Prosser received $4.76M insurance payout for burned city hall. Why hasn’t it been spent?

The city of Prosser is hoping to clear up some confusion about what’s happening with the insurance money after its city hall and police station burned down more than two years ago.

Prosser’s city hall and police station were significantly damaged after a fire began in the attic of the neighboring Underwood’s Prosser Lockers.

The city was awarded $4.5 million from the insurance payout, but that was amended up to $4.76 million due to rising costs of building materials. That’s the cost to restore the building to its pre-fire condition.

They’ve only collected a portion of that money, with the rest set to pay out when construction actually begins.

Plans for a new city hall and police station have been on hold while the city solicits community input after voters rejected a $16.8 million bond attempt in November 2022.

The city offered a listening session this summer to hear from the community before deciding on a new proposal.

Prosser City Administrator Tom Glover told the Tri-City Herald this week that there’s no danger of the city losing the remaining funds.

The city sent out a news release Friday with information about how the insurance payment works in order to clear up confusion they’d been hearing from community members.

Glover said the August listening session gave them some good feedback, and they’re in the process of figuring out a new plan but doesn’t expect a decision on it until next year.

“We are earnestly working toward getting a final decision on location and then once we have that we can have our communication with the public on cost and design,” Glover said. “I expect that’s many months out.”

So far, the city has spent $1.6 million of the insurance money on a nearly 6-acre plot for a future city hall and police station, and about $380,000 on partial demolition and abatement of the damaged police station.

The police department, Prosser City Hall, a hardware store and the Masonic Lodge were all damaged in a fire that destroyed a butcher shop in downtown Prosser in May 2021.
The police department, Prosser City Hall, a hardware store and the Masonic Lodge were all damaged in a fire that destroyed a butcher shop in downtown Prosser in May 2021.

The other $2.76 million will be reimbursed once the city begins building. Currently the city hall services have shifted to other city offices and the police station is in a building off Hagarty Lane.

If the city were to ask voters to consider another bond, it could use that $2.76 million to offset the total cost needed.

In the meantime they encourage anyone with questions or comments to attend regular city council sessions or contact council members or the city clerk.

The Prosser City Council meets at 7 p.m. on the second and fourth Tuesdays of the month at 1002 Dudley Ave. You can also email the city council at city_council@ci.prosser.wa.us or contact city clerk Rachel Shaw by email at rshaw@ci.prosser.wa.us. or by calling 509-786-8218.

Questions about the insurance claim can be directed to the city’s Finance Director Toni Yost by email at tyost@ci.prosser.wa.us. or by call 509-786-8215.

A three-alarm fire destroyed a Prosser meat shop and damaged other buildings, including the police department and city hall, in May 2021.
A three-alarm fire destroyed a Prosser meat shop and damaged other buildings, including the police department and city hall, in May 2021.

Prosser election

Prosser has four seats and the mayor are up for election on Tuesday. Only one race didn’t draw a challenger. With the majority of the council up for election, the winners could have a major impact on the future plans for the police station and city hall.

Ballots are due by Tuesday, Nov. 7. With the election only days away, the Benton County Elections Office recommends dropping off ballots at official drop boxes to ensure they’re counted on election night. Ballots mailed now may not be postmarked in time.

Voter registration is still open in person until polls close at 8 p.m. on Tuesday.

Mayor: Gary Vegar vs. Randy Taylor

Position 4: Jim Chesley vs. Maricela Sanchez

Position 5: Devin Matheny vs. Carolina Warwick

Position 6: Steven Becken is running unopposed.

Position 7: Anna Kellogg vs. Stephanie Groom