Environmental Issues in Transactions and Real Estate Management
SPR helps its clients understand, assess, and manage environmental risks at every stage of corporate and real estate transactions, from pre-transaction due diligence through operations and management. The firm focuses on supporting transactions by providing practical solutions; negotiating and drafting environmental provisions for contracts, deals, and leases; and identifying and evaluating tools like regulatory programs, tax credit opportunities, and environmental insurance to effectively allocate risks, liabilities, and costs. We work seamlessly with our clients’ environmental engineers and consultants to manage investigations, remediations, and compliance.
SPR represents buyers, sellers, developers, lessors/lessees, lenders, and other stakeholders in assessing and accounting for environmental conditions, which can include:
- Contamination and hazardous substances management and remediation, including emerging contaminants (such as PFAS and PFOAS);
- Solid waste management;
- Stormwater controls and discharges, including green roofs and green infrastructure installations;
- Wetlands and other natural resources;
- Waterfront considerations such as title to waterfront/riparian lands, permitting of bulkheads and other structures, flood zone planning and resiliency, and waterfront zoning;
- Building health and safety, such as lead-based paint, asbestos, and waterborne pathogens (e.g., legionella) planning and compliance; and
- Air and greenhouse gas emissions permitting and compliance.
These services are complemented by SPR’s expertise in environmental impact review and permitting, construction, brownfields redevelopment, climate change and resiliency, project finance, and litigation.
Brooklyn Developmental Center
SPR has served as environmental counsel to Empire State Development (ESD) with respect to the ongoing redevelopment of the Brooklyn Developmental Center with 100% affordable housing, including supportive housing, community facility and commercial uses, and substantial open space. This redevelopment has involved two primary phases with two environmental impact statements. The Firm has advised ESD in the preparation of both EISs as well as in the preparation of transactional documents.
Bronx Point
SPR is representing the development team selected by the City of New York to remediate a long- underused waterfront property, expand and modernize the existing Mill Pond Park, construct new affordable housing and build the Nation’s first brick-and-mortar Hip Hop Museum. SPR is advising as to the remediation of the site under the New York State Brownfield Program and as to state and federal environmental permitting.
Edge-On-Hudson
SPR represents Lighthouse Landing Communities LLC, the developer of the former General Motors Assembly site in Sleepy Hollow. The Edge-on-Hudson development is a mixed-use project, including residential, commercial and open space uses on a 97-acre site former industrial property bordering the Hudson River. The Firm has advised the project with respect to acquisition of the land from General Motors and its participation in the Brownfield Cleanup Program through investigation and remediation of this former industrial site. In addition to the Brownfield work SPR also assisted with environmental permitting issues, especially those pertinent to shoreline development, as well as preparation of an Environmental Impact Statement.
Equinor Wind – Empire Wind Offshore Wind Projects
SPR represents Equinor Wind US in the local and state permitting and development, and aspects of federal permitting, for the Empire Wind 1 and the Empire Wind 2 offshore wind projects that will supply New York State with over 2 gigawatts of renewable energy, power 1 million homes, and provide billions of dollars of economic benefits to the State. The projects also are expected to provide tens of millions of dollars in investments in long-term port facilities, related infrastructure, and new technologies. Together, these offshore wind projects will help the State meet the renewable energy and offshore wind capacity mandates set forth in NY’s Climate Leadership and Community Protection Act, diversify NY’s energy portfolio, and reduce greenhouse gas emissions. SPR assisted Equinor acquire various properties that will support its offshore wind projects, and helps navigate the remediation of those properties thorough the Brownfield Cleanup Program. The Firm also advises Equinor on parkland alienation and conversion issues, on the development of an offshore wind port in New York City that will service Equinor’s offshore wind projects and house the onshore substation for the Empire Wind 1 project, on other required local approvals and land rights, on contractor procurement, and on diligence for private finance relating to environmental permitting and litigation risk. SPR assisted Equinor on the development of the Beacon Wind 1 offshore wind project until early 2024, when Equinor transferred its interest in that project to another offshore wind developer.
Extra Space Storage
SPR managed the environmental due diligence for a $12 Billion merger involving 1,300 facilities across the USA. Facilities were located in at least 37 jurisdictions, including: AL, AR, AZ, CO, CA, CT, FL, GA, IA, IL, IN, KS, KY, LA, MA, MD, ME, MI, MS, MO, MN, NC, NH, NJ, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, VA, WI, and WA. SPR reviewed environmental due diligence documents including Phase I and Phase II site investigation reports, developed due diligence strategy, worked with Extra Space’s environmental consultants and local counsel to identify and manage risks across the portfolio, and supported SEC counsel with respect to environmental aspects of their 10b-5 opinion. The transaction closed on time.
