Brownfield Redevelopment Riskopolis Series

1. Looking to expand its operations, a company purchased a large brownfield property that seemed suitable for redevelopment of a new shopping center. Prior to the purchase, the company went through its proper due diligence. The Phase I did not note any environmental concerns, but as the company began construction, they discovered a half-full underground heating oil tank. As a result, construction halted, and the company incurred costs to pump out the oil, unearth the tank, and properly dispose of them pursuant to the law.

2. During the redevelopment of a brownfield into an upscale shopping center, it was discovered that several perchloroethylene (PCE) solvent canisters remained from a former commercial laundry. Over time, the PCE leaked and migrated off-site. The PCE flow contaminated several adjacent residential properties, requiring extensive cleanup and costly delays to development.

3. A road contractor was hired to apply a sealing coat to a new concrete garage next to the up-and-coming shopping center. During the application of the sealant, fumes migrated into surrounding residents’ air intake system. Several residents and building staff were overcome by the fumes and became ill. Lawsuits were filed alleging bodily injury and asserting damages in excess of 1,000,000.

4. As the brownfield redevelopment project was underway, all existing structures had been razed, and the site was to be regraded. During demolition activities, the general contractor punctured an unknown underground oil tank. Residual oil was still located within the tank and was released when the tank was punctured. Due to the soil condition and shallow groundwater, the oil was able to spread quickly. Although the tank was only 500 gallons, the cleanup became very involved due to the required excavation of impacted soils and the regular monitoring of groundwater until closure could be granted by the environmental regulators.

5.  A contractor was transporting a load of site waste to a nearby landfill. While in transit, the truck overturned on the highway causing the waste to spill into a nearby creek protected by a local wildlife preservation organization. The organization filed a lawsuit, and the contractor ended up facing fines and clean-up costs accumulating to over $200,000.

6.  During construction activities, a crane being used to lift concrete blocks overturned. The accident ruptured the crane’s hydraulic hoses, spilling hydraulic fluid onto the ground. The contractor was required to pay for clean-up costs arising from the spill.