R-1994-10 - Laserfiche WebLink

Browse Search

e e November 8, 1994 An Open Letter to the Citizens of La Porte - From the Mayor and City Council This is to advise you of the status of the legal disputes associated with the construction of a hazardous waste incinerator on Bay Park Road, commonly known as the old Quaker Oats facility. The project was proposed in 1986 by Houston Chemical Services and the property owner, Southern lonies. The La Porte City Council initiated action to oppose the project after receiving a mandate by the citizens in a non-binding city referendum. The citizens voted 4 to 1 (1346 to 375) to oppose the project Two legal disputes surfaced from the City's opposition. One was related directly to opposing the issuance of a permit for the facility. Despite the City's objection, a permit was issued by the Texas Water Commission on October 24, 1990. The City joined several private citizens and Harris County in an appeal of this decision but was removed from this process by a Travis County court order. An appeal still is pending in the Texas Supreme Court. The second legal dispute arose when the City attempted to annex the property in an effort to impose stricter health and safety requirements than those monitored by the Texas Water Commission. This annexation was declared in a federal court to be a breach of our Industrial District Agreement with Southern lonies. Following this ruling, Houston Chemical Services/Southern lonies filed suit against the City seeking damages in excess of $100 million. In opposing the permit, the City spent in excess of $1 million and a substantial amount of administration time over the six year period. In addition to these efforts, the City has continued to improve its public facilities and added additional community programs which we all enjoy by living in La Porte. All this was done without an increase in taxes. Furthermore, the City's efforts have caused the state regulatory agency to make improvements in their rules for site selection, and has resulted in stronger criteria in the monitoring of facilities that could negatively impact public health. The outcome has been the rejection of one hazardous waste permit to build an incinerator north of the ship channel and an increase in the projected cost of the Houston Chemical Services project from $40 to $110 million dollars due to redesign and use of modem equipment. During the eight years of opposing the permit, many other positive things have come forth: (1) The facility has not been built, and depending upon market condition, may never be built. (2) Ifbuilt, the incinerator will have to comply with state of the art restrictions and be required to be monitored 24 hours a day, 7 days a week. (3) PCB's, dioxins, methyl isocynates, explosives, infectious wastes, and radioactive materials are not permitted at this site. (4) A surplus of incineration facilities now exist in this area. (5) Third party incinerators are no longer favored by industry for liability reasons. (6) Today incinerators are nearly impossible to finance. (7) Due to new federal regulations more money can be made by selling emission credits than by building incinerators. (8) The Texas Natural Resources Conservation Commission has adopted stricter requirements on the siting of hazardous waste incinerators throughout the state of Texas. The City is convinced that it acted properly in carrying out the citizens' mandate. However, the City also recognizes the fact that a federal judge's interpretation of our action may cause the community to endure a severe financial hardship. Therefore, the City, when approached by Houston Chemical Services and Southern lonies, entertained settlement talks. As a result of these talks the City negotiated a settlement of the annexation lawsuit, whereby we will pay $23 million to settle all claims. The payment of this amount of money will not require a tax increase. This decision ends all further financial exposure on this matter and all litigation. In light of this settlement, we trust that you will accept it in the spirit in which it was made. Now our efforts and resources can be more effectively directed to the business of the City.