ENVIRONMENTAL ISSUES AND SOLUTIONS

Transcription

1 RICS DILAPIDATIONS FORUM ANNUAL CONFERENCE ENVIRONMENTAL ISSUES AND SOLUTIONS (AN ENVIRONMENTAL LAND QUALITY VIEW) ALUN DYSON OF RAMBOLL ENVIRON ENVIRONMENTAL LIABILITY: COMMERCIAL PROPERTY WHO? Landowners; Tenants; Vendor; Purchasers; Banks / Financial; Insurance; and Advisors RICS GUIDANCE TE CONTAMINATION, THE ENVIRONMENT AND SUSTAINABILITY NATURAL SOILS UNDERLYING A PROPERTY DO T EASILY FALL INTO DECAY OR DISREPAIR. POLLUTION IS THE CAUSE OF LAND DILAPIDATION, NAMELY THE KWING OR ACCIDENTAL INTRODUCTION OF HAZARDOUS LIQUIDS AND SOLIDS.

2 INDUSTRIAL POLLUTION CAUSING DILAPIDATION POOR HOUSEKEEPING; SECONDARY CONTAINMENT; OPERATIONAL ACTIVITY FAILURE; ACCIDENTIAL / CATASTROPHIC FAILURE; WASTE ON LAND; DISCHARGE TO CONTROLLED WATERS.. COMPLIANCE WITH ENVIRONMENTAL PERMITTING SYSTEM. CAUSE AND EFFECT

3 LAND QUALITY (PART 2A OF THE ENVIRONMENTAL PROTECTION ACT 1990) SOURCE, PATHWAY, RECEPTOR CONCEPTUAL MODEL / ENVIRONMENTAL RISK; PHASE 1/2 INVESTIGATIONS; CONTINUED EXISTING USE OR REDEVELOPMENT; Significant harm / pollution or significant possibility of significant harm / pollution: Introduction of a pollution linkage to potentially impact humans, animals, plants, air, soil, water, property and buildings. LAND QUALITY?

4 ISSUES FOR LANDOWNERS AND TENANTS Objectives Are potential polluting uses taking place or have taken place? Do I have sufficient information to assure Regulator enquiries? Define who has polluted; Voluntary actions or enforcement notices? Prevent Future Pollution Active management of property portfolio. Determine and quantify liability; Make property users responsible for their actions: minimum standards; Keep an eye on what s happening over the fence and how it might change. ISSUES FOR VALUATION / SELLING (MATERIAL CONSIDERATIONS AS PART OF THE VALUATION PROCESS) Objectives: Minimise or eliminate any on-going environmental liability; Maximise value of assets, in particular the land value; Black art - how to balance these two. Options Due diligence inspections; Compliance with relevant environmental laws; Consider insurance solutions; Warranties and indemnities: (Sold With Information).

5 ISSUES FOR LENDERS (AND BUYERS) Objectives Avoid buying or investing into liability; Minimise the cost of asset / land. Striking The Balance Caveat emptor doesn t override polluter pays ; and You may not be the polluter (cause or knowingly permit contamination), but you might become the last man standing as owner/tenant and knowing permitter; MANAGING THE ASSET Ongoing Environmental Management Accreditation (ISO 14001) Audits Environmental permits Baseline Land Quality Sale of Site Due Diligence Audits Phase 1/2 (Due Diligence) Remediation / Mitigation. Sold with Information / Warranties. Tenancy Entry Surveys Audits Exit Surveys Environmental Rules. Re-Development Development Plan Phase 1/2 Development Design Remediation

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9 California Environmental Responsibility Assessment Process START WHAT A YOU RE DAMN LUCKY! DON T SCREW WITH IT! FIXIT, HIDE IT, SELL IT Is Your Land CLEAN? DO THE AGENCIES KW? PANIC!! OPEN CHEQUEBOOK, START WRITING SHAME! DID YOU DO IT? TRY T TO PANIC CAN YOU PIN IT ON SOMEONE ELSE? DO THEY HAVE A DEEPER POCKET? CAN YOU AFFORD THE END LAWYER?