Site Assessment, Remediation, and Redevelopment: Projects
Evaluation of Opportunities and Risks Associated with a Surplus Property with Legacy Environmental Contamination
Client
Confidential Industrial Client
Description
Using SBS Discovery and related services, we worked with a company to create and evaluate options for reuse of an closed chemical plant. The plant was heavily contaminated, located in an industrial zone, and the path forward was unclear. First, we evaluated the real estate market potential for the site. Based on the market assessment, the highest value option was to subdivide the site and develop smaller parcels of land. These smaller parcels where in demand in the area.
Once the market potential was determined, we assessed the nature and extent of contamination. Most of the heavy contamination was located in one area of the site. The other areas could be further assessed and prepared for industrial reuse with little need for remediation. This allowed for cleaner parcels to be prepared and sold first. The income from the cleaner parcels then would provide a means to address the heavily contaminated area.
The last parcel will undergo detailed assessment and clean up. The size of the remediation effort will be contained by capping the site and placing deed restrictions on future use. Demand for parking area in this industrial area is high and such a use is consistent with the proposed remediation.
The overall financial return from the combination of subdividing the property and restricting use on limited portions of the property provided for a better financial return than would have been possible by trying to address the property as one large clean up and development effort. Moreover, the current owner is able to proactively engage the regulatory and development authorities with a plan to move forward quickly and this will ultimately benefit the surround community.
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