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Darian Pike harvests basil in the front yard garden of his home at the Millpond Crossing development in Philomath.
Millpond Crossing is a housing subdivision being developed in Philomath.
Methane gas detectors were installed in Millpond Crossing houses.
Darian Pike at his Millpond Crossing home in Philomath.
A drainage ditch runs behind some of the houses in Millpond Crossing in Philomath. Concerns have been raised about erosion and neighborhood safety related to the ditch.
Some of the houses do not have access to their entire backyard at Millpond Crossing in Philomath.
A drainage ditch runs behind some of the houses in Millpond Crossing in Philomath. Some residents appreciate the additional greenery while others are concerned about erosion and the safety of neighborhood kids who sometimes play in the ditch.
An undeveloped area at Millpond Crossing in Philomath. Construction has been held up by environmental concerns.
A property marker at Millpond Crossing in Philomath. Among the issues at the development, a number of lot line adjustments are needed. Some residents aren't sure of their property lines.
An undeveloped area at Millpond Crossing in Philomath. The site was formerly a sawmill for decades.
A partially built housing development in Philomath is stalled after the discovery of methane gas on the property; meanwhile, the state has warned the project's first residents to forego power tools, fire pits and barbecues — anything that could spark an explosion.
Despite the inherent danger, however, many current residents say they are not alarmed, the city considers methane risk fifth on a list of items it wants to see the developer address before greenlighting more construction, and the developer has argued it needs to sell more homes to pay for the environmental cleanup.
In recent months, the developer has requested and received permission to alter the project, increasing the total units to as many as 212, moving some homes and allowing some townhomes. He’s also sued his consultant who was originally hired to assess the environmental challenges the site posed.
Millpond Crossing, as it's now known — a nod to its past as a sawmill with two large log ponds and a refueling station — sits at the corner of Chapel Drive and South 15th Street. Sixty modestly-priced, single-family homes were built before the city halted construction.
Developer Levi Miller of Pierce County, Washington and his company MPC Builders LLC bought the property in February 2018 and finalized the sale in September that year, about four months after the Philomath City Council had signed off on the plans.
Because Miller’s environmental consultant had identified some contamination — methane gas not being one of them — Miller volunteered in October 2018 to clean up the site under a program the Oregon Department of Environmental Quality offers to elicit cooperation with property owners.
Everything changed when the DEQ, in overseeing those efforts, required Miller to look for methane gas specifically.
June 2020 and April 2021 sampling at the property found methane in shallow soil in several places, according to the DEQ.
A fact sheet distributed by the Department of Environmental Quality in 2021 alerted Millpond Crossing residents to the methane, warning them to forgo outdoor flames and anything that could generate sparks.
The fact sheet also cautioned avoiding sparks around such enclosed spaces as electrical boxes, crawlspaces, sheds and utility corridors, and to ventilate before entering those spaces. DEQ also requested crawl space vents around foundations of homes be kept uncovered and unblocked.
Methane is flammable and in confined spaces can cause explosions or displace oxygen.
No methane has been found in or under any homes, according to the developer.
Contacted by Mid-Valley Media, many residents seemed unconcerned about the risk they face in their daily lives, saying Miller has taken steps to protect the homeowners and property.
“They’ve got a vapor barrier underneath the house, they’ve got some fans and vents going,” said Darian Pike, who lives on South 16th Street in the subdivision. “It seems safe to me.”
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When alerted to the danger, Pike said he researched methane, finding explosions linked to mining operations but nothing like his situation. He believes the gas will dissipate to safe levels in the open air.
Other residents echoed Pike. Rather than focusing on the methane risk, their concerns run the gamut for residents to a new development, things like grading, the quality of the appliances, some unresolved lot lines and a planned neighborhood park not yet built.
MPC Builders has been working with the DEQ since the presence of methane was confirmed, said Carson Bowler, a Portland-based attorney, throwing blame at the agency for not providing clear direction in a timely way.
Among the actions taken by the developer: Venting systems and methane alarms were installed in each home, according to DEQ, which also urged the developer to seal underground electrical conduits leading to enclosed spaces to alleviate concerns about methane buildup within utility infrastructure.
The former mill site operated under various names between 1955 and 1998, according to DEQ documents which state the log ponds were filled with wood waste, construction debris and other hazardous substances in the ’80s. A court document adds old oil filters, batteries, waste oils and plastics to the ponds’ contents.
