regulatory-compliance

Environmental Regulatory Compliance

Situation

A commercial landlord who owns multi-tenanted industrial and commercial properties was concerned that certain tenants’ operations may have been impacting his property, for sale exposing him to potential liability and extensive cleanup. CA RICH was asked to develop a preventative maintenance program to protect against unnecessary cleanup costs and the potential for increased liability.

Solution

CA RICH developed a cost-effective multifaceted program incorporating education, inspection, sampling and reporting. Tenant properties were initially assessed to determine their processes, chemical usage, waste disposal habits, current permits, and fire safety procedures. Each business was then given a customized report citing critical needs with a specific list of necessary materials and where they could be obtained. Annually, each tenant receives an unannounced visit to check on adherence and maintenance.

In addition to the tenant inspections, the subsurface structures on each of the landlord’s properties, including storm drains and leaching pools, are also screened and sampled annually. Analytical results are then interpreted and reported along with recommendations where necessary.

Groundwater monitoring wells were installed on targeted properties for the establishment of a site-specific Ground Water Quality Monitoring Program (GWMP). The goal of this Program is to provide a means to monitor uppermost groundwater quality at specific locations on the property.

This landlord has enjoyed a noticeable improvement in tenant housekeeping practices overall since the implementation of the tenant inspection Program. Preventative maintenance procedures are being addressed in lease renewal language and tenants with poor practices have vacated and been replaced. This particular Program was designed to be treated as a tenant common area maintenance (CAM) charge, similar to landscaping and snow removal. In addition, when the landlord recently refinanced one of these multi-tenanted buildings, the lender’s Phase I assessment requirement was waived due to CA RICH’s ongoing Environmental Maintenance Program.