Bank Foreclosure - Georgia

Value of Project: $50,000

Scope: Limited Phase II Environmental Site Assessment

The subject property was developed as a retail gasoline and convenience store with one single-story building; three (3) Underground Storage Tanks (USTs) exist on the subject property; one (1) 2,000-gallon and two (2) 10,000-gallon steel USTs were installed in 1976 and 1980, respectively. The owner/operator of the USTs filed for bankruptcy in 2009.

Maxis was contracted by the Bank following foreclosing to conduct a Limited Phase II Environmental Site Assessment (ESA) to investigate the subsurface conditions via soil and groundwater sampling and laboratory analyses. Analytical results indicated that both soil and groundwater exceeded the applicable thresholds established by the Georgia Environmental Protection Division. However, Maxis utilized 40 CFR Part 280, Subpart I, Lender Liability, Sections 200-230, which defines the Bank to be the “holder” (loan originator) of the property and not the owner/operator of the UST system. Therefore, the Bank was not responsible for any future assessment and/or remediation.

Maxis assisted the Bank in negotiating a deal allowing a new buyer to purchase the property without assuming environmental responsibility/liability for the USTs; the USTs were closed prior to closing. Maxis completed the aforementioned activities on time and under budget; the cost savings were directly passed back to the Client.