Fast-Track Vapor Intrusion Mitigation Regulatory Agreement

FARALLON OBTAINS FAST-TRACK REGULATORY AGREEMENT FOR OREGON PROPERTY ACQUISITION

A real estate merchant bank turned to Farallon for help acquiring a highly desirable commercial property without excessive environmental liability.

In the course of performing due diligence for the property acquisition, Farallon identified environmental impairments to the property related to historical manufacturing operations. Farallon assessed the contamination and assisted the client in negotiating an agreement to limit liability with the Oregon Department of Environmental Quality (DEQ), resulting in a quick purchase. 

Farallon was engaged to perform environmental due diligence at a warehouse formerly used for industrial manufacturing. During the Phase I Environmental Site Assessment (ESA), Farallon identified several previously unknown conditions at the property.  The client requested that Farallon perform a Phase II ESA to investigate the conditions and, if necessary, develop an approach for fast-track remediation that could be completed during redevelopment construction. During the Phase II ESA, Farallon identified halogenated volatile organic compounds in soil gas samples. Although DEQ generally requires the entire extent of contamination to be mapped before granting case closure, Farallon demonstrated that limited soil gas sampling was sufficient to characterize the risks for future occupants of the property.

Farallon worked with DEQ to execute a Prospective Purchaser Agreement within 90 days of completing the Phase II ESA that absolved the client from liability for impacts from the contamination, and designated a pathway for obtaining a No Further Action determination for the property. The Prospective Purchaser Agreement became an important point in negotiations with the seller and eliminated uncertainty regarding environmental liability.

“Farallon’s in-depth regulatory knowledge and strong relationship with DEQ allowed us to be responsive to the client’s short time frame,” said Associate Scientist Jennifer Whaler, the project manager. “We provided the client with a preliminary remediation design and cost estimate in support of negotiations for an escrow holdback, and will oversee installation of the system concurrent with upcoming redevelopment construction. The client expects an excellent return on investment.”