Wal-Mart delays designs on Henderson

Friday, Dec. 2, 2005 | 6:54 a.m.

With criticism growing over a proposed Wal-Mart Supercenter and Sam's Club near industrial plants that use and store hazardous chemicals in Henderson, the retail giant has placed its plans on hold.

Wal-Mart's proposal for a zoning change on 73 acres at the Basic Management Inc. site, recently annexed into Henderson, has been taken off the Planning Commission's agenda with no timetable for it to reappear.

Wal-Mart attorney Doug Baker said no decision has been made on whether to proceed with the project that the company is putting together in conjunction with Las Vegas-based developer Territory Inc.

The planned 758,000- square-foot shopping center at the northwest corner of Lake Mead Parkway and Water Street would have retail stores as close as 700 feet to chemical plants.

"We are studying everything and haven't made a decision," Baker said. "It is like any piece of business, we are just trying to analyze it, frankly. It is $100 million, and that's a big investment."

Wal-Mart's decision to put the project on hold comes as the Nevada AFL-CIO has joined the fray, adding a political element to the debate.

Henderson Mayor Jim Gibson is running for the Democratic nomination for governor, and the union has not decided whether to endorse Gibson or his opponent, Sen. Dina Titus, D-Las Vegas.

Danny Thompson, the union's executive secretary-treasurer, has written a letter to Henderson City Council members urging them to oppose the project, warning it could lead to a "staggering loss of life."

The union represents workers at BMI -- where four companies still use and store hazardous materials -- and has unsuccessfully tried to organize Sam's Club and Wal-Mart workers.

Thompson, who worked 21 years as a craftsman for BMI tenant Stauffer Chemical, which later became Pioneer Chlor Alkali, said the potential still exists for accidents, even though safety has improved significantly in recent years.

A 1991 chlorine leak at Pioneer made more than 300 people ill and prompted the evacuation of thousands.

Thompson said if an accident threatened shoppers, there would be an outcry to shut down the plants -- which would eliminate their high-paying union jobs.

"We don't believe this is a safe site for the public," he said.

"To put a ... retail store of that size next to those potential hazards is downright stupid. There is a reason (Clark County) is saying no to do this. (It knows) of the potential disaster."

The county has limited development near the industrial area because of the dangers from the chemical plants, and county officials have spoken out against Henderson allowing retail uses there.

Mark Paris, chief executive of LandWell Co., said he expects Wal-Mart to make a decision within the next two to three weeks. LandWell is the real estate arm of the company that manages the huge industrial complex.

He said the site is safe, noting that a hospital, homes and other developments are nearby.

"Right now, it is in limbo, but eventually this site will be developed with or without them (Wal-Mart)," Paris said.

Henderson Redevelopment Manager Robert Ryan said a city-commissioned study, still to be released, is expected to show that the site's safety issues are "manageable" and that retail could work there.

But Richard Brenner, Clark County Fire Department's hazardous materials coordinator, questioned how any report could justify placing retail near the chemical plants -- some of which produce chlorine and titanium tetrachloride that can damage lungs and cause death when inhaled in large concentrations.

"That would be very shocking to me," Brenner said of the report. "You want a buffer zone around that area."

Henderson Councilwoman Amanda Cyphers has expressed concerns about allowing retail uses at BMI. Light industrial and warehouse uses would be more appropriate because workers -- more so than shoppers -- could be trained to deal with potential disasters, she said.

Cyphers said she is encouraged by Wal-Mart's delay.

"Any postponement can be viewed as hope that the project will go away," Cyphers said.

In 1988 an explosion west of the BMI complex at the former Pacific Engineering and Production Co. of Nevada plant, which produced ammonium perchlorate used in rocket fuel, killed two people and injured 350. The explosion blew in front doors and windows of homes miles away, causing $70 million in damage. The plant later reopened in Utah.

Whether Wal-Mart's proposal becomes an issue in the gubernatorial campaign appears to hinge largely on the Henderson mayor's position.

Gibson, who worked as general counsel for American Pacific Corp. processing claims after the PEPCON explosion, could not be reached for comment. PEPCON changed its name to American Pacific after the explosion.

Previously, Gibson has said he has not taken a position on the proposed Wal-Mart, but stressed that safety would be the top consideration in his decision.

Titus supports the AFL-CIO's opposition to the project, according to her campaign manager, Dave Barnhart.

"We totally agree with the AFL-CIO that there is no business putting a retail center right next to a chemical plant in Henderson," Barnhart said. "There has been one explosion in Henderson, and lives shouldn't be put at risk. It should be a buffer zone."

Brian Wargo can be reached at 259-4011 or at wargo@lasvegassun.com.