Bank Foreclosure - Tennessee

Value of Project: $50,000

Scope: UST Closure w/ Structural Element

The subject property was developed as a retail gasoline and convenience store with one single-story building; three (3) 8,000-gallon gasoline and one (1) 10,000- gallon diesel steel Underground Storage Tanks were located on the subject property. The owner/operator of the USTs filed for bankruptcy, and the bank was left with the environmental liability.

Maxis was contracted by the Bank to conduct UST removal activities. The bank specifically indicated that the on-site building was to remain at the request of a prospective purchaser. 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, in the initial notification submitted to the Tennessee Department of Environmental Control (TDEC). This rational allowed the Bank to forego any future responsibility for additional assessment and/or remediation following closure activities.

Following UST removal activities, Maxis determined the structural integrity of the building’s foundation and perimeter wall had been compromised; the excavated soil undermined the decaying wooden floor and cinder-block wall. Maxis was able to quickly assess the problem and implement an engineering solution, at minimal cost to the bank. Maxis submitted the Permanent Closure Report on January 16, 2013, and TDEC issued a No Further Action letter on January 23, 2013.

Maxis structural solution allowed the on-site building to remain, which enable the bank to sell the property to the prospective buyer.