Loading...
HomeMy WebLinkAbout17042-13-060 One Hour Martinizing EMAIL Approval to Public Comment 20190517From:Minnich, Carolyn To:Chris S. Walker (chris.walker@klgates.com); Lins, Brittany N.; john coppala Cc:michael scott; Nicholson, Bruce; Wahl, Tracy; Leonard, Laura; Samuel Watson (samuel.watson@ncdenr.gov); Liggins, Shirley; Day, Collin (collin.day@ncdenr.gov); Jesneck, Charlotte Subject:17042-13-060 One Hour Martinizing Approval to Public Comment Date:Tuesday, May 14, 2019 11:31:00 AM Attachments:17042_1 hr Mart_PC Approval Pkg DRAFT 20190510.pdf17042_1 hr Mart_NI_20190510.pdf17042 1 hr Mart_ SNI_20190510.pdfDraft Brownfields Plat (One-Hour Martinizing - 17042-13-060) (2-21-19).PDF Dear Mr. Walker & Mr. Coppola, Based on acceptance by the Prospective Developer of drafts of all four required brownfields documents -- the Notice of Intent to Redevelop a Brownfields Property (NI), Summary of Notice ofIntent to Redevelop a Brownfields Property (SNI), Notice of Brownfields Property (NBP) and theBrownfields Agreement (Exhibit A to the NBP) -- and DEQ's approval of the plat component of the NBP, Prospective Developer may now proceed to the tasks required by NCGS § 130.310.34(a) in connection with the required public notice and comment period of at least 30 days regarding thesubject brownfields project. Those tasks are as follows: 1. Publish the approved SNI in a newspaper of general circulation serving the area in which the brownfields property is located, 2. Conspicuously post a copy of the SNI at the brownfields property, 3. Mail or deliver the SNI to each owner of property contiguous to the brownfields property, 4. Provide a copy of the full NI to the local location where it will be available for public review as stated in the SNI, and 5. Provide a copy of the full NI, consisting of the one-page NI and the NBP with its three exhibits(the Brownfields Agreement, the survey plat, and the legal description), to all local governments having jurisdiction over the brownfields property. Pursuant to NCGS § 130.310.34.(b), the public comment period shall begin following completion ofthe above tasks. The NI and SNI, with a date filled in representing our belief as to how long itwill take you to complete those tasks by May 17, 2019, are attached hereto. The comment period shall not end any sooner than 30 days after you complete the tasks. NCGS § 130.310.34(b) also requires the Prospective Developer to submit documentation of thepublic notices to DEQ prior to DEQ entering into a Brownfields Agreement. That documentation shall be submitted by promptly providing to me, preferably at carolyn.minnich@ncdenr.gobv or at Brownfields Program, 1646 Mail Service Center, Raleigh, NC 27699-1646, the following: Affidavit of publication of the SNI from the newspaper or a copy of the SNI published in the newspaper which shows the name of the newspaper and the date of publication, Photos of the SNI posted at the site, one close up to show the wording and one far enough to show the posting location relative to the property, Copies of the cover letters and copies of the mailing receipts stamped by the post office or copies of the delivery service receipts for the SNI sent to contiguous property owners, A letter confirming receipt of the full NI from each local government entity and the entity where the document will be available for viewing or delivery confirmation from the carrier confirming such receipt by these entities. Thank you for your attention to these matters. If you have any questions or require additional information, you may contact me.       17042/One Hour Martinizing (DRAFT 20190424) 303341248 v2 1 Property Owner: GG-Morehead, LLC Recorded in Book ____, Page ____ Associated plat recorded in Plat Book ____, Page ____ NOTICE OF BROWNFIELDS PROPERTY Site Name: One Hour Martinizing Brownfields Project Number: 17042-13-060 This documentary component of a Notice of Brownfields Property (“Notice”), as well as the plat component, have been filed this _____ day of __________________, 201__ by GG- Morehead, LLC (“Prospective Developer”). This Notice concerns contaminated property. A copy of this Notice certified by the North Carolina Department of Environmental Quality (“DEQ”) is required to be filed in the Register of Deeds’ Office in the county or counties in which the land is located, pursuant to North Carolina General Statutes (“NCGS”), § 130A-310.35(b). This Notice is required by NCGS § 130A-310.35(a), in order to reduce or eliminate the danger to public health or the environment posed by environmental contamination at a property (“Brownfields Property”) being addressed under the Brownfields Property Reuse Act of 1997, NCGS § 130A, Article 9, Part 5 (“Act”). Pursuant to NCGS § 130A-310.35(b), the Prospective Developer must file a certified copy of this Notice within 15 days of Prospective Developer’s receipt of DEQ’s approval of the Notice or Prospective Developer’s entry into the Brownfields Agreement required by the Act, whichever is later. The copy of the Notice certified by DEQ must be recorded in the grantor index under the names of the owners of the land and, if Prospective Developer is not the owner, also under the Prospective Developer’s name. The Brownfields Property is located at 911 East Morehead Street in Charlotte, Mecklenburg County and consists of one parcel, approximately 1.6232 acres. In 1940, the land was developed for commercial purposes, and it is currently used as a shopping center referred to as Cavalaris Village. A dry cleaner was reportedly located on the Brownfields Property from 1964 to 1969 at 927 East Morehead Street, known as One Hour Martinizing. Other historical 17042/One Hour Martinizing (DRAFT 20190510) 2 commercial uses include: restaurants, bowling alley, roller skating rink, grocery store, warehouse, clothing shop, flower shop, barber shop, bar & billiards, and general office use. In the surrounding area, there are and were several current and historic dry cleaners: Young Cleaners (919 South McDowell Street), Longs Dry Cleaners (918 East Morehead Street), and Domestic Laundry (801 South McDowell Street). Prospective Developer intends to redevelop the Brownfields Property for no uses other than office, retail, restaurant, brewery or food production facility, industrial, warehousing, parking, hotel, institutional, recreation, open space, multi-family residential, and subject to DEQ’s prior written approval, other commercial uses. Groundwater, soil, and soil vapor are contaminated at the Brownfields Property due to off-site impacts and, potentially, historical operations on-site. The Brownfields Agreement between Prospective Developer and DEQ is attached hereto as Exhibit A. It sets forth the use that may be made of the Brownfields Property and the measures to be taken to protect public health and the environment, and is required by NCGS § 130A-310.32. The Brownfields Agreement’s Exhibit 2 consists of one or more data tables reflecting the concentrations of and other information regarding the Brownfields Property’s regulated substances and contaminants. Attached as Exhibit B to this Notice is a reduction, to 8 1/2" x 11", of the survey plat component of this Notice. This plat shows areas designated by DEQ, has been prepared and certified by a professional land surveyor, meets the requirements of NCGS § 47-30, and complies with NCGS § 130A-310.35(a)’s requirement that the Notice identify: (1) The location and dimensions of the areas of potential environmental concern with respect to permanently surveyed benchmarks. (2) The type, location and quantity of regulated substances and contaminants known to exist on the Brownfields Property. Attached hereto as Exhibit C is a legal description of the Brownfields Property that would be sufficient as a description of the property in an instrument of conveyance. LAND USE RESTRICTIONS NCGS § 130A-310.35(a) also requires that the Notice identify any restrictions on the current and future use of the Brownfields Property that are necessary or useful to maintain the level of protection appropriate for the designated current or future use of the Brownfields Property and that are designated in the Brownfields Agreement. The restrictions shall remain in force in perpetuity unless canceled by the Secretary of DEQ (or its successor in function), or his/her designee, after the hazards have been eliminated, pursuant to NCGS § 130A-310.35(e). All references to DEQ shall be understood to include any successor in function. The land use restrictions below have been excerpted verbatim from paragraph 15 of the Brownfields Agreement, and all subparagraph letters/numbers are the same as those used in the Brownfields Agreement. The following land use restrictions are hereby imposed on the Brownfields Property: 17042/One Hour Martinizing (DRAFT 20190510) 3 a. No use may be made of the Brownfields Property other than for office, retail, restaurant, brewery or food production facility, industrial, warehousing, parking, hotel, institutional, recreation, open space, multi-family residential, and subject to DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply: i. “Office” is defined as the provision of business or professional services. ii. “Retail” is defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products. iii. “Restaurant” is defined as a commercial business establishment that prepares and serves food and/or beverages to patrons. iv. “Brewery or Food Production Facility” is defined as an establishment for the manufacture, sale and/or distribution of beverages or food products, including without limitation beer and ale, together with associated public roadways and related infrastructure. v. “Industrial” is defined as the assembly, fabrication, processing, warehousing or distribution of goods or