The shooting happened in Newport near Storer Park and the Elm Street Pier around 9 a.m.
The boat was reported stolen on Aug. 22nd around 11 p.m. from the Liberty Harbor Marina in Jersey City.
Officials say it was one of the most admired boats in the marina.
The suspect was captured on surveillance video, prompting a search for the suspected thief and alerts were sent up and down the East Coast to the Coast Guard.
Police say the suspect disabled the boat's transponder when he reached the Verrazzano-Narrows Bridge and authorities lost track of the boat.
They found it Wednesday morning in Newport and that is where the violent encounter took place with police.
Authorities say when they approached the boat, the suspect fled below deck and ignored commands from officers. Police say he armed himself with a firearm and shots were fired.
The suspect was killed and one officer was also shot during the exchange of gunfire. The officer was taken to the hospital and is said to be stable.
Later Wednesday, the boat owner held back tears as he thanked everyone who helped him recover his boat.
"I mean, you guys are like 'oh, it's only a boat,' but it's kind of my passion and, it's taken 10 years to kind of get her to where she is today," boat owner Jim Bonomo said. "So when we saw someone stole it, it was pretty upsetting."
The entire boating community joined in the efforts to recover the boat described as the Rolls Royce of sailing boats.
"So everybody was looking for and I guess we have a great outcome, as long as that police officer is OK," Bonomo said.
People working in the marina said they saw the suspect before he stole the boat. He walked into Jersey Jet Ski on Saturday and the owner said the suspect was showing signs of unusual behavior.
The suspect's identity has not yet been released.
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