Opportunities for Preventing the Loss of Useful Urban Properties
A Case Study of the Transfer and Remediation of an Impacted Former Retail Gasoline Station Property
By
Troy E. Scott, P.E., American Geosciences, Inc.
David Parsonage, American Geosciences, Inc.
Ruth Rauluk, Point Park College
With constantly changing business conditions, some enterprises invariably reach the end of their economic feasibility. When this occurs, a combination of physical assets and liabilities from the business’s operations remain. The assets can include the property and improvements such as buildings. However, there are potential environmental liabilities that remain, such as hazardous materials of construction and residual impacts from operations conducted at the property. Understanding and addressing these potential liabilities are critical for future redevelopment.
Nowhere is this simple concept clearer than in the area of retail gasoline facilities. Aging facilities past their useful economic lifespan are notorious for environmental concerns associated with asbestos-containing building materials, historical spills, and leakage from underground storage tanks. When the environmental liabilities appear to outweigh the value of the property, these sites have the potential of falling into a brownfield state. Future development of the property is contingent on a developer’s ability to recognize the scope of the impacts and a viable path forward for addressing concerns. Through a comprehensive understanding of site conditions, financial mechanisms for funding remediation, and methods available for transferring interests in the property, an accurate evaluation of the true value of a former retail gasoline facility can be performed.
Presented in this case study are the strategies and considerations for the successful evaluation, property transfer and remediation of a former retail gasoline station in the City of Pittsburgh. An overview assessment of the property initially gave the appearance that conditions may not be favorable for redevelopment due to environmental impacts. However, application of more comprehensive sound strategies, allowed redevelopment of the property to be successful.
Included in this case study are descriptions of the following key elements that facilitated redevelopment of the property:
Detailed evaluation of the site conditions.
Application of the appropriate cleanup requirements.
Transfer and use of underground storage tank indemnification funds (USTIF) for remediation.
Selection of an effective remediation approach.
Effective communication among the many parties involved.
When proper assessment and evaluation results in the successful transfer, remediation, and redevelopment of a property, as it did in this case study, all parties involved benefit. The seller receives fair compensation for their asset, the buyer obtains usable property, and the community as a whole is not burdened by a brownfield. Remediation of this case study property was completed in June 2003, and the new property owner is currently redeveloping the site.