Can purchasing a Brownfield make financial sense to property owners?

April 09, 2010 - Owners Developers & Managers

Rachel Ataman, Hydro Tech Environmental

As the vice president of technical services at Hydro Tech Environmental I often find myself in a position of explaining to an innocent property owner that their property is contaminated and was most likely contaminated when they purchased it. From their perspective the cost of remediation is overwhelming because they were unaware of the contamination. But it is important to remember that environmental issues do not always have to be bad news. Sometimes purchasing
contaminated land or a "brownfield" can be profitable. With proper due diligence including the performance of a Phase I Environmental Site Assessment (ESA) and Phase II ESA the cost and timeframe of remediation can be defined prior to purchasing. Our engineers can design a remedial plan using new innovative remedial technologies that will decrease the cost of remediation and potentially make purchasing a brownfield beneficial to your bottom line.
A Phase I ESA will determine if a property has any suspect environmental issues or Recognized Environmental Conditions (RECs). RECs can vary from the suspect presence of a suspect underground storage tank to the former utilization of a property as a dry cleaner or gasoline station. Once the RECs are established a Phase II ESA may be required. The Phase II ESA can consist of collecting soil, groundwater, and vapor samples to determine if the RECs have impacted upon the environmental quality of the Site. Upon completion of the Phase II ESA the environmental issues at the site are usually defined and the cost for remediation can be established. Hydro Tech can also determine if your site can receive any regulatory funding because it is a brownfield. Using this information you can decide if purchasing and remediating the brownfield makes financial sense.
The injection of chemical and biological compounds has become a faster, convenient and relatively inexpensive method of treating soil and groundwater contaminated with petroleum and chemical solvents. These solutions can be injected into the ground utilizing Hydro Tech's Fleet of Geoprobes®. The injection typically takes place over a 1 week period and can be performed in areas varying from construction sites to beneath building slabs. Once injected the progress of groundwater/soil remediation is monitored until levels of contaminants are remediated. Remediation typically occurs over a one to two year period of time. Using this method of remediation Hydro Tech has successfully closed several New York State Department of Environmental Conservation (NYSDEC) Spill Sites.
There are many different types of chemical/biological treatments available. Hydro Tech can determine the appropriate remedial treatment by analyzing the site specific geology and the chemical nature of your spill. Typically, chemical treatments consist of oxidation of the contaminants via application of remedial additives such as hydrogen peroxide, Fenton's Reagent, sodium or potassium permanganate. Typically biological treatments consist of stimulating microorganisms that are either naturally occurring at or near the treatment location or introducing cultured microorganisms into the treatment area.

Before you make your next real estate purchase contact Hydro Tech Environmental to perform your environmental due diligence.

Rachel Ataman, LEED AP, is the vice president of technical services for Hydro Tech Environmental Corp., Commack, N.Y.
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