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Millbrae Receives $6 Million Insurance Settlement for Fire Destroyed Community Center

Post Date:07/26/2017 4:03 PM

It’s been a little more than a year since the Millbrae Community Center was destroyed by a fire, but today marks a major milestone as the City of Millbrae and its insurance providers have agreed on a fair settlement amount related to the loss of the Center.

Through the settlement, the City of Millbrae will receive $6,194,501 to replace the Millbrae Community Center. Payment amounts include:

  • Building replacement - $5,123,547
  • Building codes adjustments - $778,054
  • Demolition of the destroyed structure down to the concrete foundations and slab - $292,900

“I am extremely happy that the City and its insurance providers have reached a fair settlement to replace the Millbrae Community Center,” said Millbrae Mayor Reuben Holober. “Unfortunately, it took more than a year to get this done, but we had to take the time to ensure the City got a fair amount that would not leave us in a bad position down the road.”

Through the insurance policy, the maximum amount that will be authorized and paid will be set at $4,400,429 until the building is replaced. The remaining amount of $1,794,072 will be paid when the new Community Center building is completed and has received its occupancy permit from the City.

“In six months, we will have a preferred project concept plan in place. In 12 months, we will be well on our way to building the new Center. We have taken the time to do this right and get a fair amount that did not undercut our needs,” said Holober. “I commend everyone who has worked on this project, and am thankful to the community for their support and patience through it all.”

In October, a temporary Community Center will open in the City Hall parking lot, and provide needed space for recreation programs and staff. This temporary Center was paid for in part with a $250,000 grant from the County of San Mateo’s Measure K community enhancement program.  

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