Selling the wash

[mac]

I would get several written quotes. This could range from $200 to many thousands. Also ask the bank exactly what’s they want.

 

[CheetahExpress]

After the hell we went through with Wells Fargo for an SBA loan, I wish you luck with the Environmental Study. The SBA and many banks absolutely HATE Dry Cleaners and Gas Stations. We had a Gas Station adjacent to our site and the Environmental Survey took forever to do while they tried to unravel the State paperwork on the underground tanks. They'll be looking for Dry Cleaners' chemicals that might have run off onto your property and the environmental study could be extensive and very time-consuming.

 

[Roz]

Depends on your risk tolerance and if you plan to dig below the pavement to change the place. Most banks look for ways to not lend money for a car wash. Asking for a phase 2 study is becoming more common. We looked at a wash that had a phase 2 done by the seller as it usually stays with the seller and future buyers (if you walk) will have the same issue. Easier for seller to just disclose the report so they do not waste time. We ended up walking away from the wash even at a discounted price as the phase 2 showed the remnants from the gas station there prior to the carwash being built. Just did not want to deal with a potential environmental headache in the future.

 

[Keno]

Will a self serve car wash pass a Phase 2 Environmental study? Also, there was a dry cleaner on the next lot for a year or so. Having a hard time deciding whether to do it or not. The Buyers bank is requiring it.

Something to consider, if the Phase II finds anything adverse, it must be reported to the authorities by the inspector. And the owner is legally responsible to take any actions to fix the adverse findings - whether they sell or keep the property. This could end up costing the current owner $$$$ if something is found, and the buyer can walk. Its a don't know, no issue situation, but once the issues are known, they must be corrected

 

[bert79]

When we bought our wash in 2018 we had an environmental survey done. We're in Michigan which is heavily polluted by years and years of the manufacturing industry. As I understand it, since the government wants the polluted land to be used an owner can conduct an environmental study at the time of purchase and be relieved of liability for cleanup of existing pollution in the future. A baseline needs to be found though. That requires a phase 1 study. Our phase 1 cost $1800. It only consisted in a site visit and a check of historical documents and historical aerial views. We are right next to a gas station that has had tanks leak over the years and a chemical factory/foundry sits right behind our property. Given that there are currently monitor wells on our property which monitor the leaks at the gas station and the nearby foundry our environmental company recommended a phase 2 which consisted of drilling holes using instruments to measure the volatile chemicals coming from the ground. There were chemicals found but none which required remediation for the car wash reno that we were doing. The phase 2 cost us $2900. All of this cost was on us as the buyer per our negotiated contract, but the seller had no reason to pay for this because the liability protection for us in the future was worth it to us. Just sharing our experience. Hope it helps.

 

[Keno]

Sounds like this maybe different rules in different states. Do your own research based on your location. But I’m pretty sure that there are federal epa implications too

 

[edredtop]

First question would be: "Do the impact study findings get reported to a governmental agency?"
Can you imagine finding out you had been leaking a contaminant into the ground, you lose your buyer, and a government agency comes after you for the clean up?

 

[Jsshac]

I’m at the point where I can go fishing anytime I want and have the $$$ in the bank. That’s just me though.

I’m keeping my washes and still have plenty of time to fish

 

[Kimberly Berg]

This just keeps getting stranger. My broker tells me the buyers request I get an environmental impact study. Cost is 3 to 5 thousand. I’m normally a calm person but the pressure keeps building. Would love to smack someone. Any ideas?

Seems odd, why would you need an Environmental Impact Study for an existing car wash? Are they concerned the oil separator pits are leaking? Are your bays connected to the sewer system?

 

[soapy]

Environmental impact studies look into the entire history of the property. That is why most banks want a study done. They don't want to lend money and then find out later they could be on the hook if the owner walks away from a problem. It will also protect the current selling owner if they find something in the future they can't come back on you and say that you were the source of pollution. I bought a wash that had been part of a gas station. The tanks had to be pulled and the state certified the site was clean at the time of purchase. No one can come back on me in the future if anything shows up.