C6-Zero moves on city’s building concerns

MARENGO — A crew arrived in Marengo last week to demolish part of the C6-Zero building more than a year after a Dec. 8, 2022 explosion there.

The building at 810 E. South Street, which C6-Zero leased for the processing of used and off-spec asphalt shingles for reuse in other products, is considered dangerous according to city ordinance, said Marengo Police Chief Ben Gray. It leaves beams exposed and is unstable, he said.

Crews were working on the east side where the explosion was, trying to shore up the wall so it conforms to code, Gray said Thursday.

“This should have been done a long time ago,” said Gray.

State Code allows communities to put a hold on insurance money for demolition if the insured company doesn’t take care of demolition itself, Gray said. As of last month, the City of Marengo had about $110,000 left of that insurance retainage, according to City Attorney Gage Kensler.

“They’ve settled most of their issues with the state, and the site’s been released,” Kensler told the Marengo City Council during its Feb. 14 meeting.

Gray and Councilman Travis Schlabach met with C6 representatives at that time. “They’ve been told what they need to do,” said Gray in February. If they don’t comply with city ordinances, “there’s insurance money on hold for the purpose of demolition,” he said.

In March of 2023, Iowa Demolition removed the portion of the building that had been consumed by fire down to the concrete slab, said Jeremy Boka, vice president of business development with Environmental Infrastructure Solutions.

“We do a lot of fire demolitions,” said Boka.

C6-Zero hired the company to remove the debris back to a concrete masonry wall, which it did, Boka said. Now, however, the company is recommending that wall be replaced.

“We just have some long-term concerns if [the building] is going to be rehabilitated,” said Boka. The wall has a bow in it, he said, and the company is concerned that the fire dried the grout, making the wall unstable.

The company advised Marengo to replace the wall to eliminate risks.

“We’re trying to get some numbers together to replace that wall,” Boka said. Gray asked for the quote for the city in case C6-Zero doesn’t take care of the problem.

Boka also said Earth Services and Abatement has not been paid for the partial building demolition from last year. An invoice dated April 30, 2023 shows a charge of $69,800 for the work.

Legal issues

The Iowa Department of Natural Resources issued an emergency order Dec. 15, 2022, a week after the fire, requiring that C6-Zero stabilize the facility and clean up the site. C6-Zero missed the first deadline.

In January of 2023, EcoSource, based in Des Moines, filed a plan on behalf of C6-Zero. The DNR referred the case to the Iowa Attorney General.

The State of Iowa, on behalf of the Iowa Department of Natural Resources, filed a civil case against C6-Zero and Howard Brand, the CEO and owner, July 6, 2023 to recover the costs associated with remediating the contaminated stormwater runoff from the property and cost of damages to emergency response equipment of the fire departments that responded to the fire.

The State of Iowa alleges that contaminated stormwater runoff flowed from the C6-Zero property into a ditch that flows into a regional detention basin in Marengo which flows into the Iowa River, a major water source.

Contaminated stormwater was initially held in the Marengo regional detention basin, preventing it from reaching the Iowa River, the State says.

Aqueous Film Forming Foam washed into a stormwater basin which held about 12.9 million gallons of water, 3 million from firefighting runoff, the civil suit says. The State, through the DNR, assumed all costs to treat the water so it could be safely discharged to the Iowa River, according to the State’s petition.

Gov. Kim Raynolds authorized the transfer of up to $640,121 from the Iowa Coronavirus Fiscal Recovery Fund for replacement of damaged equipment and supplies for first responders associated with the explosion and fire at C6-Zero.

In Feb. 2023 DNR Director Kayla Lyon requested the Iowa Attorney General initiate an action to recover the costs incurred by the emergency response agencies.

In its reply to the State’s petition, C6-Zero demanded a jury trial. A trial has been set for 9 a.m. Sept. 24 at the Iowa County Courthouse.

C6-Zero is named as defendant in four other actions filed in Iowa County District Court. Kelly Regenold filed a petition seeking punitive damages and compensation for injuries in March of 2023. Joni Parizek, Amanda Dawson, Travis Lund, Lani Mumby and Kimberly Weber filed suit in August of 2023 and Steven Bathgate in October of 2023.

Trial dates have been set for 2025.

Cody Blasberg file suit against C6-Zero in February 2024.