materials. vi. “Warehousing” is defined as the use of a commercial building for storage of goods by manufacturers, importers, exporters, wholesalers, transport businesses among others, and also refers to the storage of goods and materials for a specific commercial establishment of a group of establishments in a particular type of industry or commercial activity. vii. “Parking” is defined as the temporary accommodation of motor vehicles in an area designed for same. viii. “Hotel” is defined as the provision of overnight lodging to customers, and to associated food services, gym, reservation, cleaning, utilities, parking and on-site hospitality, management and reception services. ix. “Institutional” is defined as the use of land, buildings or structures for public, non-profit or quasi-public purposes, such as libraries, community centers, post- secondary education facilities, or health care facilities. x. “Recreation” is defined as indoor and outdoor exercise-related, physically focused, or leisure-related activities, whether active or passive, and the facilities for same, including, but not limited to, studios, swimming pools, sports-related courts and fields, open space, greenways, parks, playgrounds, walking paths, and picnic and public gathering areas. xi. “Open Space” is defined as land maintained in a natural or landscaped state and used for natural resource protection, buffers, greenways, or detention facilities for stormwater. xi. “Multi-Family Residential” is defined as multi-unit human dwellings, such as condominia, or apartments, and shall include related amenities, such as pools, clubhouses, courtyards, common areas, recreation areas and parking garages. Single family homes, townhomes, duplexes, or other units with yards are prohibited unless approved in 17042/One Hour Martinizing (DRAFT 20190510) 4 writing by DEQ in advance. xii. “Commercial” is defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. b. The Brownfields Property may not be used for child care, adult care centers, or schools without the prior written approval of DEQ. c. Unless compliance with this Land Use Restriction is waived in writing by DEQ in advance in regard to particular activity, no activities that encounter, expose, remove or use groundwater (for example, installation of water supply wells, ponds, lakes or swimming pools, or construction or excavation activities that encounter or expose groundwater) may occur on the Brownfields Property unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. Prior sampling and analysis of groundwater to the written satisfaction of DEQ in any areas proposed for such activities, and submittal of the analytical results to DEQ is required. If such results reflect contaminant concentrations that exceed the standards and screening levels applicable to the uses authorized for the Brownfields Property, the groundwater-related activities proposed may only occur in compliance with any written conditions DEQ imposes. Activities may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. d. No activity that disturbs soil on the Brownfields Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment, except: i. in connection with landscape planting to depths not exceeding 24”; ii. mowing and pruning of above-ground vegetation; iii. for repair of underground infrastructure, provided that DEQ shall be given written notice at least seven days in advance of a scheduled repair (if only by email) of any such repair, or in emergency circumstances no later than the next business day, and that any related assessment and remedial measures required by DEQ shall be taken; and iv. in connection to work conducted in accordance with a DEQ-approved EMP as outlined below in subparagraph 15.g. e. Soil may not be removed from, or brought onto, the Brownfields Property without prior sampling and analysis to DEQ’s satisfaction and the written approval of DEQ, unless conducted in accordance with an approved EMP as outlined below in subparagraph 15.g. f. No enclosed building may be constructed on the Brownfields Property, and no use of any existing building, defined as those depicted on the plat component of the Notice of Brownfields Property referenced below in paragraph 20, may be changed to multi-family residential use as defined above in paragraph 15.a.xi, until DEQ determines in writing that: i. the building is or would be protective of the building’s users, public 17042/One Hour Martinizing (DRAFT 20190510) 5 health and the environment from risk of vapor intrusion based on site assessment data or a site-specific risk assessment approved in writing by DEQ; or ii. the building is or would be sufficiently distant from the Brownfields Property’s groundwater and/or soil contamination based on assessment data approved in writing by DEQ that the building’s users, public health and the environment will be protected from risk from vapor intrusion related to said contamination; or iii. vapor intrusion mitigation measures are installed and/or implemented to the satisfaction of a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal on a report that includes photographs and a description of the installation and performance of said measures. Any design specification for vapor intrusion mitigation measures shall be approved in writing by DEQ in advance of installation and/or implementation of said measures. The design specifications shall include methodology(ies) for demonstrating performance of said measures. g. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an EMP approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each subsequent redevelopment phase) that is consistent with all the other land use restrictions and describes redevelopment activities at the Brownfields Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Brownfields Property during construction or redevelopment in any other form, including without limitation: i. soil and water management issues, including without limitation those resulting from contamination identified in the Environmental Reports; ii. issues related to potential sources of contamination referenced in paragraphs 7 and 8 above or refer to Exhibit 2; iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and iv. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. h. No later than January 31 after each one-year anniversary of the effective date of this Agreement for as long as physical redevelopment of the Brownfields Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Brownfields Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: i. actions taken on the Brownfields Property in accordance with Section V: Work to be Performed above; ii. soil grading and cut and fill actions; iii. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; 17042/One Hour Martinizing (DRAFT 20190510) 6 iv. stockpiling, containerizing, decontaminating, treating, handling, laboratory analysis and ultimate disposition of any soil, groundwater or other materials suspected or confirmed to be contaminated with regulated substances; and v. removal of any contaminated soil, water or other contaminated materials (for example, concrete, demolition debris) from the Brownfields Property (copies of all legally required manifests shall be included). i. Neither DEQ, nor any party conducting environmental assessment or remediation at the Brownfields Property at the direction of, or pursuant to a permit, order or agreement issued or entered into by DEQ, may be denied access to the Brownfields Property for purposes of conducting such assessment or remediation, which is to be conducted using reasonable efforts to minimize interference with authorized uses of the Brownfields Property. j. Any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. The owner may use the following mechanisms to comply with the obligations of this subparagraph: (i) If every lease and rider is identical in form, the owner conveying an interest may provide DEQ with copies of a form lease or rider evidencing compliance with this subparagraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notice and Submissions); or (ii) The owner conveying an interest may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. k. None of the contaminants known to be present in the environmental media at the Brownfields Property, as described in Exhibit 2 of this Agreement and as modified by DEQ in writing if additional contaminants in excess of applicable standards are discovered at the Brownfields Property, may be used or stored at the Brownfields Property without the prior written approval of DEQ, except. i. in de minimis quantities for cleaning and other routine housekeeping and maintenance activities; ii. in fluids for vehicles or landscaping equipment; iii. as constituents of products and materials customarily used and stored in office, retail, restaurant, brewery or food production facility, parking, hotel, institutional, recreation, open space, and multi-family residential environments, provided such products are stored in original retail packaging and used and disposed of in accordance with applicable laws; iv. as constituents of fuels, lubricants and oils in emergency generators, machinery, equipment and vehicles in on-board tanks integral to said equipment, or in flammable liquid storage containers totaling no more than 25 gallons; or v. in products or materials that are brought onto the Brownfields Property, kept in their original packaging or containers (that is, not used or repackaged) and later removed from the Brownfields Property in the original packaging or containers. 