Although I am budget-conscious, I understand that a profit needs to be made, and I want to create a win-win for all parties involved (I'm not one of those investors who nickel and dimes everything). 

Lately, the advice for latex paint in many cities is just to set it outside where pets, kids, and wild animals can't get into it, take the lid off, let the liquid evaporate, and just toss the rest in the trash - but ask your city to know for sure.The city's website will probably list the hazardous waste stuff under the environmental department (big cities), or probably water and sewer (smaller cities). 

The best you would be able to get is a Letter of Environmental Protection, which tells everyone you did illegal work then hired a licensed deleader in to fix it.

Could phase 1 environmental study be a deal breaker?

It seems like you are conscious of your risk in certain areas, I'm just saying make sure you pay attention to as many of the risk points/areas as you can... no one is perfect though, best thing is to get the first deal! 

The development process starts with site selection appropriate for the number of units you would like to build, then you hire a civil engineer to do surveys, site planning, soils and environmental in order to begin the entitlement process, then you get an architect to design the product, then you get bids from multiple contractors.

Tenant shall be held responsible for water damage caused by overflowing toilets and/or drains.Take no action which would cause a cancellation or increase in Landlord’s fire or liability insurance.Obey all environmental laws and keep no toxic, inflammable or dangerous substances on the Premises.Prevent the accumulation or buildup of mold or mildew throughout the Premises by notifying Landlord immediately if any evidence of water leak or excessive moisture, mold or mildew appears.

Hey Scott,Just like insulation codes, double glazing, environmental protection codes are "forced" they are for a bigger purpose.

Sure, you can create one, but just be conscious of whether it's for a business need or risk mitigation. 

A majority of the Indianapolis agents I have met that represent OOS investors are not conscious of the long term play.