Changing Building and Property Uses: What Could Possibly Go Wrong!

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1 Changing Building and Property Uses: What Could Possibly Go Wrong! 2018 Oregon Brownfields Conference Dennis Terzian, RG May 1, 2018

2 Introduction Purchase or Lease of a Property should always be accompanied by a suitable level of due diligence (e.g., Phase I ESA, Hazardous Building Materials survey, etc.) When changing use of a building or property, issues may arise that were not deemed a risk under previous use 2

3 Examples of Change in Use

4 Changes in use that can trigger issues Converting a former industrial property for commercial reuse Residential development on property that was historically utilized for other purposes Agricultural land repurposed for other use Previous Specialized Industrial Use: Battery manufacturing/recycling Metal plating Wood treating Chemical storage and distribution 4

5 Underground Storage Tanks (USTs)

6 USTs Current and/or historical USTs may be present Just because USTs were previously removed doesn t mean there aren t more USTs located in the adjacent right-of-way (ROW) may still be the property owners responsibility 6

7 7 A little bit of gray soil

8 8 Becomes a tank

9 9 Becomes three tanks and a big hole

10 Stormwater Management

11 Stormwater Management Stormwater Management Systems Surface water discharges Drywells Don t make the assumption that all stormwater drains to municipal sewer 11

12 12 One small grate

13 13 Becomes four holding vaults

14 14 And lender-required remediation

15 Out of sight, out of mind

16 Unexpected building features Former functional areas or components of sites can become issues during reuse Basement and crawlspace areas Catch basins/sumps Hoists Piping Transformer (PCBs) Outdoor storage areas 16

17 17 An area of fill material improved with piles

18 18 Results in unexpected piling removal

19 19 Previous demolition activities

20 20 May leave buried building material

21 21 A metal access vault cover

22 22 Becomes a previously unknown area

23 23 Becomes a basement with hazardous materials requiring disposal

24 24 Geez! This is getting complicated. I wonder if should have consulted my attorney?

25 Former Agricultural Use

26 DEQ s view of historical pesticide use DEQ does not consider historical application of pesticides to be a release Many historical pesticides are banned chemicals that are known or suspected carcinogens No visual cues that contamination may be present Continued agricultural use on a property that may have previously had banned pesticide application is not addressed by DEQ regulations 26

27 Historical change in use Former agricultural property may have already seen change in use prior to current use Previous change in use may not have evaluated pesticides at the time Contaminated soil/groundwater may be present at the site that poses a risk to current or future receptors Management of soil and groundwater that may require disposal off-site could present unanticipated costs 27

28 Red Flags

29 Take time to reconsider when The property owner: Does not want to provide historical reports A site has a conditional No Further Action (NFA) Conditional closure may come with ongoing obligations Maintenance of vapor mitigation systems Management of contamination left in place Will not allow access to certain areas for inspection or sampling Indicates that an NFA addresses all issues at the site 29

30 Specialized Industrial Use

31 Battery Manufacturing/Metals Plating Conditions in the building interior may not have been evaluated and/or covered under DEQ regulations Metal dust/particulates Solids present in wastewater/stormwater conveyance systems Catch basins/sumps/drywells Exterior areas/storage yards 31

32 Wood treating Wood treatment may have utilized: Metals/petroleum based preservation (e.g., CCA, Creosote) Pentachlorophenol Both 32

33 Wood treating (cont.) Previous focus on pentachlorophenol may have ignored dioxins/furans Use often was limited to specific areas of the site that may be difficult to locate No obvious physical indicators in soil and water 33

34 Chemical Storage and Distribution Storage and distribution of chemicals should receive a higher level of due diligence: Multiple opportunities for small scale releases Difficult to pinpoint historical storage locations Small scale releases may not have been reported Residual concentrations of chemicals may be present within the facility, including within building materials (porous pavement, wood, etc.) 34

35 Recommendations Ensure that the level of due diligence for a property matches the change in use: Consider evaluating interior conditions when specialized industrial activities have occurred Consider management of soil and/or water at the site when the potential for contamination may be present 35

36 Thank you! Questions?