PRESTON — Voters in Preston overwhelmingly approved an agreement between the town and the Mohegan Tribe on Tuesday that clears the way for the tribe to buy and develop the sprawling former Norwich State Hospital property into one of the region's largest recreational, retail and residential tourist destinations.

The referendum to approve the Property Disposition and Development Agreement, which spells out the proposed deal between the town and the tribe, passed 813-137.

Voting was heavy at Town Hall for most of the day, and a registrar said only about 25 extra ballots remained after polls closed. Five people voted by absentee ballot.

The passage of the agreement will be formalized in a signing ceremony at 12:15 p.m. Wednesday in front of the old administration building on the hospital property, Preston Redevelopment Agency Chairman Sean Nugent said. Gov. Dannel P. Malloy plans to attend, Nugent said.

"The vote reflects the view of the town and we're very happy about that," Nugent said. "The people of Preston took a risk in 2009 to buy the property and have been very supportive of the PRA through the whole process."

Cheers and congratulations erupted after the vote tally was read out, and a hasty PRA meeting to formally approve the agreement was preceded by a champagne toast. Nugent and others went out of their way to also credit First Selectman Bob Congdon, who they said was key to a smooth process.

"Someone who's fought for this from day one for over 20 years," Nugent said. He also thanked Malloy, Lt. Gov. Nancy Wyman, fellow and former PRA members and state and local officials.

Congdon said the vote was the culmination of thousands of hours of work by many unpaid volunteers.

"It was a steep hill to climb, but we got there," he said. "We're very very happy."

Resident Andy Depta, who also served on the PRA, said the decision is "one of the greatest things that could happen to the town of Preston."

"Nobody else in probably the eastern half of Connecticut has 390 acres for sale. Who else has that available for a major development? Nobody," he said.

The tribe wants to develop the 388-acre site into an outdoor theme park, indoor water park, hotels, a sports complex and retail components. It also provides for 200 senior residential units and 100 time share units, a 100-unit RV facility, year-round ski facility and marina with 50 slips.

The agreement is the latest step in more than a year of efforts to finally bring development to the former state hospital site. Since the town bought the 393-acre property from the state in 2009, it has received $15 million in grants and loans and demolished 49 of 59 buildings on the property.

The town and tribe entered a Memorandum of Understanding in May 2016 that would allow the tribe to move forward with purchase and development of the site.

Cost of construction for the project is estimated at between $200 million and $600 million, and it’s expected to create between 200 and 700 full-time jobs.

The agreement sets a time window for completion of the project: Construction would start within three years of closing and be completed within six years of closing.

The agreement also spells out remediation of the 388-acre site. Both parties have agreed not to develop a five-acre parcel at the former ash landfill that contains contamination.

The State Bond Commission in February approved $10 million for remediation and cleanup only. The Department of Economic and Community Development also committed to provide an additional $2 million loan as “contingency monies,” should cleanup require more time.

The tribe also has agreed to take on the cost of demolishing existing buildings. Previously, in the Memorandum of Understanding, the town was on the hook.

If the tribe builds nothing, the town would collect $11 million through a line of credit as well as collect taxes on the property.

Under a maximum $600 million of development, the town could collect $43 million in taxes over 10 years. That assumes a tax rate of 23 mills and conveyance of the land property in 2018.