RE | Solutions, in partnership with Xebec Realty acquired the former Chemoil Refinery property and three adjoining City lots located in Signal Hill, CA. The acquisition closed on October 12, 2017. This property covers over eight acres, and is located at 21st and Walnut Streets in the City of Signal Hill, CA.
Historic refinery operations resulted in soil and groundwater contamination at the property, which had prevented sale.
The investigation and cleanup of the site is regulated by the Los Angeles Regional Water Quality Control Board (RWQCB). Refinery operations ceased in 1994, and demolition took place in 1997 and 1998. The property was put up for sale shortly after completion of the demolition and installation of an interim remedial measure. Multiple offers were made on the property; however, none of the prospective purchasers were able to resolve the environmental issues and create a development plan that the City of Signal Hill would approve.
The property is zoned for industrial and commercial uses. Although there is some residential development in the vicinity of the property, the immediately surrounding area is primarily commercial, light manufacturing and distribution, with some civic and institutional uses. RES believes that small industrial flex-space buildings with some office space is likely the highest and best use for the property, and this use is entitled by right. The cleanup that will be required by the RWQCB will support a light industrial or commercial reuse.
`RES has entered into a California Land Reuse and Revitalization Act (CLRRA) Agreement with the RWQCB that sets forth a response plan for completing the remaining clean up. The CLRRA agreement will provide a covenant not to sue to the purchaser after the response plan is implemented and any other requirements of the agreement are met.
The development plan provides for approximately 150,000 SF of industrial buildings for sale.