Could this mean the end of Phase II in Kentucky? More and more sites are being entered into the Kentucky Brownfields Redevelopment and Reuse Program, and there’s a good reason why.
For starters, let’s check out the official website at http://waste.ky.gov/SFB/Pages/Brownfields.aspx. Here you’ll find the basics of the 2012 program which offers clear and effective protection to the prospective purchaser of a property. This protection documents that the purchaser “will not be held responsible for conducting site investigation and remediation” under Kentucky Superfund laws. It’s not too good to be true. Here’s how it breaks down:
1. Conduct a Phase I Environmental Site Assessment within six months of closing. If the assessment reveals a problem, the answer is not to jump straight to a second phase of work.
2. Costs are controlled, to an extent, by preparing a Property Management Plan. The PMP and Phase I are submitted to the state, along with an enrollment fee of $2,500.
3. The state will review the documentation and, if no issues are identified, will issue you a letter stating that the property is eligible for inclusion within the program.
4. This next step is easy. Close on the property and submit a copy of the completed deed to the state.
5. The state issues one last letter, granting immunity from further investigation or remediation.
6. One last thing. You’ll need to update the Division annually going forward, stating that you’re still complying with the terms of the program.
The letters that they issues are better than a ‘No Further Action’, which always have wording that the NFA could be rescinded if issues are found after the fact. It’s worth noting that properties with issues regarding regulated Underground Storage Tanks don’t qualify for the program. Outside of that, these letters can drastically reduce or eliminate the potential concerns associated with dry cleaners, coal yards, industrial properties, and much more.
This program has already saved many a Phase II investigation. Contact us to learn more about this program and how it can help you save money and headache with commercial property transactions.