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Lake Behavioral Hospital

Background 

In 2023, a demolition project began involving unused buildings on the Lake Behavioral Hospital campus at 2615 Washington Street in Waukegan, Illinois. The group of buildings being demolished were previously used as a medical hospital, a residential building for staff, and a boiler plant. The Occupational Safety and Health Administration (OSHA), the United States Environmental Protection Agency (U.S. EPA), and the Illinois EPA received complaints about demolition activities occurring when asbestos-containing material (ACM) was still present.

Applicable laws and regulations require removal of ACM before beginning demolition to prevent disturbance of the ACM, because disturbing ACM can create a health hazard. Illinois EPA inspectors determined that ACM had been disturbed and was mixed with the demolition debris in the area around the buildings being demolished (the Site). The Site was secured, and Illinois EPA referred the matter to the Illinois Attorney General’s Office (IAGO) for enforcement.

On June 13, 2024, the IAGO filed a lawsuit against the responsible parties: the hospital owner V Covington Realty, LLC and the hospital operator, V Covington, LLC, as well as the contractors hired to complete the demolition and asbestos removal activities, Reed Illinois Corporation (now Reed Construction, LLC), K.L.F. Enterprises, Inc., and Alliance Environmental Control, Inc. On June 21, 2024, the Court entered into an Agreed Immediate and Preliminary Injunction Order with Defendants V Covington Realty, LLC and V Covington, LLC only (the Agreed Interim Order). The Agreed Interim Order creates a legally enforceable plan to secure the Site, prevent additional releases of asbestos into the environment, and complete the demolition work in a safe and compliant manner.

Compliance & Enforcement 

Following complaints received about the Site, Illinois EPA conducted an inspection and identified multiple apparent violations due to improper handling and removal of ACM during the demolition project.

The Covington Defendants took the following actions in response to Illinois EPA’s findings of disturbed ACM, and as required by the Agreed Interim Order:

  1. Implemented all necessary actions to prevent the discharge or release of asbestos and other contaminants into the air by implementing measures to adequately wet, keep wet, and secure all debris at the Site.
  2. Stopped the demolition project until authorized by the Illinois EPA to resume it.
  3. Stopped the removal, handling, disturbance, or disposal of ACM or suspect ACM unless authorized by the Illinois EPA.
  4. Secured the Site by repairing and maintaining the fence around the it, including by posting signs on the fence and gates warning of asbestos contamination.
  5. Increased security at the Site to twenty-four hours per day, seven days per week.
  6. Prohibited entry into the Site without Illinois EPA authorization and approval.
  7. Stopped removal of any heavy machinery, equipment, tools, materials, or any other items from the Site without prior approval from the Illinois EPA.
  8. An Illinois-licensed asbestos professional performed a complete asbestos inspection of the remaining structures at the Site, to the extent that it was safe to do so.
  9. Ensured that construction debris and other related materials at the Site are not removed or disposed of without written approval by the Illinois EPA for disposal to a facility authorized to accept such debris.
  10. Submitted a commitment letter to the Illinois EPA certifying that all future demolition and renovation activities will be performed in compliance with federal, state, and local laws. This letter was submitted on June 25, 2024.
  11. Provided various records and reports related to the release of asbestos at the facility.
  12. Submitted a plan for abatement, decontamination, and future demolition at the facility to the Illinois EPA for review and approval.

Wetting of the ACM to prevent the release of asbestos into the air and air monitoring at the Site began on March 18, 2024, and will continue throughout cleanup activities, pursuant to the Illinois EPA-mandated cleanup plan approved by the Illinois EPA in October 2024. See the Site Remediation Status section, below, for detailed information regarding the preparation for and progress of remediation work at the Site. 

Site Remediation Status

On October 30, 2024, the Illinois EPA approved the Project Design Plan (the Design Plan). The Plan outlines the decontamination, remediation, and future demolition activities at the Site. The Design Plan’s objective is to ensure that all ACM is removed from the Site and disposed of in compliance with applicable laws.

In January 2025, preparations to remediate the Site began. Pursuant to an Illinois EPA-approved work plan, between January 27, 2025 and February 5, 2025, all K.L.F. Enterprises, Inc.’s demolition equipment was decontaminated and removed from the Site.

