ENVIRONMENTAL CONSIDERATIONS

RACER Trust is responsible for environmental cleanup associated with previous automotive-related manufacturing operations at the Property. However, the entity that owns the Property is obligated to meet certain conditions established by the New York State Department of Environmental Conservation (“DEC”), largely related to administrative and reporting procedures. The following is a description of the owner’s obligations, as well other important information about RACER’s on-going environmental obligations at the Property post-closing:

Owner’s Obligations Upon Closing

Obligations for Tenant Approval and Uses, Additional Subsequent Owner Obligations, and Upon Sale 

The State of New York has established certain requirements for this site and building, including mandatory tenant use notifications to State authorities, that apply to the Property regardless of ownership. The details of these requirements can be found in a DEC Consent Order (www.racertrust.org/files/2015-NYSDEC-Consent-Order.pdf) dated September 28, 2015, and a November 23, 1999 Addendum to a 1999 Consent Order (www.racertrust.org/files/1999-NYSDEC-Addendum.pdf) concerning the Property.

The applicable obligations are summarized as follows:

1. Not fewer than thirty (30) days prior to conveyance of the Property to a new owner, RACER Trust is to notify DEC in writing of the proposed transferee(s) and the proposed date of the conveyance.

2. RACER Trust is to convey ownership of the Property to any subsequent owner subject to the Tenant Use and Tenant Lease Terms set forth within the 2015 Consent Order and 1999 Addendum (“Order” and “Addendum”), which require certain uniform lease provisions as are found in Sections XIII and XIV of the Order and in Paragraphs III and IV of the Addendum.

3. RACER Trust is to convey ownership of the Property to any subsequent owner subject to an environmental easement to run with the land in favor of the State.

4. RACER Trust is to convey ownership of the Property to any subsequent owner subject to restrictive covenants that require any future owner to abide by the terms and conditions of Paragraphs II-IV of the Addendum in the redevelopment and leasing of any portion of the Property, and provide that the DEC has the right to enforce these restrictive covenants. 

5. Any subsequent owner of the Property is to provide DEC with the right of entry onto the Property and provide DEC with a suitable work space, including access to a telephone and the Internet, to the extent available.

6. Any tenant of the Property has an affirmative duty to obtain the necessary permits and/or other approvals which may be necessary for its operations under applicable Federal, State or local laws, rules, regulations and ordinances 

7. DEC requires annual inspections of the coated portions of interior floors. These inspections are the responsibility of the owner. See attached memo for more information.

RACER Trust’s Present and Post-Closing Environmental Obligations

1. RACER Trust will retain rights of access to conduct necessary environmental activities at the Property.

2. A sub-slab depressurization system, maintained by RACER Trust, shall remain operating in portions of the building. It is an effective remedy to mitigate indoor air impacts that result or may result from conditions beneath the slab. This system will remain in place and continue to be operated by RACER Trust post-closing.

3. RACER Trust will reserve a 3.513+/- -acre paved surface area for use in conducting environmental activities. The reserved area is part of this offering and will revert to sole control of the owner by a date to be determined by mutual agreement pre-closing. As part of the monitoring of the sub-slab depressurization system effectiveness and as dictated by the New York State Department of Environmental Conservation and New York State Department of Health, RACER Trust will occasionally conduct indoor air sampling in various locations within the building. Based on experience, the sampling frequency will be no greater than once annually, and in advance of such testing, RACER Trust will conduct an inventory in all spaces to be sampled to detect the possible presence of any potentially interfering compounds or chemicals.

4. A Record of Decision (“ROD”) focused principally on the remediation of groundwater at the Property is expected to be issued by DEC before completion of a sales transaction. The activities described in the ROD will likely require ongoing access by RACER Trust for purposes of remedial activities and maintenance. No groundwater from the Property is used for site operations.

• Environmental Fact Sheet
• Other Environmental Documents