The preliminary environmental reports came back with issues requesting that a full phase 1 & 2 were needed (super pricey, and still no guarantee), and that the lender was not comfortable proceeding.

@Steve Hyzny It's one of the reasons I left California (+ traffic+pollution+the fact I couldn't buy-and-hold locally to achieve any sort of decent return).

also, do you know if there are any major issues like environmental issues etc.? 

What does Subject to Deed Restrictions in Connection with Environmental Remediation mean?

On the zoning/permitting front, I have pretty extensive experience through my engineering background and connections to environmental firms that I feel good about the property itself but will need to rely on the developer for execution here. 

As a lawyer, you should see the important distinction.It's like saying that "there are multiple performance and environmental benefits of wearing seat belts."

Industrial you have to pay special attention to any environmental contamination of the site and the POTENTIAL from the type of industrial tenant as some are low risk and some are very high risk.

It seems that the tenant pool is constantly changing with the local environmental variables.

Pollution Coverage6.

I think a lot of us see it as the price to pay for sound environmental policies and worker protections and all the other things that all this tax money pays for.Is California bankrupt?