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January 21, 2015
Using Phase IIs To Avoid A “Bottomless” Environmental Mess
By Kristine MacWilliams, PE
KRISTINE MACWILLIAMS, PE OF PARTNER SPEAKS TO GEOFFREY METZ OF GLOBEST.COM
CHARLOTTE, N.C.—As the CRE market picks up steam, competitive pressures are creating a tendency to push deals through. With an eye on closing deals, many lenders don’t go beyond the basics of the due diligence process. That means Recognized Environmental Conditions (REC) can sometimes get filed away as “resolved” with little further investigation. There are several ways this happens: Certain institutions’ risk profiles make them comfortable with the risk of smaller RECs, and digging deeper to an identified REC by conducting a soil and groundwater investigation is an upfront cost that increases the deals expenses and may delay closing.
But, as Kristine MacWilliams, PE of Partner Engineering North Carolina, PLLC sees it, without a realistic picture of a seemingly limited REC, the buyer or lender could be leaving themselves exposed to hidden risk. And, in many cases, it can also protect against substantial long-term costs and complex environmental liabilities. GlobeSt.com spoke to the technical director or Partner’s Subsurface Investigation Group to find out what levels of investigation are appropriate for a given situation, and how to best balance cost, risk, and competitive pressures.
Kristine MacWilliams is a registered Professional Engineer in North and South Carolina with over 19 years of experience in managing and conducting site assessment and remediation projects throughout the Southeast and nationally. Her areas of expertise includes assessment and remediation of chlorinated solvents, petroleum hydrocarbons and numerous other contaminants in soil and groundwater. In addition, she has extensive experience assessing the vapor intrusion pathway and is experienced in risk assessment and mitigation as it pertains to vapor intrusion in accordance with the EPA Office of Solid Waste and Emergency Response (OSWER) Guide for Assessing and Mitigating the Vapor Intrusion Pathway from Subsurface Vapor Sources to Indoor Air, June 2015 and specific state guidelines as applicable.
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