CITY VOTES FOR CONDEMNATION PROCEEDINGS WOULD PURCHASE DISPUTED BERMITE LAND TO EXTEND ROAD.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - The City Council moved forward Tuesday with plans to condemn a portion of the former Bermite explosives factory in order to build the next phase of Golden Valley Road, a crucial section of the city's long-planned cross valley connector.

The unanimous vote to begin eminent domain proceedings came after Remediation Financial Inc., which owns the polluted 996-acre property in the center of Santa Clarita, refused to allow city construction crews to build the road across the disputed property.

``You're talking about the next phase of a very important road,'' said Connie Worden-Roberts, the chairwoman of the Santa Clarita Valley Transportation Alliance.

Phoenix-based RFI terminated city construction crews' access to the property after the City Council indicated that it would not allow the company to develop the property in phases, after each section is certified as clean by the state Department of Toxic Substances Control.

Under under a 1999 memorandum of understanding, RFI planned to dedicate the right-of-way free of charge to the city - in return for an amendment to the development agreement, allowing phased development of the 3,000 home Porta Bella subdivision.

However, phased development is hotly opposed by many residents and a majority of council members. Some fear residents would be put at risk by the 275 chemical waste and unexploded ordnance left over from decades of Defense Department contract work.

State officials have said that phased development would be safe and effective.

RFI's attorney Jeffrey Butler called the condemnation process a ``sham,'' and said it was based on an improper appraisal.

The company's director of development, Gary Brown, urged the city to negotiate an end to the dispute.

Without an agreement allowing phased development, RFI officials have said that the cleanup and development of the property is impossible. RFI faces significant debts from its contractors and fines from DTSC for failing to pay $500,000 in bills while making progress in the cleanup.

City officials have vowed to push for additional federal money and to force the previous owners, Whitaker-Bermite Corp., to pay for the cleanup.

The action authorizes City Attorney Carl Newton to deposit $588,100 - the fair-market value of the land needed for the road, according to a city appraisal - with the Los Angeles Superior Court.

The council members moved the funds from other accounts slated for the construction of Golden Valley Road, which will eventually link to Newhall Ranch Road and provide a critical new route between the Antelope Valley (14) and the Golden State (5) freeways.

Five other landowners along the planned route have also declined to sell their property to the city, Newton said. Eminent domain proceedings in those cases are scheduled for April.

Construction of Golden Valley Road has often been delayed, frustrating city officials and adjacent land owners.

``It's sort of like watching paint dry,'' said Larry Rasmussen, who is developing the Centre Pointe Business Park along Golden Valley Road, of the road construction.

According to a report prepared by the city staff, the legal costs associated with the acquisition of the land could be significant if the dispute isn't ``resolved in a reasonable time frame.''

Butler said the legal battle would be protracted and expensive. He added that the value of the land far exceeded the appraisal price.

Newton said Butler's argument had no merit.

Both RFI and the city of Santa Clarita have filed suit against each other, both sides claiming that the other violated the 1995 development agreement.

City Manager George Caravalho estimates that legal costs associated with the Bermite property could reach $250,000, in addition to any acquisition costs. The city's budget is strapped for cash, and its reserve accounts are much lower than they have been in years.