Environmental Site Assessments:
Phase I & II SIte Assessments (Due Diligence),
Risk Assessments, Site Remediation
Whenever retail or commercial real estate
is bought or sold, offers and price adjustments are often based on the
condition of the property and associated structures. Equally important
for both buyer and seller is the environmental status of the property.
If environmental contamination is discovered after the sale, the current
owner and all former owners may be held jointly and/or severally liable
for cleanup costs. In some instances, the cost of environmental cleanup,
exclusive of litigation, may greatly exceed the property's normal market
value. Since nearly 100% of gas station and/or dry cleaning operations
assessed are found to have some degree of impacted soils and/or ground
water at the site, this is particularly important for these commercial
sites.
For the protection of buyers, sellers,
and lenders, LCA specializes in the independent evaluation of environmental
conditions of commercial property. Our services range from reviewing public
records and other available information about the property to conducting
on-site testing, sampling, and laboratory analysis. We have experience
with sites throughout the United States, ranging from single- site acquisitions
and divestitures to multi-site business buyouts, shopping centers or dry
cleaning chain divestitures. We have extensive experience in performing
multi-site environmental assessments. Typically, one professional is assigned
the task of coordinating logistics on projects of this type. The coordinating
professional serves as a central contract for the client and thus provides
uniformity in report format and interpretation of environmental concerns.
Frequently, LCA may work with a qualified affiliate firm closest to the
site to perform the site visits and research, providing cost savings to
the client. LCA can also advise clients during regulatory negotiations
to help them understand environmental risks, liabilities, and associated
costs and operational impacts.
An environmental assessment can consist
of many phases, with the scope of each phase depending on previous results
and the client's position. The assessment phases can include:
· Phase
I - Preliminary Environmental Liability Assessment or Phase I Environmental
Site Assessment
· Phase
II - Soil, Groundwater and Surface Water Contamination Assessment
· Phase
III - Remedial Investigation and/or Opinion of Remediation Cost Estimates
· Phase
IV - Remediation System Design and Cleanup Execution
Dry cleaning investigation often requires
more thorough evaluations than usually encountered in most commercial
property transfers. For operational dry cleaning facilities, LCA also
recommends conducting an independent environmental compliance audit that
focuses on a facility's adherence to applicable regulations and permit
conditions (discussed previously). LCA also recommends sampling of soil
and/or ground water, particularly in the interior of the dry cleaning
space, as part of all property transfers involving active or former on-site
dry cleaning.
