Norwich - It took two auctions and awaiting a months-long court appeal, but downtown developer Scott Capano finally acquired the vacant Thames Plaza office building at 101 Water St. after both the state Superior and Appellate courts rejected objections to the tax auction sale.

The transaction deed was recorded Friday in the city office, with Capano's winning bid of $233,700.01 posted at the May 3 tax foreclosure auction.

"Right now we're cleaning up the place," Capano said Tuesday.

"We're cleaning up the outside, doing some landscaping, cleaning up inside, putting in new carpeting."

Capano's ideal plan is to market the building as a school, perhaps a branch of a nearby college, such as Goodwin College in East Hartford or Lincoln Tech Institute. Otherwise, Capano said, the former bank branch spot in the building could be suitable for a restaurant, and the rest for offices.

He said the building is in good shape but needs "mostly cosmetic" interior upgrades.

"The building's stuck in the early '80s," he said.

Capano, whose family owns the nearby Harp & Dragon Irish pub at 130 Main St., and two adjacent buildings, along with the Norwich and New London ShopRite supermarkets, has received downtown revitalization program funds in recent years to expand the pub and renovate the adjacent building. He plans to apply again for the funds, administered by the Norwich Community Development Corp., to upgrade and market Thames Plaza.

"NCDC has been nothing short of spectacular in the downtown area," Capano said. NCDC President Bob Mills "is going to set up some meetings with some schools. I'm not set on anything, but any school would be a benefit to downtown because of foot traffic, not only students but faculty."

The city foreclosed on Thames Plaza, which overlooks Norwich Harbor, in 2013, and first attempted to sell it at a November auction. Using the business name 101 Water St. LLC, Capano bid one penny over the city's starting bid of $219,002 that covered the overdue taxes and interest at the time.

But the building's former owner, Norwich Harborview Corp., headed by Norwich businesswoman Janny Lam, filed an objection to the auction in Superior Court, and Judge Emmet Cosgrove ordered a second auction in May.

Capano again was the lone bidder, again posting a bid one penny above the new and higher back tax and interest bill. Again, Harborview Corp. filed an appeal, and when Cosgrove approved the sale, appealed that decision to state Appellate Court.

Attorney Aimee Wickless, who handled the foreclosure for the city, said the courts ultimately approved the city's motion to terminate a stay on the closing, which had prevented the auction sale from going forward.

While the appeal technically is still pending, the city and 101 Water St. LLC were able to complete the transaction, Wickless said. Capano said he is not worried about the pending appeal and is moving ahead with renovations.

City Manager Alan Bergren welcomed the completion of the sale and restoring the building to the city's tax roll. He hopes to work with Capano soon to get the building occupied.

"We're very pleased that there's been a resolution to this property," Bergren said. "It's a very prominent parcel in the heart of downtown. The Capano family and Scott has a great reputation in our city for doing meaningful economic development projects, and we look forward to working with him."

As the Thames Plaza foreclosure was completed on Friday, the city filed new foreclosure action against another of Lam's prominent buildings, the former Heritage Discovery Center at 77-91 Main St. The complex fronts on both Main and Water streets and houses restaurants and the NCDC office.

c.bessette@theday.com

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