Norwich - The plan to move the Nutmeg Companies out of its flood-prone property at 31 New London Turnpike into a building the company recently purchased at 1 Ohio Ave. in the Norwich Business Park now appears imminent, with bids opened Friday to demolish the current building.

The project has been in the works since the Nutmeg Companies was devastated by flooding from the adjacent Yantic River in the March 2010 flood that caused major damage throughout Norwichtown.

City officials received six bids Friday, ranging from $92,345 by Wiese Construction of Norwich to a high bid of $193,000 from Niram Inc. of Boonton, N.J.

City Purchasing Agent William Hathaway said the bid packages will be forwarded to the city Public Works Department for review and recommendations. He hopes to receive a recommendation within a few weeks. Demolition is expected to take place in fall.

Nutmeg officials could not be reached for comment. The company purchased the property at 1 Ohio Ave. in the business park in July for $525,000.

Nutmeg agreed in 2011 to sell the flood-prone 3.8 acre New London Turnpike property to the city for $650,000 with the condition that the company remain in Norwich. The city also agreed to pay relocation costs of $100,000.

Including acquisition, demolition, relocation and legal costs and other incidentals, the project total is expected to be $860,100.

The city obtained a $570,075 grant from the Federal Emergency Management Agency's Hazard Mitigation Grant Program, with a city matching share of $190,025. A state Department of Energy and Environmental Protection open space grant of $123,516 will cover part of the city's matching share, leaving the city's cost of the purchase, demolition and grading the property at $66,509.

The $100,000 business relocation cost was ineligible for the FEMA funding, city project coordinator Jackie Roy said. She has applied for a $50,000 grant from the state Bond Commission. If obtained, the city's total projected cost would be $116,509. Part of the city's cost will be covered with in-kind services. Norwich Public Utilities, for example, will disconnect utilities at the property.

Roy said the low demolition bid is within the project budget. She had estimated about $100,000 for demolition, removal and regrading the property.

Despite extensive flood prevention walls and sandbags installed during severe rainstorms on March 26, 2010, a 4-foot wall of water crashed through the company's concrete storage garage wall and inundated the business office and equipment storage areas. The flood caused several million dollars in damage and forced the company to operate out of temporary trailers for months.

c.bessette@theday.com

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