Federation of Connecticut Taxpayer Organizations

Norwich - The city has reached a proposed $164,000 settlement agreement with the owners of Thayer's Marine & RV over the company's claims that construction of the

$22 million regional transportation center has hurt the business, which is adjacent to the future center.

The City Council voted 6-0 Monday night to approve $150,000 for the settlement.

Mayor Peter Nystrom said Tuesday the transportation center insurance will cover the remaining $14,000 of the proposed settlement.

The settlement agreement next must be approved by the New London Superior Court judge who is hearing Thayer's civil suit against the city. Richard Thayer Sr. said Tuesday he has not received notification from city officials that the council has approved the settlement.

Thayer challenged the city's eminent domain taking of a portion of Falls Avenue in front of Thayer's boatyard and showroom for the project. The transportation center is being constructed over the road, forming a tunnel in front of the marine business.

Despite his approval of the settlement, Thayer remains bitter about the transportation center, its effect on his business and what he called lack of support from city officials for his longstanding downtown business.

He hopes to build a new boat showroom in Preston. In October, Thayer Family Enterprises LLC purchased a 6.7-acre parcel on Route 2 in Preston for $210,000 to move the retail showroom there. Thayer had attempted a similar move to a parcel on Route 164 a year ago but was denied a necessary zone change for that piece.

The proposed legal settlement with Norwich covers Thayer's pending claims over the road taking, any visibility obstruction to the business, dust and dirt damage to boats, access problems caused by the tunnel - including height issues for boats on trailers that won't fit - economic damages and "quality of life" issues.

The Thayers have agreed to release all claims involving the transportation center and acknowledge that even with the discontinuing of Falls Avenue as a public street, the city has maintained Thayer's right-of-way along the road to enter his business.

The settlement, however, would not cover a separate personal injury claim by the estate of Thayer's wife, Mary Anna Thayer, who allegedly was injured in a fall in the construction area on July 13, 2009. Thayer said that claim is still active.

c.bessette@theday.com