Insurance for Cleanup Liability

[Aimee Houghton <aimeeh@cpeo.org>]

The following article appeared in the December 1997 issue of
"Brownfields News" and has applicability at closing military
installations.

Aimee Houghton
CAREER/PRO

******************

LESSONS FROM LOWRY
Robert P. Hallenbeck

"To expedite cleanup activities of the 1, 866-acre former Lowry
Air Force Base in Denver, the Lowry Redevelopment Authority
recently purchased a comprehensive environmental insurance
program provided by ECS Underwriting and Johnson & Higgins/Marsh
MacClennan of Denver."

"The redevelopment plan at Lowry includes new residential
housing, a golf course community, parks and open space, a
commercial center and a college campus. Lowry's environmental
issues are relatively minor compared to many baases, but they
are real and they must be resolved. The Lowry Redevelopment
Authority (LRA) developed aggressive marketing plans for its
site, wanting to protect against possible environmental
incidents that could hinder redevelopment. Equally important,
the LRA did not want concerns about potential environmental
exposures to cause developers to look elsewhere for development
opportunities."

"According to LRA's Executive Director James Meadows, while the
Air Force provides thorough environmental remediation at Lowry,
insurance is offering additional reassurance to Lowry's buyers,
guaranteeing that any unforeseen problems would be handled
promptly. Not only does this insurance coverage address the
concerns that surround liability, business interruption and
remediation costs, it also helps manage cash flow and generate
cost savings that can then be reinvested in the project."

Note: Robert P. Hallenbeck is vice president of government
affairs for The ECS Companies, a provider of environmental risk
management services.