Threat of Arsenal Cleanup Alarms Economic Panel

Members of Benicia's Economic Development Board had a lot to say – and listen to – about the likelihood of new environmental cleanup activity at the old Benicia Arsenal.

The board of Benicia business owners expressed concerns and heard audience members who own property at the former Arsenal, now Benicia Industrial Park, report their own after receiving letters from state regulators about possible contamination of their land.

The state Department of Toxic Substances Control  has begun notifying industrial park property owners, including the city of Benicia, about the potential for liability under federal law for further cleanup work required at the old base, which was the first Army installation on the West Coast when it opened in 1849.

The Arsenal supplied armaments to all of the country's wars from the Civil War to the Korean War before it was shut down in 1964. But more than a century of military activity on the site left environmental contaminants despite major cleanup efforts in 1964 and 2005.

Board members Eldon Petersen, Claire McFadden, Duane Oliveira, Kimble Goodman, and Chris Strawbridge, the chairwoman, complained that the threat of resuming cleanup activities was impacting their businesses and could imperil the city's economic vitality by lowering property values.

"It's an economic development issue," said Oliveira, owner of the Oliveira Law Firm on Adams Street.

"This could have an extremely negative impact of the entire county of Solano," said Petersen, owner of Petersen Service Co. Inc. on Rose Drive.

"My business is dependent on the Arsenal – the entire industrial park," McFadden said.

Strawbridge, owner of the Christina S. boutique on First Street, said an expected imminent endangerment order from the toxic substances department also could impact Benicia homeowners.

"This could affect everyone that owns a house here," she said. "This is going to be the issue of the day."

Jack Bethards, of Schoenstein & Co. on Industrial Way, said his company had been contacted by the department a few days ago.

"This is a serious development," he said. "Property owners are very upset about this."

Arsenal property co-owner Ed Russell said he and his partners have been unable to sell any of their holdings in the area.

"Our property has become unmarketable – we can't get financing," he said. "There's still a need for cleanup."

Dana Dean, an attorney for Amports, which succeeded Benicia Industries as the main Arsenal leaseholder, said the last few months have been "very trying for my client," and urged the board to recommend that the City Council insist on a negotiated agreement with the toxic substances department rather than having liability issues resolved in lengthy court proceedings.

Dean also said she had reviewed a pending contract between the city and a Concord environmental consulting firm and found it wanting.  The contingency contract would allow the city to hire the firm on a contingency basis, with any payment predicated on recovering funds from a number of sources, including Arsenal property owners.

"I wouldn't let a client sign this contract," she said.

Strawbridge suggested the board send a communication to the City Council, which was blamed by panel and audience members for attracting the attention of regulators by asking the state to finish cleaning the area, warning them "to be mindful of the economic effect of their actions."

Mario Giuliani, from the office of the director of Parks and Community Services, agreed to compose the first draft of such a letter for the board's consideration.