City gets $3.5 million for fire claim on former meatpacking plant site

The city and insurer Selective Insurance Co. have settled a fire claim at the city-owned Sinclair plant site for $3.5 million.

The claim resulted from a July 28 fire in one of the buildings at the former meatpacking plant, 1600 Third St. SE, where corn was being stored.

The city purchased the buildings on a 30-acre site in 2006 for $4 million with the intention of demolishing the buildings for redevelopment. After the purchase, the city continued to rent space in some of the buildings to local businesses, which were driven out when the site flooded in June 2008.

Greg Eyerly, the city's flood-recovery director, on Wednesday said the city is looking to demolish the buildings on the site, an exercise he said will cost between $20 million and $100 million and take between one and three years. The city continues to negotiate with the Federal Emergency Management Agency on disaster relief funds for the buildings.

Casey Drew, the city's finance director, said last night that the city likely will put the $3.5-million insurance settlement in a special fund related to future costs at the Sinclair property.