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Lockheed Martin to pay $5.8 million to clean up bay

Settlement finalized in June

In 1970 Lockheed Martin leased a 61,000 square-foot property called the Tow Basin Site.
In 1970 Lockheed Martin leased a 61,000 square-foot property called the Tow Basin Site.

Aerospace and defense contractor Lockheed Martin has agreed to pay the Port of San Diego $5.8 million to clean up the contamination in San Diego Bay.

Map showing site relative to airport and Harbor Island

In 1970 Lockheed Martin leased a 61,000 square-foot property called the Tow Basin Site, located at 3380 North Harbor Drive, to test the designs of boats, submarines and other submersibles, and seaplanes. In addition, the Bethesda, Maryland-based company leased a commercial pier and railway terminal at 1160 Harbor Drive for other maintenance and industrial uses.

After decades of use, California's Environmental Protection Agency discovered contaminated sediment along the bay floor. It ordered the company to begin remediation.

Fast forward ten years, despite the attempted cleanup, the San Diego Regional Water Board discovered additional contamination at the Tow Basin Site as well as Lockheed's Marine Terminal. Investigators found evidence of "unauthorized discharges of wastes” in the bay. The water board determined that the discharges were substantial enough to possibly "have an impact on human health and the benthic community, and may have an impact on aquatic dependent wildlife, thus creating a condition of pollution and nuisance in waters of [California].”

The Port of San Diego then filed a lawsuit in 2016 to ensure remediation occurs. The two sides, as well as General Dynamics who leased the site for a shorter period of time, reached an agreement earlier this year. A federal court judge finalized those terms on June 21.

The agreement calls for Lockheed to pay $3.3 million to remediate the sediment at both sites. In addition Lockheed will prepare the lots according to the proposed demolition plans. Lastly, the aerospace company will pay $2.5 million for future development at the two locations. General Dynamics will reimburse Lockheed Martin $850,000 for any contamination it caused while it controlled the site. To help ease the sting, the Port of San Diego will waive 36 months of rent, amounting to a $200,000 savings for the company.

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Comments
4

"To help ease the sting, the Port of San Diego will waive 36 months of rent, amounting to a $200,000 savings for the company"? So $7,200 a month is all the Port has been charging for 61,000 square feet with private bay shoreline?! That's a 4-bedroom mini-dorm in the College Area! No wonder we can't have nice things.

Aug. 1, 2017

Cassander: Thanks for the comment and apologize for the confusion. I will have to reread the court order (sorry, been celebrating my son's first birthday today) but I believe the lease amount was after the property had been vacated in preparation for demolition/development. I could be wrong and will check. You're correct, and frankly it's something I should have caught when writing it, that would be a pretty sweet deal for shoreline property, regardless of how contaminated it was.-dH

Aug. 2, 2017

Thanks, StPIB!

Aug. 3, 2017

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In 1970 Lockheed Martin leased a 61,000 square-foot property called the Tow Basin Site.
In 1970 Lockheed Martin leased a 61,000 square-foot property called the Tow Basin Site.

Aerospace and defense contractor Lockheed Martin has agreed to pay the Port of San Diego $5.8 million to clean up the contamination in San Diego Bay.

Map showing site relative to airport and Harbor Island

In 1970 Lockheed Martin leased a 61,000 square-foot property called the Tow Basin Site, located at 3380 North Harbor Drive, to test the designs of boats, submarines and other submersibles, and seaplanes. In addition, the Bethesda, Maryland-based company leased a commercial pier and railway terminal at 1160 Harbor Drive for other maintenance and industrial uses.

After decades of use, California's Environmental Protection Agency discovered contaminated sediment along the bay floor. It ordered the company to begin remediation.

Fast forward ten years, despite the attempted cleanup, the San Diego Regional Water Board discovered additional contamination at the Tow Basin Site as well as Lockheed's Marine Terminal. Investigators found evidence of "unauthorized discharges of wastes” in the bay. The water board determined that the discharges were substantial enough to possibly "have an impact on human health and the benthic community, and may have an impact on aquatic dependent wildlife, thus creating a condition of pollution and nuisance in waters of [California].”

The Port of San Diego then filed a lawsuit in 2016 to ensure remediation occurs. The two sides, as well as General Dynamics who leased the site for a shorter period of time, reached an agreement earlier this year. A federal court judge finalized those terms on June 21.

The agreement calls for Lockheed to pay $3.3 million to remediate the sediment at both sites. In addition Lockheed will prepare the lots according to the proposed demolition plans. Lastly, the aerospace company will pay $2.5 million for future development at the two locations. General Dynamics will reimburse Lockheed Martin $850,000 for any contamination it caused while it controlled the site. To help ease the sting, the Port of San Diego will waive 36 months of rent, amounting to a $200,000 savings for the company.

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Comments
4

"To help ease the sting, the Port of San Diego will waive 36 months of rent, amounting to a $200,000 savings for the company"? So $7,200 a month is all the Port has been charging for 61,000 square feet with private bay shoreline?! That's a 4-bedroom mini-dorm in the College Area! No wonder we can't have nice things.

Aug. 1, 2017

Cassander: Thanks for the comment and apologize for the confusion. I will have to reread the court order (sorry, been celebrating my son's first birthday today) but I believe the lease amount was after the property had been vacated in preparation for demolition/development. I could be wrong and will check. You're correct, and frankly it's something I should have caught when writing it, that would be a pretty sweet deal for shoreline property, regardless of how contaminated it was.-dH

Aug. 2, 2017

Thanks, StPIB!

Aug. 3, 2017

Sign in to comment

Sign in

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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