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Home My WebLink About22062_Smokey Hollow 2_LOE_20181221ROY COOPER Governor MICHAEL S. REGAN NORTH CAROLINA Environmental Quality Secretary December 21, 2018 MICHAEL SCOTT Director Sent Via USPS and email John Kane WK Smokey Hollow 2, LLC 4321 Lassiter at North Hills, Suite 250 Raleigh, NC 27609 jkane cr,kanerealt_y corp.com Subject: Letter of Eligibility Smokey Hollow 2 0, 506, 516, 520, 524 N. West Street and 413, 437 and 441 N. Harrington St. Raleigh, Wake County Brownfields Project No. 22062-18-092 Dear Mr. Kane: The North Carolina Department of Environmental Quality (DEQ) has received and reviewed your October 18, 2018 Brownfields Property Application as well as the November 27, 2018 revised Brownfields Property Application submitted by WK Smokey Hollow 2, LLC as a Prospective Developer seeking a Brownfields Agreement regarding the Brownfields Property. This Brownfields Agreement . would cover the parcels listed in the October 18, 2018 and November 27, 2018 application as well as the properties listed in the Harrington Street Brownfields Agreement (Project No. 20031-16-092) recorded in the Wake County Registry on January 6, 2017 (Book 016661, Page 01312); the Brownfields Program plans to create a new Brownfields Agreement that includes the three parcels from the Harrington Street agreement and the five new parcels, and that supersedes the original Harrington Street Brownfields Agreement. Upon review of the BPA with respect to the requirements of the Brownfields Property Reuse Act of 1997, DEQ has determined that this project is eligible for entry into the North Carolina Brownfields Program (NCBP) and for continued evaluation for a Brownfields Agreement (BFA). The next step in the BFA process will involve a detailed review of available environmental and other relevant data to determine what is currently known about contamination at the Brownfields Property, and what, if any, information gaps may exist that may require additional assessment. We are in receipt of various reports relating to the Harrington Street Brownfields Project. Report: Prepared By: Date: Letter Report of Environmental Test Results Mid -Atlantic Associates, Inc. August 17, 2016 Letter Report of Environmental Test Results Mid -Atlantic Associates, Inc. FebnyM 11, 2015 Phase I ESA t 413 N. Harrington Street Mid -Atlantic Associates, Inc. Janwa 13, 2015 Phase II ESA (437 & 441 N. Harrington Street Mid -Atlantic Associates, Inc. February 21, 2013 Phase I ESA (437 & 441 N. Harrington Street Mid -Atlantic Associates, Inc. January 25, 2013 I�� uoanicnaou�nn� L U DW.MMa�w.anwL North Carolina Department of Environmental Quality I Division of Waste Management 217 West Jones Street 1 1646 Mail Service Center I Raleigh, North Carolina 27699-1646 Smokey Hollow 2 December 21, 2018 Page 2 Available, applicable historical information from the files of DEQ's Division of Waste Management will also be utilized during the evaluation process. Please forward any additional information or data you may have or can acquire for our evaluation. This should include reports from other DEQ agencies or regional offices. We will contact you regarding any additional assessment that may be necessary to establish that the Brownfields Property is or can be made suitable for the intended reuse, as required by statute. According to the BPA, the intended redevelopment for the Brownfields Property is a 275-unit apartment building, retail, office and parking. Because risk management decisions may vary depending on the nature of the redevelopment, it will be important that DEQ review the locations of the various elements. Please forward any maps or drawings indicating these details, even if they are only preliminary or conceptual. Please note: pending execution of a final BFA, NCBP eligibility is provisional. The protections a BFA offers the Prospective Developer are not in effect, unless and until, the BFA is executed. If you occupy the Brownfields Property or operate or conduct activities at the Brownfields Property that result in a release of regulated substances before a BFA has been finalized for the Brownfields Property, you may be considered to have caused or contributed to contamination at the Brownfields Property. Because an entity that could be considered to have caused or contributed to contamination at the Brownfields Property cannot be a Prospective Developer under the Act, your eligibility for participation in the NCBP would be placed in jeopardy. Consult closely with your Project Manager regarding any planned site activities prior to agreement finalization. You are cautioned to conduct all such operations and activities at the Brownfields Property with great care not to cause a release of regulated substances at the Brownfields Property that could jeopardize your eligibility for participation in the NCBP. If a party other than the WK Smokey Hollow 2, LLC will own the Brownfields Property at the conclusion of the brownfields process, the final document (which gets recorded at the register of deeds' office) must be signed not only by Prospective Developer, but by that owner. Failure by the Prospective Developer to ensure, by the time the BFA negotiations are complete, the willingness to sign of any such party, and to provide DEQ the exact name, email address, telephone number, and US mail address of the party (along with the signatory/signatory's tile in the case of an entity) will delay, and could prevent, the BFA taking effect. We are excited about the potential for public benefit offered by the reuse of the Smokey Hollow 2 and look forward to working with you to advance this brownfields redevelopment project. If you have questions about this correspondence or require additional information, please feel free to contact the project manager, Sharon Eckard by phone at 919-707-8379, or by e-mail at sharon.eckard(y,=denr.ov. Sincerely, Bruce Nicholson Brownfields Program Manager ec: Central Files, DEQ Michael E. Scott, DEQ Sharon Eckard, DEQ Drew Yates, Kane Realty Corporation