Friday, July 15, 2011

Is a Record of Site Condition based on a Risk Assessments risky? Toronto, Ontario

Consider this situation: Your client wants to develop a large real estate parcel in a trendy transition neighbourhood in Toronto.  The problem is the Phase II Environmental Site Assessment has determined the site is contaminated with a mix of petroleum hydrocarbons, PCBs, dioxins, and heavy metals. On top of that the estimated costs to remediate, if done, would kill the project.

Dead deal, right? Not necessary.


Brownfield site in Toronto

For sites such as these a Modified Generic Risk Assessment (MGRA) may be an option.  Risk Assessments (RA), which are detailed studies of the risks to human health and the ecology caused by exposure to contaminants at a particular site, have been around for years.  However amendments to Ontario Regulation 153/04, include the new MGRA model, which promises to be a quicker and more cost-effective approach to getting a Record of Site Condition (necessary for redevelopment) on a contaminated property.

Risk Assessments are detailed studies of the risks to human health and the surrounding ecology caused by exposure to environmental contamination at a site.

While this is good news, the Ministry of Environment reserves the right to place a Certificate of Property Use (CPU) on a Record of Site Condition based on any risk assessment. CPU’s are limitations on how a site can be used (in order to protect human health) and are registered on title. An example of a CPU would be a provision prohibiting basements if it is deemed there is a risk of noxious vapour intrusion from contaminates in the soil. 
Certificates of Property Use can limit how a site can be developed and are registered on title.
So are Risk Assessments, risky? While it is true both traditional RA’s and MGRA’s are somewhat subjective, the strength of any Risk Assessment ultimately lies in the ability of the Risk Assessor, who does the analysis of the scientific data and submits the report.

Consider though: The hypothetical real estate parcel I referenced above does exist: It is the 80-acre West Don Lands site in downtown Toronto, which is currently being developed as the Athletes’ Village for the 2015 Pan Am Games. After the Games this site will ultimately have 6,000 new residential units and 23 acres of parks and public space, all on environmentally contaminated land, but with on-going risk management measures in place.

It’s a brave new world.

Toronto's West Don Lands - 2015


Next 2 blogs: Things to remember about Ontario’s new environmental legislation