17042/One Hour Martinizing (DRAFT 20190510) 7 l. The owner of any portion of the Brownfields Property where any subsequently installed, DEQ-approved monitoring well is damaged by the owner, its contractors, or its tenants shall be responsible for repair of any such wells to DEQ’s written satisfaction and within a time period acceptable to DEQ, unless compliance with this Land Use Restriction is waived in writing by DEQ in advance. m. During January of each year after the year in which the Notice of Brownfields Property referenced below in paragraph 20 is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Mecklenburg County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Mecklenburg County Register of Deeds office and that the land use restrictions are being complied with. The submitted LURU shall state the following: i. the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the owner submitting the LURU if said owner acquired any part of the Brownfields Property during the previous calendar year; ii. the transferee’s name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address, if said owner transferred any part of the Brownfields Property during the previous calendar year; iii. whether any vapor barrier and/or mitigation systems installed pursuant to subparagraph 15.f above are performing as designed, and whether the uses of the ground floors of any buildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how. iv. A joint LURU may be submitted for multiple owners by a duly constituted board or association and shall include the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the entity submitting the joint LURU as well as for each of the owners on whose behalf the joint LURU is submitted. v. LURU’s submitted for any portion of the Brownfields Property that contains rental units shall include a list of tenants and their addresses. vi. A property owners’ association or other entity may perform this LURU’s duties, on behalf of some or all owners of the Brownfields Property, if said association or entity has accepted responsibility for such performance pursuant to a notarized instrument satisfactory to DEQ that includes at a minimum, the name, mailing address, telephone and facsimile numbers, and e-mail address of each owner on whose behalf the LURU is proposed to be submitted. For purposes of the land use restrictions set forth above, the DEQ point of contact shall be the DEQ official referenced in subparagraph 35.a. of Exhibit A hereto, at the address stated therein. ENFORCEMENT The above land use restrictions shall be enforceable without regard to lack of privity of estate or contract, lack of benefit to particular land, or lack of any property interest in particular land. The land use restrictions shall be enforced by any owner of the Brownfields Property. The 17042/One Hour Martinizing (DRAFT 20190510) 8 land use restrictions may also be enforced by DEQ through the remedies provided in NCGS § 130A, Article 1, Part 2 or by means of a civil action; by any unit of local government having jurisdiction over any part of the Brownfields Property; and by any person eligible for liability protection under the Brownfields Property Reuse Act who will lose liability protection if the restrictions are violated. Any attempt to cancel any or all of this Notice without the approval of the Secretary of DEQ (or its successor in function), or his/her delegate, shall be subject to enforcement by DEQ to the full extent of the law. Failure by any party required or authorized to enforce any of the above restrictions shall in no event be deemed a waiver of the right to do so thereafter as to the same violation or as to one occurring prior or subsequent thereto. FUTURE SALES, LEASES, CONVEYANCES AND TRANSFERS When any portion of the Brownfields Property is sold, leased, conveyed or transferred, pursuant to NCGS § 130A-310.35(d) the deed or other instrument of transfer shall contain in the description section, in no smaller type than that used in the body of the deed or instrument, a statement that the Brownfields Property has been classified and, if appropriate, cleaned up as a brownfields property under the Brownfields Property Reuse Act. IN WITNESS WHEREOF, Prospective Developer has caused this instrument to be duly executed this _____ day of _______________, 201__. GG-Morehead, LLC By: __________________________________________ John C. Coppala Manager NORTH CAROLINA _______________ COUNTY I certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: ________________________________. Date: ___________________ ___________________________________ Official Signature of Notary ___________________________________ (Official Seal) Notary’s printed or typed name, Notary Public My commission expires: _____________________ 17042/One Hour Martinizing (DRAFT 20190510) 9 ************************************ APPROVAL AND CERTIFICATION OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY The foregoing Notice of Brownfields Property is hereby approved and certified. North Carolina Department of Environmental Quality By: _________________________________________ ________________________ Michael E. Scott Date Director, Division of Waste Management 1 17042/One Hour Martinizing (DRAFT 20190503) EXHIBIT A NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY IN THE MATTER OF: GG-Morehead, LLC UNDER THE AUTHORITY OF THE ) BROWNFIELDS AGREEMENT re: BROWNFIELDS PROPERTY REUSE ACT ) One Hour Martinizing OF 1997, NCGS § 130A-310.30, et seq. ) 911 East Morehead Street Brownfields Project 17042-13-060 ) Charlotte, Mecklenburg County I. INTRODUCTION This Brownfields Agreement (“Agreement”) is entered into by the North Carolina Department of Environmental Quality (“DEQ”) and GG-Morehead, LLC (collectively the "Parties") pursuant to the Brownfields Property Reuse Act of 1997, NCGS § 130A-310.30, et seq. (the “Act”) for the property located at 911 East Morehead Street in Charlotte (the “Brownfields Property”). A map showing the location of the Brownfields Property that is the subject of this Agreement is attached hereto as Exhibit 1. GG-Morehead, LLC is a North Carolina limited liability company that was formed on July 22, 2013. Its registered agent is John C. Coppala and its business address is 5126 Park Road, Suite 2E, Charlotte, NC 28209. The Brownfields Property consists of one parcel and contains approximately 1.6232 acres of land developed as a shopping center referred to as Cavalaris Village. GG-Morehead LLC intends to redevelop the Brownfields Property for office, retail, restaurant, brewery or food production facility, industrial, warehousing, parking, hotel, institutional, recreation, open space, multi-family residential, and subject to DEQ’s prior written approval, other commercial uses. Groundwater, soil, and soil vapor are contaminated at the Brownfields Property due to off-site impacts and, potentially, historical operations on-site. The Parties agree to undertake all actions required by the terms and conditions of this Agreement. The purpose of this Agreement is to settle and resolve, subject to reservations and 2 17042/One Hour Martinizing (DRAFT 20190503) limitations contained in Section VIII (Certification), Section IX (DEQ’s Covenant Not to Sue and Reservation of Rights) and Section X (Prospective Developer’s Covenant Not to Sue), the potential liability of GG-Morehead, LLC for contaminants at the Brownfields Property. The Parties agree that GG-Morehead, LLC’s entry into this Agreement, and the actions undertaken by GG-Morehead, LLC in accordance with the Agreement, do not constitute an admission of any liability by GG-Morehead, LLC for contaminants at the Brownfields Property. The resolution of this potential liability, in exchange for the benefit GG-Morehead, LLC shall provide to DEQ, is in the public interest. II. DEFINITIONS Unless otherwise expressly provided herein, terms used in this Agreement which are defined in the Act or elsewhere in NCGS § 130A, Article 9 shall have the meaning assigned to them in those statutory provisions, including any amendments thereto. 1. “Brownfields Property” shall mean the property which is the subject of this Agreement, and which is depicted in Exhibit 1 to the Agreement. 2. "Prospective Developer" shall mean GG-Morehead, LLC. III. STATEMENT OF FACTS 3. The Brownfields Property comprises one parcel totaling 1.6232 acres. Prospective Developer has committed itself to redevelopment for no uses other than for office, retail, restaurant, brewery or food production facility, industrial, warehousing, parking, hotel, institutional, recreation, open space, multi-family residential, and subject to DEQ’s prior written approval, other commercial uses. 4. The Brownfields Property is bordered to the north by land in commercial use and South McDowell Street beyond; to the east by an office building and Baxter Street; to the south by land in commercial use and Covenant Presbyterian Church; and to the west by East Morehead 3 17042/One Hour Martinizing (DRAFT 20190503) Street and Dilworth Road with residential use beyond. 