TRC Assumes Manufacturing Site Environmental Liabilities
Helps City and Owners Conclude Transaction for Redevelopment

A former manufacturing site occupied a 12-city block residential and commercial area in a city located in the upper Midwest. The facility, which opened in the late 1800’s, had been a source of community employment for over 100 years. When the plant closed, city officials saw a potential for redevelopment that could revitalize a major part of its urban area. The city was concerned about the liability associated with the environmental conditions and the former owners were concerned about the impact on the scope of the cleanup associated with a future use that could include residential development.

TRC worked with the city and the former owners to structure a transaction that allowed the city to take title to the property prior to the completion of the cleanup, while limiting the cost the former owners were required to contribute. This solution provided the city with the flexibility to keep all its future use options available, including residential development. By assuming the environmental liability and responsibility for the cleanup of the site, the parties concluded the transaction without the uncertainty of the environmental issues affecting the deal. TRC also undertook the physical demolition of the plant, keeping consistent with the city’s desire to immediately improve the character of the community.

TRC resolved the site’s environmental and redevelopment issues facing the former owners and the city. TRC assumed the legal and financial obligations to cleanup the property and satisfied the regulatory agencies and the requirements of the city. The city contributed its funding to the program and gained title to the property, allowing them to accelerate site redevelopment and to remove a potential eyesore. The city’s contribution offset the potential financial obligations facing the former owners and, coupled with TRC’s assumption of the liability, made the settlement affordable.

TRC undertook a proactive community relations program, in conjunction with the city, to minimize the impact of the project on the community. The site’s demolition and remediation presented unique challenges because it was located in a residential neighborhood. TRC and the city conducted numerous community and door-to-door meetings to keep the neighbors informed of the need for the project and the progress made by TRC to complete it. In talking to the community, the future improvements for the community and the necessity for the temporary inconvenience were emphasized.

TRC Exit Strategy Solutions
Exit Strategy provides a complete solution for environmental impediments to successful redevelopment.

• Facilitated real estate redevelopment
  TRC assumed additional project activities necessary to prepare the site for critical redevelopment in a distressed commercial and residential area.

• Provided a total liability transfer for a fixed cost
  By assuming long-term responsibility for meeting environmental obligations, TRC’s Exit Strategy program allowed the city and the former owners to eliminate their liability for the environmental issues at the site.

• Generated Community Support
  TRC worked closely with the city to proactively address community issues and to provide progress reports and address concerns.

• Structured settlement
  TRC provided the mechanism for all parties involved to resolve their differences and facilitate cross-funding of obligations. The Exit Strategy program addressed and mitigated the risks and uncertainties related to the unknown and unquantifiable environmental issues.