Frequently Asked Questions

1. What is a Brownfield site?

A Brownfield site is defined as any real property that is abandoned, idled or underutilized where environmental contamination, or perceived environmental contamination, hinders redevelopment.

2. What is a Phase I Environmental Site Assessment?

A Phase I Environmental Site Assessment, or PESA, is a non-intrusive study of a piece of property to determine if current or past uses may have resulted in an adverse environmental impact on the site.  There is no sampling associated with a PESA and the study entails review of regulatory sources, historical sources, interviews, and a site visit. The PESA may also recommend follow up sampling if conditions are identified that indicate a past, current or material threat of a release at the site (typically referred to as Recognized Environmental Conditions, or RECs).
 

3. When is a Phase I Environmental Site Assessment required?

Typically banks require a PESA to be performed before lending money on a piece of commercial property. Performance of a PESA prior to the purchase of a piece of commercial property also provides the purchaser with CERCLA liability protection (i.e. liability protection from assessment and clean up of environmental issues that occurred on the site prior to their purchase).

4. What is a property owners’ obligation after a Phase I Environmental Site Assessment is conducted?

There is no sampling conducted as part of a PESA. As such, a property owner is under no obligation to report the findings of a PESA to any regulatory agency.
 

5. What is a Phase II Environmental Site Assessment?

A Phase II Environmental Site Assessment is a more detailed look at a property based on the results of the PESA. A Phase II typically includes the sampling of soil and groundwater to determine the possible presence of contamination.
 

6. What is a property owners’ obligation after a Phase II Environmental Site Assessment is conducted?

If the Phase II ESA identifies detectable contamination above reportable levels at the site, the property owner is required to report the contamination to the North Carolina Department of Environment and Natural Resources. It is important that the property owner fully understand his obligations and the potential ramifications prior to authorizing a Phase II ESA at their site.
 

7. How can a Phase I or II Environmental Site Assessment benefit a property owner or purchaser?

Many times, a PESA or Phase II ESA can provide a property owner with the knowledge that their site is free of contamination, or it can provide a clearer picture of the environmental issues on site. In many instances, having this knowledge is beneficial to a prospective buyer or to a property owner as they try to plan their estate.
 

8. Can this program help a property owner who has inherited a site that might be contaminated?

Yes. Many times a person who inherited a piece of property may not be responsible for the cleanup of historical contamination that may be on the site. Conducting a PESA and Phase II ESA could help determine the presence and degree of contamination (if any) and help pave the way for the redevelopment or sale of the property. We encourage you to speak with the Town and their professionals about how this program could help you with your site.
 

9. Can underground storage tanks (USTs) be removed under the Town’s grant?

An underground storage tank may be removed under an assessment grant if the Town determines that the tank(s) must be pulled in order to conduct the assessment. The Town is accountable for any decision made to pull a tank and will need to document the reasons for its decision for audit purposes.
 

10. What is the North Carolina Brownfields program?

As stated previously, a Brownfields site is any real property that is abandoned, idled or underutilized where environmental contamination, or perceived environmental contamination, hinders redevelopment. Banks will often not loan money for redevelopment on these properties because they come with potential environmental cleanup liability. The NC Brownfields Program is designed to alleviate that liability for a prospective purchaser of these properties and facilitate their redevelopment.At the heart of the program is the Brownfields agreement -- in effect, a covenant not-to-sue offered to a prospective purchaser of a Brownfields property. Under a Brownfields agreement, a prospective purchaser agrees to perform those actions deemed by the Brownfields Program to be essential to make the property suitable for the proposed reuse.
 

11. What are the benefits of a Brownfields agreement to a prospective purchaser of a piece of commercial property?

A Brownfields agreement provides the following benefits:
Liability protection that can be shown to a lender in order to obtain project financing;
A “buy-off” from the Brownfields Program that the site is safe for its intended re-use;
Cleanup standards that are typically less stringent, and thus less costly, than those incurred by the site polluter in traditional cleanup programs;
The liability protection provided by the Brownfields agreement can be passed on to all new owners so long as they adhere to provisions in the agreement; and
Property tax incentives that significantly reduce property taxes for five years after completion of improvements to the property.
 

12. Can the North Carolina Brownfields Program be used in conjunction with the Town’s grant program?

Yes. In many instances the two programs can work closely together to promote site redevelopment, benefiting the seller, buyer and community as a whole.
 

13. Are there other programs that can help sellers and buyers of commercial property?

Yes. The State of North Carolina has several reimbursement programs to help clean up contaminated sites. These include the leaking underground storage tank trust fund that assists responsible parties in cleaning up leaks from USTs and the dry cleaning solvent fund to assist property owners with cleanup costs at dry cleaning facilities. There are also numerous other funding sources and tax credits available to assist with site redevelopment.
 
We encourage you to speak with the Town and their professionals about how this program could help you with your site or a site that you may be interested in developing!