The properties targeted by Legacy Land Stewardship are those that have environmental liability but that don’t have inherent real estate value that could be harnessed to offset the environmental expenses and liability. These are the properties on the brownfield value spectrum that are “upside-down”, those that developers and brownfield companies don’t want.
Companies with sites that meet this profile have expenses that can’t be avoided:
Annual Costs for Surplus Property
| Environmental | |
|---|---|
| System Operation & Maintenance | $$ |
| Groundwater Monitoring | $$ |
| Reporting | $ |
| Permits | $ |
| Financial Assurance | $$ |
| Property Management | |
| Taxes | $$$ |
| Insurance | $$ |
| Maintenance | $$ |
| Security | $ |
| Internal Staffing | |
| Accounting | $ |
| Legal | $$ |
| Real Estate | $$ |
| Environmental & Safety | $$ |
| Public Relations | $ |
| TOTAL | $$$$$ |
Because most or all these expenses are unavoidable and there are little to no offsets to the expenses, properties that are transferred to Legacy Land Stewardship must also include a transfer fee. The exact amount of the transfer fee is customized for every deal, and is an “open-book” process whereby the Seller and Legacy Land Stewardship discuss the expenses against the obligations being assumed by Legacy Land Stewardship, and a fair value is determined. Payment may be made all at once at closing, or over an agreed-upon time period.
Financial Assurance Replacement
Where an owner has provided or is required to provide Financial Assurance for its regulatory mandated obligations (e.g., mining site reclamation bonds or post-closure permits), Legacy Land Stewardship has the ability to step into the shoes of the owner/operator and The Legacy Assurance Package can be tailored to serve as the financial assurance mechanism.
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