Dunmore Site Regulatory Closure
Location: Dunmore, Pennsylvania
Context: Real Estate Remediation
A manufacturing company had difficulty selling a 27-acre property with a 200,000-square-foot building, which had been used for printing and battery manufacturing. The property was valuable because of its overall good condition, and its proximity to major interstate highways; however, the environmental cleanup cost and liability concerns made the property difficult to sell. Prospective buyers and their lenders could not accept the seller’s asking price because of the unknown costs involved with environmental remediation. The manufacturing company desired to sell the property at its true value.
TerraSure Development, LLC provided the seller with a guaranteed fixed-price remediation (GFPR) contract to resolve outstanding environmental problems, including underground storage tank and soil and groundwater issues. Under the GRPR contract, our firm took over the responsibility for cleanup costs, and guaranteed regulatory closure by meeting the Pennsylvania Department of Environmental Protection’s Act 2 non-residential standards. Our firm addressed all of the outstanding regulatory issues and obtained an environmental liability release for the site.
Our firm’s GFPR approach helped the seller convert the property from a liability into an asset. The client was able to include our firm’s No Further Action guarantee with the purchase and sale agreement, and the property was marketed at its true, fair-market value. The added guarantee caused many of the prospective buyers to reconsider the deal, and the property was sold successfully at market value.