Phase I Environmental study Industrail Prop

[Jeff247]

In the state of New York is it legal for the owner of an industrial property to do a Phase I environmental study to clear the property for a loan? Is a Phase I required by law from a third party? Or are they not even required except when required by the lender? Thank you.

 

[FarmerJ]

I dont see a problem with a commercial /industrial property owner taking steps to learn what if any pollution issues may exist with the land they own ,even if it is rented land no matter what the reason is they want to know . If they are able to determine that a commercial tenant has created a pollution hazzard that violates the terms of the lease or state & fed law , I would imagine the information not only would be useful to determine clean up cost but definitely useful if they end up suing a current tenant who created the damage. There are so many places all over the USA with polluted ground that already have spread into aquifers. Look at all the Landlords in the last decade who have property that has been contaminated by people making meth & apply the same logic to commercial /industrial property. Ive seen so called meth contaminated property sit for years since the disclosure law. One place on a county road near work took 4 years to sell. And if a city /county /state is considering doing something big in a area they too look at pollution issues and once in a while refuse to take the risk on if property is polluted. One town I know of when they annexed additional land north of the city deliberately left out the scrap yard site so now the city limit surrounds the scrap yard on 3 sides.

 

[You Are Guilty]

In the state of New York is it legal for the owner of an industrial property to do a Phase I environmental study to clear the property for a loan?

Yes.

Is a Phase I required by law from a third party?

Sometimes (usually the DEC has their hand in it though)

Or are they not even required except when required by the lender? Thank you.

See above.

 

[Jeff247]

Phase I

Thanks for your reply. I borrowed against an industrial site SURROUNDED by brownfields. I was surprised they let me personally, no one else with any environmental knowledge, conduct the survey. Just seems a bit odd. Needless to say, it passed with flying colors!!!

 

[FarmerJ]

You may well be very lucky , in the properies use history perhaps no one ever did any manufacturing or any other kind of business that polluted it with metals or chems over and above routine stuff like oil drips from cars.

 

[Jeff247]

Oh yeah. Lots of manufacturing. Printed circuit boards. Like I said, it's surrounded by brownfields.

 

[HomeGuru]

Oh yeah. Lots of manufacturing. Printed circuit boards. Like I said, it's surrounded by brownfields.

**A: sounds like you have a major problem.

 

[Jeff247]

Problem?

Maybe I'll let them foreclose and then it will be their problem. What do you think?

 

[You Are Guilty]

Maybe I'll let them foreclose and then it will be their problem. What do you think?

Won't matter. Anyone who touched the site, and the adjoining property, over the last several decades is potentially liable for the cleanup costs. The good news is that the State usually starts by going after people with insurance, then the "deep pockets", then the poor tenants. So just hope there are wealthier people than you higher on the list