HomeMy WebLinkAbout04017_Burlington Mills_Letter of Intent_20001016_20021210_20030128• •
E
ELIGIBILITY
• • Cherokee Investment Partners II, L.P.
January 28, 2003
Mr. Tony Duque
Brown fields Project Manager
Division of Waste Management
North Carolina Department of Environment and Natural Resources
401 Oberlin Road, Suite 150
Raleigh, North Carolina 27699-1646
Re: Revised Brownfields Letter oflntent-Burlington Mills, Mooresville Facility
Dear Mr. Duque:
·~
702 Oberlin Road
Suite !50
Raleigh, NC 27605
(919) 743-2500
(919) 743-2501 (Fax)
Please find enclosed the revised Brownfields Letter of Intent for the Burlington Mills facility
located in Mooresville. The mill is currently vacant, and its redevelopment has been hindered by
both real and perceived envirorunental concerns. Under a brownfields agreement, Cherokee will
commit to necessary remediation of the Burlington Mill to ensure that it will be safe for its
intended uses.
Cherokee's redevelopment team is working on a strategic plan with Mooresville, state and
county economic development officials, and plan to renovate the plant to provide a total of
approximately 650 thousand square feet of mixed-use space suitable for various industrial,
commercial or residential uses.
As we discussed recently, Cherokee manages a $250 million private equity fund devoted to the
acquisition, cleanup and redevelopment of environmentally impaired properties like the
Burlington mill site. We maintain an unwavering commitment to restoring and redeveloping
contaminated properties, and look forward to working with you on this opportunity.
If you have any questions regarding the Letter of Intent, please feel free to contact me at (919)
743-2505.
Sincerely, .
_4-J,-L._ C2__ 6!1 J
Stephen C. Cadwallader
Managing Director
• •
CHEROKEE MOORESVILLE, LLC
BROWNFIELDS CERTIFICATION AND AFFIDAVIT
Mr. Stephen C. Cadwallader, being duly sworn, hereby deposes and says:
1. I am the President of Cherokee Mooresville, LLC (Cherokee).
2. Cherokee is applying for a Brownfields Agreement with the North Carolina Department
of Environment and Natural Resources, pursuant to N.C.G.S. Section 130A, Article 9,
Part 5 (Brownfields Act), in relation to the Burlington Mills property (Tax parcels
0301111 OOOH030/4656990304.0, 03011 II OOOH020/4656998796.0, and
0301JIIOOOH021/4656984434.0) in Mooresville, North Carolina: 476 South Main Street.
3. I hereby certify, under the pains and penalties of perjury and of the Brownfields Act, that
Cherokee, and any parent, subsidiary or other affiliate meets the eligibility requirements
of N.C.G.S. Section 130A-310.3I(b)(IO), in that it did not cause or contribute to the
contamination at the parcel(s) cited in the preceding paragraph.
4. I hereby certify, under the pains and penalties of perjury and of the Brown fields Act, that
Cherokee meets the eligibility requirement ofN.C.G.S. Section 130A-31 0.32(a)(l) in that
it and any parent, subsidiary or other affiliate have substantially complied with:
a. the terms of any brownfields or similar agreement to which it or any parent,
subsidiary or other affiliate has been a party;
b. the requirements applicable to any remediation in which it or any parent,
subsidiary or other affiliate has previously engaged;
c. federal and state laws, regulations and rules for the protection of the environment.
Affiant further saith not.
Mr. Stephen C. Cadwallader
J-2.1]·0.3
Date
Sworn to and subscribed before me thi~y o~M::Y, 20~.
