More Fuel to the Fire?

It's obvious from our reader emails that at least a few of our gentle readers are still suspicious of the circumstances surrounding the March 11, 2006 Shupe-Williams fire. In that connection, we're posting the text of an email which we received from one of our gentle readers. You can bookmark this one under the category "Intriguing Background Information," we think. Is there an insurance adjuster or underwriter professional in the house who can explain to our our gentle readers how all this works?

To those of you interested in the ongoing mystery as to the circumstances of the Shupe Williams Building fire:

Click on the attached link to the Minutes of the Board of Commissioners of Weber County dated August 2, 2005 page 2 - ACTION ITEM F.

You will read that Ogden City Attorney Norm Ashton requested that the County waive the 2001 property taxes of $4,096.47 plus penalties of $81.93 and interest in the amount of $1,081.59 on the Shupe Williams Building because the city came into possession of the property on October 2, 2005 in lieu of foreclosure from Marina Capital.

Norm Ashton of Ogden City stated his agreement with Mr. Bond's presentation and gave some history of this case. He stated that the city had entered into this agreement with the developer, deeding the property with certain stipulations. The city extended the deadlines for them several times to obtain financing, but Marina Capital was unable to obtain it. The city took the building in lieu of foreclosure. He asked the Commission to consider adjusting the tax obligation by waiving 50% of it. He noted the significant expense for demolition of this building which is now beyond economic rehabilitation.

Records show that on July 1, 2005 Ogden City took out a Chubb Insurance Co. policy #35833430 through agent, Fred A. Moreton & Co., Salt Lake City, Utah, in the amount of $2.5 million dollars even though Mr. Ashton in his request for 50% abatement of property taxes is quoted as stating that "this building is now beyond economic rehabilitation".

And this request for abatement was done in a meeting on August 2, 2005 while the property was under the private ownership of Marina Capital until October 2, 2005.

How can Ogden City legally take out a $2.5 million dollar policy on a building which Ogden City Attorney stated is now "beyond economic rehabilitation?"

-Dorothy Littrell

Please help us out on this, gentle readers. Many of our readers lack expertise in the area of insurance claims.

Comments, anyone?