Environmental Concerns ?

[Mustang]

I'm in the process of purchasing an express exterior carwash. My attorney suggested that I have and environmental study performed on the property to determine if the property is contaminated. The site has been a carwash for the past 50 some odd years. I've never owned a carwash before so forgive me if my question sounds stupid but is there anything inherently environmentally toxic or hazardous (with the possible exception of hydraulic fluid) about an express exterior wash operation? I believe the current owner uses Simonize products. My first inclination is that aside from hydraulics, a carwash is just "soap" etc. which for the most part exits through the public sewer and the possibilities of a contaminated property are negligible.

I'm very interested in the opinions of other operators.

 

[Danny]

There are always possibilities of what could have happened in the past, especially on a 50yr old location. Just a few examples of how the ground could have become contaminated. Did they ever offer gas? When were the tanks removed, why and how long ago? Did they ever do oil changes or repair work? Engine cleaning? Did the reclaim ever overflow? It is not just soap and water in the reclaim. You have hydraulic leaks, oil, grease, break dust and contaminants from several hundred car a day in the reclaim. I know of a old location (years ago) where the reclaim became clogged and overflowed. Unable to get to the drain to run a snake through it they purchased a sump pump from the local hardware store and pumped the reclaim into the open lot next to the wash. Is the lot contaminated? Who knows for sure, but it is possible.

 

[jfmoran]

I'm pretty sure no bank will loan you a dime without at least a phase 1 environmental study done on that property. Take your attorneys advice and get it done.

John Moran

 

[ScottP]

Try to get the seller to split the cost with you. They are not cheap.

 

[pitzerwm]

Seller wants to sell he will pay for it.

 

[mac]

Even if you have to pay for it, it may be a good insurance policy. If you buy it, AND at some later time it is found to be contaminated, YOU will have to pay to clean it. That cost could easily ruin the investment.

 

[rph9168]

You should be able to put a contingency clause in a purchase agreement regarding a contamination issues. Unless there was gas on the site I doubt that there is a problem but I would have testing done to be sure whether the bank requires it or not.