Gregory Canyon company
By J. Harry Jones, .Feb. 13, 2014
company behind the long-planned Gregory Canyon landfill announced
Thursday that its three original investors are seeking Chapter
11 bankruptcy protection another setback for the project
that has been dogged by delays for nearly two decades.
Chase, the longtime spokeswoman for Gregory Canyon Ltd., said
the unsecured creditors filed an involuntary petition against
the company Thursday seeking relief under the provision of
Chapter 11 reorganization.
said last month the company was seeking a new infusion of
cash. It owes at least $320,000 to the countys Air Pollution
Control District, which announced in January it was suspending
work on the landfills permit application because the
company was past-due on its hefty bill.
Thursday, she minimized the significance of the bankruptcy
filing, saying it was designed to manage debt and provide
new capital in order to develop a reorganization plan that
would take the project forward.
companies do this all the time, she said.
DeLano, a lawyer who has opposed the plans to build the dump
for years, said he was not surprised by the filing.
its really this tough to finance it, theres probably
a good reason, he said. Its a bad idea.
It doesnt sound like they will be doing any construction
initial court filing doesnt contain monetary figures,
but lists the names of what Chase said are the three original
investors in the company: Naty Saidoff of Capital Foresight
Limited Partnership in Los Angeles; Irwin Heller of the law
firm Mintz, Levin, Cohn, Ferris Glovsky and Pepeo P.C. of
Boston; and Richard Marcus of Western Skies Associates, LLC
of Englewood, Colo.
said the filing will put a stay on all of the local, state
and federal permits that are currently in the works and are
needed before a landfill can be built. That means no work
will be done on the permits, but they will also remain in
the system during bankruptcy proceedings.
long reorganization might take is unknown. Chase said she
hoped it could be done within a few months.
recently said the company has spent more than $62 million
on its efforts to build the landfill.
project has been a hot-button issue for the past two decades,
pitting environmental groups, a Native American tribe and
several local municipalities against project developers who
have argued the future landfill is key to serving the regions
1994, voters approved Proposition C, a measure that amended
the countys general plan and zoning ordinance to allow
a landfill without a major-use permit, thereby streamlining
the projects approval. Ten years later, the project
withstood another major challenge when voters rejected a ballot
initiative that would have invalidated Prop. C.
both campaigns, millions of dollars were spent by both sides.
landfill would span 308 acres inside a 1,770-acre parcel about
three miles east of I-15 and two miles southwest of the community
Pala Band of Mission Indians has bitterly opposed the project,
arguing it would desecrate a sacred tribal spot on Gregory
Mountain as well as a nearby medicine rock marked with Native
2004, attorneys for the tribe, the city of Oceanside and local
environmental group RiverWatch filed a lawsuit challenging
the countys approval of a solid waste permit application
for the landfill. The suit was eventually dismissed in 2011.
landfill developers say the landfill would be state-of-the-art
and exceed all environmental protection regulations designed
to prevent damage to the river and wildlife.
project would include a recycling center, access roads and
bridges, and soil stockpile areas on roughly 420 acres of
1,300 acres would remain open space. The landfill would take
in 600,000 tons of trash per year for 30 years in Gregory
Canyon, beside the San Luis Rey River and Gregory Mountain.