In 1997, Decorative Castings, Inc., a Grand Rapids based manufacturer of die castings, desired to acquire Bangor Industries located in Bangor, Michigan. Bangor Industries is a manufacturer of decorative chrome plated parts including plumbing fixtures and automotive accessories.

The Bangor Industries site had formerly been operated by a similar operation. The site had previously been identified by the Michigan Department of Environmental Quality (MDEQ) as a site of known contamination resulting from a release of solvents. Bangor Industries purchased the site in 1994 using a Covenant Not To Sue to protect themselves from remedial liabilities. To obtain the Covenant Not To Sue, Bangor Industries initiated limited remedial investigations to document site conditions at the time of their acquisition. The investigations were funded, in part, by monies placed into escrow by the responsible party (the previous owner) to complete remedial response activities. As a result of the remedial investigations, heavy metals and cyanide were also identified in groundwater at the site.

Envirologic completed a due diligence assessment of the site in August 1997. Consideration was given for completion of a Baseline Environmental Assessment (BEA). However, Envirologic and Decorative Castings recognized that in order to receive the MDEQ’s approval of the BEA, extensive engineering controls would need to be utilized. Due to the expense of these engineering controls, alternatives to a BEA were evaluated.

In lieu of the BEA process, it was determined that extending the existing Covenant Not To Sue to Decorative Castings, and pursuing a Limited Industrial Closure would provide liability protection, while increasing the future marketability of the property. Working with Decorative Castings’s legal counsel, Envirologic assisted in amending the existing Covenant Not To Sue to extend its protection to Decorative Castings. In addition, remedial response activities were implemented in a short time frame to allow for the property transaction utilizing, in part, funds that remained in the previously established escrow account. The results of the response activities identified additional areas of contamination that had previously gone unrecognized, providing further liability protection to Decorative Castings. Nevertheless, pursuit of Limited Industrial Closure is ongoing at the facility.

Also, successful completion of the due diligence project and extending protections of the Covenant Not To Sue allowed Decorative Castings to obtain financing for the acquisition of the property.

Working hand in hand with attorneys, the Michigan Department of Environmental Quality, the Attorney General, purchaser and seller, and other parties, Envirologic assisted Decorative Castings with acquisition of the Bangor Industries property.

Decorative Castings intends to expand operations of the Bangor operation which represents a significant economic development to the Village of Bangor. In addition, the property will be included in the Village of Bangor’s Brownfield Redevelopment Plan, providing additional tax incentives for Decorative Castings.

The purchase of this contaminated property resulted in both economic development within the Village of Bangor, as well as an environmental benefit resulting in closure of cleanup operations at the site.

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