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Updated about 5 years ago on . Most recent reply

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Mindy Jensen
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  • BiggerPockets Money Podcast Host
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New Build on former Iron Foundry. What Questions do I ask?

Mindy Jensen
Pro Member
  • BiggerPockets Money Podcast Host
  • Longmont, CO
ModeratorPosted

OK, not me but a friend is buying a new build that is being built on a former Iron Foundry site.

My environmental engineer friend said to ask for the Closure Report and get a copy of the Clean Closure Letter.

Any other advice?

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Bob Solak
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Bob Solak
  • Investor
  • N.E. Illinois
Replied

You (or better yet, have your environmental engineer friend) review the Phase 1 (and phase 2 if there is one) Environmental Site Assessment of the property.  The phase 1 will identify known and possible environmental concerns given site history, database record searches, site inspection, interviews, etc.  Depending upon the results of the Phase 1 ESA, a Phase 2 may been completed.  A Phase 2 is more targeted and invasive, and includes actual collection and laboratory analysis of soil and/or other potentially contaminated media. 

My experience with foundry sites is that you'll almost certainly have heavy metal impacts and sometimes other contamination associated with heavy industry (cleaner/solvent spills, etc.)  But it is also possible that these issues have already been remediated prior to the new building being constructed.  Thus your engineer suggested that you seek out a copy of the No Further Action required paperwork.  Always keep in mind, of course, that such a letter applies only to what contamination was known about.  There can always be areas of other contamination lurking somewhere on site.  

Also check to see if there are any deed/property restrictions associated with the site.  Sometimes you are allowed to leave contamination in place if its reasonable that it won't be disturbed - but they put deed restrictions in place to ensure that it does in fact remain undisturbed. 

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