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.
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
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?
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).
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
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?