ESA
See Environmental Site Assessment
Frequently Asked Questions about Environmental Site Assessment (ESA)
What is an Environmental Site Assessment (ESA)?
An ESA is a report that evaluates current and historical uses of a property to identify any potential environmental issues. It often includes investigation of soil, groundwater, and potential hazardous materials such as USTs, asbestos, or lead.
What is typically included in a Phase I ESA?
A Phase I ESA reviews the site’s historical and current uses, adjacent properties, regulatory compliance records, and possible contamination risks. It does not include physical testing but may recommend a Phase II ESA if concerns are found.
When is a Phase II ESA required?
A Phase II ESA is recommended when a Phase I identifies potential contamination risks. It includes actual soil and groundwater sampling to confirm the presence and extent of environmental hazards.
How can an ESA affect a commercial real estate transaction?
If an ESA identifies contamination, it may delay or reduce the purchase price, require remediation, or lead to further investigation. In the case study, Maple Grove used the ESA to negotiate terms and prepare for soil remediation.
What types of prior site uses are considered high-risk in an ESA?
High-risk uses include gas stations, dry cleaners, auto repair shops, and industrial or manufacturing sites. These are flagged due to their potential for leaving behind hazardous substances in the soil or groundwater.
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