Every seasoned lawyer or site selection consultant has a story that underscores the importance of thorough environmental due diligence. Mine involves a zebra. Yes, a zebra — the four-legged, black-and-white-striped kind.

A few years ago, a client wanted to establish an industrial facility and identified what seemed like an ideal property. The site was a vast, mostly wooded area that matched all their requirements: a good location, a reasonable price, and a preliminary report suggesting no major environmental concerns.

As part of our routine due diligence process, we arranged for an environmental team to conduct a Phase I Environmental Site Assessment (ESA). We expected the usual findings — potential wetland encroachments, some soil composition concerns, maybe a few other environmental flags. What we did not expect was an urgent call from our field team: a zebra was chasing them across the property.

As it turned out, the land was not what it seemed. It wasn’t just a wooded tract — it was also a weekend hunting ground for exotic game. The game included not just the lone zebra but also wild boar, non-native deer species, and other exotic animals legally maintained on the land. Had the client skipped due diligence and proceeded with the purchase, they would have inherited not just a property, but a complex set of wildlife management issues, regulatory hurdles and a potential public relations nightmare.

The zebra incident is an extreme, but illuminating, example of why environmental due diligence is a critical — and often underestimated — step in site selection. While most sites won’t include exotic animals, they may harbor equally wild problems beneath the surface. Below, I highlight why this process matters and what companies should consider when evaluating a site.

Understanding Phase I and Phase II Environmental Site Assessments

Environmental due diligence begins with a Phase I ESA, which assesses a property for potential environmental liabilities. This includes reviewing historical land uses, examining records of contamination and conducting a physical inspection. A Phase I ESA is crucial to establish liability defenses under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) ¹.

If a Phase I ESA raises red flags — such as indications of underground storage tanks, chemical spills or soil contamination — then a Phase II ESA is typically conducted. This includes soil and groundwater sampling, geotechnical studies and sometimes vapor intrusion assessments to determine the extent of contamination.

In the case of our zebra encounter, the Phase I ESA flagged the presence of an active hunting ground, prompting deeper inquiries into land use restrictions and conservation laws.

Uncovering Hidden Risks

Beyond contamination, environmental due diligence can reveal unexpected regulatory and operational challenges. Common surprises include:

Wetlands and waterways: Many industrial sites, particularly in the South and along the Eastern Seaboard, contain wetlands subject to strict federal and state regulations. Developing these areas often requires costly permits that can take years to obtain. Wetlands are not typically part of a Phase I ESA but can be added as a supplemental assessment.

Endangered species: The presence of endangered or threatened species — such as the northern long-eared bat or the bald eagle — can delay or block development. If a site includes nesting trees, developers may be restricted from clearing them during certain seasons. Endangered species assessments are usually not included in a Phase I ESA but may be required for greenfield developments or projects using federal grants or financing.

Vapor intrusion and soil contamination: Sites with industrial histories may contain vapor hazards such as benzene, which can seep into buildings and pose serious health risks. Cleaning up these hazards is often expensive and time-consuming, if possible at all.

Zoning and land use restrictions: Some properties carry hidden deed restrictions or zoning limitations that prevent certain types of development. A zoning compliance evaluation is typically not covered by a Phase I ESA but can be handled by legal counsel experienced in site selection.

Legal and community pushback: Properties with a history of industrial pollution may face opposition from community groups, legal restrictions or ongoing litigation, making development far more complicated than anticipated. A mitigation strategy should be developed early.

The Cost of Cutting Corners

The two most common reasons companies cut corners on due diligence are timing and cost. But environmental studies vary by site and project, and what works for one may not work for another. A full due diligence process requires a team of professionals to perform each assessment in a compliant and thorough manner.

That team should be prepared to conduct the following, depending on the site:

Phase I ESA; Phase II ESA (if necessary); Geotechnical analysis; Wetlands delineation; Greenfield development studies.

These assessments can cost up to several hundred thousand dollars, but when compared to the financial and reputational risks of unforeseen liabilities, these costs are not only reasonable — they’re essential. While they may add weeks to the transaction timeline, they can save months or years in the long run.

Takeaway

Most environmental issues won’t involve dodging exotic wildlife — but every site has its surprises. The lesson from my zebra experience wasn’t just about the unpredictability of undeveloped land. It was about the importance of knowing exactly what you’re buying.

Had my client skipped due diligence, they would have inherited a host of regulatory headaches, logistical issues and ethical challenges — including the question of how to responsibly rehome exotic animals. Instead, we caught the problem early and shifted focus to a more suitable property.

At the end of the day, site selection is about more than location and price. It’s about long-term viability, risk mitigation and smart decision-making. Environmental due diligence isn’t just a regulatory checkbox — it’s a critical safeguard. And if you ever find yourself being chased by a zebra on a potential industrial site, consider it a sign: dig a little deeper.