5. Prospective Developer obtained or commissioned the following reports, referred to hereinafter as the “Environmental Reports,” regarding the Brownfields Property: Title Prepared by Date of Report Brownfields Assessment Letter Report Terracon February 20, 2019 Brownfields Assessment Report Terracon August 14, 2018 Limited Well Sampling AEI Consultants October 14, 2013 Phase I ESA: Cavalaris Village AEI Consultants August 15, 2013 Phase I ESA: Cavalaris Village Environ Probe November 29, 2004 Risk Based Corrective Action Report Forms for North Carolina Dry-Cleaning Solvent Cleanup Act Program- Domestic Laundry URS Corp-NC September 25, 2015 6. For purposes of this Agreement, DEQ relies on the following representations by Prospective Developer and DWM files as to use and ownership of the Brownfields Property: a. The Brownfields Property contains a one-story building constructed over a full basement, and the ground and basement levels comprise a shopping center referred to as Cavalaris Village. The building was constructed in 1940 and contains approximately 47,000 sq. ft. An asphalt parking lot and associated landscaping areas cover the remaining portions of the Brownfields Property. b. Prior to 1940, the Brownfields Property was undeveloped land. Since 1940, it has been used for commercial purposes. A dry cleaner was reportedly located on the Brownfields Property from 1964 to 1969 at 927 East Morehead Street, known as One Hour Martinizing. Other commercial uses include: restaurants, bowling alley, roller skating rink, grocery store, warehouse, clothing shop, flower shop, barber shop, bar & billiards, and general office use. The building is currently occupied by the following tenants: a fitness gym, a restaurant, an event hosting business, and a nail salon. c. Crescent Resources, LLC sold the Brownfields Property on December 15, 4 17042/One Hour Martinizing (DRAFT 20190503) 2004 to 911 East Morehead Street, LLC. On September 23, 2013, 911 East Morehead Street, LLC sold the Brownfields Property to GG-Morehead, LLC, which currently owns the Brownfields Property. 7. Pertinent environmental information regarding the Brownfields Property and surrounding area includes the following: a. From 1964 until 1969, One Hour Martinizing Dry Cleaner reportedly operated on the Brownfields Property. The business was reportedly on the first floor and the address was listed at 927 East Morehead Street. b. In the surrounding area, there are and were several current and historic dry cleaners: Young Cleaners (919 South McDowell Street), Longs Dry Cleaners (918 East Morehead Street), and Domestic Laundry (801 South McDowell Street). c. Located north and upgradient of the Brownfields Property is the former Domestic Laundry facility, North Carolina Dry-Cleaning Solvent Cleanup Act (“DSCA”) Program incident number DC60-0012. Domestic Laundry operated from approximately 1929 until 1967 when that property was purchased by the City of Charlotte as part of the Urban Renewal Plan. Various soil, groundwater, and soil gas studies have been completed at that property and at the Brownfields Property, and groundwater and soil gas impacts from volatile organic compounds (“VOCs”) associated with the Domestic Laundry facility have been documented at that site and the Brownfields Property. d. In July 2018, additional assessment activities were completed on the Brownfields Property to further evaluate the soil, groundwater, and sub-slab soil gas. Terracon installed one temporary groundwater monitoring well, collected a groundwater sample from the new temporary well and from an existing on-site monitoring well, and installed soil gas vapor pins in the basement of the existing structure. The impacts to each media are discussed in the 5 17042/One Hour Martinizing (DRAFT 20190503) following paragraph. 8. The most recent environmental sampling at the Brownfields Property reported in the Environmental Reports occurred in January 2019. The tables set forth in Exhibit 2 to this Agreement present contaminants present at the Brownfields Property above applicable standards or screening levels for each media sampled. a. In the most recent groundwater sampling event, tetrachloroethylene and trichloroethylene were detected in groundwater at the Brownfields Property at concentrations exceeding the standards set forth in Title 15A of the North Carolina Administrative Code, Subchapter 2L, Rule .0202 (2L standard). b. The following constituents were detected in the soil at the Brownfields Property at concentrations above their respective Inactive Hazardous Sites Branch Residential Preliminary Soil Remediation Goals: arsenic and benzo(a)pyrene. Arsenic concentrations are consistent across the Brownfields Property and with concentrations found in the surrounding area and are, therefore, considered naturally occurring at the Brownfields Property. The constituent concentrations are listed in Exhibit 2 to this Agreement. c. The following constituents were detected in soil gas at the Brownfields Property at concentrations above their respective Residential Vapor Intrusion Screening Levels (NCDEQ February 2018): naphthalene and tetrachloroethylene. The detected concentrations of these constituents do not exceed the Non-Residential Vapor Intrusion Screening Levels. d. One or more data tables reflecting the concentrations of historical soil and groundwater concentrations at the Brownfields Property and other information regarding the Brownfields Property’s contaminants appear in Exhibit 2 to this Agreement. 9. For purposes of this Agreement DEQ relies on Prospective Developer’s representations that Prospective Developer's involvement with the Brownfields Property has 6 17042/One Hour Martinizing (DRAFT 20190503) been limited to obtaining or commissioning the Environmental Reports, preparing and submitting to DEQ a Brownfields Property Application (“BPA”) dated September 19, 2013, purchasing the Brownfields Property on September 23, 2013, and continuing to lease the Brownfields Property to the existing tenants. 10. Prospective Developer has provided DEQ with information, or sworn certifications regarding that information on which DEQ relies for purposes of this Agreement, sufficient to demonstrate that: a. Prospective Developer and any parent, subsidiary, or other affiliate has substantially complied with federal and state laws, regulations and rules for protection of the environment, and with the other agreements and requirements cited at NCGS § 130A- 310.32(a)(1); b. As a result of the implementation of this Agreement, the Brownfields Property will be suitable for the uses specified in the Agreement while fully protecting public health and the environment; c. Prospective Developer's reuse of the Brownfields Property will produce a public benefit commensurate with the liability protection provided Prospective Developer hereunder; d. Prospective Developer has or can obtain the financial, managerial and technical means to fully implement this Agreement and assure the safe use of the Brownfields Property; and e. Prospective Developer has complied with all applicable procedural requirements. 11. Prospective Developer has paid to DEQ the $2,000 fee to seek a brownfields agreement required by NCGS § 130A-310.39(a)(1) and shall make a payment to DEQ of $6,000 7 17042/One Hour Martinizing (DRAFT 20190503) at the time Prospective Developer and DEQ enter into this Agreement, defined for this purpose as occurring no later than the last day of the public comment period related to this Agreement. The Parties agree that such fees will suffice as the $2,000 fee to seek a brownfields agreement required by NCGS § 130A-310.39(a)(1), and, within the meaning of NCGS § 130A- 310.39(a)(2), the full cost to DEQ and the North Carolina Department of Justice of all activities related to this Agreement, unless a change is sought to a Brownfields document after it is in effect, in which case there shall be an additional fee of at least $1,000. IV. BENEFIT TO COMMUNITY 12. The redevelopment of the Brownfields Property proposed herein would provide the following public benefits: a. an increase in the Brownfields Property’s productivity; b. a spur to additional community investment and redevelopment, through improved neighborhood appearance and otherwise; c. the creation of jobs both during redevelopment and afterward; d. an increase in tax revenue for affected jurisdictions; e. additional retail and commercial space for the area; f. expanded use of public transportation which reduces traffic, improves air quality, and reduces our carbon footprint; and g. “smart growth” through use of land in an already developed area, which avoids development of land beyond the urban fringe (“greenfields”). V. WORK TO BE PERFORMED 13. In redeveloping the Brownfields Property, Prospective Developer shall make reasonable efforts to evaluate applying sustainability principles at the Brownfields Property, using the nine (9) areas incorporated into the U.S. Green Building Council Leadership in Energy 8 17042/One Hour Martinizing (DRAFT 20190503) and Environmental Design certification program (Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality, Locations & Linkages, Awareness & Education, Innovation in Design and Regional Priority), or a similar program. 14. Based on the information in the Environmental Reports, and subject to imposition of and compliance with the land use restrictions set forth below, and subject to Section IX of this Agreement (DEQ’s Covenant Not to Sue and Reservation of Rights), DEQ is not requiring Prospective Developer to perform any active remediation at the Brownfields Property other than remediation that may be required pursuant to a DEQ-approved Environmental Management Plan (“EMP”) required by this Section. 15. By way of the Notice of Brownfields Property referenced below in paragraph 20, Prospective Developer shall impose the following land use restrictions under the Act, running with the land, to make the Brownfields Property suitable for the uses specified in this Agreement while fully protecting public health and the environment instead of remediation to unrestricted use standards. All references to DEQ shall be understood to include any successor in function. a. No use may be made of the Brownfields Property other than for office, retail, restaurant, brewery or food production facility, industrial, warehousing, parking, hotel, institutional, recreation, open space, multi-family residential, and subject to DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply: i. “Office” is defined as the provision of business or professional services. ii. “Retail” is defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products. iii. “Restaurant” is defined as a commercial business establishment that prepares and serves food and/or beverages to patrons. 