O’Fallon, Missouri – The tax abatement deal that would have allowed the redevelopment of a toxic waste dump laden with asbestos into a new residential development illustrates just how tricky asbestos issues can be.

Only a few days ago, it looked like a done deal, but now, concerns over the asbestos present on the site, and about the terms of the deal, mean that O’Fallon’s mayor may veto.

The twenty acre proposed development site, which had accommodated a trailer park from the 1960s until 2007, is currently vacant. The Highland Homes development company plans to build a $38.5 million housing and retail complex called Highland Terrace on the polluted site.

The building was demolished in 2007. During the demolition workers discovered an illegal dumping ground that contained hypodermic needles, asbestos waste, broken appliances, car parts, and other waste.

The results of an environmental study that was carried out suggest approximately 34,000 tons of asbestos-containing waste is present on the site. All of the asbestos must be removed, sealed according to regulations, and disposed of at a site that can deal with asbestos waste safely.

Cleaning up the site, which is contaminated with asbestos and other pollutants, will have an estimated cost of at least $2.2 million. The city of O’Fallon has agreed to reimburse the $2.2 million to the developers. The money is expected to come from property taxes.

Highland Homes also asked the city to declare the contaminated site as a “blighted area,” to allow the company to qualify for thirteen years’ worth of property tax abatement, according to Missouri’s urban redevelopment law.

On Thursday April 10 the City Council voted 5-2 to declare the site as a blighted area, and allow Highland Homes to qualify for the property tax abatement.

However, Mayor Donna Morrow says she plans to veto the deal due to concerns over an asbestos clean-up issue. City Attorney Kevin O’Keefe says the proposal doesn’t include a plan for asbestos clean-up, and doesn’t include a clause to revoke the development company’s tax abatement privileges if the development project isn’t completed. In addition, O’Keefe also says that the law allows only ten years’ worth of abatement, rather than the 13 years the development company asked for.

Another city official, Pierce Conley, who cast one of the two dissenting votes for the tax abatement deal, is concerned because Highland Housing hasn’t provided any documentation to prove their claims that 34,000 tons of asbestos contaminate the site.

This entry was posted on Wednesday, April 30th, 2008 at 3:17 pm and is filed under Asbestos Abatement, Missouri. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.