An Economic Analysis of the Fire at Americold

Abstract

During the early morning of December 28, 1991, a fire was reported in the underground storage facilities at the Americold Complex in Wyandotte County Kansas. The fire, the damage created by the fire, and the economic impact of the fire and its aftermath have raised serious questions about underground facilities. The extent of the damages from the fire point to two conflicting aspects of underground facilities. First, these facilities are enormous and provide cost effective space for firms. They are clearly economically significant in the Kansas City Metropolitan Area. Second, a disaster at these facilities can be extensive, and because of their size, the damage can have far reaching effects. This study provides a partial economic analysis of the fire at the Americold Complex. The analysis will concentrate on three economic aspects of the fire: the damage done by the fire at Americold, the government expenses involved in examining the damage created by the fire, and the economic impact of the fire and aftermath on both the Kansas economy and the Wyandotte County economy.