We signed the lease for the former Bainbridge Barrel House on July 5, 2021. In the early morning hours of July 25th, a 30" water main ruptured at the intersection of 6th and Bainbridge, flooding homes and businesses. Our new location was one of the hardest hit in the disaster, and within minutes, the basement was filled with an estimated 35,000 gallons of water. We lost our refrigeration, prep area, dry storage, HVAC system, liquor inventory, office, IT network and security system, as well as thousands of dollars in small wares and equipment. All together, the damages are well over $300,000.
We had insurance, but Berkshire Hathaway denied our claim based on language in our policy that excludes this type of water damage. We have appealed the denial several times, to no avail. The landlord's insurance company said they will cover a portion of the repairs to the building, but they are still processing the claim, six months later.
On top of the insurance, we have also submitted a claim with the city. Philadelphia allocates up to $500,000 per flood incident to be reimbursed to the victims--with the broken water main being the single incident. All claims on that incident will be distributed their share of the money. With upwards of 30 business and many more residential claims having been submitted from this incident, we will be lucky to see a small percentage of the remaining costs.
We are in the process of seeking a business loan, but with Covid still raging in America, lenders are hesitant to offer money to those in hospitality, and the SBA is so backed up with Covid-relief loans that we were quoted a 6-7 month turnaround on a traditional loan from them.
Together with the landlord, we are going to start the process to rebuild while the insurance company and city continue to grab their feet. We still don't have a clear picture of what the final costs will be, but with the money we are able to pull from the Passyunk store, and money from this gofundme, we will be able to make great strides toward reopening this restaurant.
Thank you all.
Adam and Chivonn