The Seller was a lender who foreclosed on vacant land, not knowing it was contaminated. Lender wanted to avoid environmental liability and responsibility. The property had been vacant for over a decade, and development prospects were unlikely due to the cost of remediation.
Hyperion Due Diligence
During the acquisition process, Hyperion wrote a preliminary Remediation Work Plan and began negotiations with the Water Board for a path to obtain a No Further Action Letter. Hyperion also hired an environmental consultant and grant expert to determine if the site could be a candidate for government environmental grants. Hyperion advised the local Water Board that Hyperion could not and would not close escrow unless confirmation of government grant funds was confirmed prior to close, due to the fact the estimated cost to remediate far exceeded the clean value of the property.
Hyperion Solution
Hyperion acquired the property after getting Water Board approval of State environmental grants. Hyperion worked quickly and efficiently with Water Board staff, and was able to obtain approval of the grant in less than 30 days, due to the heroic efforts of Water Board Staff. This is an example of how important a great working relationship with local regulators and Water Boards can help get projects remediated to the benefit of former owners, the public, the Water Board staff and Hyperion. Hyperion bought the property after a 45-day due diligence period, and subsequently obtained a No Further Action Letter. The environmental liability to the Seller was eliminated.
