Right in the heart of the City of Santa Clarita there could possibly be another toxic Love Canal. For those of you not familiar with the name “Love Canal” it harkens back to the late 1970′s to a neighborhood in Niagara Falls, New York. There was a contaminated track of land then owned by the Hooker Chemical Company which was sold to the Niagara Falls School Board to build the 99th Street Elementary School with a new neighborhood of homes being built on an adjacent parcel of land.

Government officials and School Board members chose to purchase that piece of property knowing full well that the site was contaminated. In fact, Hooker Chemical initially didn’t want to sell the land and fully discussed the contamination. But under pressure from local officials they conceded and sold the property. The sale agreement even included a lengthy caveat detailing the contamination and the dangers of building on the site.

Yet, even with the knowledge of the contamination, the “trusted” local officials knew better and went forward with their development plans. They claimed it was safe because the site was “lined” and had a “clay-cap” which would contain the toxic waste.   

The development of that parcel of land resulted in serious health problems being blamed on the contamination. There was a high incidence of birth defects such as cleft palates, reports of developmental delay and, according to one survey, 56% of the children born in that area had at least one defect. The National Research Council Committee on Environmental Epidemiology reported that there was; “excess of seizures, learning problems, hyperactivity, eye irritation, skin rashes, abdominal pain, incontinence and stunted growth.

Ultimately, New York declared a state of emergency which led to the relocation of more than 800 families at a cost to tax payers of millions. That 99th Street School was eventually closed and demolished and a massive barbed wire fence placed around the most toxic area of the site.

Why am I telling you all this?

Because on Tuesday, January 25, 2011 the Santa Clarita City Council rubber-stamped a real estate business partnership between the City and several builders to develop the contaminated Whittaker-Bermite property here in the Santa Clarita Valley. At one time that property was the home to Whittaker-Bermite Brownfield, a fireworks subsidiary of the Bermite Powder Co. that manufactured and tested fireworks, munitions and solid rocket fuel.

The Whittaker-Bermite property is contaminated with perchlorate, both in the soils and the ground water. The California State Department of Toxic Substances also found toxic metals (including antimony, lead, arsenic, barium, cadmium, and copper), poly-nuclear aromatic hydrocarbons (PAHs), semi-volatile organic compounds (SVOCs) and volatile organic compounds (VOCs), including tetrachloroethylene (PCE) and trichloroethylene (TCE), were found in soil. Depleted uranium (DU) was found in an area where a firing range was once located.  

Long term exposure to perchlorate can damage the thyroid gland and has been linked to bone marrow problems among other health issues. Exposure to poly-nuclear aromatic hydrocarbons pollution during pregnancy can result in low birth weight, premature delivery, and heart malformations. Studies have shown that long term expose to depleted uranium suggest the possibility of reproductive and neurological disorders.

Boy, I wouldn’t want to be around that Whittaker-Bermite property when the winds are howling. You could be inhaling poly-nuclear aromatic hydrocarbons pollution or depleted uranium or who knows what!

Before the shovel can even hit the dirt to do anything, apparently more than $60 million in obligations will need to be settled and squared up. That’s before all the clean-up requirements are satisfied which some estimates into the hundreds of millions of dollars. That is just an estimate, but what is certain is that the clean-up costs are potentially a big unknown!

The site can be cleaned up but do you really want to put a housing track on it afterwards. It would be more appropriate to put mixed use industrial, office and retail there and some wide-open spaces as well.

The Whittaker-Bermite site has already cost the City of Santa Clarita more than $25 million dollars in a judgment and legal fees because of the City’s botched eminent domain attempt on parts of this property. The City over stepped its bounds by taking an 8-acre site for the Golden Valley Road connector and another for a Metrolink commuter rail station.

Both the lower court and the appeals court agreed that the City acted inappropriately and slapped them with a $20 million dollar judgment plus the reimbursement of $5.3 million in legal fees, a total of $25.3 million.

Now the City has come up with this latest scheme to try and turn that stunning legal defeat into a business opportunity of developing a toxic piece of land and putting houses on part of that property. This is like the chronic gambler who losses a big bet and decides to double-down in hopes of getting back to even. The only thing is that the City is doubling-down and it will be City taxpayers that will be on the hook if this project goes south.

Several people knowledgeable with the Whittaker-Bermite property have even speculated that the City of Santa Clarita could potentially go bankrupt over this deal if they were to be stung with any unforeseen liability or bad business decisions. Think about that for a second; it will be the City residents that will ultimately be responsible for any losses. It may not be next month or next year but potentially 5 or 10 years in the future.

Many years ago former Secretary of Defense Donald Rumsfeld said; “there are known knowns; there are things we know that we know. There are known unknowns. That is to say, there are things that we now know we don’t know. But there are also unknown unknowns. There are things we do not know we don’t know.” That statement would certainly apply to the Whittaker-Bermite property since they do know that there is contamination on that parcel of land but the scarier thought is if there is more that is not known; the “unknown unknowns.”

There are several questions that residents of the City should be asking; why is the City of Santa Clarita leadership even getting into a business partnership in the first place? The City is not a land developer; that is not their core competency. The City should be facilitating permits and making it easy to do business within City limits not trying to be land developer. Becoming a business partner on a development in the City smacks of conflict of interests; what is right for city residents vs. what the business partnership wants.  

If in fact the City plans on putting a housing track on this property then where are the jobs coming from to justify these new homes? Doesn’t new home construction require jobs to support the need for more housing?  

The Valencia Commerce Center Association has already rejected the notion of annexing into the City. And any other businesses in the unincorporated communities surrounding the City would best think twice about annexing in light of the City’s latest involvement with the toxic Whittaker-Bermite property.

Finally, Santa Clarita City Manager Ken Pulskamp’s home butts up against the Whittaker-Bermite property. His property might benefit from grading, landscaped views, or any number of other potential amenities on the Whittaker-Bermite property. Shouldn’t Mr. Pulskamp recuse himself from any involvement in this new business arrangement that the City is getting into?

I’m curious as to who is scrubbing over this entire deal!

The City of Santa Clarita has already shown us their development “prowess” with the lipstick they have repeatedly smeared on the downtown Newhall redevelopment pig. This latest development deal may just turn out to be a financial black swan that devastates the city taxpayers.

Dave Bossert- Commentary 

Dave Bossert is a community volunteer who serves on a number of boards and councils. His commentaries represent his own opinions and not necessarily the views of any organization he may be affiliated with or those of the West Ranch Beacon.