|Highlight:||Key to our client securing refinancing on an impacted property.|
XCG was retained in 2015 to conduct a Phase I ESA for refinancing purposes of an industrial property that XCG had previously conducted a Phase I ESA and Phase II ESA in late 2009. The prior Phase II ESA laboratory results were below the appropriate Ministry of the Environment and Climate Change (MOECC) standards in place in 2009 for the property use. However, the Phase II ESA report indicated a few parameters exceeded proposed MOECC standards. Since many of the MOECC standards had changed since 2009, XCG conducted a comparison of the 2009 laboratory results, which indicated a slight exceedance of the petroleum hydrocarbon F1 fraction soil generic standard for a commercial/industrial land use in a non-potable groundwater condition published by the MOECC on April 15, 2011.
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XCG reviewed the MOECC models used to determine the generic standard and noted the generic standard was based on surface body of water being present with 36.5 metres of the subject property, which was not applicable for this property, as the nearest surface body of water was at least 140 metres away. Based on the increased distance to a down-gradient surface water body, and using the MOECC models used to derive the generic standard, the allowable petroleum hydrocarbon F1 concentration in soil would increase to a concentration nearly double that found in the soil in 2009.
XCG worked closely with the proposed lender and the client, regarding this issue, and the client was successful in securing their refinancing.