This isn't an official response, given that I'm affiliated with the university, but this may be the only response you'll get... I talked with one of the repair contractors about the matter, and raised the same questions you do.

ASU did insure the union, and repairs and loss of business are covered, and being compensated currently. The basement and first floor are scheduled to be completed by the beginning of Spring semester, the above floors later. The university planned on renovating the second floor anyway, so such construction is being done at the same time. As for donation requests, perhaps that's an opportunistic administrator noticing an opportunity to solicit funds, because the repairs are insured, aside from the additional renovation.

Regarding a new MU, that's not a priority for the university. Administrators think students should pay for a new MU, and students voted down an MU tax that would have funded a new building a few years back. I'll bet you anything that Dr. Crow's opinion is "show me the money, and we'll build it."

I recently read in the State Press that the ASU Foundation has created a website to accept donations to rebuild the Memorial Union. My question is why? Did ASU self-insure the union? It seems that it would have been more economical to at least maintain fire insurance on the building, given the kitchen-intense nature of the facility.

My second question is in regards to the reconstruction of the MU. Why doesn't ASU take this opportunity to demolish the MU and construct a large facility that will also house the bookstore? I believe this was the plan many years ago.