City Freed of Liability on Olinda Heights Plan

The city will not be held liable for any legal action resulting from the controversial Olinda Heights housing development, which is being built on former oil fields near a landfill and earthquake fault.

Under an agreement reached this week, property owner Santa Fe Energy Resources agreed to indemnify the city for damages related to the landfill or other potential problems at the site, said James R. Cutts, the city’s development services director.

The agreement applies to Santa Fe Energy’s affiliates and related companies and partners, Cutts said.

When the project was approved last year on a split vote, several council members voiced concerns about building on the site, which borders a landfill and an earthquake fault and contains oil wells and storage tanks.

The project was delayed repeatedly and underwent six major revisions because of public outcry over the number of housing units and safety concerns.

Critics asserted that the nearby Olinda landfill and oil wells presented too great a potential hazard. Councilman Glenn G. Parker and former Councilwoman Kathryn E. Wiser agreed and voted against the project.

Construction already has begun at the 284-acre site, which is north of Carbon Canyon Road and East of Valencia Avenue. A master-planned community of 662 homes and apartments, a school, a park and a history center will be built.

The property was once Orange County’s top petroleum producer and home to about 3,000 workers.