I almost bought a mobile home park this week. The contract was signed and I was immersed in due diligence. The seller said he had a clean Phase I. The Phase I did indeed state that it found “no substantial evidence of recognized environmental conditions”.
Being a rather anal type, I read the full report. Deep within the dense jargon filled bowels of the report was this nugget. The park is 2 blocks from a superfund site, a former zinc smelter on 160 acres. Six of those acres are covered with trailings from the manufacturing process, stacked up to 57 feet high. These trailings are contaminated with good things like arsenic and lead. It seems that over the years these trailings had been used for other things as well, like fill for the local roads and driveways. Testing of the neighboring residential properties has revealed elevated levels of lead and other industrial chemicals. The EPA has recommended further testing of nearbye property.
If this Phase I had been ordered for the lender, I am quite confident that it would have recommended a Phase II.