Governor Rell: State Offering to Pay Upkeep

of Norwich Hospital for Additional Year

February 27 Closing Date to Transfer Ownership

Of Former Norwich Hospital Will Not Be Extended

Governor M. Jodi Rell announced today that the state will not extend the closing date to transfer the former Norwich Hospital to the town of Preston beyond February 27, but will continue to pay insurance, security and maintenance costs for an additional year to relieve the financial burden on the town while it searches for a suitable developer.

“The town has had more than four years find a developer and now the state is offering to pay for its upkeep for additional year,” Governor Rell said. “Five years can certainly not be considered rushing anyone into a hasty decision. However, I fully understand the financial pressure the town is under and that is why the state will provide 12 more months of fiscal breathing room.”

In a letter today to First Selectman Robert M. Congdon, Governor Rell said lengthy process find a developer for the 419-acre parcel has been costly to all parties involved.

“The State has spent substantial sums of money on staff, legal counsel, consultants, security, property management and property maintenance,” Governor Rell wrote. “The time has now come for the Town to decide, after so many years and so much cost, whether it wants this property for $1.00.”

On September 1, 2004, the state offered the substantial parcel to the town. In November 2005, the state agreed to sell the parcel to Preston for $1, giving the town three years to close on the property. The Governor said the state will continue to maintain and insure the property for a year after the February 27 closing, but not beyond.

Norwich State Hospital, a former Department of Mental Health institution, opened in 1904.  In 1996, as the state moved toward deinstitutionalization, both Norwich and Fairfield Hills Hospital in Newtown were closed and consolidated in Middletown.

          The Norwich Hospital campus consists of several buildings and more than 400 acres of land, much of it undeveloped forest and meadow with waterfront access along the Thames River.

“The property has great potential for someone,” Governor Rell said. “The matter has languished long enough and I believe this an equitable and generous offer that will address all concerned.”