Trustee files claim on Bostic's surety bond - Insurance News | InsuranceNewsNet

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May 25, 2019 Newswires
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Trustee files claim on Bostic’s surety bond

Herald Bulletin (Anderson, IN)

May 25-- May 25--ANDERSON -- There was no insurance on the former office of the Anderson Township Trustee's office when it was damaged by fire.

The office at 1423 Central Ave. was damaged on Aug. 7, 2017, with the cause determined to be an electrical short.

At the time of the fire, the building was being leased to JobSource by former Anderson Township Trustee John Bostic for a weatherization program.

Current Trustee Mike Shively through his attorney Thomas Beeman has filed a claim with Western Surety Company to have Bostic's bond pay for the repair of the building.

"I don't know why JobSource would be allowed to use the building without fire insurance," Shively said.

Bostic, who lost his re-election bid to Shively in the 2018 election, disputes Shively's claim. Shively took office on Jan. 1.

Bostic said Friday that when he moved the township offices from Central Avenue to 2828 Madison Ave., he transferred the insurance to the new location.

"The day we moved out I dropped the insurance," he said. "JobSource moved into the office the day we move out."

Bostic said JobSource was supposed to make a $25,000 donation to the Anderson Township Trustee's Youth Center in exchange for ownership of the building.

He said JobSource was supposed to have the building insured, but never did.

JoAnna Collette, executive director of JobSource, said the organization was never able to obtain insurance on the building because there was no lease agreement or transfer of ownership.

"We couldn't get insurance," she said. "I can't imagine a public official not having insurance on a building."

Collette said at the time Bostic was a member of the Community Action Board and offered the building to JobSource, saying he would provide a deed to the property.

"He allowed us to use the building," she said. "We kept asking for a deed."

Collette said the day the weatherization program was moving into the Central Avenue building was the day the electrical fire started.

"When they didn't provide the $25,000 to the Youth Center, I didn't sign the transfer of ownership," Bostic said.

Collette said there was never a conversation involving a $25,000 donation to the Youth Center in exchange for the building.

"They were two separate issues," she said.

Shively said Thursday the estimated cost to repair the Central Avenue building is $56,500. He is awaiting additional price quotes.

"Half of the structure is in need of repair," he said. "There is fire and water damage to the building."

Shively said since taking office he has insured both the Madison Avenue and Central Avenue locations.

"My intent is to repair the building," he said. "I would like to rent the Central Avenue property, a prime location, as a potential income source."

Follow Ken de la Bastide on Twitter @KendelaBastide, or call 640-4863.

___

(c)2019 The Herald Bulletin (Anderson, Ind.)

Visit The Herald Bulletin (Anderson, Ind.) at www.theheraldbulletin.com

Distributed by Tribune Content Agency, LLC.

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