Council Weighs Merits of Village West Project : Growth: Proposal to build 208 duplex townhomes and 143 detached homes near Ormond Beach draws as many supporters as critics.

Hearing that homes do not belong sandwiched between fragile wetlands and factories storing tons of toxic chemicals, the City Council on Tuesday listened to public testimony about a developer’s proposal to build 208 duplex townhomes and 143 detached homes near Ormond Beach.

As planned, the Village West development would be the first step by the financially troubled Baldwin Co., which declared Chapter 11 bankruptcy in July, to build more than 5,000 homes in the Ormond Beach region.

Council members were still debating the 33-acre subdivision, which would be located southeast of Hueneme and Perkins roads, late Tuesday night.

Councilman Dean Maulhardt abstained from the discussion because of a conflict of interest: His company, Quality Packaging Inc., does business with several firms located near the proposed site.

Baldwin Co. encountered a multitude of critics at Oxnard City Hall, but an equal number of residents showed up to support the project.

More than 200 people crowded council chambers, many of them wearing either yellow ribbons that said “No on VW” or yellow T-shirts with the slogan “I support Village West, & you should too.” About two dozen workers from industrial companies located near the proposed housing site wore white T-shirts that said “Save Our Jobs” in red letters.

Environmentalists have argued that Village West would harm the California least tern and other endangered species that inhabit the wetlands of Ormond Beach.

“Unless you make these decisions now, your children and grandchildren won’t see these things,” Letha Marshall, of the Oxnard Beautiful civic improvement group, said as she held up photos of endangered wildlife that live in the area.

Industrial companies operating near the site--such as Southern California Edison; Halaco, an aluminum recycler, and Willamette Industries, a cardboard maker--say the housing development would place families in peril because the site is within several hundred yards of their factories that store and process dozens of toxic chemicals.

Oxnard’s fire marshal has agreed, writing in a letter to the council that the project’s proximity to such chemicals was a safety hazard.

But residents of several nearby neighborhoods came out in support of the development, saying it would help revive the increasingly moribund south part of the city.

“It’s the first positive thing that’s happened to South Oxnard in 20 years. We need this thing here. It’s turned this place around,” said Keith Strasser, who has lived in South Oxnard for more than 30 years.

Still others argued that because of its financial problems, the Baldwin Co. could not be relied upon to deliver on its Village West plan.

“It was only two months ago that Baldwin Co. filed for bankruptcy. That scares me. It scares me in an Oxnard Town Center kind of way. It scares me like the Radisson hotel,” said resident Joseph O’Neill.

The company filed for bankruptcy protection from its creditors two months ago after its chief lender, General Electric Capital Corp, canceled the builder’s revolving line of credit.

Last month, Baldwin received court approval of a $70-million financing plan that allowed the company to continue operating during its bankruptcy.

Nevertheless, Baldwin still owes tens of millions of dollars to numerous creditors--including many small construction subcontractors--and additional millions of dollars in back taxes throughout Southern California, including about $95,000 in Ventura County for its Ormond Beach property.

The Baldwin Co. had owed about $205,000 in back taxes for the Oxnard property but recently made a $110,000 payment, according to a company representative.

Louis J. Malone, president of the company’s Ventura County/Los Angeles division, said before the meeting that Village West was vital to the firm’s plans to rebound.

Councilman Andres Herrera said before the meeting that he is sympathetic to the company’s plight and that he likes the quality of its other developments throughout Southern California.

But Village West cannot work in its current form, Herrera said, adding that the project needs some retooling--such as adding a “buffer zone” between the homes and the factories--if it is to ever be approved.

“I’m not out to ruin Baldwin, or derail their project--no pun intended,” Herrera said of the site, which is adjacent to an industrial rail spur.

“I still think their project has a chance to work in that area, but they have to make some changes, and so far, I haven’t seen any changes.”