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EDC debates requiring Phase I environmental studies and appraisals for future land purchases
Summary
Board members discussed a proposed policy to require Phase I (and if needed Phase II) environmental site assessments and independent appraisals for properties previously used for commercial or industrial purposes; members debated who should pay and whether waivers should be permitted, and staff will return a written policy for a future vote.
A board member proposed that the EDC adopt a formal due-diligence policy requiring a Phase I environmental site assessment (ASTM standard) for future acquisitions of property previously used for commercial or industrial purposes, with Phase II testing if concerns arise, and an independent appraisal in the packet before a public vote.
The motion’s sponsor argued the measures are prudent insurance and due diligence after recent property purchases. "If property has been used for commercial or industrial [purposes], we would require a Phase I environmental site assessment completed under the ASTM standard," the member said during the discussion. The proposal suggested the seller would cover the study and appraisal costs, though members debated leaving payment responsibility negotiable.
Several members supported the appraisal requirement and urged flexibility on who pays for studies, recommending board votes to waive assessments in clearly low-risk cases. City manager cautioned that environmental studies are not legally required, but said staff can build a policy that includes Phase I as a protection and reserves board discretion for waivers.
Board members discussed estimated costs (word-of-mouth Phase I at about $1,500 to $15,000 depending on site complexity) and how to handle executive-session negotiations while preserving confidentiality of prospective property targets. The item was left as a discussion and staff was asked to draft written policy language for consideration at the next meeting, with attorneys available for legal review.
No formal policy was adopted at the meeting; members asked staff to prepare a draft policy and bring it back for vote.
