United States
Environmental Protection
Region 5
77 West Jackson Blvd.
£hicago^llinoi^>0604
Illinois, Indiana
Michigan, Minnesota
Ohio, Wisconsin
{J Former Northwestern Barrel Superfund Site1
Superfund and Property Values2
South Milwaukee, Wisconsin
December, 1997
This fact sheet is intended to help residents near
the former Northwestern Barrel Company site
answer questions about property values. The
information is very general and may not be
applicable to all situations. For more information,
contact the agencies listed at the end of this fact
sheet.
Question: What is happening to property values
in the neighborhood near the former
Northwestern Barrel Company site?
Answer: The South Milwaukee City Assessor's
Office is monitoring sales activity to identify any
changes in property values as a result of the former
Northwester Barrel Company site and to try to
determine whether any changes are long-term.
U.S. EPA recommends you consult this office, real
estate agents, banks and other lenders,
appraisers, or private assessors for additional
information about local property values.
Question: I think my property values have gone
down because of my home's proximity to the
site. Can U.S. EPA pay me for the property
value I have lost?
Answer: U.S. EPA is concerned about any
unintentional impacts that may result when a home
is located on or in proximity to a Superfund
site—for example, potential adverse effects to
property values. However, the Superfund law does
not authorize U.S. EPA to compensate individual
homeowners for losses of property values
associated with being near a Superfund site. U.S.
EPA's mission under Superfund is to identify sites
with existing contamination and to perform or
oversee necessary cleanup actions. U.S. EPA's
experience has been that the performance of a
Superfund cleanup has an overall beneficial impact
on the community, including restoring property
values.
Question: What can I do if my home's property
value goes down because of the former
Northwestern Barrel Company site?
Answer: Based on past cleanups, U.S. EPA
believes that a Superfund cleanup has an overall
beneficial impact on the community, including
rebounding property values. In some cases,
property owners have consulted an attorney about
the possibility of recovering the lost property value
from the Potentially Responsible Parties.
Residents may want to consult with the South
Milwaukee City Assessor's Office about the
possibility of property tax abatements or
adjustments, based on impacts on property values
from pollution concerns. None of these actions are
within the jurisdiction of the U.S. EPA.
Question: Can I be held responsible for
pollution on my residential property?
Answer: Under the provisions of the Superfund
law, the current property owners of a Superfund
site, including areas designated for contamination
investigation under Superfund, may fall within the
definition of "owner" and thereby qualify as a
potentially liable party. It is U.S. EPA policy not to
take actions against a residential home owner,
unless the owner polluted the site, does not
cooperate with the response action, does not use
the property for residential purposes, or has made
1 In this fact sheet, the term "Superfund site" refers to a site being addressed under the
authorities of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA),
more commonly know as the Superfund law. In this context, the former Northwestern Barrel site is
considered a Superfund site.
2 This fact sheet is adapted from "Frequently Asked Questions Concerning Superfund and
Property Values," September 9, 1997 developed by U.S. EPA.
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existing pollution problems worse (a release or
threat of release of hazardous substances), and
forced a cleanup action by U.S. EPA at the site.
Question: Is a bank or other lender liable for
contamination if it lends money (or has lent
money) to owners or developers of property on
the former Northwestern Barrel property?
Answer: It is U.S. EPA's policy not to pursue
cleanup cost repayment from lenders who merely
provide money to an owner or developer of a
contaminated property, provided that they do not
participate in daily management. If it meets the
requirements of Superfund's "secured creditor
exemption," a bank or other lender that lends
money to owners or developers of contaminated
property will not be liable as an owner or operator
of a Superfund facility. The secured creditor
exemption describes various activities that lenders
can undertake without losing their protection from
owner/operator liability. For example, lenders can
investigate a facility, require another person to
clean up the facility, and provide financial advice to
a borrower.
Question: What information can U.S. EPA
provide to potential buyers?
Answer: U.S. EPA can provide information to
potential buyers about the site, including
background information on the Superfund program,
the Agency's activities and responsibilities, site
investigations and cleanup plans. Site-specific
information can be accessed from the site
information repository at the South Milwaukee
Public Library.
Question: Do I have to disclose the
contamination on my property to potential
buyers?
Answer: Disclosure to potential buyers is governed
by state law. Many, but not all, states have laws
called disclosure laws —that require an owner to
give information on known or possible pollution
problems on or near their property. It appears that
Wisconsin allows disclosure to be a matter
negotiated within the contract for sale of property.
Contact a real estate representative, state and/or
local government agencies, or an attorney; they
should be able to quickly tell you if your state has
such a law or if there is a deed restriction on your
property. (At present there are no deed restrictions
related to the former Northwestern Barrel Company
site cleanup on residential property in the vicinity
of the site.)
Question: Can I refuse or limit U.S. EPA access
to my property? If U.S. EPA uses my property
for sampling, will I be paid?
Answer: Property owners can refuse to allow U.S.