9 17042/One Hour Martinizing (DRAFT 20190503) iv. “Brewery or Food Production Facility” is defined as an establishment for the manufacture, sale and/or distribution of beverages or food products, including without limitation beer and ale, together with associated public roadways and related infrastructure. v. “Industrial” is defined as the assembly, fabrication, processing, warehousing or distribution of goods or materials. vi. “Warehousing” is defined as the use of a commercial building for storage of goods by manufacturers, importers, exporters, wholesalers, transport businesses among others, and also refers to the storage of goods and materials for a specific commercial establishment of a group of establishments in a particular type of industry or commercial activity. vii. “Parking” is defined as the temporary accommodation of motor vehicles in an area designed for same. viii. “Hotel” is defined as the provision of overnight lodging to customers, and to associated food services, gym, reservation, cleaning, utilities, parking and on-site hospitality, management and reception services. ix. “Institutional” is defined as the use of land, buildings or structures for public, non-profit or quasi-public purposes, such as libraries, community centers, post- secondary education facilities, or health care facilities. x. “Recreation” is defined as indoor and outdoor exercise-related, physically focused, or leisure-related activities, whether active or passive, and the facilities for same, including, but not limited to, studios, swimming pools, sports-related courts and fields, open space, greenways, parks, playgrounds, walking paths, and picnic and public gathering areas. xi. “Open Space” is defined as land maintained in a natural or landscaped 10 17042/One Hour Martinizing (DRAFT 20190503) state and used for natural resource protection, buffers, greenways, or detention facilities for stormwater. xi. “Multi-Family Residential” is defined as multi-unit human dwellings, such as condominia, or apartments, and shall include related amenities, such as pools, clubhouses, courtyards, common areas, recreation areas and parking garages. Single family homes, townhomes, duplexes, or other units with yards are prohibited unless approved in writing by DEQ in advance. xii. “Commercial” is defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. b. The Brownfields Property may not be used for child care, adult care centers, or schools without the prior written approval of DEQ. c. Unless compliance with this Land Use Restriction is waived in writing by DEQ in advance in regard to particular activity, no activities that encounter, expose, remove or use groundwater (for example, installation of water supply wells, ponds, lakes or swimming pools, or construction or excavation activities that encounter or expose groundwater) may occur on the Brownfields Property unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. Prior sampling and analysis of groundwater to the written satisfaction of DEQ in any areas proposed for such activities, and submittal of the analytical results to DEQ is required. If such results reflect contaminant concentrations that exceed the standards and screening levels applicable to the uses authorized for the Brownfields Property, the groundwater-related activities proposed may only occur in compliance with any written conditions DEQ imposes. Activities may occur if carried out along 11 17042/One Hour Martinizing (DRAFT 20190503) with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. d. No activity that disturbs soil on the Brownfields Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment, except: i. in connection with landscape planting to depths not exceeding 24”; ii. mowing and pruning of above-ground vegetation; iii. for repair of underground infrastructure, provided that DEQ shall be given written notice at least seven days in advance of a scheduled repair (if only by email) of any such repair, or in emergency circumstances no later than the next business day, and that any related assessment and remedial measures required by DEQ shall be taken; and iv. in connection to work conducted in accordance with a DEQ-approved EMP as outlined below in subparagraph 15.g. e. Soil may not be removed from, or brought onto, the Brownfields Property without prior sampling and analysis to DEQ’s satisfaction and the written approval of DEQ, unless conducted in accordance with an approved EMP as outlined below in subparagraph 15.g. f. No enclosed building may be constructed on the Brownfields Property, and no use of any existing building, defined as those depicted on the plat component of the Notice of Brownfields Property referenced below in paragraph 20, may be changed to multi-family residential use as defined above in paragraph 15.a.xi, until DEQ determines in writing that: i. the building is or would be protective of the building’s users, public 12 17042/One Hour Martinizing (DRAFT 20190503) health and the environment from risk of vapor intrusion based on site assessment data or a site- specific risk assessment approved in writing by DEQ; or ii. the building is or would be sufficiently distant from the Brownfields Property’s groundwater and/or soil contamination based on assessment data approved in writing by DEQ that the building’s users, public health and the environment will be protected from risk from vapor intrusion related to said contamination; or iii. vapor intrusion mitigation measures are installed and/or implemented to the satisfaction of a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal on a report that includes photographs and a description of the installation and performance of said measures. Any design specification for vapor intrusion mitigation measures shall be approved in writing by DEQ in advance of installation and/or implementation of said measures. The design specifications shall include methodology(ies) for demonstrating performance of said measures. g. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an EMP approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each subsequent redevelopment phase) that is consistent with all the other land use restrictions and describes redevelopment activities at the Brownfields Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Brownfields Property during construction or redevelopment in any other form, including without limitation: i. soil and water management issues, including without limitation those resulting from contamination identified in the Environmental Reports; ii. issues related to potential sources of contamination referenced in paragraphs 7 and 8 above or refer to Exhibit 2; 13 17042/One Hour Martinizing (DRAFT 20190503) iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and iv. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. h. No later than January 31 after each one-year anniversary of the effective date of this Agreement for as long as physical redevelopment of the Brownfields Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Brownfields Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: i. actions taken on the Brownfields Property in accordance with Section V: Work to be Performed above; ii. soil grading and cut and fill actions; iii. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; iv. stockpiling, containerizing, decontaminating, treating, handling, laboratory analysis and ultimate disposition of any soil, groundwater or other materials suspected or confirmed to be contaminated with regulated substances; and v. removal of any contaminated soil, water or other contaminated materials (for example, concrete, demolition debris) from the Brownfields Property (copies of all legally required manifests shall be included). i. Neither DEQ, nor any party conducting environmental assessment or 14 17042/One Hour Martinizing (DRAFT 20190503) remediation at the Brownfields Property at the direction of, or pursuant to a permit, order or agreement issued or entered into by DEQ, may be denied access to the Brownfields Property for purposes of conducting such assessment or remediation, which is to be conducted using reasonable efforts to minimize interference with authorized uses of the Brownfields Property. j. Any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. The owner may use the following mechanisms to comply with the obligations of this subparagraph: (i) If every lease and rider is identical in form, the owner conveying an interest may provide DEQ with copies of a form lease or rider evidencing compliance with this subparagraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notice and Submissions); or (ii) The owner conveying an interest may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. k. None of the contaminants known to be present in the environmental media at the Brownfields Property, as described in Exhibit 2 of this Agreement and as modified by DEQ in writing if additional contaminants in excess of applicable standards are discovered at the Brownfields Property, may be used or stored at the Brownfields Property without the prior written approval of DEQ, except. i. in de minimis quantities for cleaning and other routine housekeeping and maintenance activities; 15 17042/One Hour Martinizing (DRAFT 20190503) ii. in fluids for vehicles or landscaping equipment; iii. as constituents of products and materials customarily used and stored in office, retail, restaurant, brewery or food production facility, parking, hotel, institutional, recreation, open space, and multi-family residential environments, provided such products are stored in original retail packaging and used and disposed of in accordance with applicable laws; iv. as constituents of fuels, lubricants and oils in emergency