Concerns with the Interlocal Agreement

Environmental Cleanup Proposal by the Port of Bellingham
According to the Port’s documents (see Environmental Protection Standards, dated 9-22-04) the Port proposes they plan to clean the former GP Mill Site to industrial standards, leaving such hazardous waste sites as the Caustic Groundwater Plume Area in place. Then, as buildings are built, each developer would ‘remediate’ the land for that building. They anticipate that buildings will be used as caps of contaminated sediment.

The Port proposes to leave at least two hazardous waste sites in place under the redeveloped area with mercury vapor monitors in buildings and no residences on the first floors. (Retec letter to the Dept. of Ecology, 9-21-04 and Environmental Protection Standards, 9-22-04.) Those areas are the Chem-Fix and the Caustic Groundwater Plume Area. The Caustic Groundwater Plume area has high levels of mercury in the water (the groundwater has a pH similar to oven cleaner or liquid plumber), in the soil and significantly, in vapor form. The Port proposes to cap, not clean this hazardous waste site and to monitor for vapors.

The following are excerpts from, and our concerns about, the New Whatcom Special Development Area Interlocal Agreement, signed January 4, 2005 by representatives of the City of Bellingham.

The Port’s responsibilities and how they will pay for them
In the New Whatcom Special Development Area Interlocal Agreement, the Port agrees to assume the costs and risks of the remediation of the GP Mill Site and the Whatcom Waterway and to develop the marine infrastructure (Page 3). They state this will be paid for with grants and the sale of development ready parcels to developers or public entities (Page 3).

The City’s responsibilities and how they will pay for them
The City assumes the costs and risks of the infrastructure and public space (Page 3). The City agreed to design, construct and maintain at its cost all landside public infrastructure following the design of the New Whatcom Development Plan.  This means: streets, curbs, gutters, sidewalks, lighting, traffic controls, water and sewer, storm water treatment and conveyance facilities, area wide parking, public parks, open space and public access. (#21, Page 10).

The City agrees to pay for the public infrastructure, parks and open space from existing capital funds, grants, bond financing and levies (Page 3). In other words, these unknown costs of providing all infrastructure on a contaminated site will be paid for by taxpayers.

The City agrees to pay all costs and to not charge developers for infrastructure
The City shall reduce impact or latecomers fees to the extent allowed by law and shall approach other governments to ask them to agree to reduce impact fees. (#25, Page 12) The City will not assess impact or latecomers fees for municipal or public infrastructure (#25a, Page 12). This is elsewhere defined as parks, roads, sewer, water, etc. In other words, the city taxpayers shall pay all the costs typically paid for with impact fees. Despite current policy to the contrary, the City agreed that developers shall not be required to install or pay for any parks and open space (#9d, Page 6).

The City agrees to develop, at its cost, all parking (#9e and f, Page 6). Because this will generate revenue, the Port will sell them the land for parking (#24, Page 12). Developers will not be required to provide the parking for their buildings (#9f, Page 6).

The City agrees to pay for the most contaminated areas
When the City signs the Master Plan they then assume the environmental cleanup costs (#24, Page 12) of all parks, open space and parking lots. The Port has stated that the most contaminated sites (Caustic Groundwater Plume Area and Chem-Fix) will be parks or parking lots. “The Port is responsible for the environmental remediation of certain known environmental conditions on the Port owned property and the Whatcom Waterway, except for the City’s compliance with the environmental protection standards in the course of City projects.” (#9j, Page 7) The City will be conveyed the property rights for the property for public infrastructure, parks and open space (#24, Page 11). However, it’s unlikely that the Port’s insurance agreement, which the public assumed would cover the contaminated sites, will pay for them once the City takes on that responsibility. It appears that the City is agreeing to take on the cleanup costs for the most contaminated sites on the waterfront.

The City agrees to take contaminated groundwater into the sewer system
The City agreed to take groundwater and surface water into the sewer system during construction and cleanup (#26, Page 12 & 13). Construction is elsewhere anticipated to take 20 years. The Port will obtain approval from state and federal agencies for this. The Port will indemnify the City against any lawsuits that result (#26 b, d, Page 13). Note that according to the Environmental Protection Standards of 9-22-2004, the Port states they anticipate a need to remediate contaminated groundwater during the first phase of the cleanup and that the same document lists large areas of the former GP mill site as impacted with contaminated groundwater.

The City signed over their basic responsibilities for zoning and shorelines to the Port
The City agrees to adopt a shoreline development permit consistent with the development plan and to amend the Comprehensive Plan, the Neighborhood Plan, the Zoning Code and the Shoreline Plan according to the development plan (#11, Page 7). This was to be completed by December, 2005 (#11, Page 7). The City agrees to not initiate, consider or adopt a change to development standards in zoning, shoreline regulations or related planning documents except as requested by the Port or required by law (#15a, Page 8).
 
The City gives away their easements without the customary public process
When the Port requests, the City shall terminate, remove, alter any easement, reserved easement or right of way (#15b, Page 9). This shall occur at no cost to the Port (#23, Page 11).

The Port is the SEPA lead, the developer and the landowner
The Port will be the SEPA lead agency for the project (#15d, Page 9). (Note that the Port is also the landowner and developer for the project.) The City agreed to cooperate with and support the Port’s efforts with regulatory agencies to accommodate the redevelopment efforts consistent with the New Whatcom Development Plan (#7, Page 5).

The City agrees to expedite the development regulation process. If the Port is not satisfied that it’s fast enough, the parties shall meet and draft a new process (#17, Page 9).
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