BAKERSFIELD, Calif. -- The new owners of the Padre Hotel are being sued by the state for allegedly violating environmental laws, KERO reported.

According to the District Attorney's Office, workers ripped out asbestos-filled walls on more than one occasion and tossed the cancer-causing agent into a public dump.

The newly-renovated Padre Hotel has long been the cornerstone for the revitalization of downtown Bakersfield.

Now, workers face allegations that they dumped asbestos improperly.

Artie Neison owns Front Porch Music, which is located right next to the Padre Hotel.

"It could pose a hazard to us. We're right next to the Dumpster. We might be breathing that stuff," Neison said.

The District Attorney's Office alleged that workers illegally tore out asbestos filled-walls, and on at least one occasion, tossed them in the Bena Landfill. They said workers, and anyone else nearby, could have been exposed to the cancer-causing fiber.

John Mitchell, the deputy district attorney, said, "All we know is, we have a statement from a foreman, which is public record, that they did it on purpose because they thought they could get away with it."

Mitchell filed a civil lawsuit on behalf of the state against the Padre's new owners, Pacific Enterprises from San Diego. He said environmental employees caught Padre workers tearing down asbestos-filled walls in 2003 and March of this year, after they were warned on two occasions that they needed to dispose of the asbestos in accordance to environmental laws.

"It's unusual to have this level of noncompliance," Mitchell said.

The owners face fines between $2,500 and $500,000 per violation.

While local business owners are upset at the alleged violations, they hope the Padre Hotel will still open as planned.

The Padre's owner would not return calls from KERO.