According to reports received from Environmental Solutions, Inc. (ESI), the environmental consulting group overseeing remediation at the Site, from February 3 to about February 24, 2025, work focused on setting up the Site according to the approved Design Plan, including bringing in and assembling equipment and segregating the different work zones.

The abatement and demolition work began in earnest the week of February 23-March 2, 2025. So far, abatement and demolition at the Site have proceeded on the following timeline:

  • February 27 and 28, 2025 – The first loads of ACM were taken to an asbestos landfill.
  • Week of March 3-9, 2025 – Demolition activities began at the Site, as outlined in the Design Plan.
  • Week of March 10-16, 2025 – The remaining portions of the south tower were brought to ground level, and the work crew began sorting through the resulting materials.
  • Week of March 17-23, 2025 – Demolition began on the north/main hospital structure.
  • March 24, 2025-May 4, 2025 – Demolition of the north/main hospital structure continued.
  • May 5, 2025 – The north/main hospital structure was brought to ground level.
  • May 5, 2025-June 5, 2025 – Building materials continued to be sorted for cleaning, loading, and disposal/recycling. Disposal of ACM continued.
  • June 6, 2025 – Demolition of boiler house began.

Cleaning, sorting, loading, and recycling of the materials resulting from the demolition and abatement work continues, as well as removal and disposal of ACM.

ESI reports that they continue to monitor site conditions and wet ACM to ensure public safety, as detailed in the Illinois EPA-approved Design Plan. According to weekly reports from ESI, the results of Phase Contrast Microscopy (PCM) monitoring around the Site continue to be low. PCM is a commonly used method for monitoring asbestos in air, particularly for quantifying fiber counts and assessing exposure levels. PCM monitoring will continue during the Site remediation work, and work will be adjusted as needed to maintain those conditions.

The demolition contract between the property owner, V Covington Realty, LLC, and McDonagh Demolition (McDonagh), entered into on January 27, 2025, requires McDonagh to “achieve Substantial Completion of its Work not later than four hundred twenty (420) days from the effective date of this Agreement.” Therefore, demolition at the Site is expected to be substantially completed no later than March 23, 2026. 

Asbestos Overview

Asbestos is a naturally occurring mineral found in certain rocks that was once commonly used in building materials, particularly before the mid-1970s and occasionally until the late 1980s. It was used because it is strong, fire-and-corrosion-resistant, and a good insulator.

If ACM is in good condition and left in place, it should not present health risks. However, if and when ACM is damaged or crumbling, or if a building is demolished, renovated, or remodeled, care must be taken to prevent the release of asbestos fibers into the air. Inhalation of microscopic asbestos fibers from friable ACM (ACM that crumbles, breaks, or frays with little effort) can cause health risks. 

Because asbestos presents a significant risk to human health when released into the air, asbestos is considered a hazardous air pollutant regulated under the National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations.

The Illinois EPA is the delegated authority to enforce the NESHAP for regulated asbestos during demolition, renovation, and disposal. This authority is managed by the Agency’s Asbestos Unit.

For information and guidance regarding asbestos, use the Illinois EPA, IDPH, and OSHA links below.

Environmental Justice and Public Outreach

Waukegan, Illinois is considered an area of environmental justice (EJ) concern, according to the Illinois EPA’s GIS mapping tool, EJ Start. The Illinois EPA is committed to advancing EJ through the implementation of the various EJ-related policies and plans. Most notable and applicable to this case is the Illinois EPA’s EJ Enforcement Strategy. The Illinois EPA and IAGO are working in close coordination to address this matter. This coordinated approach is guided by the principles and actions outlined in the Illinois EPA’s EJ Enforcement Strategy.

Illinois EPA and IAGO staff have engaged in ongoing communication with an EJ community leader and representative of Clean Power Lake County in Waukegan about this case. This connection regarding the Site was initiated in September 2024, just before the Illinois EPA approved the Project Design Plan. Both the Illinois EPA and IAGO welcome communication from concerned community members. Contact information can be found below.

In accordance with the compliance and enforcement requirements, the Illinois EPA and IAGO receive weekly updates from the consultants managing the abatement and demolition work at the Site, and, upon request, have shared those with the community. 

Resources

Contact Information 

 

Illinois EPA

Illinois AGO