Appraisal Of Superfund Site

[nauthead]

Does anyone have any experience with appraisals of Superfund sites? I am bidding on an appraisal of a property that was originally part of a large chemical treatment facility. The site was sold off quite a few years ago but is still the subject of extensive cleanup. Thanks.

 

[The Warrior Monk]

I've appraised one. In the case of the property I appraised, the issue of liability was effectively settled and cleanup was well underway.

 

[Financially Feasible]

Does anyone have any experience with appraisals of Superfund sites? I am bidding on an appraisal of a property that was originally part of a large chemical treatment facility. The site was sold off quite a few years ago but is still the subject of extensive cleanup. Thanks.

Some states (I know that NJ does) maintains a list of superfund sites. If yours does, you can cross reference it with public records to see if any of them have sold. If you have access to any sort of national database (i.e. CoStar) then you can search for properties with environmental issues and such. I would certainly obtain as much information as you could regarding the costs to remediate the site. Speaking of which - are you appraising the site as-is? As if remediated? Other? Additionally, after remediation, the state may issue what's called a NFA (no further action) letter stating that the site is clean and no futher environmental hazards exist. Again, contingent on your scope of work, you may want to confer with your client about the possibility of that letter being issued (if applicable in your state).

Anyway, I would say that issue #1 is to hammer down the remediation costs as best you can. Everything else goes from there. Good luck!

 

[jimmyfrank]

Does anyone have any experience with appraisals of Superfund sites? I am bidding on an appraisal of a property that was originally part of a large chemical treatment facility. The site was sold off quite a few years ago but is still the subject of extensive cleanup. Thanks.

Appraised a simular site about 3 years ago. Best info I received was from The Institute which was on-line in about 6 modules. Need more info before I can help. Is it "before and after?" let me know, willing to help if I can...

 

[Howard Klahr]

David hit the issue that needs to be known in advance of quoting a fee - has a no further action letter been issued by the appropriate regulatory agency(ies)?, Who is responsible for remediation, both costs and performing the necessary actions?, and what are you valuing, as contaminated, as remediated, as is (i.e. partially complete)?

These issues will not only form the scope of work, but also the complexity of your assignment. Hence the appropriate fee. Best of luck and keep us informed as to how it progresses.

 

[nauthead]

It's an ongoing issue with the site. Right now, the EPA, Army Corps of Engineers, Department of Justice and Florida Department of Environmental Protection are involved. Contaminants have been found as far as 330 feet below ground level and seeped into the aquifer. The city issued warning letters to approximately 20 residences near the site to keep children at least 20 feet away from the property boundary.

The lender was not aware of the hazards on the site and have put the order on hold. My guess is they back out of the order. Thanks for the input.

 

[hastalavista]

No experience but I have read Real Estate Damages: An Analysis of Detrimental Conditions by Randall Bell (AI publisher) and have heard him speak twice on the subject. A must read IMHO for this type of assignment.