In ground fuel tanks former auto repair-gas station
Evaluating empty building in Kentucky. Former auto repair shop and gas station. Has 3 buried fuel tanks. Pumps removed long ago. Not sure what the liability involved here is? Who's the expert to ask? Thank you.
[{"id": "igzmbjx", "text": "https://eec.ky.gov/Environmental-Protection/Waste/underground-storage-tank/Pages/Administrative.aspx", "replies": [], "depth": 1}, {"id": "igzohr4", "text": "Should probably order a Phase I although it will likely recommend a phase II. \nhttps://bbgres.com/\n\n\nHere\u2019s a cheaper preliminary report you can order with Veracheck -  https://www.veracheck.com/", "replies": [], "depth": 1}, {"id": "igzte1a", "text": "We ran into an odd situation on an old rural gas station property several years ago.\n\nIt was clear from the layout that it had pumps at one time and the local FD said they  remembered the tanks being removed in the 80s.   We called every local and state agency but could find no documentation.  Even talked to several remediation companies and they said if it passed phase I, not to worry.  As part of the negotiation I asked the seller to document that tanks had been removed and she could\u2019ve cared less.  \n\nThat was the oddest experience\u2026seemed like I was walking into a potential landline but everyone was so nonchalant about it.", "replies": [], "depth": 1}, {"id": "ih03oqz", "text": "Avoid at all cost. Went through something similar, you\u2019re responsible for those tanks once the property is purchased and the EPA is not who you want to deal with.", "replies": [], "depth": 1}, {"id": "ih0rgmt", "text": "Be very wary.  Soil/water contamination is very expensive to remediate. Even if you pull the tanks now and get them offically closed you can still be sued years down the road.\n\nIf you really want the property you can contact an insurance broker about an environmental policy to mitigate some of the liability. This will also help you get financing on the property because you're guaranteed a phase 1 which will probably lead to a phase 2 if you have to talk with a bank on it.", "replies": [], "depth": 1}, {"id": "ih1fv9d", "text": "When you make an offer, indicate that you will be getting environmental reports during due diligence; starting with a phase 1. Your bank will most likely require this for your financing anyway.", "replies": [], "depth": 1}, {"id": "ih2gdbm", "text": "I've performed considerable work in removing and remedying contaminated soil.  It's expensive.  One property was an old gas station.  Had four tanks underground.  Cost $150,000 to remove the tanks and contaminated soil.  EPA inspectors checked regularly until the soil was clean.  The $150,000 doesn't include the new parking lot, curbs, etc.  The most recent project was the rear of an apartment building.  Had to remove an old oil tank.  Cost $30,000.\n\nThe real cost is disposing of the hazard material and soil.  The soil alone is very costly due to where it needs to be dumped.  Expect EPA inspectors regularly during the project.\n\nIf you're seeking to purchase a property with underground tanks, you need to confirm if there's anything in the tanks and perform a phase 1 and 2 study.  You can also project the cost as part of your evaluation.  Most states require you to remove the tanks regardless of what you're doing with the property.", "replies": [], "depth": 1}, {"id": "ih2ufnb", "text": "You need an environmental expert. Not sure how Kentucky works, but in my state you\u2019d probably need an NFR.", "replies": [], "depth": 1}, {"id": "ih3crb2", "text": "I am in California so our laws here may be more stringent. I have done a number of automotive deals and everyone has concerns with underground tanks.  The best option to protect yourself or your buyer is to have the tanks removed and the soil needs to be tested to verify whether or not there is contamination. Best case scenario....you'll need tanks removed and a phase II environmental report completed.  Worst case scenario....property will require remediation to remove contamination. \n\nTypically in CA, a phase I is paid for by the buyer....and then we try to negotiate a 50/50 split on a phase II. Phase III (remediation) costs are the property owner's problem....IMO\n\nReach out to an environmental engineer.", "replies": [], "depth": 1}, {"id": "ih3moro", "text": "As a bit of am anecdote, my father years ago redeveloped a space which had one. He got the gas station to pay for it (was buying it off of them), and that saved him as the remediation costs ended up being $2M on an $12M deal\u2026 not fun. Be super weary and if you can\u2019t get current ownership to take on that risk, I would say move on to the next one.", "replies": [], "depth": 1}]