Bisnow & Roux: Developers Need The Right Team
Developers Don’t Need To Shy Away From Contaminated Sites, They Just Need The Right Team
As an environmental consulting and management company, Roux gives clients the advisory, regulatory, and field services they need to successfully acquire and redevelop a brownfield site. But an environmental consultant alone is not enough; developers also need the expertise of an environmental lawyer to help guide them through uncertain waters.
Roux’s National Director of Real Estate Services and Vice President Frank Cherena sat down with Elizabeth Mack, Dallas Office Managing Partner at Troutman Pepper Locke, for an interview with Bisnow. As the world’s leading B2B platform serving the commercial real estate industry, Bisnow spoke to Frank and Elizabeth about the relationship between environmental consultants and legal counsel in relation to brownfields sites—what the work entails, the importance of collaborating, and how to complete a successful brownfield deal. See below for an excerpt of the interview:
Bisnow: From your experience, what are the environmental issues that most often complicate transactions or redevelopment—and why do you think those same mistakes keep happening?
Mack: The repeat culprits are legacy contamination that wasn’t identified or fully characterized, perfluoroalkyl and polyfluoroalkyl substances—PFAS—and solvent plumes, wetlands/fill issues and permitting gaps. These problems persist because teams may bring environmental counsel in late, rely on the seller’s diligence, and/or underestimate schedules and budgets. The fix is simple: Engage your own environmental consultant and environmental counsel early and allow us to tailor the diligence scope to the site. We can then provide a toolkit for the resolution of the issues, an analysis of potential liabilities, and cost and time estimates, which will make negotiations and budgeting smoother.
Sometimes, we are brought in later, when an unexpected issue arises. The issue could have been latent; at other times, the client did not have time to bring in environmental counsel prior to closing the transaction. We are here to help, regardless of when or how the issue arises.
Bisnow: Where does an environmental consultant fit into this picture? How can they help a developer spot potential environmental pitfalls before they become problems?
Cherena: Our role as an environmental consultant is key, but we are not the entire solution. I’ve seen the most successful conversions come from the combined efforts of the consultant and environmental counsel. The consultant serves on the front line, doing the background fact-finding, looking to create a clear narrative of the property’s environmental history and potential environmental hazards. Environmental counsel can then assess and provide analysis on the risks presented in the consultant’s findings and recommendations to help assess.
And sometimes, what Roux finds isn’t even an environmental problem; it’s a development or entitlement issue that we’re uniquely able to catch because we’ve seen so many different transactions. When you’ve worked on enough brownfield and redevelopment deals, you start to recognize the potential pitfalls early, and this, along with regular, open communication between the consultant and the attorney, helps make sure those issues get solved before they interfere with our clients’ plans.
If you’re interested in learning more about Roux’s advisory, regulatory, and field services and how to navigate potential environmental pitfalls alongside competent legal counsel, please contact us. To unlock our full article in collaboration with Bisnow, please click below.