~ ' C/h Notary Public ~;;~~~
My commission expires: 1-,1, 7-::?tJ43
(SEAL)
• •
BROWNFIELDS LETTER OF INTENT
FORMER BURLINGTON MILLS
MOORESVILLE FACILITY
MOORESVILLE, NORTH COROLINA
a. Prospective Developer
Cherokee Mooresville, LLC
702 Oberlin Road, Suite 150
Raleigh, North Carolina 27605
b. Prospective Developer Contacts
Phone: (919) 743-2500
Fax: (919) 743-2501
Project Director:
Phone:
Stephen C. Cadwallader, President
(919) 743-2505
January 28, 2003
Project Environmental:
Phone:
John Gallagher, P.E., Engineering Project Manager
(919) 743-2547
c. Prospective Developer Affiliated Companies
Cherokee Mooresville, LLC and its parent company Cherokee Investment Partners II have no
additional parent company(s). Cherokee has an interest in certain other real estate holding
companies established to manage the redevelopment and sale of the brown fields after they are
purchased. Cherokee Mooresville, LLC and Cherokee Investment Partners II and its affiliated
companies have no interest or ownership in Burlington Mills, Inc., the prior owner of the
property.
d. Property Description, Current Use, Use History and Environmental Conditions
The Burlington Mills Mooresville facility is currently idle and underused, and the redevelopment
of the property has been hindered by the threat of contamination at the site.
Property Description and Uses
The Burlington Mills property is located at 476 South Main Street in Mooresville, North
Carolina. (Tax parcels 0301JllOOOH030/4656990304.0, 0301JIIOOOH020/4656998796.0, and
03011 IIOOOH021/4656984434.0). It includes 39.29 acres of land and 1.3 million square feet of
manufacturing buildings and supporting facilities. The facility, which is now idle and vacant,
was built around the tum of the century, and was purchased by Burlington Mills in 1955 from the
Mooresville Cotton Mill Company. It operated until 1999. Manufacturing operations included
cotton yam preparation, weaving, and fabric dyeing and finishing.
Brownfields Letter of Intent
Burlington Mills Site • • Page 2
The surrounding properties include small businesses, residences and gasoline service stations and
convenience stores owned by Exxon and BP.
Environmental Conditions
There was one known release associated with one or more leaking underground storage tanks
(LUSTs) at the property. There are no other known releases of oil or other hazardous substances
at the Burlington Mills property besides this LUST incident. There is no record of landfilling at
the property, or other indications of on-site disposal of hazardous substances. The property is not
a Superfund NPL site, and there is no indication that it is NPL-caliber.
In 1989, five underground storage tanks, which contained diesel oil, waste oil (2), gasoline and
varsol, were removed from the site. There is a reported release associated with one or more of
these tanks (Incident No. 8171). On March 28, 2002, the Mooresville regional office of the
NCDENR Division of Waste Management -Underground Storage Tanks Section issued a
finding of No Further Action with regard to this incident. A copy of that NF A letter is provided
as an attachment to this Letter of Intent.
The focus of the brown fields agreement is to address the perceived environmental concerns that
have complicated the property's redevelopment. Given the age of the facility {approximately 100
years), and because petroleum products and other hazardous substances were used at the site,
contamination may exist. This includes contamination that may have occurred from process and
chemical storage tanks, wastewater treatment operations, manufacturing, hydraulic systems and
other ancillary activities at the mill.
e. Intended Use of the Redeveloped Property
The intended use of the redeveloped Burlington Mills property will be for industrial, commercial
or residential uses. The particular mix and final site use will depend on the market demands at
the time of property redevelopment expected to occur in 2003.
f. Public Benefits
Environmental Benefits
Cherokee is committed to the remediation of the Burlington Mills site to ensure that it will be
safe for its intended uses. As part of the brown fields redevelopment of the site, Cherokee has or
will fund appropriate assessment and response actions to address potential contamination in soil
and groundwater.
We have undertaken a complete Phase II assessment of the property (including subsurface
investigations) to better determine the nature and extent of contamination that may be present
and to evaluate response actions that may be warranted at the mill. In addition, we have
committed to the removal of asbestos in the mill buildings and the cleanup of the old industrial
operations.
