BL Companies Director of Business Development and Client Care Sam Haydock was quoted in a recent Hartford Business Journal article headlined “Banks emerge as key gatekeepers under CT’s new environmental cleanup system.” As the lede of the article states, the new law was intended to make commercial property redevelopment easier by dismantling the Transfer Act. But experts are saying that banks, which are “expected to continue demanding extensive environmental testing before financing deals,” are the new gatekeepers. Here is the excerpt where Sam was quoted:
“Sam Haydock, a principal with engineering, architecture, environmental and surveying firm BL Companies, said lenders are increasingly consulting attorneys earlier in commercial real estate deals because of uncertainty surrounding the new rules.
For example, contamination uncovered during lender-required environmental testing can trigger obligations for property owners to report findings to state regulators.
Haydock predicted fewer owners will voluntarily investigate environmental conditions before putting properties on the market as a result.
“Under the old system, there just was less obligation to report,” Haydock said.
Buyers and lenders are likely to become the primary drivers of environmental investigations, he added.
“The due diligence and the investigations are really now driven by the market and not so much by a seller or an owner wanting to see what they have,” Haydock said.”
Read the full article here.