Contamination Still an Issue in Caruso Deal

Contamination issues continue to stall the sale of a 2.77-acre commercial Village property to prominent developer Rick Caruso.

Mary McDaniel, a spokesperson for the 14 trust entities operating as Pacific Palisades Properties, wrote that while conducting due diligence  “the owners recently discovered [evidence of] perchloroethylene (PEC),” which has impacted soil and groundwater beneath part of the property.

According to the Federal Environmental Protection Agency, “Tetrachloroethylene, also known as perchloroethylene, [PEC] or PERC, is the predominant chemical solvent used in dry cleaning. … [This chemical] is an effective cleaning solvent and is used by most professional dry cleaners because it removes stains and dirt from all common types of fabrics.”

As first reported in the Palisadian-Post on December 12, the contamination is under the space formerly occupied by Emerson-LaMay Cleaners at 1047 Swarthmore until 2003. The levels of PCE found “do not pose an immediate health threat or danger to the tenants [of Carly K, Michele International and Palisades Playthings] or their customers,” according to McDaniel’s statement.

Charles Sipkins, a spokesperson for Caruso Affiliated, released the following statement last Thursday: “Pacific Palisades is a wonderful community and the Palisades Village has significant potential.  We are under contract to acquire the property from its owner, and we are in the process of conducting our due diligence.”

McDaniel wrote that “indoor air samples collected inside several units in close proximity to the former dry cleaner showed low levels of PCE,” adding that the “owners are working with a team of environmental experts to evaluate and address this situation. “

“The owners have notified the tenants of the situation and are taking additional precautionary steps to address indoor air quality,” McDaniel wrote. “They are also working with the buyer and Cal-EPA to develop a cleanup plan that, if approved, will be implemented this summer.”

Last week, representatives from Palisades Partners went to the three adjacent tenants and handed out informational pamphlets about PCE, McDaniel told the Palisadian-Post. These tenants were also offered air purifiers.

In 2007, the State took action to eliminate use of PEC or PERC by 2023 and prohibited new businesses from installing new PERC dry-cleaning machines. The problem is very common, said McDaniel, adding that “there are some statistics that say about 75 percent of dry cleaners” in the United States have caused some type of PERC contamination.

In spite of the fact that PERC or PEC contamination cleanup could take years, the soil vapor extraction system, which will be used in the parking lot behind the former Emerson-LaMay, is noninvasive and will not disrupt local businesses, McDaniel said.

“What they do is use a vacuum to pull the contaminants out of the soil into a treatment system,” McDaniel said, noting that this method will not require major excavation.

Also, the sale of property does not depend on when the cleanup takes place, McDaniel said. It’s all a matter of what the entities involved agree to do.

This groundwater is located 80 feet below ground and is not a source of drinking water in the Palisades, said McDaniel, whose firm offers services in crisis and risk communication.

The Palisades Partners’ portfolio, comprising property on Swarthmore and Sunset, was placed on the market in early October via the CBRE Group. All of the groups, including CBRE, are under confidential agreements and are barred from discussing the details of the sale with the public.