Targus was retained to perform an environmental site assessment (Phase I ESA and additional non-ASTM services) of a multitenant retail center at the conclusion of a prior financing term. The subject property encompassed approximately 45 acres anchored by a grocery store with fuel center. Prior to the redevelopment of the retail center, the property was formerly occupied by an industrial manufacturing facility serving the oil and gas industry for approximately 50 years.
The historical industrial operations resulted in releases of chlorinated volatile organic compounds (VOCs) which had affected soil and multiple underlying beneficial use groundwater bearing units. The VOC plumes extended off-site, beneath a residential neighborhood and to near a public elementary school. The facility had been entered the Texas Commission on Environmental Quality (TCEQ) Voluntary Cleanup Program (VCP) followed by corrective action events in coordination with demolition of former structures and features by the responsible party. Targus’ client had entered into the original financing based on a combination of liability limitations of the VCP program and indemnities from the former owner (the VCP responsible party).
Corrective actions had included soil removal, potassium permanganate treatment of soil, and groundwater injections combined with on-site and off-site recovery, pretreatment, and discharge. Although these measures reduced VOC contaminant concentrations in some media and groundwater bearing units, plume capture had not been fully completed and secondary source material persisted. Thus, the projected established timelines had not been met. In addition to extensive and thorough file review, Targus communicated with TCEQ project representatives who affirmed that they were satisfied with progress and that the liability protections offered by the VCP certificate remained in place. Based on the collective information presented in Targus’ assessment report in light of the private party liability management provisions, the client extended the borrowers debt term.
