Proven, Practical, Constructible Designs

     PHASE I ENVIRONMENTAL SITE ASSESSMENT

Are You Protected? 

A Phase 1 Environmental Site Assessment, or ESA, is a key component of the due diligence for both buyers and lenders regarding commercial property.  This review identifies recognized environmental conditions in connection with the property that buyers and lenders want to know about up front – before a deal is sealed.
 

Risk Management

Knowing the environmental status of a business or commercial property helps a lender make rational judgments about a potential real estate loan. 

It’s true that following the guidelines as outlined in CERCLA (Comprehensive Environmental Response Compensation and Liability Act), usually protects a bank from direct environmental liability for properties on which they have loaned money.  However, it does not protect the money originally lent by the bank.    If because of an environmental hazard the borrower becomes unable to repay the loan, the bank’s potential for loss increases. 

According to 2002 survey data from Environmental Data Resources, Inc.:

	1 in 10 banks experienced losses due to environmental factors.
	1 in 13 Phase I environmental site assessments revealed environmental issues that warranted further investigation.

 

Environmental & Civil Solutions, LLC can assist a lender in several ways:

	Phase 1 Environmental Site Assessment – reports are prepared under ASTM 1527-05, Standard Practice for Environmental Site Assessments.  This full report is a key component of due diligence for both buyers & lenders regarding commercial property.
	Intermediate ESA – is performed within the ASTM scope of requirements but with a more limited research & investigation.  It will point out which environmental conditions warrant a full  Phase 1 ESA.
	Initial Environmental Screening – is performed within the ASTM scope of requirements but with a different level of research.  Many banks use this as a screening tool for all commercial financing.
	Staff Training – we can provide informative training sessions with varying  levels of depth depending on your needs.  The cost is very modest.