Opry Mills to Sue Insurers
Written by alec Wednesday, 15 September 2010 19:58
NASHVILLE – Opry Mills has filed suit against their insurance company for not paying the remaining $150 million of the $200 million flood coverage, which will delay the reopening of the mall indefinitely.
The mall's insurers are made of 16 insurance companies. Included in the conglomeration is the giant Zurich American Insurance Co., who claims that the shopping center's policy limits the damages to $50 million, which has been paid to the mall.
Opry Mills has been under repair since May's intense floods, and its owners have remained quiet about the property's status until now. The mall owners claim that they are entitled to the full $200 million in coverage needed to repair the mall because the property was not considered in a 100-year flood zone and therefore was entitled to more generous insurance payments under a “high hazard flood zone” standard, according to the lawsuit filed in the Davidson County Chancery Court on Tuesday.
"Obviously everyone has been anxious … for us to announce a reopening date," said Gregg Goodman, president of The Mills, a Simon Company. "It's clearer today why we haven't been able to do so," he said after filing the lawsuit.
There was no speculation on the fate of the mall if it does not receive all of the insurance funds. Simon Property Group holds a joint ownership of Opry Mills as a 50 percent owner.
By the end of the month, the mall will run out of the original $50 million allotment from the insurance funds and, when that happens, work on the mall will be stopped, Goodman said. The repairs are expected to be more than the $200 million.
"The late opening is not good for anyone, but we do need the insurance proceeds to complete the work at the mall," Goodman said. Once the remaining insurance funds are collected, work will resume, he said.
Aon Corp. was the broker named in the lawsuit along with the 16 insurance companies. Aon declined to comment. "We are not aware of any lawsuit, but if there were, we do not comment on litigation," said Aon's spokeswoman Kelly Drinkwine from Chicago.
On of the insurers, Zurich American Insurance Co., declined to comment as well. "We are unable to comment because the matter is under litigation," said Steve McKay, spokesman for the large insurer.
According to Goodman, the mall has not lost any of the major tenants due to the dispute, but he does expect a new mix of tenants when the mall finally reopens, including new retailers.
"We have been in conversations with our tenant base," he said. "We have been making plans for most of them to return to the mall as soon as possible." A bulk of the tenants has expressed a desire to return, he said.
Goodman also did not say how much the mall has lost in tenant revenue while it has been closed, but said business interruption coverage is part of the policy.
The lawsuit, filed by Opry Mills Mall Limited Partnership and Simon Property Group, claims a breach of contract, negligence and other counts against the syndicate of insurance companies and the broker.
"We have diligently paid our premiums over the years," Goodman said. "And you pay your premium for when you have a casualty to be able to collect your insurance on the other side — and that is absolutely what we are expecting to have happen."
The shopping center covers almost 1.2 million square feet. It is protected from flooding from the nearby Cumberland River by a private levee that also protects the next-door Gaylord Opryland Resort & Convention Center. Gaylord owns the levee.
"Our plans have been lockstep with theirs with regards to fixing the existing levee system and plans for the future," Goodman said.
Before the mall was shut down, it had about 3,000 people working for 200 different tenants. Some employees have been moved to other stores and restaurant locations, and others have been receiving unemployment benefits while they look for other work.
"The longer Opry Mills is delayed by the insurance companies failing to live up to their obligations, the longer the reopening of Opry Mills is delayed," Goodman said. "Our tenants' spaces will continue to be dark, and their employees eager to return will remain without work."
HASLAM ANNOUNCES PLAN TO CREATE A “DASHBOARD” FOR TENNESSEE
Written by alec Monday, 13 September 2010 19:47
NASHVILLE – Republican gubernatorial nominee and Knoxville Mayor Bill Haslam announced today his plan to develop a dashboard for his administration’s policy goals based around his overall vision of making Tennessee the No. 1 state in the Southeast for high quality jobs and designed to measure the state’s progress and keep government accountable.
Speaking at a meeting of the Nashville Rotary Club Monday, Mayor Haslam explained the concept that will focus on measuring the state’s progress in five key areas: jobs and economic development, education and workforce development, fiscal strength, health and public safety.
“My top priority as governor will be jobs, but in order to be a leading state for high quality job creation, we have to make improvements in other areas as well,” Haslam said. “As governor, my comprehensive vision for jobs will be the driving force that will push our state forward – whether the issue is graduation rates, the budget or health care.”
The dashboard discussion included a timeline for development, which includes building a team and setting goals after the election, conducting a top-to-bottom review of state government in order to establish benchmarks for the state and determine the exact metrics and goalposts that will be used to measure progress.
Perhaps the most critical element will be building consensus around a set of objectives and measurements that will be used.
“The key will be gaining buy-in from as many people as possible,” said Haslam. “I plan to issue an annual report card that will measure state government’s progress, but in order for that to be meaningful there needs to be consensus around the direction we set for the state.”
Mayor Haslam’s presentation to the Rotary Club also included information on the challenges awaiting the next governor, reasons for optimism about the state’s future, examples of how he’s addressed similar challenges in Knoxville, and a discussion of his Jobs4TN plan released in June.
Bill Haslam is the two-term Mayor of Knoxville, re-elected in 2007 with 87% of the vote. A hardworking, conservative public servant, he led Knoxville to become one of the top ten metropolitan areas for business and expansion, while reducing the city’s debt, tripling the rainy day fund, and bringing property taxes to the lowest rate in 50 years. An executive leader with a proven record of success, he helped grow his family’s small business from 800 employees into one of Tennessee’s largest companies with 14,000 employees. His combination of executive and public service experience makes him uniquely qualified to be Tennessee’s next Governor. Haslam is the right person at the right time to lead Tennessee. For more information on Bill Haslam, please visit www.BillHaslam.com.
