Preston — Residents overwhelmingly approved a memorandum of understanding with the Mohegan Tribal Gaming Authority that outlines terms for the tribe to purchase the entire 393-acre former Norwich Hospital property for a projected $200 million to $600 million development with 200 to 700 full-time jobs.

Most of the audience erupted in applause when it became obvious that nearly all of the estimated 350 people in attendance stood for the yes vote, and only about 10 people stood to reject the MOU.

The vote came just minutes after all town, tribal and state officials asked to speak had had their say, when one resident quickly cut off discussion with a motion to “move the question” without further comments.

Residents approved that vote and then quickly approved the MOU.

The meeting started with Preston Redevelopment Agency Chairman Sean Nugent reviewing details of the 15-page memorandum.

The approval launches a 180-day negotiation period to reach a draft purchase and sale agreement and a “property disposition and development agreement,” which also must be approved by residents at a future town meeting.

Town and tribal officials held a brief signing ceremony, inking four original MOU documents, following the vote and then held an impromptu news conference with several media outlets.

Mohegan Tribal Chairman Kevin Brown said he was somewhat surprised by the quick vote, but said residents and the tribe both realize “it's time” to get moving on a development agreement.

He said the first “next step” for the tribe will be to hire a master planner to design the campus development.

Brown said he expects confidential talks with developers about possible projects at the hospital property will start to come to fruition over the next 180 days, and he will be able to present some of those plans to voters when the purchase and agreements are completed.

Brown said earlier this week that the tribe has conceptual plans for the entire 393 acres, possibly including retail, hotel, business development, "glamour camping" and a synthetic ski slope.

Brown said Thursday after the meeting that an obvious goal would be to connect the former hospital property with the Mohegan Sun casino directly across the Thames River — most likely by ferry.

At the start of the presentation, Nugent showed an aerial photo of the campus prior to the start of cleanup, telling residents the PRA was anxious to once again have a fully realized, vibrant development there.

“We knew the state had spent 13 years doing nothing,” Nugent said, explaining why the town decided to take ownership of the property, with all of its decaying buildings and contaminated grounds, to “take matters into its own hands.”

First Selectman Robert Congdon thanked the voters of Preston for having “the courage” to take ownership of the property when many throughout southeastern Connecticut said the small town with few resources was “crazy” to take on the burden of cleaning up the sprawling property.

Brown told stories of his own childhood ties to the region as a high school football player for Montville High School.

He told residents packing the Preston Veterans' Memorial School gym that he was at the meeting “to give you hope. Trust and hope.”

He praised town officials for all the hard work put into the negotiations and the cleanup efforts to date.

Brown said the tribe has been part of the fabric of the region for centuries. He stressed the commitment the tribe will have in ensuring the development at the former hospital property “is done right.”

"This is where our reservation is, and our reservation is not going to pick up and go somewhere else," he said. "... It all matters to us, forever."

He said the tribe already is in confidential negotiations with developers interested in coming forward to propose uses for the hospital property.

Brown also said the tribe would ensure that public access to the river would be included in the plan.

Brown and Congdon referred to each other as "partners across the river."

"We are your partners, we've always been right there across the river from you," Brown said.

He said more details will come out after the 180-day negotiation period to reach the purchase and sale agreement.

Nugent said the PRA team started negotiating with the Mohegan Tribe in January and worked through about eight drafts before reaching a final draft approved by the PRA and the Board of Selectmen last week.

With residents' approval of the MOU, the PRA expects to have numerous executive session meetings over the next 180 days to negotiate the sale and development agreements.

He said he will instruct agency attorney Bruce Chudwick to make it as “slim” as necessary, so the agreement is not bogged down with “gobbledygook,” Nugent said.

If the town approves the PDDA, state permits for traffic and roadwork also might be needed before the Mohegan Tribe could start actual development.

Construction would have to start within three years of the real estate closing and must be completed within five years.

At the start, the tribe would post $11 million in a line of credit that the town would receive if nothing is developed after five years.

That total would cover the town's $6 million invested in the cleanup, marketing, legal fees and other expenses over the years.

The tribe also agreed to pay up to $600,000 to cover the town's legal fees for the sale negotiations.

The town still would be responsible for completing the environmental cleanup, and the state Department of Economic and Community Development has pledged the estimated $10 million for the remaining cleanup.

The state also agreed to convert the town's $2 million state loan to Preston into a grant if 200 jobs are created.

c.bessette@theday.com