generators, machinery, equipment and vehicles in on-board tanks integral to said equipment, or in flammable liquid storage containers totaling no more than 25 gallons; or v. in products or materials that are brought onto the Brownfields Property, kept in their original packaging or containers (that is, not used or repackaged) and later removed from the Brownfields Property in the original packaging or containers. l. The owner of any portion of the Brownfields Property where any subsequently installed, DEQ-approved monitoring well is damaged by the owner, its contractors, or its tenants shall be responsible for repair of any such wells to DEQ’s written satisfaction and within a time period acceptable to DEQ, unless compliance with this Land Use Restriction is waived in writing by DEQ in advance. m. During January of each year after the year in which the Notice of Brownfields Property referenced below in paragraph 20 is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Mecklenburg County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Mecklenburg County Register of Deeds office and that the land use restrictions are being complied with. The submitted LURU shall state the 16 17042/One Hour Martinizing (DRAFT 20190503) following: i. the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the owner submitting the LURU if said owner acquired any part of the Brownfields Property during the previous calendar year; ii. the transferee’s name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address, if said owner transferred any part of the Brownfields Property during the previous calendar year; iii. whether any vapor barrier and/or mitigation systems installed pursuant to subparagraph 15.f above are performing as designed, and whether the uses of the ground floors of any buildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how. iv. A joint LURU may be submitted for multiple owners by a duly constituted board or association and shall include the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the entity submitting the joint LURU as well as for each of the owners on whose behalf the joint LURU is submitted. v. LURU’s submitted for any portion of the Brownfields Property that contains rental units shall include a list of tenants and their addresses. vi. A property owners’ association or other entity may perform this LURU’s duties, on behalf of some or all owners of the Brownfields Property, if said association or entity has accepted responsibility for such performance pursuant to a notarized instrument satisfactory to DEQ that includes at a minimum, the name, mailing address, telephone and facsimile numbers, and e-mail address of each owner on whose behalf the LURU is proposed to be submitted. 16. The desired result of the above-referenced land use restrictions is to make the 17 17042/One Hour Martinizing (DRAFT 20190503) Brownfields Property suitable for the uses specified in the Agreement while fully protecting public health and the environment. 17. The guidelines, including parameters, principles and policies within which the desired results are to be accomplished are, as to field procedures and laboratory testing, the Guidelines of the Inactive Hazardous Sites Branch of DEQ’s Superfund Section and the Division of Waste Management Vapor Intrusion Guidance, as embodied in their most current version. 18. The consequence of achieving the desired results will be that the Brownfields Property will be suitable for the uses specified in the Agreement while fully protecting public health and the environment. The consequence of not achieving the desired results will be that modifications to land use restrictions and/or remediation in some form may be necessary to fully protect public health and/or the environment. VI. ACCESS/NOTICE TO SUCCESSORS IN INTEREST 19. In addition to providing access to the Brownfields Property pursuant to subparagraph 15.i. above, Prospective Developer shall provide DEQ, its authorized officers, employees, representatives, and all other persons performing response actions under DEQ oversight, access at all reasonable times to other property controlled by Prospective Developer in connection with the performance or oversight of any response actions at the Brownfields Property under applicable law. Such access is to occur after prior notice and using reasonable efforts to minimize interference with authorized uses of such other property except in response to emergencies and/or imminent threats to public health and the environment. While Prospective Developer owns the Brownfields Property, DEQ shall provide reasonable notice to Prospective Developer of the timing of any response actions to be undertaken by or under the oversight of DEQ at the Brownfields Property. Except as may be set forth in the Agreement, DEQ retains all of its authorities and rights, including enforcement authorities related thereto, under the Act and 18 17042/One Hour Martinizing (DRAFT 20190503) any other applicable statute or regulation, including any amendments thereto. 20. DEQ has approved, pursuant to NCGS § 130A-310.35, a Notice of Brownfields Property for the Brownfields Property containing, inter alia, the land use restrictions set forth in Section V (Work to Be Performed) of this Agreement and a survey plat of the Brownfields Property. Pursuant to NCGS § 130A-310.35(b), within 15 days of the effective date of this Agreement, Prospective Developer shall file the Notice of Brownfields Property in the Mecklenburg County, North Carolina, Register of Deeds’ Office. Within three (3) days thereafter, Prospective Developer shall furnish DEQ a copy of the documentary component of the Notice of Brownfields Property containing a certification by the register of deeds as to the Book and Page numbers where both the documentary and plat components of the Notice of Brownfields Property are recorded, and a copy of the plat with notations indicating its recordation. 21. This Agreement shall be attached as Exhibit A to the Notice of Brownfields Property. Subsequent to recordation of said Notice, any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. Prospective Developer may use the following mechanisms to comply with the obligations of this paragraph: (i) If every lease and rider is identical in form, Prospective Developer may provide DEQ with copies of a form lease or rider evidencing compliance with this paragraph, in lieu of sending copies of actual, executed leases, to the 19 17042/One Hour Martinizing (DRAFT 20190503) persons listed in Section XV (Notices and Submissions); or (ii) Prospective Developer may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. 22. The Prospective Developer shall ensure that a copy of this Agreement is provided to any current lessee or sublessee on the Brownfields Property within seven days of the effective date of this Agreement. VII. DUE CARE/COOPERATION 23. The Prospective Developer shall exercise due care at the Brownfields Property with respect to the manner in which regulated substances are handled at the Brownfields Property and shall comply with all applicable local, State, and federal laws and regulations. The Prospective Developer agrees to cooperate fully with any assessment or remediation of the Brownfields Property by DEQ and further agrees not to interfere with any such assessment or remediation. In the event the Prospective Developer becomes aware of any action or occurrence which causes or threatens a release of contaminants at or from the Brownfields Property while the Prospective Developer owns the Brownfields Property, the Prospective Developer shall immediately take all appropriate action to prevent, abate, or minimize such release or threat of release, shall comply with any applicable notification requirements under NCGS § 130A-310.1 and 143-215.85, Section 103 of CERCLA, 42 USC § 9603, and/or any other law, and shall immediately notify the DEQ Official referenced in paragraph 35.a. below of any such required notification. VIII. CERTIFICATION 24. By entering into this Agreement, the Prospective Developer certifies that, without DEQ approval, it will make no use of the Brownfields Property other than that committed to in the Brownfields Property Application dated September 19, 2013 by which it applied for this Agreement, as modified herein. That use is office, retail, restaurant, brewery or food production 20 17042/One Hour Martinizing (DRAFT 20190503) facility, industrial, warehousing, parking, hotel, institutional, recreation, open space, multi- family residential, and subject to DEQ’s prior written approval, other commercial uses. Prospective Developer also certifies that to the best of its knowledge and belief it has fully and accurately disclosed to DEQ all information known to Prospective Developer and all information in the possession or control of its officers, directors, employees, contractors and agents which relates in any way to any past use of regulated substances or known contaminants at the Brownfields Property and to its qualification for this Agreement, including the requirement that it not have caused or contributed to the contamination at the Brownfields Property. IX. DEQ’S COVENANT NOT TO SUE AND RESERVATION OF RIGHTS 25. Unless any of the following apply, Prospective Developer shall not be liable to DEQ, and DEQ covenants not to sue Prospective Developer, for remediation of the Brownfields Property except as specified in this Agreement: a. The Prospective Developer fails to comply with this Agreement. b. The activities conducted on the Brownfields Property by or under the control or direction of the Prospective Developer increase the risk of harm to public health or the environment, in which case Prospective Developer shall be liable for remediation of the areas of the Brownfields