1. Dealmakers -- Not Deal Breakers
Brandy Lipps
Dealmakers -- Not Deal Breakers
Avoiding & Resolving Environmental Pitfalls

2. Case #1
Sale of a multi-tenant shopping center with dry cleaners in the end suite
Phase I recommends Phase II
The seller is nervous about allowing testing
Phase II is approved and identifies solvents from the dry cleaners in soil and groundwater

3. Case #1, continued Options Alternate Scenarios
What if the borrower already owns the site?
What if there is a daycare in the building?
What if the buyer intends to redevelop the site?
Listed vs. not listed
Downtown property – not listed for gw but small area of soil contamination (fence?)
Brownfields
VRP
Vapor
*These options apply to any solvent-contaminated site in GA

4. Case #2
Purchase of a former gas station property. The station hasn’t been operated for decades, but the tanks are still in the ground.
Responsibility depends mostly on operation, also on ownership
Don’t need to report under HSRA either way
Can still do Brownfields
Who is responsible?
What if the tanks have already been removed?
What if it’s an SBA loan?

5. Case #3
Sale of an abandoned homestead located near a busy intersection. A gas station next door has had a significant fuel release which has contaminated the groundwater of the site. Buyer plans to redevelop site with apartments.
-Does buyer have any liability for fuel release?
-What about future vapor intrusion into apartments?

6. Case #4
Purchase and renovation of a small former manufacturing building in Downtown Cuthbert.
Phase II investigation found a small area of heavy metals in the soil
Solvents were found in groundwater, but are coming from an off-site source.

7. Options we Discussed Managing the Phase I/Phase II Process
Escrow Accounts
SBA’s Nine Mitigating Factors
Georgia Brownfields Program
Voluntary Remediation Program
Vapor Mitigation Options