You are interested in purchasing, refinancing or leasing a commercial property. As one who prefers to make well-informed, risk-identified transactions, you know the importance of a Phase I Environmental Site Assessment (Phase I) and plan to perform due diligence. While you know of a Phase I and are on the cusp of choosing a consultant, you are curious about what the actual process entails. What should you expect from your environmental professional and how can the process be tailored to meet your transaction? Agree to a Scope of Work Discuss with your environmental professional what your goals are, and what
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A: A sale where the seller “holds the paper” – in other words, sells the property to a buyer for no money down or a small deposit, with the balance of the selling price converted to a mortgage on the site is a common occurrence in the real estate industry, particularly with a contaminated property. This type of sale may be the best option when the site has known contamination that prevents a buyer from obtaining traditional bank financing, as many lenders shy away from extending loans on contaminated properties prior to receiving a Permanent Solution (colloquially known as a
On March 9, 2020, the Massachusetts Department of Revenue (DOR) released a “Working Draft Regulation: 830 CMR 63.38Q.1: Massachusetts Brownfields Tax Credit” for public comment. Cooperstown Environmental LLC staff have thoroughly read through the proposed guidance and have summarized some of our observations here for our clients and colleagues. Comments are due back to DOR by April 3, 2020. Many people will be surprised that the Brownfields Tax Credit program has operated since its inception in 1998 without a formal regulation in place. Instead, the DOR has operated on guidance and documents in the form of eight Technical Information Releases
With interest rates as low as they currently are, a lot of commercial property owners are refinancing. Depending on the property history, many lenders are going to require some environmental due diligence as part of the process. You likely did a Phase I Environmental Site Assessment (Phase I) when you originally purchased the property or perhaps one was not done because the property was purchased before Phase I’s became common, you inherited it, or you originally bought it in cash. You probably feel like you don’t want to dig up something from the past and just want to get your
Prospect Iron and Steel Corporation is a family company that was started by the grandfather and granduncle of current vice president Bob Nash more than 92 years ago. After 87 years in Somerville, Prospect Iron and Steel moved their scrap recycling business to Lawrence, Massachusetts in 2014, a move prompted by an eminent domain taking to allow the Massachusetts Bay Transportation Authority (MBTA) Green Line to move into Somerville. Before purchasing the property, the company performed due diligence activities and determined that the property on Medford Street they planned to purchase was contaminated. The company’s environmental professional determined that the
A: Like it or not, the answer is almost surely “Yes”, the credits are taxable. A recent US Court of Appeals case regarding whether a recipient of New York State Brownfield credits had to pay tax on the credits again shines a light on this issue – in our experience, the question of if your tax credit will be taxed is one of the most common questions we field. In Massachusetts, the Brownfield tax credits became transferable in 2006, and a secondary market has developed where credit recipients can sell excess credits at a discount to face value to generate
As 2019 comes to close, we at Cooperstown Environmental LLC find ourselves reflecting on advances in the Massachusetts environmental industry over the past decade. We wanted to share a few of the major areas of progress with our clients and colleagues. A big thank you to everyone who has contributed to the growth of this industry and to making Massachusetts a cleaner and safer place! Since you are probably all too sick of the end-of-the-decade “Top 10” lists we created a Pick Six of highlights: Vapor Intrusion In December 2010 the Massachusetts Department of Environmental Protection (MassDEP) published the Vapor Intrusion
Thank you to Susan Curtis and James Curtis for hosting a lovely 2019 Cooperstown Environmental holiday party at La Fina in Andover. We had a wonderful evening of food and drink with our wonderful colleagues and clients.
How can one screw up an otherwise eligible Massachusetts Brownfield Tax Credit Application? It looks easy, but it's not! The Massachusetts Brownfield Tax Credit is a well-established incentive program designed to provide financial relief to innocent parties who incur significant costs to clean up contaminated properties for commercial use. A significant amount of information is available about the program online, including the application forms, leading some to conclude that a successful application should be straightforward. Unfortunately, there are actually many traps and dead-ends that can cause hopeful recipients to miss out on recovering eligible costs or, in some unfortunate cases,
Thank you to the LSP Association for putting on a wonderful 2019 LSPA Annual Dinner. We enjoyed a wonderful evening of food, conversation and seeing people we hadn't seen in years. Additionally we are proud be have been able to celebrate Isaac Anderson being presented with (along with Brian Roden of MassDEP) a 2019 LSPA Contribution to the Practice Award. (more…)