What factors can indicate the need for a Phase II Environmental Site Assessment?

The need for a Phase II Environmental Site Assessment is primarily indicated by unresolved issues found during a Phase I assessment. A Phase I assessment serves to identify potential environmental contamination or hazardous materials on a property through historical research and visual inspection. If this initial investigation raises concerns—such as evidence of past toxic waste operations, on-site storage of hazardous materials, or nearby pollution sources—these unresolved issues necessitate a more in-depth Phase II assessment. This subsequent phase involves actual sampling and analysis of soil, groundwater, and other environmental media to determine whether contamination exists and to what extent.

In contrast, other factors like increased property taxes, high property appreciation, or low market interest do not directly relate to environmental concerns. They may reflect economic conditions or market trends that influence property desirability and valuation but do not indicate the need for a further environmental investigation. Thus, unresolved issues from the Phase I assessment directly drive the recommendation for a Phase II assessment, making it a critical factor in environmental due diligence.