Nearly six months after a natural gas explosion and fire leveled the former Achillion Greek Cuisine restaurant in downtown Prince George, the rubble left in the aftermath of the Aug. 22 disaster that injured three people remains piled on the site.
Dan McLaren, president of Commonwealth Campus Corporation, which owns the property, says he wants to live up to his obligation to have the site at 422 Dominion St. cleaned up but he can’t do that until the insurer, Lloyd’s of London, completes its claims process.
“We want the building cleaned up, our insurance company has not provided any reason why they have not honoured the claim,” said McLaren.
He said the insurer has not sent a request for any additional information.
“When we ask them what they need, they say it’s a work in progress,” he said. “They acknowledged there’s nothing outstanding from us.”
According to the B.C. Insurance Act., unless the contract provides for a shorter period, the insurer is required to pay a claim within 60 days after the proof of loss is completed and delivered to the insurer.
McLaren asked the insurers’ lawyer, Samantha Ip of Clark Wilson LLP in Vancouver, why the claims process has been delayed and said she was unable to provide an answer.
Ip did not return the Citizen’s request for an interview.
Prince George RCMP have determined thieves who broke into the building to steal copper pipes mechanically severed a natural gas line, which caused the gas leak that led to the early-morning explosion. One of the occupiers lit a cigarette, which touched off the blast that seriously injured city worker Victoria Mcgivern, who had approached the entrance of the building after noticing a gas odour. The blast and fire also damaged the adjacent UNBC Wood Innovation and Design Centre and neighbouring buildings.
The insurer commissioned a private investigator, Fire Pro Investigations Ltd., to uncover details about what led to the explosion/fire. That investigation happened and was concluded on Aug. 25. On Dec. 20, the company sent its final report to Prince George RCMP Sgt. Cody Daines, who was in charge of the police investigation.
“(The report) says all the things you would think would lead to a speedy claim,” said McLaren. “We did an environmental assessment, we have got quotes to get it cleaned up and we had a cost analysis for the claim amount, which all fit within policy limits. We’ve answered every question and the facts are so straightforward. Nothing is being investigated. Nothing is in question.”
After he found out the report had been sent to the RCMP, in late January, McLaren asked the insurers’ lawyer about it and Ip told him she did not yet have that report.
A city bylaw requires the owner of a demolition site to remove any debris and material left by the demolition within two weeks. The city also requires property owners to keep their site clean and free of accumulations of “refuse, junk, rubbish, brush, litter, garbage and other debris, and any conditions that are health, fire or other hazards.”
The city confirmed there is an active property maintenance file on the property and is working with the owner to get it cleaned up. McLaren received an order from the city for the cleanup to start by March 1.
The cleanup cost estimate is between $144,000 and $190,000. McLaren has obtained a work permit from the city to make that happen, but until he gets the green light from the insurance company, he says his hands are tied.
He’s also stuck paying property taxes for the building and a $5,300 annual insurance premium to protect him from liability and is required to maintain a security patrol until the cleanup occurs.
The building, zoned for C1 commercial development, had been listed for sale for six years, ever since the Achillion closed. It had been available for lease but a tenant could not be found.
“We have been victimized twice in this exercise,” said McLaren. “One, from the criminality that’s downtown and second of all, from an insurance company that won’t do anything. We don’t know any reason why this can’t be paid.”
