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River Park challenges city's mold ruling
By Christine Harvey
Times Staff Writer, The Times Online News (Illinois)
March 2, 2003

HAMMOND -- The attorney for River Park Apartments said three buildings at the complex were not condemned last year because of mold problems, rather because the city has designs on the property for new commercial development.

The city's Board of Public Works and Safety agreed to close and evacuate Buildings 2, 8 and 11 in February 2002 after receiving a report prepared by the Hammond Health Department. The report said that mold present in the buildings "constitute an imminent health hazard and as such pose a potential life-threatening environment for human habitation."

The report was based in part on testing conducted by ACM Environmental Inc. of South Bend, which collected surface wipe samples for mold in the basements of the three buildings.

However, not all of ACM's conclusions were included in the Health Department's report to the Board of Works, said Gary Matthews, the attorney representing River Park's owner, Graoch Associates No. 52 of Washington state.

Matthews said the Health Department report omitted two sections of ACM's findings, including its recommendations for actions in regard to the mold and the ranges of mold levels found in the buildings. Health Department administrator Helene Uhlman was unavailable Friday for comment.

ACM recommended that River Park's owners limit access to the basements to residents, employees and outside contractors, providing access only as-needed, remove water-damaged materials, clean the basements and sample the areas after the remediation efforts to compare with previous data.

In addition, the Health Department report excluded information about the concentration of mold spores present in the basements, he said. According to ACM, the concentrations fell seven times into the low range, six times in the moderate range and twice in between.

It is unclear whether these ranges indicate imminent health hazards as there are no standards for mold, said John Ruyack, program manager for the indoor and radiologic health section of the Indiana Department of Health.

He said that because no standards exist, sampling is unnecessary. Rather, mold should be cleaned and the moisture problem that causes it repaired, Ruyack said. In its report, the Health Department noted instances of standing water in the basements, along with water stains and damage in stairwells and on walls.

At no point did ACM recommend closing the buildings, Matthews said. And none of the apartments was tested for mold infestation. Only one apartment in Building 8 showed evidence of a black substance on a wall and that substance was not tested either, according to the Health Department report.

ACM did conclude, however, that the design of the buildings allowed for the air from the basements to be drawn into the tenant spaces. At least one child who lived at the complex was hospitalized for breathing problems relating to mold, according to the Health Department report.

Diana Cross Gonzalez, the city's corporation counsel, said she did not believe the Health Department withheld any information about the mold problems from the Board of Works. She said the board had "sufficient credible evidence on which to base its decision."

Matthews is disputing whether that evidence is valid. He is appealing the board's decision in court, questioning the pages he said were missing from the Health Department report and whether the city had real proof to say residents living in the now-closed buildings were in any danger.

As part of his appeal, Matthews requested that he be allowed to take additional depositions from the witnesses involved. However, the city has filed an objection to that request, noting that during an appeal a court may only review evidence previously presented, Gonzalez said. A hearing on the matter was continued until April 7, she said.

Matthews said he believes the closing of buildings at River Park is a calculated plan by the city administration to limit the cash flow from tenants at the complex and eventually run it out of business. He also said remediation and testing is expensive -- so expensive that the Health Department itself couldn't afford to test for mold in the apartments.

Matthews said the reason the administration wants to close the complex is to bring in new economic development, and River Park is the only thing standing in its way. River Park sits at the intersection of Kennedy Avenue and the Borman Expressway and across from the Indiana Welcome Center and several restaurants and hotels.

Both Dennis Terry, chief of staff to Mayor Duane Dedelow Jr., and Velda Pick, a retail and commercial development consultant for the city, said the administration would like to see more growth at that corner.

Pick said she has spoken with a representative from the movie theater industry about a possible development deal, as well as retail and restaurants developers, though no deals are even close to being struck. She said for that to happen, the developers and the complex's owners would have to come to terms that are mutually agreeable.

Terry said the city's wishes for the intersection do not include River Park but possibly another housing development.

"There are some real problems out there," Terry said. "One of the goals the mayor said is to remove all substandard housing in Hammond in the next five to 10 years."

Yet Terry said Friday the administration has no ulterior motive when it comes to enforcing the city's health and safety codes.

"Our using of the codes is in no way related to the interest that has been expressed in developing that property," he said.

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