Alba helps U.S. Acquire Brownfield Site to Construct $1.7B NGA Campus in St. Louis
On December 13, 2018, the U.S. Government acquired 97 “brownfield” acres in the heart of St. Louis where it will construct a new $1.7B campus for the National Geospatial-Intelligence Agency (“NGA”). To protect against cleanup and third-party risks from pre-existing pollution conditions, Alba worked closely with the U.S. Air Force, NGA, Army Corps of Engineers and the City of St. Louis to obtain: (1) a robust Pollution Legal Liability (“PLL”) policy; and (2) an escrow account covering risks not addressed by the PLL. The new campus will be home to 3,000 jobs and bring significant tax revenue to the City.
EPA’s 1st National Federal Facility Site Reuse Award goes to McClellan Air Force Base.
On September 19, 2018, EPA presented its first annual “National Federal Facility Excellence in Site Reuse” award to the 3,500-acre former McClellan Air Force Base. As stated by EPA, the redevelopment “now supports more than 17,000 jobs and has generated $580 million in public and private investment.” EPA’s News Release recounts transfers of the former Air Force Base to what is now the McClellan Business Park dating back to 2007, when the Air Force accomplished the first ever Early Transfer of an NPL site owned by the military. Alba assisted the Air Force in the 2007 transfer as well as each of the three since, two of which required use of a “post-Cost Cap” Alternative described in detail here.
BCP Expands Its $105M (1,000-job) Brownfield Redevelopment in Baltimore
In 2018, BCP Investors, expanded its already highly acclaimed ($105M; 1,000-job) 2013 brownfield redevelopment by 50%. Prior to BCP’s redevelopment, the property had for decades housed a large oil refinery and terminal. Alba assisted BCP with the 2013 redevelopment as well as the 2018 expansion.
Michael Hill Co-Leads February 2019 CLE Webinar on Environmental Insurance, Escrows and other Risk Management Tools
On February 7, 2019, Michael Hill co-led a CLE webinar, Environmental Insurance, Escrows, and Contractual Transfers in the Context of Contaminated Property Cleanups, Purchases and Sales. The webinar reviewed traditional and alternative insurance products (e.g., Pollution Legal Liability, Cost Cap, Excess of Indemnity) as well as escrows, captives, contractual liability transfers and other tools in the context of the cleanup and/or transfer of contaminated properties. The webinar was designed for attorneys in the fields of real estate, environmental and bankruptcy serving industrial clients, governments, Brownfield developers, remediation contractors, “PRP” groups, and others.
IRMI Interview of M. Hill regarding Multi-Disciplinary Approach
On November 1, 2017, the International Risk Management Institute (IRMI) interviewed Michael Hill regarding Alba’s multi-disciplinary approach and other factors related to environmental risk management. The interview also covered issues such as the insurance industry’s greatest challenges and its “next frontier.”
EPA Recognizes Benefits of Fixed-Price Cleanups
On March 28, 2013, EPA’s Inspector General released a Report, EPA Should Increase Fixed-Price Contracting for Remedial Actions, noting FPCs’ cost-saving and other benefits and requiring EPA to do more. The Report noted the many benefits of fixed-price contracting, including significant cost savings, increased competition, and achievement of socio-economic goals. As reflected in the Report, EPA agreed to make fixed-price contracting a more standard policy moving forward.
Department of Defense Recognizes Benefits of Fixed-Price Cleanups
A May 16, 2006 Department of Defense study provides the best data available on the effectiveness of Fixed Price Cleanups. Tracking Performance on the Army’s Performance Based Contracts. Covering 42 contracts, the data show that cleanups are completed at costs that are, on average, 21% below the cost of traditional cleanups ($478M v. independent government estimates of $723M). According to the Study, FPCs contractors generally “meet or beat” schedules and do so with quality “from good to going beyond requirements.” Id., at 4, 24, 31, 33 (May 16, 2006). The primary driver of the cost reductions is the alignment of interests that insurance-supported contracts allow.