On May 25, 2023, the United States Supreme Court delivered their decision in Sackett v. EPA, ruling that as many as half of the 118 million acres of wetlands in the US are no longer protected by the Clean Water Act. Since 1972, the Clean Water Act (CWA) has been essential to the protection of the country’s waterways. What constituted a “water of the United States” under the CWA has now been changed to exempt isolated wetlands, which the court said don’t significantly affect US waters.

Repositioning brownfield and urban properties for redevelopment involves addressing environmental contamination, promoting economic viability, revitalizing neighborhoods, engaging communities, and filling financing gaps.   The process varies by state and even municipality, but in general it requires a public-private partnership (PPP) between the municipality, state, agency, private developer, and community stakeholders to balance multiple goals and objectives.  In those cases, be prepared for a longer pre-approval process of public engagement, education and outreach, and

The Michigan Senate recently passed a bill allowing housing development projects to be eligible for brownfield tax increment financing (TIF). This legislation broadens the potential use of TIF funds for redeveloping contaminated or underutilized properties for residential purposes that previously did not qualify because they are ….

Building on an urban or brownfield site typically involves unanticipated costs for assessment, remediation, infrastructure demolition, unstable soils, and multiple approvals.  These are issues that must be considered in your proforma when repurposing a property.  Fortunately, some of these unanticipated costs can be offset by local, state, and federal incentives, but this requires planning for the approval process.  These incentives have proven to be essential to successful urban and brownfield redevelopment and have proven to be instrumental in assisting communities to attract redevelopment to challenging sites.

The northern long-eared bat was listed as threatened in 2015. Due to its expansive range, which includes all of Michigan as well as all the other Midwestern states, this has resulted in an impact on project and construction schedules. Now the US Fish and Wildlife Service, under authority of the Endangered Species Act of 1973, as amended, announced on November 29, 2022 a final rule to reclassify the bat as endangered. This ruling will take effect (CONTINUED)

The due care obligation to test for, and potentially mitigate, vapor intrusion into buildings can be a hidden cost for both new construction and renovation. This environmental obligation has been a part of the due diligence process for purchasing and refinancing since around 2013, and applies to properties where volatile compounds were historically used on or adjacent to the property. Yet a surprising few understand the impact of this issue on development cost, timing, and on-going obligations. It may seem obvious that a standardized solution would be available, however

Changes to Brownfield Incentives

Building on a brownfield site typically incurs additional costs (assessment, remediation, demolition, unstable soils, unanticipated conditions, delays for approvals, etc.) that can be off-set to some extent by local, state, and federal incentives. These incentives have been essential to successful redevelopment, and have been used by communities to attract redevelopment to challenging and urban sites. Although there are a number of tax, grant, and loan incentives, one of the most common is tax increment financing, which uses incremental real estate tax capture to reimburse the developer for eligible costs. Recent changes to the tax increment financing incentive in Michigan will make portions of this program more accessible for transformational projects.

Most people believe all asbestos was banned in the United States in the 1980’s; however, this is not the case. Therefore, prior to renovations or demolition, an asbestos building inspection should be performed, regardless of the age of the building, because even building material products that were recently installed can contain asbestos. But first some background: asbestos is used in thousands of products because of its unique properties such

The United States Department of Housing and Urban Development (HUD) released the new version of the Multifamily Accelerated Processing (MAP) guidance in March of this year. This guidance applies to all projects except those that are “categorically excluded not subject to related laws and authorities” (CENST), although radon testing is still encouraged for these excluded projects.

Section 9.6.3.2 of the 2021 MAP guidance requires radon testing in 100% of ground contact units and 10% of the units on each floor above ground level. Previously, only a minimum of 25% of ground contact units were required to be tested.

Vapor migration into buildings has been the focus of assessment and control for over seven years, so many of our clients are painfully aware of the issues. For those of you that have not dealt with this, or want a broader overview, this edition of Tech-Bits covers the process of assessment and mitigation where vapors may impact buildings. Vapor intrusion is an issue that will be around for the foreseeable future, so understanding its impact on real estate timing, costs and operations can help you plan for the design requirements, and often associated delays.

Municipalities and industries discharging wastewater into the surface waters of the state are required by law to obtain a National Pollutant Discharge Elimination System (NPDES) permit.  Michigan’s Department of Environment, Great Lakes, and Energy (EGLE) has added per- and polyfluoroalkyl substances (PFAS) sampling into routine NPDES permit compliance sampling inspections.  EGLE has conducted sampling of municipal wastewater treatment plans (WWTPs) and industrial dischargers, finding that potential sources of PFAS include:

Part 201 of the Michigan Natural Resources and Environmental Protection Act is facing a number of proposed changes.  The trend suggests that the MDEQ is working to focus site-specific closure options included in the current rules and regulations on the due care process, a trend that has been developing over the last few years.  It should be noted that these changes were originally proposed for December of last year, and are undergoing discussions and revisions.  We anticipate that something will be finalized the last quarter of this year.  In the meantime, understanding the trends and concepts will assist with site assessments, due care programs and closures that are being conducted this year and may require a different evaluation once the rules are finalized.

Governor Snyder announced his plan to change the current lead standards for drinking water. Currently, Michigan follows the federal government’s “action level” of lead toxicity: 15 parts per billion. Through administrative rule-making, Snyder plans to lower the action level to 10ppb by 2020. Upon completion, Michigan will have the toughest lead standards in the nation.

The acquisition of Ed Schmid Ford on Woodward Avenue, now Suburban Ford of Ferndale, was a strategic opportunity for The Suburban Collection to expand their brand in Southeast Michigan by adding a new line directly across the street from their Suburban Buick GMC dealership.  This 85,960 square foot, full-service automobile dealership sells new and used cars, as well as offering full service auto service and collision repair.  

According to the US Environmental Protection Agency (EPA), Michigan is one of the few States without an Underground Storage Tank (UST) financial assurance fund. The absence of this fund and the high cost of acquiring the necessary financial resources as required by EPA may be contributing factors in Michigan being one of the top states in the nation with approximately 8,500 Leaking Underground Storage Tanks (LUST).  Until now.

ASTI Environmental (ASTI) has served small to medium size businesses throughout the nation for over 30 years.  That experience confirms that business owners have limited resources to handle environmental challenges and that those challenges occur at the most inopportune time, creating a major distraction from the real job.  To get business owners back to business, ASTI’s approach is to educate owners on environmental risk management and provide services that mitigate the risk and expense on those occasions when challenges arise.  

Why is a Phase I the Best Money You Can Spend??

Risk Management
An ASTM E1527-13 Phase I Environmental Site Assessment (Phase I) enables buyers to qualify for the innocent landowner’s defense to the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) for a property purchase.