Mill Creek Environmental (MCE) has completed a Phase I Environmental Site Assessment (ESA) of the property located in Richmond, VA. The Phase I ESA includes subject property composed of two (2) adjoining parcels with an 8,000-square foot cinderblock building that includes a two-story office space and a warehouse and ground cover surrounding the building and on the adjoining lot consists of concrete and asphalt pavement, gravel, and grassy areas.
Historical documentation indicates that the subject property was first developed with the existing building in 1958. The first use of the subject property is unknown, but since 1967, it has reportedly been used for various industrial purposes including steel fabrication, scaffolding supply, plastic drainage pipe manufacturing, interior supply, and superstructure formwork manufacturing. Based upon our observations and information gathered during the Phase I ESA, MCE has identified the presence of two "recognized environmental conditions" (RECs) and one (1) “historic recognized environmental condition” (HREC) as defined by ASTM Standard Practice E 1527-13 at the subject property:
• Petroleum products and potentially hazardous chemicals have been used and stored at the subject property under conditions that constitute a material threat of release to the environment (REC);
• A rectangular pit identified as a possible former “paint pit” is located on the eastern side of the building (REC); and
• A 4,000-gallon diesel underground storage tank (UST) and a 4,000-gallon gasoline UST were formerly located on the subject property but were closed in compliance with applicable standards (HREC).
In addition, MCE has identified one (1) HREC at an adjoining off-site property. This off-site HREC is identified as:
• The adjoining property is a former leaking underground storage tank (LUST) site. The contamination was addressed to the satisfaction of the Virginia Department of Environmental Quality (DEQ) and no further action was required.
No additional actions are required to address the HRECs identified on the subject property and adjoining property. However, based upon our assessment of current and historical conditions on the subject property, MCE has identified the potential for soil and/or groundwater contamination on the property in connection with the RECs.
It is our recommendation that language be included in the lease agreement that indemnifies the lessee from any existing contamination or issues identified on the subject property related to the past presence of and former use of potentially hazardous materials and petroleum products. If documentation concerning baseline conditions is required prior to execution of the lease agreement, MCE recommends completion of a Limited Subsurface Investigation (LSI) to determine if soil and/or groundwater have been impacted by the previous uses of the subject property.
