULD HAVE DEVELOPED IT, INSTEAD OF GOING OFF TO PENNSYLVANIA, WISCONSIN, AND WASHINGTON STATE. MOHEGAN TRIBAL MEMBERS SHOULD REMEMBER, THAT WHATEVER IS HAPPENING NEXT DOOR TO US, CAN HAVE AN EFFECT ON THE MOHEGAN RESERVATION. WHAT DO YOU THINK?

SO AT THE END OF THE DAY, YOU COULD SAY PRESTON AND NORTHLAND DIDN'T COME ANYWHERE NEAR TO CLOSING THE DEAL. WHAT SHOULD PRESTON DO NEXT? THE CLOCK IS TICKING.