Norwich - The aldermen agreed Monday to commit $190,000 in local matching funds toward the total cost of $760,100 to buy the flood-prone New London Turnpike property where the Nutmeg Companies stands and convert it to an open space floodway for the Yantic River.
The company suffered $3.5 million in damage during the March 2010 flood that ravaged the region.
Norwich has applied to the Federal Emergency Management Agency (FEMA) for a grant to cover 75 percent of the relocation cost. Alderman H. Tucker Braddock said city officials also hope to obtain a state grant to cover the city's local matching share.
City officials said any local funds would carry a condition that the company remain in Norwich.
Mayor Peter Nystrom said there would be an added benefit to the proposal to buy the property, demolish the buildings and create a natural floodway. Businesses and residences just downriver from Nutmeg - including others on low-lying New London Turnpike and the Norwichtown Commons shopping plaza - could see reduced flooding from the Yantic River.
- Claire Bessette