EPA onto their property, unless U.S. EPA
representatives have court papers that give them a
legal right to conduct specific activities on a
property. U.S. EPA does have the right under the
Superfund law, CERCLA, to come onto private
property to investigate possible contamination or
perform cleanups. In most cases, U.S. EPA
personnel are willing to work around a property
owner's schedule and will conduct investigative or
sampling activities with as little inconvenience to
property owners as possible.
U.S. EPA does not pay property owners for taking
samples from their property. For one-time or short-
term sampling, U.S. EPA tries to not disturb the
property. In the event that the property is
disturbed, U.S. EPA tries to restore any damaged
area—such as replacing soil taken during
sampling. For long-term events like ground water
monitoring, U.S. EPA tries to minimize changes to
the property and takes responsibility for
maintenance and safety of sampling equipment
and areas.
Question: Can U.S. EPA take part or all of my
property? Will I be paid if U.S. EPA does take
my property?
Answer: U.S. EPA makes every attempt to clean
up sites with minimum inconvenience to property
owners. In extraordinary situations. U.S. EPA has
the authority to acquire property when necessary to
protect residents' health or their environment. In
previous situations where U.S. EPA felt that it was
necessary to address a serious threat to human
health or that a cleanup strategy could not proceed
without a portion of a property, U.S. EPA has
acquired a part or all of a property. U.S. EPA will
provide an explanation to the property owner for
this action. By law, U.S. EPA must pay the
property owner fair market value for any land
acquired.
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Question: Can U.S. EPA move me from my
property? How long can they keep me away
from my property?
Answer: In unusual situations, U.S. EPA can move
property owners for short periods of time, or
permanently, as part of a cleanup action to protect
human health and the environment. For instance,
a resident might be temporarily relocated if the
contamination is located very near or under a
home. Relocating a resident is typically not
necessary and extremely rare in Superfund
cleanups.
Relocation may be temporary or permanent
depending on U.S. EPA's ability to clean property
to a condition where the contaminant(s) no longer
threaten human health or the environment.
Question: Will U.S. EPA release specific
addresses of homeowners at which samples
have been taken?
Answer: No, U.S. EPA does not release specific
addresses to the general public, but will provide
information to the homeowner if a sample was
taken in the home. However, general information
concerning the fact that samples have been taken
in a particular area is part of the administrative
record for site action.
Question: Will there be an immediate appraisal
of my property to adjust my tax status?
Answer: The City Assessor's Office reports that
sale information available to date indicates no
documentable off-site loss in value. If concerned,
you should contact this office with additional
questions regarding appraisal activities. U.S. EPA
does not have jurisdiction to appraise property or
adjust tax status or request tax authorities to
reassess properties.
Question: Will I be able to refinance my loan
due to devaluation of my property?
Answer: Although there is no evidence of property
devaluation at this time, this is a question that is
best answered by your lending institution.
Question: As a prospective purchaser of a
piece of property that is on or near the former
Northwestern Barrel site, what would my
responsibility be for contamination which
existed at the time of purchase?
Answer: For purchases of site property, U.S. EPA
has developed a model prospective purchaser
agreement. Using this tool, U.S. EPA can enter
into an agreement with prospective purchasers not
to sue the purchaser for contamination that existed
at the time of the purchase. For purchasers of
property near a Superfund site, the possibility of
liability for site cleanup costs is very slight.
Question: Do property values rebound? How
long will it take?
Answer: U.S. EPA suggests that you contact the
South Milwaukee City Assessor's Office or a local
representative of the real estate community for
information on local property value trends and
forecasts. The City Assessor's Office will
thoroughly consider any evidence regarding
changes in value for the 1998 assessment year.
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For Additional Information
If you have questions or concerns about the former Northwestern Barrel site, please contact the following
individuals.
Property Values, Tax Appraisals:
City of South Milwaukee Assessor's Office
2424 15th Avenue
South Milwaukee, Wl 53712
(414) 768-8052
Cleanup Issues:
Bri Bill
Community Involvement Coordinator
U.S. EPA
Office of Public Affairs (P-19J)
77 West Jackson Blvd.
Chicago, IL 60604
(312) 353-6646 or 1-800-621-8431
Perspective Purchasers Agreements:
Thomas Krueger
Office of Regional Counsel, U.S. EPA
77 West Jackson Blvd.
Chicago, IL 60604
(312) 886-0562 or 1-800-621-8431
Sam Borries
On-Scene Coordinator
U.S. EPA
Superfund Division (SE-5J)
77 West Jackson Blvd.
Chicago, IL 60604
Andy Boettcher
Hydrogeologist
WDNR
Sturtevant Service Center
9531 Rayne Road, Suite 4
Sturtevant, Wl 53177
(312) 353-2886 or 1-800-621-8431 (414) 884-2339
*>EPA
United States Environmental Protection Agency
77 West Jackson Blvd. (P-19J)
Chicago, IL 60604
First Class Printed on Recycled Paper
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