Members of the Davenport City Council heard both the good news and the bad news Wednesday about the future of Credit Island Lodge.

The lodge suffered extensive damage during an early morning fire May 2.

City Administrator Craig Malin told aldermen during their regular meeting  that the building is insured for between $1.2 million and $1.4 million.

"An insurance review is underway and we’ll likely receive a check for $400,000 early next week so we can begin clean-up,” Malin said.

 The rest of the money would come soon after, he added.

The bad news is that because the building is in the floodplain, if repair costs exceed half of its assessed value of $613,500, the lodge will have to meet federal flood law regulations or flood insurance for the entire community will be jeopardized, he said.

“If repairs cost more than $306,750, we’ll either have to raise the building one foot above the baseline flood elevation, which means elevating it by taller than I am, or floodproof it in some way,” Malin said.

Raising the lodge, he said, would push costs into the seven-figure range, he added.

There also is the possibility of demolishing the lodge and reusing the materials, he said.

Malin said that the valuation of any volunteer labor or materials made as gifts for the building would be counted as part of the $300,000 repair costs.

Stanley Consultants of Muscatine has been asked to evaluate the building, “to see what can be done for $300,000,” he added.  

Davenport Fire Chief Lynn Washburn said the cause of the blaze remains under investigation.

“We do know that it was not intentionally set,” she said after the  council meeting.

Investigators have gathered evidence and are analyzing it, but with a fire as extensive as this one, there is the chance that the exact cause may never be known.

Washburn showed aldermen and the audience photos and a video of the damage caused by the fire.

“It’s clearly a shame this happened to Credit Island Lodge,” Mayor Bill Gluba said. “A lot of volunteers are here tonight who put a lot of blood, sweat and tears into the place and literally brought it back from the dead.”

One of those volunteers, Rick Dunn, said the volunteers are ready, but first things first.

"We need to get the island open," he said. "We can get the volunteers to take care of the island and clean it up. We have in the past.

"We lost the lodge. We didn't lose the island."