The Los Angeles County Board of Supervisors approved a motion Tuesday to increase penalties for public health violations and provide funds to small businesses impacted by local emergencies, a move prompted by ongoing cleanup efforts at Lineage Logistics’ burned-out cold-storage warehouse in Boyle Heights.
In a unanimous vote, the board approved a motion by Supervisor Hilda Solis to use dollars from her First District Catalytic Development Fund to launch a Small Business Interruption Fund for businesses in the areas impacted by the June fire and other emergencies within the district. Financial assistance would be disbursed within 45 days.
The motion also requires a report within 60 days on how the countywide fund, which was established in March, could be tapped to support small businesses affected by disasters in the future.
The board instructed county attorneys and its Office of Emergency Management to seek reimbursement for funds dispensed to small businesses impacted by local emergencies. Additionally, county staff would develop a policy requiring all new manufacturing, recycling, warehouse and any other industrial land use facilities located within unincorporated areas to pay a fee supporting the fund.
County departments would be tasked with developing recommendations for community health plans and safety preparedness plans for high-risk facilities near sensitive sites such as residences, schools and health care facilities.
Solis, who represents areas in East LA County, noted businesses in the area have been impacted by the warehouse fire and an oil spill that occurred in May.
“The nauseating odor in both circumstances has led to headaches and more people staying away from the area when considering dining, shopping, or just supporting their local businesses, including the impact on their employees,” Solis said, adding that businesses have reported about thousands of dollars in lost revenue.
Solis criticized the responsible parties in each emergency for not providing adequate support.
“In my opinion, they have not worked with them as swiftly as needed to ensure these businesses are compensated for their losses,” she said.
The supervisor also said she has asked the Department of Public Health to explore increase fine amounts on parties that cause environmental and public health disasters. Public health officials have fined Lineage Logistics for pest and other health violations, starting at $500 for each citation, which was raised up to $2,000 per day for ongoing violations at the site.
The department issued a directive to Lineage that requires mitigation efforts in the impacted communities related to the facility and subsequent decaying food waste.
Lineage Logistics on Monday reported it had removed approximately 80% of food waste at the site, with a goal of to complete bulk food removal next week. Company officials said they have prioritized transparency and open communication with the public, providing frequent and bilingual updates via a dedicated website and social media channels, among other methods.
The company said it has provided more than $3.3 million in aid, and has complied with pest and odor control mitigation directives. These efforts consist of odor-control, daily cleaning of runoff collection areas, loading zones, and monitoring of air quality, among other measures. The company said it also expanded its pest-control efforts with support from Orkin to reduce fly and rodent activity.
Of its $3.3 million donation, the company said it contributed $2 million to the California Community Foundation, with funds distributed to more than 20 organizations for air purifiers, personal protective equipment, medical and mental health services, housing assistance, small business support and cash assistance.
“Our teams are working around the clock on cleanup and recovery and communicating the challenges we face to meet the 45-day deadline set in Los Angeles Mayor Karen Bass’ executive order,” Lineage said in a statement issued Monday night. “To date, no city, county or state officials have offered resources that would expedite cleanup efforts beyond those that Lineage had already deployed.”