Earlier this week, CBS 3 learned that Mohegan Sun wants to drop its exclusivity agreement with the town but wants to remain in control of the 152-acre site, which it has leased for the next 95 years.
Friday, the casino issued a press release stating it wants to hold onto the land to look at developing a non-gaming business.
The company had proposed a $1 billion casino resort, which voters failed to approve earlier this month.
One town resident, who is a Mohegan supporter, told CBS 3 he thinks the new development is a good idea.
"I have a little problem with a 99-year lease, but I think nothing is happening to it now," said Kenneth Rhodes, who has lived in Palmer for 15 years. "The land is there. It would be nice if somebody developed it, and if it's Mohegan Sun, great."
Critics of the idea believe Mohegan can just keep a stranglehold on the land and let it sit for the next 95 years.
Palmer Town Councilor Paul Burns, who was a casino supporter, said the company's word can not be trusted.
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