BEC’s advanced strategic planning, efficient remedial implementation and successful closure negotiation allowed the Client to realize a net savings of several hundred thousand dollars in environmental-related costs during the acquisition of an underused commercial property and the subsequent redevelopment of a busy new high-visibility retail center.
BEC was retained by Continental Development Corporation in 2007 as they negotiated the purchase of a 1.15-acre commercial office space property located on a highly visible corner of Hawthorne and Lomita Boulevards in Torrance California. BEC’s initial tasks involved conducting due diligence and strategic environmental support. As part of these efforts, BEC identified an on-going dry cleaning operations as a Recognized Environmental Concerns (RECs), and a closed former gasoline station as a Historical REC. Based on available historical data and a limited site assessment, BEC developed an estimate of the remedial cost. Based on this estimate, Continental was able to negotiate a $500,000 reduction to the purchase price in association with a requirement to remediate shallow soil impacts associated with the dry cleaning operation. In addition, BEC and outside council assisted Continental in acquiring an insurance policy that covered, among other things, third party claims and non-excluded (issues other than those related to the dry cleaner) environmental issues.
Upon acquisition of the property, Continental commissioned BEC to perform cleanup (vapor extraction) of the former dry cleaning facility and to perform environmental oversight during grading. During the grading program, significant residual hydrocarbons were encountered at the former gasoline station. The elevated level of volatile organic compounds (VOCs) exceeded South Coast Air Quality Management District Rule 1166, and low threat petroleum hydrocarbon policy standards. As a result approximately 653 cubic yards (980 tons) of hydrocarbon-impacted soil was excavated and disposed of off-site. Additionally, the soil vapor extraction (SVE) system operated at the former dry cleaning facility for eight months to address the shallow PCE impacts.
As a result of these activities, in 2014, the overseeing regulatory agency- The Los Angeles County Fire Department (LACFD) issued a No Further Action Letter (“Final NFA”), which concluded that the known site contamination at the Property had been satisfactorily mitigated. The total costs associated with BEC’s remedial efforts (and off-Site disposal) was approximately $400,000. BEC is supporting Continental in a cost recovery insurance claim associated with the work associated with the petroleum hydrocarbon cleanup program.
BEC recommended and supported the installation of a vapor barrier system and associated passive venting systems at the Site and supported Continental in tenant lease negotiations. The site was redeveloped as a high-visibility retail center and is currently fully occupied.
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