Property, remediation of which is required by this Agreement, to the extent necessary to eliminate such risk of harm to public health or the environment. c. A land use restriction set out in the Notice of Brownfields Property required under NCGS § 130A-310.35 is violated while the Prospective Developer owns the Brownfields Property, in which case the Prospective Developer shall be responsible for remediation of the Brownfields Property to unrestricted use standards. d. The Prospective Developer knowingly or recklessly provided false information that formed a basis for this Agreement or knowingly or recklessly offers false information to 21 17042/One Hour Martinizing (DRAFT 20190503) demonstrate compliance with this Agreement or fails to disclose relevant information about contamination at the Brownfields Property. e. New information indicates the existence of previously unreported contaminants or an area of previously unreported contamination on or associated with the Brownfields Property that has not been remediated to unrestricted use standards, unless this Agreement is amended to include any previously unreported contaminants and any additional areas of contamination. If this Agreement sets maximum concentrations for contaminants, and new information indicates the existence of previously unreported areas of these contaminants, further remediation shall be required only if the areas of previously unreported contaminants raise the risk of the contamination to public health or the environment to a level less protective of public health and the environment than that required by this Agreement. f. The level of risk to public health or the environment from contaminants is unacceptable at or in the vicinity of the Brownfields Property due to changes in exposure conditions, including (i) a change in land use that increases the probability of exposure to contaminants at or in the vicinity of the Brownfields Property or (ii) the failure of remediation to mitigate risks to the extent required to make the Brownfields Property fully protective of public health and the environment as planned in this Agreement. g. DEQ obtains new information about a contaminant associated with the Brownfields Property or exposures at or around the Brownfields Property that raises the risk to public health or the environment associated with the Brownfields Property beyond an acceptable range and in a manner or to a degree not anticipated in this Agreement. h. The Prospective Developer fails to file a timely and proper Notice of Brownfields Property under NCGS § 130A-310.35. 26. Except as may be provided herein, DEQ reserves its rights against Prospective 22 17042/One Hour Martinizing (DRAFT 20190503) Developer as to liabilities beyond the scope of the Act. 27. This Agreement does not waive any applicable requirement to obtain a permit, license or certification, or to comply with any and all other applicable law, including the North Carolina Environmental Policy Act, NCGS § 113A-1, et seq. 28. Consistent with NCGS § 130A-310.33, the liability protections provided herein, and any statutory limitations in paragraphs 25 through 27 above, apply to all of the persons listed in NCGS § 130A-310.33, including future owners of the Brownfields Property, to the same extent as Prospective Developer, so long as these persons are not otherwise potentially responsible parties or parents, subsidiaries, or affiliates of potentially responsible parties. X. PROSPECTIVE DEVELOPER'S COVENANT NOT TO SUE 29. In consideration of DEQ’s Covenant Not To Sue in Section IX of this Agreement and in recognition of the absolute State immunity provided in NCGS § 130A-310.37(b), the Prospective Developer hereby covenants not to sue and not to assert any claims or causes of action against DEQ, its authorized officers, employees, or representatives with respect to any action implementing the Act, including negotiating, entering, monitoring or enforcing this Agreement or the above-referenced Notice of Brownfields Property. XI. PARTIES BOUND 30. This Agreement shall apply to and be binding upon DEQ, and on the Prospective Developer, its officers, directors, employees, and agents. Each Party’s signatory to this Agreement represents that she or he is fully authorized to enter into the terms and conditions of this Agreement and to legally bind the Party for whom she or he signs. XII. DISCLAIMER 31. Prospective Developer and DEQ agree that this Agreement meets the requirements of the Act, including but not limited to the requirements set forth in NCGS § 130A-310.32(a)(2). 23 17042/One Hour Martinizing (DRAFT 20190503) However, this Agreement in no way constitutes a finding by DEQ as to the risks to public health and the environment which may be posed by regulated substances at the Brownfields Property, a representation by DEQ that the Brownfields Property is fit for any particular purpose, nor a waiver of Prospective Developer’s duty to seek applicable permits or of the provisions of NCGS § 130A-310.37. 32. Except for the land use restrictions set forth in paragraph 15 above and NCGS § 130A-310.33(a)(1)-(5)'s provision of the Act's liability protection to certain persons to the same extent as to a prospective developer, no rights, benefits or obligations conferred or imposed upon Prospective Developer under this Agreement are conferred or imposed upon any other person. XIII. DOCUMENT RETENTION 33. The Prospective Developer agrees to retain and make available to DEQ all business and operating records, contracts, site studies and investigations, remediation reports, and documents generated by and/or in the control of the Prospective Developer, its affiliates or subsidiaries relating to storage, generation, use, disposal and management of regulated substances at the Brownfields Property, including without limitation all Material Safety Data Sheets or Safety Data Sheets, for six (6) years following the effective date of this Agreement, unless otherwise agreed to in writing by the Parties. Said records may be retained electronically such that they can be retrieved and submitted to DEQ upon request. At the end of six (6) years, the Prospective Developer shall notify DEQ of the location of such documents and shall provide DEQ with an opportunity to copy any documents at the expense of DEQ. By entering into this Agreement, Prospective Developer waives no rights of confidentiality or privilege provided by the North Carolina Public Records Act or otherwise and, at the time DEQ requests to copy or inspect said documents, Prospective Developer shall provide DEQ with a log of documents withheld from DEQ, including a specific description of the document(s) and the alleged legal 24 17042/One Hour Martinizing (DRAFT 20190503) basis upon which they are being withheld. To the extent DEQ retains any copies of such documents, Prospective Developer retains all rights it then may have to seek protection from disclosure of such documents as confidential business information. XIV. PAYMENT OF ENFORCEMENT COSTS 34. If the Prospective Developer fails to comply with the terms of this Agreement, including, but not limited to, the provisions of Section V (Work to be Performed), it shall be liable for all litigation and other enforcement costs incurred by DEQ to enforce this Agreement or otherwise obtain compliance. XV. NOTICES AND SUBMISSIONS 35. Unless otherwise required by DEQ or a Party notifies the other Party in writing of a change in contact information, all notices and submissions pursuant to this Agreement shall be sent by prepaid first class U.S. mail, as follows: a. for DEQ: Brownfields Property Management Unit (or successor in function) N.C. Division of Waste Management Brownfields Program Mail Service Center 1646 Raleigh, NC 27699-1646 b. for Prospective Developer: John C. Coppala (or successor in function) GG-Morehead, LLC 5126 Park Road, Suit 2E Charlotte, NC 28209 Notices and submissions sent by prepaid first class U.S. mail shall be effective on the third day following postmarking. Notices and submissions sent by hand or by other means affording written evidence of date of receipt shall be effective on such date. 25 17042/One Hour Martinizing (DRAFT 20190503) XVI. EFFECTIVE DATE 36. This Agreement shall become effective on the date the Prospective Developer signs it, after receiving the signed, conditionally approved Agreement from DEQ. DEQ’s approval of this Agreement is conditioned upon the complete and timely execution and filing of this Agreement in the manner set forth herein. Prospective Developer shall expeditiously sign the Agreement in order to effect the recordation of the full Notice of Brownfields Property within the statutory deadline set forth in N.C.G.S. § 130A-310.35(b). If the Agreement is not signed by Prospective Developer within 45 days after such receipt, DEQ has the right to revoke its approval and certification of this Agreement, and invalidate its signature on this Agreement. XVII. TERMINATION OF CERTAIN PROVISIONS 37. If any Party believes that any or all of the obligations under Section VI (Access/Notice to Successors in Interest) are no longer necessary to ensure compliance with the requirements of the Agreement, that Party may request in writing that the other Party agree to terminate the provision(s) establishing such obligations; provided, however, that the provision(s) in question shall continue in force unless and until the Party requesting such termination receives written agreement from the other Party to terminate such provision(s). XVIII. CONTRIBUTION PROTECTION 38. With regard to claims for contribution against Prospective Developer in relation to the subject matter of this Agreement, Prospective Developer is entitled to protection from such claims to the extent provided by NCGS § 130A-310.37(a)(5)-(6). The subject matter of this Agreement is all remediation taken or to be taken and response costs incurred or to be incurred by DEQ or any other person in relation to the Brownfields Property. 