Environmental Contamination of Public Property

[Terry L. Hart]

I am considering writing an appraisal on a public utility storage and maintenance yard. I have been provided a geotechnical exploration report that identifies numerous areas on this 60 acre parcel where contamination is present. The utility wants a market value appraisal of the property as is clearly identifying the areas and a cost to cure the issue. The estimated cost is being provided by a company that is bidding to clean up the site.

Seeking advice, other than decline the job.

 

[Terrel L. Shields]

Uncontaminated value less cost to cure is a starting point. Then search other "Brownfield" sales. That might require doing a lot of research. First, you find older brownfields themselves then check for a sale. I'd not hesitate to use 10-year-old sales and compare the sale price to the actual value at that time. Retro work. PS - I would charge by the hour and ask for a $5000 retainer to start.

You might start by searching the EPA website for "superfund" sites. And work from there. https://cumulis.epa.gov/supercpad/Cursites/srchrslt.cfm?start=1

 

[TerryRohrer]

Real Estate Damages, Third Edition

www.appraisalinstitute.org

Older and print copies are stupid priced, but this can be read online:

Valuing contaminated properties : an Appraisal Institute anthology : Free Download, Borrow, and Streaming : Internet Archive

xviii, 701 p. : 28 cm

archive.org

 

[Terry L. Hart]

Uncontaminated value less cost to cure is a starting point. Then search other "Brownfield" sales. That might require doing a lot of research. First, you find older brownfields themselves then check for a sale. I'd not hesitate to use 10-year-old sales and compare the sale price to the actual value at that time. Retro work. PS - I would charge by the hour and ask for a $5000 retainer to start.

You might start by searching the EPA website for "superfund" sites. And work from there. https://cumulis.epa.gov/supercpad/Cursites/srchrslt.cfm?start=1

View attachment 97296

Sage advice, thank you.

 

[sputnam]

I am considering writing an appraisal on a public utility storage and maintenance yard. I have been provided a geotechnical exploration report that identifies numerous areas on this 60 acre parcel where contamination is present. The utility wants a market value appraisal of the property as is clearly identifying the areas and a cost to cure the issue. The estimated cost is being provided by a company that is bidding to clean up the site.

Seeking advice, other than decline the job.

If you are competent to do the job. Take it. Charge a lot. If you aren't sure of your compentency, find someone who has done similar appraisals, get help, and charge even more.