The voltility in current
commercial real estate lending has led us to see an increase the in
the requests for "reliance letters" on Phase 1 Environmental Site
Assessments (ESA). So what is a reliance letter?
Although whomever commissions the
Phase 1 Site Assessment should also carefully consider
any limitations a consultant may impose on who may use or rely
on the report and explicitly provide for reliance by
investors, lenders or others, this doesn't always happen. This is
usually discussed...
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Optimism among small business owners = increased SBA
lending:
http://www.cnbc.com/id/45827467/
August Mack has extensive experience in conducting environmental
assessments in accordance with SBA Standard operating procedures.
From a Records Search with Risk Assessment (RSRA), to a Phase I
Environmental Site Assessment, and all the way through a Phase 2
Investigation, we can help ensure a smooth environmental process
for your SBA backed loans.
During 2011 August Mack
Environmental was awarded more than 1,500 projects. Many of these
projects were Phase I Environmental Site Assessments. Although this
is not our largest revenue segment, it is our largest service area
by number of projects awarded. Many of these projects are performed
near our offices although we have completed transactional due
diligence work in over 40 states. If you need help, give me a call
at 317.916.3105.
Did
you know?
Due Diligence is a term used for a number of concepts involving
either an investigation prior to signing a contract, or an act with
a certain standard of care. It
can be a legal obligation, but the term is more commonly applied to
voluntary investigations. In the environmental world, an example of
due diligence is the process through which a potential purchaser
evaluates a property for acquistion by means of a Phase I
Environmental Site Assessment.
Taken from a previously
published article in our newsletter:
Owning a commercial or industrial building can present unexpected
environmental liabilities. A property owner is ultimately
responsible for the environmental condition of the property which
includes contamination caused by past or current tenants. Most of
these environmental concerns and potential liabilities are unknown
until a Phase I Environmental Site Assessment (ESA) is performed.
Unfortunately, a Phase I ESA is typically driven by...
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Looks like there is development in the works for a new ASTM
standard for methane hazard mitigation practices (
WK32621).
It will be interesting to see how/if this will be incorporated into
risk management policies for environmental due diligence. What
immediately comes to mind are the numerous landfill facilities that
are often identified in close proximity (sometimes adjacent) to a
study site during a Phase I Environmental Site Assessment.
Dry cleaning facililties routinely
are a source of concern while performing environmental site
assessments due to the invasive and carcinogenic effects of the
solvent used in the process. Tetrachloroethylene (also known as
perchloroethylene, perc, or PCE) can easily migrate through soil
and groundwater, and has been the topic of much controversy,
specifically as it pertains to environmental due diligence.
With all that is known about the harmful effects of perc, many
states are working to ban...
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Taken from our newsletter
files:
Vapor intrusion (VI) is one pathway for building occupants to come
in contact with chemicals of concern, occurring when vapors from
contaminated soil and/or groundwater migrate into the indoor air of
overlying structures. The American Society for Testing and
Materials (ASTM) Standard Practice for Assessment of Vapor
Intrusion into Structures on Property Involved in Real Estate
Transactions E 2600-08 has been developed based on an industry
need to address the VI...
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As I've promoted to a position of management, I find myself
conducting fewer and fewer Environmental Due Diligence Assessments.
For logisitical and fiscal reasons, it only makes sense that
managers and EPs will have less time with boots on the ground in
the field, and more time keeping projects moving, reviewing reports
for content and issues, and communcating with clients.
However, I do find it important at least once a month to keep a
Phase I Environmental Site Assessment (ESA), Modified Phase...
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Phase 1 Site
Assessments are done for a number of reasons. Below are
common examples of why you would order a Phase 1:
- Purchase of real property (property or personal
property) by a person or entity not previously on title
- Contemplation by a new lender to provide a loan on the subject
real estate
- Partnership buyout or principal redistribution of
ownership
- Application to a public agency for change of use or other
discretionary land use permit
- Existing property owner's desire to understand toxic...
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Typically, drycleaners are a red flag for environmental assessments
due to the inherent solvent use in the drycleaning practice.
Specifically, tetrachloroethylene (also known as perchloroethylene,
or perc) is a very invasive solvent, that when spilled can migrate
through the subsurface and contaminate groundwater pretty easily.
It travels quickly, and can cause problems quickly if groundwater
is used for drinking water. It can also cause indoor air quality
problems if the groundwater moisture...
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I have been reminded lately that
conducting a Phase One Environmental Site Assessment is not
just useful for the purchaser of a property. Being proactive when
preparing to sell is as good a time as any to complete this
study.
Add value to your property by having the study completed by a third
party and ready for review by interested buyers and lenders. This
is particularly helpful when the site in question is an
existing commercial or industrial site. It limits the occasion
of being surprised by...
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Federal Court of Appeals Rules Landowner Not Entitled to
Common Law Indemnification
-by Bill Wagner
Great article on why a Phase 1 Environmental Site Assessment is so
important!!!
by Bill Wagner of Taft Law on the EDR Commonground Blog
"
A
federal Court of Appeals recently held that a landowner who
expressly warranted in his sales contract that his property was not
contaminated and breached the warranty through no fault of his own,
was not entitled under Illinois law to common law...
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A co-worker recently handed me an article about quality, timing,
and price as it applies to projects and proposals. Apparently
there is an old saying (I say 'apparently' because this is the
first I am hearing of it) that goes "You want quality, you want it
cheap and you want it fast. Well, in the real world you can
only pick two." So I figure this applies to most involved in
the bidding process, but in my world it's about bidding Phase 1
Environmental Assessments, Phase II subsurface...
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It is very important, and most times
required, by lenders to have a Phase I Environmental Site
Assessment (ESA) performed prior to a property transaction. The
purpose of an ESA is to identify environmental risks associated
with the property and to protect against liability related to
existing site conditions. However, there are a number of
environmental considerations which are outside the scope of a Phase
I ESA; commonly referred to within an ESA as “non-scope
considerations.” These additional...
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In today’s market, August Mack
understands the need for your organization to stay competitive in
today’s market and our online Phase I ordering system can help you
accomplish this goal. Unlike some of our competitors, our online
ordering system can offer you an instant and cost-effective quote
for a Phase I Environmental Site Assessment. This process allows us
to offer you the best price and also allows us to get started
immediately on completing your site assessment and provide you with
a...
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