A medical sterilization company is suing a suburban Atlanta county, saying the county unlawfully lowered the property values of thousands of homes because of concerns about releases of a poisonous gas.
Sterigenics sued the Cobb County Board of Tax Assessors on Aug. 14 in federal court, The Atlanta Journal-Constitution reports. The company, which operates a plant that sterilizes medical instruments with ethylene oxide, claims the board targeted the company without proper data to back up its decision. The move could aid lawsuits against the company that some homeowners are considering.
The board in April approved a 10% reduction on residential property valuations within a two-mile radius of the Smyrna facility, said Chief Appraiser Stephen White. The reduction affects more than 5,000 homes.
White said the board approved the reduction because it “recognizes that there is an environmental air-quality concern surrounding the Sterigenics plant.”
He also said it is difficult to determine the effect Sterigenics’ operations has had on property values. The Board of Tax Assessors plans to review the area again for the 2021 tax year.
Sterigenics said through a spokesperson that the board’s decision violates Georgia law governing property tax valuations.
“Their unfounded action was taken without supporting data and despite … confirmation that the facility is in full compliance with all state and federal air regulations,” the spokesperson said in a written statement. “The fact is that the Sterigenics facility is safe and not causing anyone harm.”
Sterigenics’ use of ethylene oxide sparked an uproar after WebMD and Georgia Health News reported potential increased cancer risks for residents in neighborhoods surrounding the plant.
“I don’t think they recognize any potential damage they do through their actions,” said Janet Rau, a resident and president of Stop Sterigenics-Georgia. “They do everything begrudgingly.”
Stop Sterigenics-Georgia is organizing a forum with lawyers to discuss available options, including possible lawsuits by homeowners over decreased property values.
Workers in May sued Sterigenics and ConMed Corp. alleging more than 50 employees at ConMed’s Lithia Springs medical equipment warehouse were exposed to unsafe levels of ethylene oxide for more than a decade.
Stergenics argues on its website that ethylene oxide is a naturally-occurring gas and is the only method of satisfying “FDA-approved sterility validations for many critical medical devices.”
Amid protests, Sterigenics suspended operations last summer to install new pollution controls. Cobb County later kept the plant closed, alleging that it violated fire codes.
To help fight the shortage of medical equipment due to the COVID-19 pandemic, Cobb County Chairman Mike Boyce in March signed an emergency declaration allowing the company to resume some sterilization activity. Sterigenics then sued, claiming Cobb County did not have the authority to keep the plant closed.
A consent order in April allows the company to continue operations while its lawsuit against the county progresses.
