Scenarios
Scenario 1
An investor is interested in purchasing a 5 acre piece of property to build a warehouse and distribution facility. The parcel is a vacant lot that fronts on a major roadway and has a railway spur along the back portion. There was a dry cleaning business on the property next door, but it has been closed for a number of years. These factors contributed to a perception that the property may be contaminated. The investor and the seller of the property enter into a contract to purchase. The investor’s lending institution requires an environmental site assessment of the property to satisfy EPA Prospective Purchaser Due Diligence requirements before approving a loan to buy the property. The investor/purchaser applies to the Escambia County Brownfields Program to take advantage of the Escambia County Brownfields redevelopment incentives. The seller agrees to permit access to the property for environmental assessment. A Phase I Environmental Site Assessment was conducted on the property and funded by Escambia County’s Brownfields Program. Based on the proximity to the railway and the former dry cleaning business, it was determined that a Phase II Environmental Site Assessment was necessary, specifically soil and groundwater sampling to determine if any recognized environmental conditions exist. The Phase II Environmental Site Assessment was funded by the Escambia County Brownfields Program and showed no contamination present. The sale of the property was finalized: The purchaser/investor follows through with the development of the property. The value of the property is increased. The community overall is improved by the increase in tax revenue, new jobs created by the development of new warehouse and distribution center and revitalization of the property. The seller is able to sell the stigmatized property.
Scenario 2
An investor is under contract to purchase a piece of property with a metal fabrication business currently operating on the site. The investor’s lending institution requires an environmental site assessment of the property to satisfy EPA Prospective Purchaser Due Diligence requirements before approving a loan to buy the property. The purchaser applies to the Escambia County Brownfields Program to utilize the Environmental Site Assessment Incentives available through the County’s Brownfields program and the seller agrees to allow access to the site for environmental site assessment. A Phase I Environmental Assessment funded by the Escambia County Brownfields Program discovers an outdoor painting area on the backside of the building. A Phase II Environmental Site Assessment is conducted and funded by the Escambia County’s Brownfields Program and it is discovered that paint solvent material is present in the soil within the painting work area. Further Environmental Site Assessment is conducted to determine the boundaries of contamination. It is determined that the contamination is confined to a small area on the parcel and no groundwater has been affected. The seller removes the contaminated soil and replaces it with clean fill. The purchaser/investor follows through with the purchase and development of the property. The value of the property is increased. The community overall is improved by the increase in tax revenue and revitalization of the property. The seller is able to sell the stigmatized property.
Disclaimer: These scenarios are by necessity simplified. Individual cases vary based on individual case factors and circumstances.
All Escambia County Brownfields Program incentives are subject to funding availability.
