GUSTINE — The Gustine City Council on Tuesday will consider whether to seek federal help to assess long‑troubled industrial parcels along Highway 140, a step city officials say could clear long‑standing environmental questions, reduce blight and revive development prospects at a major entrance into the city.

The 10 parcels on the east side of town were once home to dairy and cheese processing operations. Feihe International purchased most of the land in 2015 with plans to build a goat‑milk baby formula plant, but the project stalled after the company learned of an open environmental enforcement case with the California Regional Water Quality Control Board. Feihe later shifted its investment to Canada, and the Gustine site has remained dormant.

City staff say the properties have since become a persistent nuisance, with recurring problems involving weeds, illegal dumping and transient use of abandoned structures. While the city has periodically recovered abatement costs from Feihe, securing the site remains difficult. Four parcels were sold at a 2022 property‑tax auction to two buyers, including one who uses a Nevada mailing address and has not responded to city outreach.

A consultant for Feihe told the city the company no longer views the site as feasible for the original project, citing the environmental case and the loss of some parcels at auction. The consultant also said Feihe’s environmental assessment concluded the contamination did not originate on its property, but the Water Board has insisted the company fund additional off‑site investigation. Feihe considers that demand unreasonable, leaving the case at a standstill.

To move the site forward, staff are recommending the city apply to the U.S. Environmental Protection Agency’s Brownfields and Land Revitalization Program. The program offers free environmental assessment and reuse‑planning services — including full site testing, market analysis, opportunities‑and‑constraints analysis and conceptual site design — if property owners consent to access. EPA staff, not the city, would perform the work, which officials say is significant given Gustine’s limited staffing and budget.

City officials say the assistance could help determine whether environmental concerns remain and provide planning tools that would otherwise be costly to obtain. While the preferred approach is to include all parcels, the city could still proceed with Feihe‑owned properties if other owners decline or cannot be reached.

The proposal carries no anticipated fiscal impact beyond staff time. Staff say clearing the environmental uncertainty could improve the chances of future industrial or commercial development and enhance the appearance of a key gateway into Gustine. The effort aligns with the city’s Strategic Plan goals for economic development and community‑based development.

The council will consider a resolution authorizing staff to complete the EPA application and gather required property‑owner approvals.