Phase I Environmental Site Assessment
A Phase I Environmental Site Assessment (ESA) is generally considered the first step of the systematic process of Environmental Due Diligence. The goal is to determine whether contamination may be present on the property, based on a non-intrusive search into historical activities conducted on and around the property. The purpose of conducting a Phase I ESA is to reduce the risks of unexpected or hidden environmental liabilities associated with a property. The results of a Phase I ESA determine whether further site investigation is recommended.
How do you know if you need a Phase I ESA?
Are you refinancing or renewing a mortgage for a commercial or industrial property? Are you planning on purchasing or selling a commercial or industrial property?
Financial institutions may require a Phase I Environmental Site Assessment (ESA) for a commercial or industrial property for due diligence purposes, prior to approving mortgage applications and refinancing.
Are you redeveloping or rezoning a commercial, industrial or community property for residential purposes?
Ontario Regulation 153/04 requires that a Record of Site Condition (RSC) is filed prior to being able to re-zone certain properties. A Phase I Environmental Site Assessment (ESA) may be required to accompany an RSC.