Due Diligence Presentation (Preview)
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Due Diligence Presentation (Preview) Presentation Transcript

  • 1. Environmental Due Diligence Overview© 2011 GLE Associates, Inc.
  • 2. Company Background Formed in 1989 Strong Base of Technical Expertise Geographic Accessibility Financial Stability Client Satisfaction
  • 3. Offering Full-Service Capabilities Architects Engineers Environmental Consultants Construction Management LEED Accredited Professionals in all major disciplines
  • 4. Office Locations  Tampa, FL  Orlando, FL  Gainesville, FL  Jacksonville, FL  Ft. Lauderdale, FL  Atlanta, GA  Nashville, TN
  • 5. Environmental Due Diligence Overview Why complete Environmental Due Diligence? Types of Due Diligence Phase I, Phase II, and Phase III ESA Process SBA Guidance – Environmental Risk Management Sources of Error on Phase I ESA Process Vapor Intrusion Questions
  • 6. Why Complete EnvironmentalDue Diligence?
  • 7. Why Complete EnvironmentalDue Diligence? Formal Environmental Policy Regulatory Pressure Loan Risk Management - New loan origination - Facilityproperty acquisition - Foreclosure - Loan extension or refinance - Monitoring over Life of Loan
  • 8. Why Complete EnvironmentalDue Diligence? EDR 2010 Annual Survey of Financial Institutions Reviewed Lender Environmental Policy requiring EDD
  • 9. Types of Environmental Due Diligence Phase I ESA Process ASTM E 1527-05 Phase II ESA Process ASTM E1903-97 Phase III ESA Process Remediation Action Plan
  • 10. Phase I ESA Process ASTM 1527-05Definition:“The purpose of this practice is to define good commercial and customarypractice in the United States of America for conducting an environmental siteassessment of a parcel of commercial real estate with respect to the range ofcontaminants within the scope of Comprehensive Environmental Response,Compensation and Liability Act (CERCLA) (42 U.S.C. §9601) and petroleumproducts. As such, this practice is intended to permit a user to satisfy one of therequirements to qualify for the innocent landowner, contiguous propertyowner, or bona fide prospective purchaser limitations on CERCLA liability(hereinafter, the “landowner liability protections,” or “LLPs”): that is, thepractice that constitutes “all appropriate inquiry into the previous ownershipand uses of the property consistent with good commercial or customarypractice.”
  • 11. Phase I ESA Process ASTM 1527-05Goal of a Phase I ESA: CERCLA Liability Protection Determination of “Recognized Environmental Concern” Determination of “Business Environmental Risk”
  • 12. Phase I ESA Process ASTM 1527-05Definitions (con’t):Recognized Environmental Conditions “the presence orlikely presence of any hazardous substances (HS) or petroleumproducts on a property under conditions that indicate an existingrelease, a past release, or a material threat of a release of anyhazardous substances or petroleum products into structures on theproperty or into the ground, ground water, or surface water of theproperty. The term includes hazardous substances or petroleumproducts even under conditions in compliance with laws.”
  • 13. Phase I ESA Process ASTM 1527-05Definitions:Business environmental risk “a risk which can have a materialenvironmental or environmentally-driven impact on the businessassociated with the current or planned use of a parcel ofcommercial real estate, not necessarily limited to thoseenvironmental issues required to be investigated in this practice.Consideration of business environmental risk issues may involveaddressing one or more non-scope considerations.”
  • 14. Phase I ESA Process ASTM 1527-05What is included in a Phase I ESA Report: Records Review – Regulatory database search – Regulatory agency file review Historical Use – Aerial Photographs – Sanborn Maps – City Directory Review – Land Title Records – BuildingProperty Tax Records – Zoning Land Use Records
  • 15. Phase I ESA Process ASTM 1527-05What is included in a Phase I ESA Report: Site Visit – Visually and physically observe the property – Currentpast use of property and adjoining properties – Color Photographs – Site Plan Interviews – Current Property OwnersOperatorsOccupants – Local Government Officials
  • 16. Phase I ESA Process ASTM 1527-05Limitations of a Phase I ESA Report: Out of Scope Items – Sampling – Asbestos, Lead, Mold, Radon – Cultural or Historical Resources – Wetlands, Ecological Resources, or Endangered Species – Health, Safety, or Regulatory Compliance – Checking Title Records for Environmental Liens or Land Use Restrictions – Property Appraisal or Review of Purchase Price
  • 17. Phase I ESA Process ASTM 1527-05Limitations of a Phase I ESA Report (con’t): Phase I ESA report, per the standard, − Is only good for 180 days, − At which point an update will need to be performed
  • 18. Phase II ESA Process ASTM E1903-97 Follow-up investigation based on the results of the Phase I ESA Scope is determined by Environmental Professional to properly address “Recognized Environmental Conditions” and “Potential Environmental Concerns” Typically includes soil and groundwater sampling on the subject property for laboratory analysis Results of laboratory analysis compared to local, state and federal regulatory guidelines
  • 19. Phase III ESA ProcessGoal – to determine the horizontal and vertical extent ofcontaminations impacts in order to estimate the method andcost of cleanup Typically includes additional soil and groundwater sampling and laboratory analysis Results of laboratory analysis compared to local, state and federal regulatory guidelines Development of a Remedial Action Plan
  • 20. Contact UsFor a copy of our complete presentation or toschedule a lunch n’ learn please contact us at: akucenic@gleassociates.com 1-888-453-4531 www.gleassociates.com