Union alleges environmental review failed to address formaldehyde exposure; city declines comment on pending litigation
A lawsuit has been filed challenging the City of Folsom’s approval of the proposed Toll Brothers at Alder Creek development, a 1,424-home master-planned community approved by the City Council earlier this summer after a lengthy public hearing.
The lawsuit, filed last week in Sacramento County Superior Court by the Laborers’ International Union of North America (LiUNA) Local 185, seeks to overturn the city’s approval of the project, alleging officials relied on an outdated environmental review that did not adequately address potential indoor air quality impacts associated with certain building materials.
LiUNA, which primarily represents construction and energy sector workers, has more than 3,200 members living in Sacramento County, including at least 27 who reportedly reside in Folsom.
According to the lawsuit, homes within the planned community could reportedly be constructed using engineered wood composite products that emit formaldehyde, a chemical the union alleges may contribute to indoor air pollution and increase long-term cancer risks for future residents.
The lawsuit contends the project should instead utilize building products made with “no added formaldehyde resins,” which the California Air Resources Board recommends as a way to reduce indoor formaldehyde exposure.
At the heart of the lawsuit is the project’s environmental review.
The Alder Creek development falls within the Folsom Plan Area Specific Plan, whose Environmental Impact Report was certified in 2011. According to the lawsuit, that environmental review reportedly did not analyze indoor air pollution associated with formaldehyde-emitting building products. The union further alleges that scientific understanding of indoor air quality and formaldehyde exposure has advanced significantly since the report was prepared more than a decade ago.
Because of that, the lawsuit argues the city should have prepared a new or supplemental Environmental Impact Report before approving the development.
The suit asks the court to rescind the city’s approval of the project and require preparation of a new Environmental Impact Report evaluating the alleged indoor air quality impacts before the project moves forward.
The legal challenge comes just days after the Folsom City Council approved what will become one of the largest remaining residential developments within the Folsom Plan Area.
The approved project encompasses approximately 464 acres in western Folsom, south of Alder Creek Parkway and north of Mangini Parkway on both sides of Oak Avenue Parkway. Plans call for construction of 1,424 homes organized into 18 residential villages, along with a future 10-acre neighborhood park, a 10-acre elementary school site identified for the future Granite Springs Elementary School, a 2.1-acre fire station site, neighborhood parks, recreation facilities, trails and extensive preserved open space.
The project represents another significant milestone in the city’s long-term vision for the Folsom Plan Area south of Highway 50, where residential neighborhoods, schools, parks and commercial development have gradually taken shape over the past decade.
When approving the project, city staff concluded the development was consistent with both the city’s General Plan and the Folsom Plan Area Specific Plan. Staff also determined the project qualified to rely on the previously certified 2011 Environmental Impact Report rather than requiring additional environmental review.
Environmental concerns, however, were not new to the approval process.
As part of the City Council’s agenda materials, staff acknowledged receiving correspondence from attorneys representing LiUNA raising concerns about several environmental issues, including indoor air quality, greenhouse gas emissions and biological resources. The project applicant reportedly responded through legal counsel and environmental consultants, maintaining that no new circumstances existed requiring additional environmental review and asserting the project remained consistent with the previously approved Specific Plan.
Following its review of those submissions, city staff concluded the existing environmental analysis remained adequate and recommended approval of the project.
The City Council ultimately approved the development on a 4-1 vote. Council Member Sarah Aquino cast the lone dissenting vote. Near the conclusion of the public hearing, Council Member Barbara Leary proposed delaying action on the project, but the amendment reportedly failed after it did not receive a second from another member of the council.
While the City Council has approved the overall development, additional reviews remain before construction of homes can begin. According to city planning documents, the project must still return to the Folsom Planning Commission for approval of individual home designs and architectural details. That review is expected later this year or in early 2027.
The City of Folsom is not commenting on the lawsuit. Under longstanding city policy, city officials do not comment on pending litigation.
If the court ultimately sides with the plaintiffs, the city’s approvals could be set aside until additional environmental review is completed.
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