Insurance claim denial impacts East Depot actions

Shelbyville officials may be running into legal snags with getting money from a property owner for the demolition of two buildings.

City attorney Ginger Shofner told Shelbyville's city council that the insurance company for Alice Albrecht, the owner of 109 East Depot St., one of the unsafe buildings brought down last year, has denied her claim.

Shofner said that Albrecht has decided to pursue litigation against her insurance company and that her attorney will keep the city apprised of the situation.

The city is suing Albrecht for costs associated with last year's razing and restoration of the site on East Depot, totalling $225,215, where two buildings once stood near the public square.

The building at 113 E. Depot was damaged last year during the demolition of Albrecht's property, which was considered a dangerous structure.

Contractors and engineers said at the time it would cost over $200,000 to repair it and bring up to code, so the council voted to tear it down as well.

Shofner has also been doing legal research on the matter to see if the city should file its debt collection action.

She advised going ahead and filing the complaint but said the city does not have to take further action and Shofner said the city can "sit on" the lawsuit until Albrecht's legal action against her insurance company is resolved.

A public hearing will also need to be held in August so that the council can certify the amount of money owed to the city over the demolition, Shofner advised.