We cover the top 6 reasons why you should always get a Phase I ESA.
For most people, getting a Phase I Environmental Site Assessment is a given. There's usually no room for argument, because either they know the value of getting one, or a bank is demanding one. For folks still on the fence, we discuss what we feel are the top 6 reasons why you should always get a Phase I ESA.
A lot of folks call our office or send us emails asking about Phase I Environmental Site Assessments. We find that most folks know they need one, so they usually ask how long one takes, or how much does a Phase I Environmental Site Assessment cost.
But there's another group of people out there who aren't entirely sure they're worth the time, money, or hassle. Honestly, and I'm not just saying this because we do them, but I believe that they're one of the most invaluable parts of a property transaction, and they can provide you with some of the cheapest insurance possible against often times extremely expensive environmental issues.
6 Reasons Why You Should Always Get a Phase I Environmental Site Assessment
If you're not entirely sold on the idea, maybe these 6 reasons can sway you:
- It's drastically cheaper than having to pay for a site remediation or clean up. Suppose you buy a property, start digging, and find a large, old, leaking oil tank. Guess what, it's your responsibility now. But wait, that's not fair! I hear you loud and clear, but since you own the property, and didn't know about the problem before hand, it's now your issue.
- It could save you money. Ok, same scenario. You get one done and the findings report there's a leaking oil tank underground. You, as the buyer, could renegotiate the cost of the property, and take clean-up costs into consideration. Conversely, you could demand the seller fix the issue before you'll buy it. Either way, that Phase I likely just saved you tens of thousands of dollars.
- It's an easy way to learn about your property. Environmental professionals will dig through records, conduct site evaluations, and present you with a report of the findings. Depending on what they find, it could sway you into purchasing the property or not (we've seen folks walk away from deals), could inform you of what you can and can't do on-site, and more. It's a relatively cheap way to discover exactly what's going on, and the history, of the piece of property.
- The truth comes out, no matter what. We've conducted countless assessments where the owner of a site comes across as a a real straight shooter, only to discover they've been lying about their property and the history of it. Even better, we've discovered that past owners weren't who they said they were. A Phase I gets to the bottom of the property, regardless of what site owners and operators tell you.
- They're quick and relatively cheap. Honestly, you're talking about a few thousand dollars at most (unless it's a unique property) to get one done. And, normally they take about a month or so to complete from start to finish. Some are quicker, some are longer. For instance, I got a background report on a property the other day, it's over 1,500 pages long. That's going to be a long, involved job. Normally though it's a quick and cheap piece of insurance to make sure you're not getting yourself in over your head.
- They can help you get the property you really want. I was involved in a Phase I ESA a few months ago, and a developer really needed an adjacent piece of property. Turns out, the site was contaminated, and they ended up getting the property for much, much cheaper than asking price. They needed the lot, and at the end of the day, they got it, since their intended usage complied with what could be done on the contaminated site. If you really, really need a site, a Phase I ESA can help you get what you need.
So those 6 reasons are generally what I tell folks who are unsure about whether or not they should get a Phase I Environmental Site Assessment. A good Phase I ESA, done by an environmental professional can identify and manage your potential issues and liabilities before they become your problem. And, compared to the possible costs associated with not doing one, you get this service very cost effectively.
There's really no downside to getting a Phase I ESA. If you're on the fence about getting one, or want to learn about what we can do for you, click here to contact us or give us a call at 609-693-8301 to discuss your needs today.
