Ric Woroniecki speaks on Environmental and Property Condition Issues with Real Estate Acquisition
The Cornell Program in Real Estate welcomed Ric Woroniecki ‘78 of Southern Excellence Corporation, Inc. to campus Thursday, February 8th, for a presentation on “Environmental and Property Condition Issues with Real Estate Acquisition, Management & Divestment.” His presentation is part of the weekly Cornell Real Estate Industry Seminar.
Mr. Woroniecki highlighted the importance of understanding environmental and property conditions when negotiating a deal. The United States government has implemented many laws and regulations concerning the environmental remediation of property. Because of personal culpability, “you don’t want to buy a piece of property and then find out you have an environmental issue,” noted Mr. Woroniecki. “Unless you have taken the proper steps to reduce your liability, which includes having a Phase I Environmental Study, you will likely be held responsible for cleaning up the property, even if it wasn’t you who made the mess.”
Brownfield sites represent one exception to personal culpability. “Oftentimes you can do certain environmental tests and develop brownfield sites in such a way as to prevent exposure to the toxins. If completed successfully, the owner won’t be held personally responsible for clean-up if it is needed in the future,” explained Mr. Woroniecki. Special consideration for brownfield sites have helped spur infill development of otherwise useless sites.
The bottom line for those acquiring real estate is to get an environmental specialist on your team early in the due diligence process. “You don’t want to get within three days of closing on a deal before you find out the property has potential environmental issues,” said Mr. Woroniecki. “If you do find evidence that suggests the need for further testing, it could take months to understand what kind of remediation would be necessary to bring the property up to governmental standards.”
With 28 years in environmental & facilities engineering and an expert on environmental issues and real estate development, Mr. Woroniecki specializes in property condition assessments and environmental due diligence in commercial real estate. He has worked on office warehouses, fast food stores, “big box” strip mall developments, and skyscrapers. His technical expertise includes Environmental Impact Studies & Site Selection; Phase I & II Environmental Site Assessments; Real Estate Environmental Risk Management; Asbestos & Lead Based Paint Investigation and Abatement; Indoor Air Quality & Mold Evaluation and Abatement; and Brownfield Studies and Implementation, among others.
Mr. Woroniecki holds a B.S in Chemical Engineering from Cornell University and is a member of the Cornell Real Estate Council. He currently lectures at Cornell University and Georgia Institute of Technology, to many trade groups, and in state and federally sponsored seminars.
The Real Estate Industry Seminar is a weekly session held exclusively for students in the Program in Real Estate. It provides students the opportunity to interact with industry leaders and explore a number of current topics within the real estate field.