ELT has announced the acquisition of and assumption of environmental liabilities at two (2) EPA Superfund sites located in California. The transactions involved the stock purchase of Valley Wood Preserving, Inc. ("VWP") and Coast Wood Preserving, Inc. ("CWP") located in the cities of Turlock and Ukiah.
"This is a significant transaction because it highlights the feasibility of the EPA Superfund Task Force goals to encourage private investment through the environmental liability transfer process for the benefit of quicker cleanups and redevelopment of sites-that are often on the NPL for decades." said Colleen Kokas, ELT Executive Vice President. Ms. Kokas is a former 30-year state environmental regulator and was recently named 2017 Brownfield Person of the Year.
The EPA added both of these wood processing sites to the National Priorities List (NPL) during the late 1980's and mid 1990's and ultimately entered into consent decrees for the cleanup with the polluting parties. Companies affiliated with ELT acquired 100% of all outstanding stock of VWP and CWP. The "new" VWP and the "new" "CWP then entered into Consent Decrees with regulatory agencies to become the Responsible Parties at the respective sites. Under this framework, the regulatory agencies agreed to stop pursuing the former stockholders of VWP and CWP who have thereby been relieved of Responsible Party status.
CDC will now work to reposition the sites for new development. At 13 and 8 acres respectively, the Turlock and Ukiah Superfund sites both have favorable development attributes that CDC believes will attract new industrial users. The sites are each located within active industrial parks, have quick access to major transportation channels, and have access to a strong local workforce.
"We are very pleased the EPA and associated agencies have permitted the transfer of environmental liability at these Superfund sites to ELT," said Tim Smith, Senior Vice President of ELT. "We will now move forward with an expeditious and responsible cleanup plan designed to return these sites back to productive reuse. We expect new job creation and new local tax revenue as a result."