Minneapolis repair shop blast brings arson charges for owner

The man, linked to several fires, allegedly blew up his property in '07 because he wanted the insurance money.

By ABBY SIMONS, Star Tribune

Last update: November 13, 2008 - 7:55 PM

The owner of a south Minneapolis auto repair shop has been charged with felony arson and attempted theft for allegedly blowing up his own business in an attempt to collect the insurance money.

Craig Steven Hovde, 41, is accused of causing the March 8, 2007, explosion and fire that destroyed Hovde's Auto Garage, 3401 38th Ave. S., and a neighboring house.

According to charges filed Thursday in Hennepin County District Court:

After the explosion, police and fire department investigators arrived at the remains of the business, where Hovde, who was not present at the time of the explosion, told authorities he had been in the shop about 45 minutes earlier and had set the burglar alarm. A neighbor said he didn't hear any alarm before he saw the building "explode in a huge ball of fire."

At the time, Hovde, who recently bought land in Tennessee, told investigators he was heading out of town.

Deputy State Fire Marshal Ronald Rahman determined that the explosion was caused by acetylene and oxygen, likely after acetylene/oxygen tank control valves from welding tanks were opened.

An area real estate agent told investigators that before the fire, Hovde had wanted to develop it for multi-residential housing, but was told the shop would have to be demolished.

The business had been in Hovde's family since the mid-1970s.

Hovde reported the loss of the building and its contents to Harleysville Insurance Co. for a total of $860,000. The company refused to pay the claim. Investigators also determined that Hovde had been involved with several past fires. In 1993, a fire destroyed his car after it was stolen; in 1997, fire damaged Hovde's rental property, resulting in a $50,000 insurance payout, and in 2004, fire damaged the garage at his home. In that case, investigators found the fire was intentional. Hovde said kids had thrown fireworks into the building.

Hovde is charged with first- and second-degree arson, and attempted theft by swindle over $35,000. All are felonies. Hovde was not in custody Thursday.

Abby Simons • 612-673-4921