City settles July fire claim for $3.5 million at city-owned Sinclair meatpacking site; demolition there could cost $20 million to $100 million

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, 2009, 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 and the 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.