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  Greater Norwich Area Chamber of Commerce | Norwich, CT 06360

Greater Norwich Area News

ARTICLE

Date ArticleType
1/13/2025 3:49:43 PM General
Potential brownfield grant funding could make former Norwich Hospital land useable for housing

Matt Grahn, Norwich Bulletin

It may take a few years, but nearly 50 acres of property will see a new use.

On New Year’s Eve, ownership of two former Norwich Hospital parcels at 628 and 705 Laurel Hill Avenue was given to the Norwich Community Development Corporation as a donation by Thames River Place LLC.

As the land was contaminated from its prior use, the land needs remediation before it can be reused. This adds more costs for private owners, who aren’t allowed to get funding from the state or federal government to cover remediation. NCDC, as a nonprofit economic development corporation, can apply for funding, including the Municipal Brownfield Liability Relief Program from the state, NCDC President Kevin Brown said.

With all the remediation funding that’s been given to clean up the Preston side of the former Norwich Hospital property for the Preston Riverwalk, “it makes good sense to continue that effort,’ he said.

In December, The Norwich City Council gave approval to Planning and Neighborhood Services Director Deanna Rhodes to apply for $250,000 of Community Investment Fund Grants to fund a study, which would include community feedback, to determine remediation costs and the land’s best use.

The city won’t know until mid-March if the study funding is approved by the state, Brown said.

NCDC is prioritizing cleanup efforts for now. If the funding and study process goes as planned, then this year will be focused on study and planning, 2026 and 2027 will be focused on the remediation work, and 2028 could be the first year the land is developable, Brown said.

A past opportunity

The city itself had a chance to buy the land from the state in 2010 for $1. Since this was before remediation work began on the Preston side of the property, the then Norwich City Council, which included Mayor Peter Nystrom in a prior term, felt it was too risky to buy the property at the time.

It makes more sense now with the established precedent of Brownfields funding for the Preston side, Nystrom said.

“We’ve seen the state follow through, and can do a good job on that,” he said. “We’re working for the same.”

Potential

When the land was owned by Thames River Place LLC, it represented around $20,000 in annual tax revenue. Once there’s development, that value could triple or quadruple. As the region gains more jobs, the property could be used for housing. It’s also possible that NCDC will follow the lead of Preston and the Mohegan Tribe with what they do with the Preston Riverwalk, Brown said.

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187 Main Street, Norwich, CT 06360
T: 860-887-1647 | Fax: 860-887-9238 | [email protected]
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      • CorePlus Credit Union
      • Dime Bank
      • Eastern CT Savings Bank
      • Foxwoods Resort Casino
      • General Dynamics Electric Boat
      • Hall Communications
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      • Rodeo Cannabis
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