Fire Recovery Financial Outlook

Sun, Apr 23, 2017

At a presentation on Sunday, April 23, following worship, Milton Fujii, the chair of the Fire Review Committee (FRC) updated the congregation on the financial outlook for recovery from the fire.

The Church sustained several types of financial loss in the fire: the cost of repairing damage to the Sanctuary and repairing or replacing Pilgrim Hall, including extensive building code upgrades; loss of income that we would have earned from rental of the buildings; extra expenses we had to pay, such as renting temporary space for worship and offices; and the cost of replacing lost furnishings, equipment and supplies.

Our insurance will pay for most, but not all of our losses. We're still in the process of assessing our losses and presenting the claim to our insurers, so we won't have final figures for a while.The FRC's best estimate at this time is that, altogether, the losses from the fire will be in the range of $11 to $12 million. Our current estimate of the amount we expect our insurance to cover is about $9.5 million. That would leave us with a shortfall of about $1.5 to $2.5 million to make ourselves whole—i.e., to recreate space equivalent to what we had before the fire, in compliance with all current building codes, replace lost furnishings, equipment and other possessions, and recoup our lost income and extra expenses.