§ 56-543. Dangerous buildings resulting from insured casualty.

(a)

If there are proceeds of any insurance policy based upon a covered claim payment made for damage or loss to a building or other structure caused by or arising out of any fire, explosion or other casualty loss, and if the covered claim payment for such damage or loss exceeds 50 percent of the face value of the policy on such building or other structure, then the insurance carrier for such building or structure shall pay 25 percent of such insurance claim proceeds to the Kansas City treasurer, who shall hold such money in an interest bearing account. If a bill or special tax assessment is issued by the city for the expenses of administering the provisions of this article and expenses of demolition, repair, cleaning debris and rubbish, and/or closing of such building or as a dangerous building pursuant to this article, such shall be paid from the moneys held by the city treasurer, and if there is any excess, such shall be paid by the city treasurer to the insured.

(b)

If within 30 days of the receipt of such insurance moneys the city has not instituted legal proceedings by issuance of the order provided for at section 56-535 or by taking emergency measures as provided for at section 56-540, then the city treasurer shall release such proceeds and any interest which has accrued on such proceeds to the insured.

(c)

If such building or structure is repaired or demolished pursuant to this article as attested to by the director or the director's authorized representative without cost to the city, then any insurance proceeds paid to the city treasurer and any interest thereon shall be paid to the insured.

(d)

When the city takes bids from independent contractors for demolition of a building, bidders shall deduct any salvage value materials the building or structure may have from the cost of demolition in arriving in their bid amount. Should city employees do the demolition, the actual cash value of salvaged materials shall be deducted from the special tax bill for such demolition. In no case will the net cost of demolition be increased in order to effect salvage of materials.

(e)

Upon presentation of satisfactory proof that the insured has removed or will remove debris and repair, rebuild or otherwise make the insured premises safe and secure, (he director or the director's authorized representative shall issue a certificate within 30 days after receipt of such satisfactory proof to permit covered claim payment to the insured without deduction payable to the city treasurer as herein provided in this section. It shall be the obligation of the insured or other person making claim to provide the insurance company with such certificate.

(Ord. No. 941034, § A(20.138), 9-15-94; Ord. No. 050665, § 1, 6-23-05; Ord. No. 150829 , § 3, 10-15-15)