As part of a foreclosure due diligence project, Bell Oldow conducted an environmental review at a thirty year old car dealership in rural New Hampshire.
Our investigation found:
- A solvent-based automotive part’s washer;
- 3,000-gallons of waste oil storage and associated staining;
- Evidence of a historic gasoline underground storage tank;
- A historic septic system and leach field;
- An oil/water separator – formerly connected to the leach field;
- A floor trench that transferred waste to the oil/water separator; and,
- Bulk storage of virgin vehicle lubricants
We reviewed the 2006 Phase I on which the client under wrote and extended a $1,000,000 loan.
The 2006 Phase I indicated:
- No recognized environmental conditions; and,
- No further investigation necessary.
The moral of the story is relying on outdated reports that were completed during the go-go-go times may be dangerous.