Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

Deal DEAD: Toxic Soil KILLS Property Sale! #shorts

10 May 2026 · 0 min

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0:21

In a brief Deal Room conversation, Tommy Dobczyk explains why a property deal fell through: the site is a former steel foundry with toxic soil. An environmental Phase 1 report identified four remediation steps, but the owners completed only three, leaving a critical Phase 4/Step 4 of Phase 2 unfinished. Without finishing this final remediation, the property cannot be sold, and the owners now face an estimated $1.5 million cost to complete the cleanup. The discussion highlights the deal’s collapse due to environmental compliance failure and the financial burden of remediation.

Did you see the deals today in the Deal Room?
Coming up at the end of the year. I missed yesterday's meeting because I was trying to get a— I was trying to rescue a deal from the toilet. And no, literally, like, I'm not even joking. We failed the environmental survey to the point that the property cannot be sold, period. Ever.
Are you serious? What was wrong? You did it like a face. Ever.
It was a steel foundry that used to do steel, like making steel. They have toxic soil and they were given a Phase 1 report. They did 3 out of 4 suggested remedies and remediation and failed to finish the 4th one. And so now they're, they're stuck. They have to spend $1.5 million to finish Phase 4, Step 4, Phase 2. And if they don't finish Phase 4, Phase 2, then they can't sell the property.
So is this all part of the— they had different like Phase 1, 2, 3, and 4 inspections on the property before they bought it, or did they already buy it and now they're running into this issue?
The, the, the current owners bought the property during Phase 2 cleanup and then never finished it.