Decaying wood debris can generate methane gas.
But methane is not the only hazard on site. Miller’s own consultant, Washington-based Aerotech Environmental Consulting Inc., found in May 2018 contaminants in the area of the filled log ponds, including diesel and oil. It also found such metals as arsenic, barium, chromium, cadmium, lead, mercury, selenium and silver.
The petroleum contamination was above DEQ limits for residential areas, a DEQ consent order with MPC Builders states. Petrol can harm the microbiological, chemical and physical properties of soil.
Aware of only the metals and the petroleum contamination, Miller moved forward with his plans, entering the DEQ’s Voluntary Cleanup Program, the developer said in his $9.9 million lawsuit against Aerotech filed in Benton County Circuit Court in May, alleging negligence and breach of contract.
In submitting to DEQ oversight, the developer acknowledged that he did his due diligence and was “aware its housing complex would be built on a brownfield and abandoned former mill site,” according to an email Miller's attorney Bowler sent to DEQ.
In the email, Bowler alleges his client wasn’t informed of the potential risk of methane and other biogases, despite Aerotech’s awareness of the former log ponds.
In a response filed with the court, Aerotech denies Miller’s allegations and has requested the case be dismissed. Specifically, Aerotech claims its contract with MPC Builders didn’t require identifying landfill gas or recommendations for how to go about investigating methane and its remediation.
Following a 2018 complaint — from whom is unclear — the DEQ requested in July 2019 methane gas testing at the site. Initial testing was done in June 2020. A court document states the gas was found in 12 of 13 boring samples. Methane was found at several locations in excess of the “lower explosive limit” of 5% by volume, according to a March DEQ email to Bowler.
By the time the testing for methane was underway, some Millpond Crossing residents had moved in. Methane was found at — or outside, according to Miller, of — one occupied residence as much as 50.7% by volume, the DEQ email states. State fire officials put the explosive range for methane between 5% and 15% by volume, according to DEQ.
In Bowler’s email to DEQ, he notes that early on, the developer chose to remove organic material from beneath foundation footprints of homes for structural reasons, but that also helped mitigate vapor intrusion.
Along with fans and alarms, he said moisture vapor barriers were installed in all the homes. Methane monitoring points were also installed around the property.
In June 2021, the DEQ recommended that the city of Philomath pause new construction of homes and utilities until further methane investigation was completed, and if necessary, a methane mitigation plan was fully implemented, the DEQ fact sheet states. The city did so, a move Miller called “abrupt” during a February appearance before the city Planning Commission.
By July 2021, the agency and the developer entered into a consent order to investigate hazardous substances on the property and determine removal and/or remediation measures. That included a methane work plan due in August 2021, which was approved and implemented, according to DEQ.
Sales continued during sampling. When it was clear methane was going to be a problem, Miller had to inform homebuyers. Some were just days away from escrow closing when they were hit with the news.
The disclosures, a copy of which were obtained by Mid-Valley Media, acknowledge the developer found areas of decomposing organic fill where methane could be produced, adding that the gas is “naturally occurring” and “not considered toxic.” The form also assures the buyers their home was tested and found free of methane.
However, the form acknowledges that the gas is mobile and can ignite, also noting high methane levels can diminish the amount of oxygen in the air, making it difficult to breathe.
“MPC Builders does not believe methane gas will be an issue in your house in the future,” the form states, “but it cannot guarantee future conditions.”
Citing the installation of fans and methane-detection alarms, the form grants MPC Builders access to the home to monitor and inspect fans and alarms as well as make repairs or improvements for a period of at least two years after purchase.
The first disclosures that included methane gave the buyers five days to sign or terminate the purchase. Several Millpond Crossing owners said they felt trapped or ambushed by the late-in-the-process notice.
The developer has spent more than $500,000 addressing biogas issues at Millpond Crossing, according to Bowler’s email to DEQ. The costs weren’t anticipated in the initial budget and have largely been covered by sales of existing homes, Bowler said, adding that the developer needs to sell more homes to fund mitigation work.
“We are not confident DEQ understands this business reality,” Bowler said in the email. He then asked DEQ to withdraw its opposition and allow more units to be sold while the methane investigation continues, adding that approving or denying private home sales is outside the agency’s jurisdiction.
“We hope DEQ realizes that the success of the project, including any additional work DEQ might request on the existing homes, depends on Millpond being able to pay for that work,” Bowler wrote.
