Brainerd Waives Holding Insurance Money for Front St. Fire in Escrow

The Brainerd City Council recently weighed whether or not to hold part of the insurance payout from the fire on the 600 block of Front Street last month in escrow, as outlined by city code, but eventually voted against doing so.

The City of Brainerd is allowed to hold 25% of the total insurance payout in escrow until certain conditions are met. In this case, conditions include either renovation and proof of occupancy or total demolition of the building. During discussions, council member Gabe Johnson cited the reputation of building owner David Pueringer in Brainerd in helping him come to a conclusion.

“Sounds like Dave’s … working on rebuilding this building,” said Johnson at the meeting. “I’ve been around 11 years, he’s been around a lot longer, but I haven’t found him to be dishonest in any way whatsoever. So I think if he’s going to be rebuilding this building, that’s what he’s going to do.”

The council voted unanimously to waive having the 25% of the payout going into escrow, allowing Pueringer to receive the entire insurance payment to renovate the building.