|Client:||Kootenay Holdings Ltd.|
|Location:||Edmonton (and area), AB|
XCG was retained to complete a Phase I ESA to secure financing for a multi-tenant commercial shopping centre in the Edmonton area. One of the on-site tenants was an active, long-term (+20 years) dry cleaning facility. Based on the findings of the Phase I ESA, it was determined that the on-site dry cleaning operations represented a potential source of impacts to the subject property.
Based on the discussions with the property owner and the lender, XCG developed an understanding of their environmental and business risk tolerance and their key concerns, which related to the potential impacts to the on-site indoor air quality. As such, taking into the account the site setting as well as the current and future use of the site, XCG determined that, rather than completing a standard Phase II ESA involving soil and groundwater quality investigation, which would be fairly costly and time consuming, the most appropriate and cost effective way to address these concerns was to conduct indoor air quality monitoring. The indoor air quality monitoring results in all the tenant units met the standards agreed upon by both the property owner and lender.
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The findings of the Phase I ESA and the subsequent indoor air quality assessment, addressed the property owner’s and the lender’s concerns related to the on-site dry cleaning operations. By understanding the drivers behind the deal, and the stakeholder’s risk tolerance, XCG was able to facilitate completion of the lending transaction without much of a delay and at a cost that was significantly lower than a cost associated with a typical Phase II ESA completed at a dry-cleaning facility.