Our business is built on finding solutions and providing answers. Here you’ll find answers to some common questions. Contact us if you want more information or if you have a question that isn’t answered below.
Q: What is an Elevation Certificate? I was told I need one for my property.
Q: What is an Elevation Certificate? I was told I need one for my property.
A: FEMA requires all new and improved buildings located within a Special Flood Hazard Area to be properly elevated. An Elevation Certificate documents key elevations of a building. It must be certified by a licensed surveyor, engineer, or architect. The certificate is used by the National Flood Insurance Program to demonstrate compliance with floodplain management ordinances and to determine the proper insurance premium rate. This map can help you determine if your building is located in a Special Flood Hazard Area.
To complete the Elevation Certificate, we will survey the elevations of each building level including the lowest horizontal structural members and the nearby ground. We will also photograph the building and identify the FEMA flood zone designation. Once the survey is completed, the Elevation Certificate form is completed and certified by our Licensed Professional Staff. The work can typically be completed within a week or two. The cost is dependent on factors unique to each property and typically ranges from about $500 to $1,000.
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Q: I discovered a 5,000 gallon Underground Storage Tank while constructing a road for a new subdivision in Rhode Island. The tank appears to have been used to hold gasoline. Do I need to remove the tank?
A: Abandoned Underground Storage Tanks are prohibited in Rhode Island. Your tank will need to be either removed or, if needed, closed-in-place. The RI Department of Environmental Management (RIDEM) requires that an environmental consultant complete a closure assessment of the tank. A typical Underground Storage Tank closure in Rhode Island consists of:
1) Notifying the RIDEM and the local fire department;
2) Retaining a contractor who will empty, clean, remove, and dispose of the tank and any contaminated soil;
3) Retaining an environmental consultant who will oversee the tank removal, inspect for leaks, and direct any cleanup that may be needed; and
4) Submitting a closure assessment report, prepared by the environmental consultant, to the RIDEM.
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Q: I plan to purchase a commercial property and my bank has required a “Phase I Environmental Site Assessment”. What is that and why is this required?
A: A Phase I Environmental Site Assessment is used to minimize your risk of liability due to environmental contamination and in turn your bank’s risk of liability or default. You could be held liable for contamination on your property even if that contamination occurred before the property was purchased. A good Phase I will alert you to environmental concerns before you purchase the property.
Let’s say you purchase a small retail strip mall that includes a restaurant, a yoga studio, and a book store. You wouldn’t expect any environmental concerns based on this type of use. However, a few months later soil contaminated with dry cleaner chemicals is discovered. It may be that a dry cleaner was located on the property 10 years ago and has since gone out of business. You, as the current property owner, would be responsible for cleaning up the contamination even though you didn’t cause it.
Most banks and savvy investors require a Phase I Environmental Site Assessment to minimize the risk of this situation. A Phase I can help you avoid unknowingly purchasing a potentially contaminated property or give you the information needed to renegotiate a lower purchase price. It can also potentially be used to provide future liability protection. A couple thousand dollars spent on an assessment now can prevent tens or hundreds of thousands of dollars of unexpected remediation and litigation costs later.
The assessment usually takes a few weeks to complete and is typically done at about the same time as the property appraisal. An Environmental Professional will conduct interviews, visit the property, research the history of the property, and review databases and records all to look for potential sources of contamination. You will be provided with a Phase I Environmental Site Assessment Report that documents the work done and what was found.
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Q: My bank told me I need a Phase I Environmental Site Assessment of a commercial property I plan to purchase and was given a list of consultants to choose from. Should I just pick the consultant with the lowest price?
A: The Phase I market is very competitive and prices typically only vary by several hundred dollars. Choosing a consultant based on price alone may be penny wise and pound foolish. You should decide if it’s worth saving a few hundred dollars now only to risk tens or hundreds of thousands of dollars of unexpected remediation and litigation costs later.
Not all environmental consultants are equally qualified or skilled. As long as everything runs smoothly then you probably won’t notice the difference between the lowest and highest bidder. However, if you find yourself the unknowing owner of a contaminated property and are either defending yourself against environmental liability claims, paying for remediation, or facing a steep drop in property value then the difference will become crystal clear.
Your bank is giving you the opportunity to choose a professional to protect you from potential future liability. Choose someone who you feel comfortable will provide you with a quality assessment that you can rely on to make informed decisions and that will protect you from future liability claims.
Download this list of questions to ask when choosing an environmental professional:
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