New Dawn, DND reach agreement over spill
A community development organization in Sydney, N.S., has reached a $7-million settlement with the Department of National Defence over cleanup…
A community development organization in Sydney, N.S., has reached a $7-million settlement with the Department of National Defence over cleanup of an oil-contaminated property in Whitney Pier.
The money compensates New Dawn Enterprises, which bought a former radar base in 1992 and built a number of affordable housing units.
Six years ago, New Dawn discovered a leaking fuel storage tank on the property. Subsequently, DND discovered 35 underground oil tanks that were also leaking oil.
Residents were forced to leave and New Dawn filed a claim against the Crown for losses and damages incurred due to the contamination.
The government is currently conducting an $11-million cleanup on the site.
The $7 million announced Thursday covers the inconvenience and lost income since the leak was discovered, said Rankin MacSween, president of New Dawn.
“First of all, there are 40 units that are coming down. It’s an asset that we’re losing so it’s part of the offset for that. There was certainly time and expenses involved in our struggle for the last six years, and there is the issue of lost rent.”
The cleanup is expected to take three years.