39. The Prospective Developer agrees that, with respect to any suit or claim for contribution brought by it in relation to the subject matter of this Agreement, it will notify DEQ 26 17042/One Hour Martinizing (DRAFT 20190503) in writing no later than 60 days prior to the initiation of such suit or claim. 40. The Prospective Developer also agrees that, with respect to any suit or claim for contribution brought against it in relation to the subject matter of this Agreement, it will notify DEQ in writing within 10 days of receiving said suit or claim. XIX. PUBLIC COMMENT 41. This Agreement shall be subject to a public comment period of at least 30 days starting the day after the last of the following public notice tasks occurs: publication of the approved summary of the Notice of Intent to Redevelop a Brownfields Property required by NCGS § 130A-310.34 in a newspaper of general circulation serving the area in which the Brownfields Property is located; conspicuous posting of a copy of said summary at the Brownfields Property; and mailing or delivery of a copy of the summary to each owner of property contiguous to the Brownfields Property. After expiration of that period, or following a public meeting if DEQ holds one pursuant to NCGS § 130A-310.34(c), DEQ may modify or withdraw its consent to this Agreement if comments received disclose facts or considerations which indicate that this Agreement is inappropriate, improper or inadequate. IT IS SO AGREED: NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY By: ____________________________________________________________________________ Michael E. Scott Date Director, Division of Waste Management IT IS SO AGREED: GG-Morehead, LLC By: ____________________________________________________________________________ John C. Coppala Date Manager SITE LOCATION MAP One Hour Martinizing Brownfields (NCBP # 17042-13-060) 911 E. Morehead Street Charlotte, Mecklenburg County, NC TOPOGRAPHIC MAP IMAGE COURTESY OF THE U.S. GEOLOGICAL SURVEY QUADRANGLES INCLUDE: CHARLOTTE EAST, NC (1/1/1988). 2701 Westport Rd Charlotte, NC 28208-3608 71187043 Project Manager: Drawn by: Checked by: Approved by: HEH CLC CLC 1”=2,000’ 71187043.1 Jan. 2019 Project No. Scale: File Name: Date: 1 Figure HEH APPROXIMATE SITE BOUNDARY 17042/One Hour Martinizing (DRAFT 20190510) Exhibit 2 The most recent environmental sampling at the Brownfields Property reported in the Environmental Reports occurred in January 2019. The following tables set forth, for contaminants present at the Brownfields Property above unrestricted use standards or screening levels, the concentration found at each sample location, and the applicable standard or screening level. Screening levels and groundwater standards are shown for reference only and are not set forth as cleanup levels for purposes of this Agreement. SOIL Soil contaminants in milligrams per kilogram (the equivalent of parts per million), the screening levels for which are derived from the Preliminary Industrial Health- Based Soil Remediation Goals of the Inactive Hazardous Sites Branch of DEQ’s Superfund Section (February 2018 version): Soil Contaminant Sample Location Depth (ft) Date of Sampling Concentration Exceeding Screening Level (mg/kg) Residential Screening Level1 (mg/kg) Commercial Screening Level 1 (mg/kg) Arsenic 2 SS-01 0-2 7/16/2018 1.4 0.68 3 SS-02 1.2 DUP-02-0716 (SS-02) 3.4 SS-03 0-5 3.1 Benzo(a) pyrene SS-02 0-2 7/16/2018 0.609 J3 0.11 2.1 DUP-02-0716 (SS-02) 0.155 J3 1Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-6 lifetime incremental cancer risk. 2 The IHSB’s tabulated generic residential use preliminary remediation goal (“remedial goal”) for arsenic is 0.68 mg/kg. Based on site specific assessment data, the arsenic detections on the Brownfields Property appear to be naturally occurring. Further, based on a site specific risk calculation using the current NCDEQ Risk Calculator, arsenic levels on the Brownfields Property do not exceed a Hazard Index of 1. 3J - Estimated concentration below the laboratory reporting limit. 17042/One Hour Martinizing (DRAFT 20190510) SUB-SLAB VAPOR Soil gas contaminants in micrograms per cubic meter, the screening levels for which are derived from Non-Residential and Residential Vapor Intrusion Screening Levels of the Division of Waste Management (February 2018 version): Soil Gas Contaminant Sample Location Date of Sampling Concentration Exceeding Screening Level (µg/m3) Residential Screening Limit1 (µg/m3) Non- Residential Screening Limit1 (µg/m3) Naphthalene SV-01 7/17/2018 87 21 260 DUP 20180717 (SV-01) 7/18/2018 90 SV-01A 1/15/2019 21 SV-02 7/17/2018 130 SV-02A 1/15/2019 37 DUP- 20190115 (SV-02A) 1/15/2019 33 Tetrachloroethylene SV-02 7/17/2018 1100 280 3500 SV-02A 1/15/2019 780 DUP- 20190115 (SV-02A) 1/15/2019 830 1Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-5 lifetime incremental cancer risk. 17042/One Hour Martinizing (DRAFT 20190510) GROUNDWATER Groundwater contaminants in micrograms per liter (the equivalent of parts per billion), the standards for which are contained in Title 15A of the North Carolina Administrative Code, Subchapter 2L (2L), Rule .0202, (April 1, 2013 version): Groundwater Contaminant Sample Location Date of Sampling Concentration Exceeding Standard (µg/L) Standard (µg/L) Tetrachloroethylene MW-111 9/14/2009 18 0.7 2/13/2012 68.1 10/3/2013 55 2/20/2014 51.8 5/20/2014 49.7 7/16/2018 79.7 DUP-01-0716 (MW-11) 7/16/2018 81.8 MW-133 9/17/2009 0.87 J2 2/13/2012 0.90 J2 Trichloroethylene MW-111 9/14/2009 5.2 3 2/13/2012 16.8 10/3/2013 18 2/20/2014 18.3 5/20/2014 12.6 7/16/2018 22.9 DUP-01-0716 (MW-11) 7/16/2018 22.7 Vinyl Chloride MW-111 2/20/2014 0.7 J2 0.03 1 MW-11 is referred to as the “East Well” in the Limited Well Sampling Report prepared by AEI Consultants, dated October 14, 2013. 2J - Estimated concentration below the laboratory reporting limit. 3MW-13 is referred to as the “West Well” in the Limited Well Sampling Report prepared by AEI Consultants, dated October 14, 2013. 17042/One Hour Martinizing (DRAFT 20190510) GROUNDWATER VAPOR INTRUSION RISK Groundwater contaminants with potential for vapor intrusion (VI) in micrograms per liter (the equivalent of parts per billion), the vapor intrusion screening levels for which are derived from the Residential Vapor Intrusion Screening Levels of the Division of Waste Management February 2018 version): Groundwater Contaminant Sample Location Date of Sampling Concentration Exceeding Standard (µg/L) Residential VI Screening Level1 (µg/L) Non- Residential VI Screening Level1 (µg/L) Tetrachloroethylene MW-112 9/14/2009 18 12 48 2/13/2012 68.1 10/3/2013 55 2/20/2014 51.8 7/16/2018 79.7 Trichloroethylene MW-112 9/14/2009 5.2 1 4.4 2/13/2012 16.8 10/3/2013 18 2/20/2014 18.3 5/20/2014 12.6 7/16/2018 22.9 DUP-01-0716 (MW-11) 7/16/2018 22.7 Chloroform MW-11 5/20/2014 8.3 8.1 36 MW-133 10/3/2013 21 2/20/2014 21.3 5/20/2014 20.5 1 Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-5 lifetime incremental cancer risk. 2 MW-11 is referred to as the “East Well” in the Limited Well Sampling Report prepared by AEI Consultants, dated October 14, 2013. 3MW-13 is referred to as the “West Well” in the Limited Well Sampling Report prepared by AEI Consultants, dated October 14, 2013. 303363165 v1 Exhibit C Legal Description That certain tract or parcel of land situated, lying and being in the City of Charlotte, Mecklenburg County, North Carolina, and being more particularly described as follows: BEGINNING at an existing 1/2” iron rod on the easterly margin of East Morehead Street (variable width public right-of-way), said existing iron rod being the northwest corner of the property of 1001 East Morehead Street, LLC (now or formerly) as described in Deed Book 23937, Page 101 in the Mecklenburg County Public Registry (the “Registry”); thence with the easterly margin of East Morehead Street the following (3) courses and distances: 1) North 36°00’08” West a distance of 94.86 feet to a new nail; 2) North 33°08’08” West a distance of 157.29 feet to a new nail; 3) North 34°48’16” West a distance of 13.09 feet to an existing 1/2” iron rod being the southwesterly corner of the property of 919 S. McDowell, LLC (now or formerly) as described in Deed Book 28887, Page 48 of said Registry; thence with the southeasterly line of the 919 S. McDowell, LLC property North 54°00’13” East a distance of 191.74 feet to an existing 1” iron pipe in the southwesterly line of the property of W. S. Gordon Jr. and Alice Gordon (now or formerly) as described in Deed Book 10722, Page 930 of said Registry; thence with the line of the aforesaid Gordon property the following (2) courses and distances: 1) South 36°00’13” East a distance of 80.12 feet to an existing nail; 2) North 53°59’47” East a distance of 99.68 feet to an existing 1/2” iron rod on the southwesterly line of the property of Beacon MPI-900BX, LLC (now or formerly) as described in Deed book 29749, Page 263 of said Registry; thence with the southwesterly line of the Beacon MPI-900BX, LLC property and continuing with the line of the property of 1001 East Morehead Street, LLC (now or formerly) as described in Deed Book 23937, Page 101 of said Registry South 36°00’13” East a distance of 185.06 feet to an existing 1/2” iron rod; thence continuing with the northwesterly line of the 1001 East Morehead Street, LLC property South 54°01’43” West a distance of 299.57 feet to the point and place of BEGINNING, containing 70,708 square feet or 1.6232 acres of land, more or less, as shown on a map prepared by R. B. Pharr & Associates, P.A., dated November 28, 2018 and bearing Job No. 89159.