A3E will read all the documents you have regarding your issue. It's only by becoming completely familiar with your project we can further council you.
We'll take what we've learned about your project and write an opinion. At this point we'll negotiate through a conference call with the counterparties to the transaction, whoever they may be. (Bank, Buyer, other Consultant)
If all the concerns of the Phase 2 ESA can't be removed, we will down-scope the project as best we can. Then, we will offer pricing to perform the work, using competition to drive the prices down.
If you’ve been around environmental reports long enough as a lender or commercial real estate agent, eventually you’ll see one where you look at the conclusions and say; “You gotta be kidding me!”
We see them all the time; environmental reports that are overly cautious, inadequate, or misleading.
The problem is, when a lender or CRE Professional is presented with a bad Phase 1 ESA, unless you have your own consultant on speed-dial, often you find yourself stuck by deadlines and circumstances. Your client may have to do all sorts of unnecessary environmental testing.
This. Kills. Deals.
A3 Environmental Consultants wants to be your trusted resource on speed-dial.
We will double check any Phase 1 ESA you think might be suspicious. If we can, we’ll save your client money, time, and possibly save the deal.
Starting is as simple as emailing us a copy of the original Phase 1 ESA. We take the time to read it and double check the findings and recommendations, then ask three questions:
1. Do we agree with the findings?
2. Can we convince the other consultant of our opinions?
3. Can we re-scope/down-scope the Phase 2 ESA?
An average Phase 2 ESA can take 30 to 45 days and cost between $4000 and $11,000. Avoiding a Phase 2 ESA altogether is a significant savings of money and time. Our first course of action if we don’t agree with a Phase 1 ESA is to have a conversation with the other consultant to see if we can eliminate the concern. This
works a surprisingly well. If it works, the other consultant amends the Phase 1 ESA and you’re ready to close.
If we can’t eliminate the concern, do we agree with the scope? Scoping a project is the strategy for dealing with an environmental concern. The scope can be, and too often is, tailored unnecessarily wide, which increases the expense. It can also be too narrow, which won’t adequately address the concern, possibly making more investigation necessary and ultimately increasing the expense. Both scenarios are bad but a too-narrow scope costs money without addressing the risk identified in the Phase 1 ESA. From a risk-versus-expense standpoint a too-narrow scope is worse than a too-wide one.
A3E will adequately scope and bid on the project to address the concerns while keeping costs to a minimum. This offers a second price-point and turn-around time, injecting competition and lowering your client’s prices.
A seller of an automotive repair shop in Minneapolis calls, distraught that a buyer is making him spend $10,000 for a Phase 2 ESA. He asks A3E to review the Phase 1 ESA. The report identifies an onsite oil-water-separator and in-ground hydraulic lifts as a concern but never inspected or questioned the owner about them. A3E asks the seller about said separator and lifts. The seller notes that the lifts were properly abandoned, and the oil-water separator was recently serviced. He provides the necessary documentation. Armed with this information, A3E has a conference call with the Phase 1 ESA consultant and talks them off the ledge. With 4 hours of work, we put the buyer and lender’s concerns to bed and allowed the deal to close. A3E helped our client realize a savings of $9,500 and 45 days by not performing a Phase 2 ESA.
An SBA lender calls us for a Phase 1 ESA regarding an Illinois factory. They have a Phase 1 ESA identifying stains around a 50-year-old compressor which may contain PCB’s. A3E is of the opinion the staining is de minimis. A3E was not able to change the mind of the original consultant; however, A3E provided a competitive price to investigate the concern and beat the price by $1000 turning the project around in less than 36 hours.
A bank requested a Phase 2 ESA on a restaurant based on the findings of a Phase 1 ESA, that identified a former leaking gas station on the west adjoining property that never received closure. Prior to providing a quote for a Phase 2 ESA, A3E reviewed
the gas station soil and groundwater investigation reports submitted to the regulatory agency. The reports identified that all soil and groundwater impacts were fully delineated and had not traveled offsite onto the restaurant property. A3E telephoned the regulatory agency who concurred with A3E that there was no threat to restaurant property. The only offsite impacts were onto the north adjoining roadway. A3E informed that bank that completing a Phase 2 ESA was not necessary. The bank agreed, saving their client $6000 and 45 days.
Click Here & Read All About Phase 2 ESAs.