Q: What is the Environmental RiskScan™

A: The Environmental RiskScan™ is a low cost, quick turnaround scan of the environmental condition of a property or business based on review of standard governmental databases and other site specific information. The Environmental RiskScan™ was designed to meet the expressed desire of many Special Asset Group (SAG) staff for an initial scan of the environmental status of a property or business to assess the best means to manage the asset. Bank staff also see the Environmental RiskScan™ being used for lower value loans or to gain an environmental “snapshot” for a broad range of properties.

Q: For which type of property is the Environmental RiskScan™ most applicable?

A: The Environmental RiskScan™ was designed to provide SAG staff with a scan of the environmental condition of the property using readily available standard database and site use information. SAG staff has indicated that three primary types of properties fit the Environmental RiskScan™ profile best: 1) low value property, 2) historical industrial property, and 3) sites for which there is little to no current environmental information.

Q: How does the Environmental RiskScan™ compare to a Phase I ESA?

A: The Environmental RiskScan™ is a scan of standard environmental information to assess the probability of the presence of recognized environmental conditions (RECs) as defined in the ASTM standard for Phase I ESAs. The main difference between the Environmental RiskScan™ and a Phase I ESA is that the Environmental RiskScan™ does not include a site reconnaissance.

Q: Does the cost of the Environmental RiskScan™ roll into in the cost of a Phase I ESA?

A: Yes, the cost of the Environmental RiskScan™ rolls into the cost of the Phase I ESA, if a Phase I ESA is necessary.

Q: How long will it take for me to get my report?

A: The report will be delivered to you within 10 business days or there is no charge. We have provided our 10 Business Days or Free!™ for Phase I ESAs since 1997. We provide the same guarantee for our Environmental RiskScan™.

Q: How is the BLDI Risk Rating structured for Environmental RiskScan™?

A: The Risk Rating for the Environmental RiskScan™ assesses the potential for recognized environmental conditions (RECs) and provides an estimate of projected costs for completion of environmental due diligence (EDD). Potential implications of the property’s environmental condition to re-sale by a new purchaser are included, as applicable.

Q: For which areas can I get an Environmental RiskScan™?

A: The Environmental RiskScan™ is currently only offered for properties located in Michigan and Ohio.

Q: Who should advise on my legal requirements?

A: We always recommend our clients retain competent environmental legal counsel at the onset of any transaction, including foreclosure. Early involvement by legal counsel can help streamline the entire process.

For a more expansive version of this document please contact John Michalec of BLDI at 616-318-9179.