Millennium Pipeline Company Litigation
SPR successfully opposed a portion of a proposed 424-mile natural gas pipeline that was to cross through Hudson River fisheries. The Firm addressed NEPA issues relating to project’s siting and impacts, Natural Gas Act issues pertaining to project necessity, and Coastal Zone Management Act issues regarding impacts to New York’s coastal zone. The Firm retained experts and submitted motions, objections and comments through multiple administrative and judicial proceedings, including before the Federal Energy Regulatory Commission, the US Department of Commerce, and the US District Court and Court of Appeals. After summary judgment victories by SPR and other governmental entities, Millennium terminated its route before the Hudson River.
Muss Development Corporation – SkyViewParc
Sive, Paget & Riesel represents the Muss Development Corporation with respect to the development of SkyViewParc, a mixed-use development located on the former Flushing Industrial Park site. SPR assisted with all aspects of the client's application to the New York State Brownfield Cleanup Program, including preparation of the initial application, revisions, submission of reports and all other aspects of the State-supervised cleanup of the property. SPR has also assisted the developer in seeking cost recovery from the former owner of the property responsible for the contamination.
Phelps Dodge Brownfield Project
SPR represents the purchaser of this one-time copper smelter property and listed Class-2 Inactive Hazardous Waste Site who is redeveloping its approximately 39-acres for commercial and light industrial use. Working closely with the prior owner, the developer and the regulators, SPR helped secure the Record of Decision and other regulatory approvals that have cleaned up this long-contaminated waterfront parcel and brought much needed development and jobs to this area after years of decline.
Prologis
SPR is environmental counsel to Prologis on pre-acquisition due diligence, transaction negotiation and redevelopment of industrial logistics properties in New York and New Jersey. The firm also counsels Prologis on environmental remediation and regulatory compliance, including waterfront permitting and complex waterfront title issues.
Queens West Development Corporation
The firm represents the Queens West Development Corporation (QWDC), a subsidiary of Empire State Development and a cooperative undertaking of the State of New York and the Port Authority of New York and New Jersey. QWDC has overseen the remediation and redevelopment of former industrial waterfront property along the East River in Long Island City, Queens. The project boundaries extend from the Anable Basin to 50th Avenue, west of 5th Street. SPR advised on the preparation of the EIS for the project, and successfully defended the EIS against a judicial challenge. The Firm helped to structure and negotiate environmental liability risk management protections associated with the property acquisition, oversee contaminated soil remediation pursuant to the Voluntary and Brownfield Cleanup Programs, secure the necessary tidal wetlands permits and other regulatory approvals that authorized the construction of eleven residential buildings (over 4,600 housing units), over 170,000 square feet of retail amenities, public streets and utilities, two public schools and 13 acres of public parkland and recreational areas that has greatly enhanced the Long Island City community. The Firm also represented QWDC and a private developer in litigation to recover costs associated with certain aspects of remediation.
Sendero Verde Project
The Sendero Verde project is nearing completion of a two-phase full-block development remediated under the NYS Brownfield Cleanup Program, that will create approximately 700 affordable housing units for very low to moderate income households and the formerly homeless. The combined phases of Sendero Verde will be the largest multifamily residential Certified Passive House in the US.
Thor Equities Industrial Logistics Development
SPR represents Thor Equities as environmental counsel on multiple acquisitions of industrial logistics properties in New York, New Jersey, Illinois, California and Florida. The firm also counsels Thor Equities on post acquisition environmental remediation and regulatory compliance issues in connection with redevelopment and management of its industrial logistics portfolio.
Two Trees River Ring Project
Two Trees Management, working with world-renowned Bjarke Ingels Group and James Corner Field Operations, has obtained master plan approval for The River Ring --a groundbreaking development on the Williamsburg waterfront that will create a new model for urban waterfront resiliency and transform the way New Yorkers interact with the water. River Ring is repurposing a former Con Edison industrial site for much-needed housing and completing a continuous public waterfront in North Brooklyn. The plan is anchored by a first-of-its-kind protected public beach and in-water park that will also insulate the inland community from flooding. SPR has successfully worked on all aspects of this project from the environmental due diligence, real estate transaction, through the ULURP approvals, environmental permitting and subsequent failed legal challenge to the rezoning.
Willets Point Development Project
SPR was retained by the New York City Economic Development Corporation (EDC) to serve as environmental counsel for the preparation of a Generic Environmental Impact Statement for the City of New York's proposed redevelopment of a 61 acre parcel in Willets Point Queens. The Willets Point project is a proposed redevelopment of an underutilized industrial area into a lively, mixed-use, sustainable community and regional destination. Besides the GEIS, the Firm assisted the City in other aspects of the proposed project, including hazardous waste remediation and environmental issues relating to the purchase of existing parcels within the project area and the parcels to be utilized to relocate existing businesses. The project, which required the rezoning of the area and adoption of an urban renewal plan, was approved in the Fall of 2008.
In 2017 SPR was retained by the Queens Development Group (a partnership of the Related Companies and Sterling Equities) to represent the project developer in connection with hazardous waste remediation pursuant to the Brownfield Cleanup Program. The project will transform an approximately 23 acre area with construction of New York City’s largest 100% affordable housing project in 40 years, a professional league soccer stadium, a public school, park and public open space amenities.