Environmental Due Diligence

In broad terms, environmental due diligence refers to the appropriate actions that should be taken by an owner or operator of a parcel of land to ensure its environmental integrity. It is highly advisable in real estate transactions because it minimizes the purchaser’s risk from unexpected environmental liabilities. Federal Law recognizes the importance of liability protection for land owners and facility operators who qualify under the innocent landowner defense and bona fide prospective purchaser (BFPP) and has set the legal grounds to provide such protection through a property evaluation process titled “All Appropriate Inquiry” (40 CFR Part 312). The process ensures that by conducting a Phase I Environmental Site Assessment on the property (and/or a Phase II, when appropriate), the purchaser is largely protected from environmental liabilities.

KAM’s qualified personnel can assist you in applying proper environmental due diligence on all your real estate transactions and guide you through the legal corridors that can provide you protection.

Real Estate Property Transaction Screen Process (ASTM E1528)

The Property Transaction Screen Process on a parcel of commercial real estate provides some degree of due diligence in that it is used to identify potential environmental concerns, but it is not intended to replace the scope of a Phase I Environmental Site Assessment which provides liability protection under the All Appropriate Inquiry Rule. It is used primarily by interested parties who must satisfy the Small Business Association environmental due diligence requirements to obtain information of certain environmental conditions on the property that may warrant consideration during a real estate transaction, in order to determine if a Phase I Environmental Site Assessment is necessary.

The Property Transaction Screen Process is conducted by KAM following the ASTM standard E1528 – 06, which consists of a) interviews with the owners and occupants of the property, b) a site inspection, and c) a government records and historical sources inquiry. Based on the information collected, the property user decides whether the environmental conditions of the property have been assessed and whether or not further inquiry is warranted.

Phase I Environmental Site Assessments (ASTM E1527)

A Phase I Environmental Site Assessment is a mechanism to properly identify and analyze the potential environmental risks and liabilities associated with a real estate transaction. It is comprised of four components: a historical records search and public agency file review; a site inspection; interviews with past and present owners and local government officials; and an evaluation of findings and report preparation. All Phase I Environmental Site Assessments are conducted by experienced KAM personnel in accordance with the ASTM standard E1527–13.

• Historical Records Search
  A thorough records review of the property is performed by KAM Consultants including federal, state and local standard environmental record sources. Historical sources, such as aerial photographs, fire insurance maps, USGS topographic maps, Building Department and Zoning/Land Use Records, and other City directories are collected and consulted to develop a history of the previous property and surrounding area uses that will help identify Recognized Environmental Conditions.
• Site Inspection
  The objective of the site inspection is to obtain information indicating the likelihood of identifying environmental conditions of concern in connection with the property. The property and surrounding areas are visually observed. Present and (to the extent feasible) past uses of the property and the adjoining properties are identified and recorded. Geologic, hydrogeologic, hydrologic and topographic conditions are noted and a general description of the structures, roads and utilities infrastructure on the property are noted and included in the report. Qualified KAM personnel conduct the site inspections.
• Interviews
  Interviews are conducted by KAM with past and present owners, operators and occupants of the property, as well as with state and/or local government officials in an attempt to obtain information about uses and conditions of the property.
• Evaluation of Findings and Report Preparation
  A thorough but easy flowing report will be written by KAM Consultants in accordance with ASTM standard E1527–05. The report will include all findings from the preparation phase, identify any known or suspected Recognized Environmental Conditions and conclude with an opinion and a statement on the possible impact of the findings on the property to assist the purchaser in making the most appropriate judgment possible.

Phase II Environmental Site Assessments (ASTM E1903)

Brownfields

A brownfield is a parcel of land where redevelopment or reuse may be complicated by the presence or potential presence of contamination, including hazardous waste and petroleum products, in any environmental media including soil, historic fill, surface water, groundwater, soil vapor or indoor air. Brownfields are usually abandoned or underused industrial and commercial facilities.

Brownfields represent a great opportunity for housing redevelopment to satisfy NYC’s growing population. PlaNYC, New York City’s comprehensive sustainability plan has identified 7,600 acres of brownfields within the City.

KAM will assist you every step of the way through the process of properly identifying and cleaning-up your property of environmental contamination up to the point of issuance of a New York City Green Property Certification, making your property available for development. We can also assist you to enroll in NYC’s Brownfield Incentive Grants and reduce your cleanup costs up to $60,000 (or $100,000 for Preferred Community Development Projects).