Environmental Site Assessments (ESAs) are an indispensable component of real estate transactions. This report assesses potential or existing contamination liabilities on both the underlying land and any physical improvements on a property, usually covering both potential sources as well as liability concerns.

Real estate developers must conduct a Phase I ESA before purchasing property for development or commercial or industrial uses, or lending money on it. Lenders do not want their investments lost, and this protection from risk includes conducting an Environmental Site Assessment report prior to loan approval.

Environmental professionals conducting a Phase I ESA conduct an intensive review of records, databases and visual inspections of the property in question. Interviews may take place with current or past property owners as well as neighbors with knowledge of its history. An in-depth investigation could reveal soil and groundwater contamination issues or determine if the land once served as an “recognized environmental condition” such as gas stations, dry cleaners or industrial facilities in its history.

Once a Phase I ESA has been performed, more extensive investigation into potential contamination will take place through conducting a Phase II ESA. This requires sending trained engineers onto the property in order to collect soil, groundwater or soil vapor samples in order to ascertain any presence of hazardous substances or petroleum products on it.

Carrying out a Phase 1 Environmental Site Assessment (ESA) and gaining an accurate understanding of a property’s contamination risks is no small undertaking. Real estate developers and lenders should work closely with qualified environmental specialists to ensure this process runs efficiently, accurately, and cost-effectively.

Real estate developers should also take note of the Endangered Species Act (ESA). This act prohibits taking endangered species by harassment, harm, pursuit, hunting, shooting, wounding, capture killing and collecting or any attempt thereof. ESA compliance is vitally important to successful real estate developments projects as any violations can lead to civil and criminal penalties for violations; for this reason it’s crucial that both environmental consultants and project design firms review this Act during project planning stages of any development project.