Looking to buy a parcel of land, used to be a gas station. 10 years ago they shut down, did a phase 2 and found contamination from the storage tanks. The gas station company remedied the situation and got a no further action notice from the county. What are the risks if I buy now to develop? Whats the worst damage or worst case scenario once i take possession of the land.
thank you in advance.
I would read the NFA letter word for word and follow up with an EPA engineer under due diligence to validate everything that you have been told.
Martin - You will have to get a Phase I anyway within the prescribed time as part of acquisition, so do that with a reputable company which should include the remediation results and NFA letter. If you have all that, should be case closed and ready to develop.
Definitely follow @Joel Owens counsel. The NFA may be limited to current use. If you want to develop you may be required to do additional work ... Can you say "expensive"?! During a recent refi and phase I we discovered there was a gas station on our parking lot back in the '50's. led to a phase II. They drilled for samples, found Bunker C oil, ... We have about 6 months to go before our NFA letter. In this case they won't likely require remediation unless we change use, which we have no intention of doing.
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