In February, Miller came before the Philomath Planning Commission with an altered proposal that moved the planned park, relocated some units and a request to build 64 townhomes. He argued that to generate the income he needs, he’d have to build single-family homes in the $500,000 rang if he can’t amend his plans.
“With recent economic changes from COVID-19 and the discovery of methane gas in specific areas on the site, this plot amendment is required for Millpond Crossing to continue that mission of providing affordable housing for homeownership for the workers and citizens of the city of Philomath,” Miller wrote to the city.
The Planning Commission approved the changes on a 5-2 vote, with commissioners Hayley Green and Peggy Yoder voting no. As a condition of approval, the owner has to prove is compliant with all state laws relating to methane and that the site is safe for residential use prior to receiving certificates of occupancy.
The subdivision was originally expected to take three to five years for construction, with an outside date of 2023 for completion. Bowler said the estimated finish date is now late 2023 or 2024.
From the DEQ’s perspective, more monitoring and data collection is necessary before the agency signs off with the city for more construction, according to DEQ spokesperson Dylan Darling. The agency is currently considering a modification of the consent order, which must be finalized for work to resume.
At this point, the agreement has been amended once. The second revision would readjust the schedule for monitoring and submitting mitigation plans, Bowler said by email.
Bowler said Miller has applied for a brownfield loan to assist with mitigation measures for existing and new homes. He said those measures, if found to be necessary, will be approved by DEQ.
Despite the Planning Commission’s recent approval for tweaks in the plans, Philomath City Manager Chris Workman said the city needs to see the developer meet a number of conditions. He rattled off a list of priorities, with addressing the methane dilemma at No. 5, bested by fees the developer owes the city, stormwater drainage concerns and lot line adjustments needed.
Currently in Phase 2 of development, Miller doesn’t get the OK to start Phase 3 of a total five phases until he can complete the checklist, Workman said.
“The city shares in the frustration of a lot of the neighbors, and the developer as well, that the process takes a long time,” Workman said. “There’s a lot of different things the developer is waiting for that he’s not necessarily in the driver’s seat on.”
Asked about concerns among some residents that Millpond Crossing might not be fully completed because of mounting costs and red tape, Workman said the developer appears committed to seeing the project to fruition. While it’s been a bumpy road so far, he’s optimistic.
“Everything he’s been doing is geared towards trying to finish the project, not walk away from it,” he said. “I’ve seen him dig his heels in, adjust and adapt, and try to find creative ways to make the development move forward.”
As the housing crisis in Oregon deepens, affordable starter homes like those in Millpond Crossing become more essential, Workman said. He said Philomath doesn’t have enough housing to meet current demands, let alone future needs. For those looking to build equity or put down roots, the challenges keep growing.
“Frankly, we don’t have a lot of other development going on,” Workman said. “Short of a couple small lots and the manufactured homes going into Forest Meadow, this is the only housing opportunity going in Philomath right now.”
Former Mid-Valley Media reporter Jim Day contributed to this article.
Cody Mann covers Benton County and the cities of Corvallis and Philomath. He can be contacted at 541-812-6113 or Cody.Mann@lee.net. Follow him on Twitter via @News_Mann_.
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Cody Mann is an experienced, relentless journalist, who is currently working as a local government news reporter for the Corvallis Gazette-Times. He earned journalism bachelor’s and master’s degrees from the University of Oregon.
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Darian Pike harvests basil in the front yard garden of his home at the Millpond Crossing development in Philomath.
Millpond Crossing is a housing subdivision being developed in Philomath.
Methane gas detectors were installed in Millpond Crossing houses.
Darian Pike at his Millpond Crossing home in Philomath.
A drainage ditch runs behind some of the houses in Millpond Crossing in Philomath. Concerns have been raised about erosion and neighborhood safety related to the ditch.
Some of the houses do not have access to their entire backyard at Millpond Crossing in Philomath.
A drainage ditch runs behind some of the houses in Millpond Crossing in Philomath. Some residents appreciate the additional greenery while others are concerned about erosion and the safety of neighborhood kids who sometimes play in the ditch.
An undeveloped area at Millpond Crossing in Philomath. Construction has been held up by environmental concerns.
A property marker at Millpond Crossing in Philomath. Among the issues at the development, a number of lot line adjustments are needed. Some residents aren't sure of their property lines.
An undeveloped area at Millpond Crossing in Philomath. The site was formerly a sawmill for decades.
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