• • Brownfields Letter oflntent
Burlington Mills Site Page 3
Job Creation
The redevelopment of the site, with approximately 650 thousand square feet of mixed-use space,
will result in substantial job creation. We also anticipate the growth of additional jobs and
businesses in the vicinity of the redeveloped mill.
Tax Base Improvements
The currently idle plant is providing little tax base to the City of Mooresville. The estimated
taxable value of the redeveloped property is in excess of$20 million.
Commitment to Cleanup
Cherokee Investment Partners II manages a $250 million private equity fund devoted to the
acquisition, cleanup and redevelopment of potentially environmentally impaired properties like
the Burlington Mills site. Cherokee maintains an unwavering commitment to restoring and
redeveloping contaminated properties.
Commitment to Site Improvements
In addition to our commitment to clean up the Burlington Mills property, we are committed to
significant site improvements. This includes renovations to the site infrastructure, parking areas,
HVAC systems, and office and manufacturing areas.
Community Involvement
As briefly discussed above, Cherokee's redevelopment team has involved Mooresville, state and
county economic development officials in the redevelopment plans for the property.
The public officials we have spoken to are very supportive of the redevelopment plan. Current
zoning allows our redevelopment plans to be implemented without changes.
g. Cherokee lnvestmellt Partners' Capabilities
Financial
Cherokee Investment Partners II manages a $250 million private equity fund devoted to the
acquisition, cleanup and redevelopment of brown fields properties such as the Burlington Mills
site. Our annual spending for redevelopment and environmental remediation of brownfields sites
puts us near the top of all private-sector companies.
Managerial
Cherokee is a nationally recognized expert in the redevelopment and management ofbrownfields
sites. Our staff includes seasoned professionals with expertise in real estate transactions, asset
and property management, and real estate finance.
• Brownfields Letter of Intent • Burlington Mills Site Page 4
For the Burlington Mills brownfields project, we have assembled an experienced real estate
management team that will be headed by Stephen C. Cadwallader. Mr. Cadwallader is a
Managing Director in the Cherokee organization, and an expert in real estate acquisition,
redevelopment and management.
Technical
Because Cherokee's business focus is exclusively on environmentally impaired properties, we
have significant in-house technical expertise. This will ensure we can successfully implement a
brownfields agreement, and assure the long-term safe, beneficial use of the Burlington Mills site.
We employ professional engineers, geologists and environmental scientists that are experts in the
assessment and remediation of contaminated properties. For the Burlington Mills brownfield site,
John Gallagher will manage the environmental aspects of the project. Mr. Gallagher is a
registered professional engineer in North Carolina, and a Registered Site Manager under the state
Inactive Hazardous Waste Sites program. He also served with the USEPA as a Superfund
manager.
lr. Commitment to Comply with the Nortlr Carolina Brown fields Program
Cherokee is committed to complying with all applicable procedural requirements of North
Carolina's brownfields program, including the payment of all statutorily required fees.
i. Certification and Affidavit
Provided as an attachment is Cherokee's brown fields certification and affidavit.
j TopograplricAfap
A USGS topographical quadrangle map of the Burlington Mills site was previously provided.
k. Plat Survey
A plat survey of the property that is the focus of the brownfields agreement, including a
delineation of the site boundary, was previously provided.
• •
December 10, 2002
Mr. Tony Duque
Brownfields Project Manager
Division of Waste Management
North Carolina Department of Environment and Natural Resources
40 I Oberlin Road, Suite !50
Raleigh, North Carolina 27699-1646
~~ ..fo D80R
v,·a e-W\iJ l'l·l1-o2
Re: Revised Brownfields Letter oflntent-Burlington Mills, Mooresville Facility
Dear Mr. Duque:
Please find enclosed the revised Brownfields Letter oflntent for the Burlington Mills facility
located in Mooresville. The mill is currently vacant, and its redevelopment has been hindered by
both real and perceived environmental concerns. Under a brownfields agreement, Cherokee will
commit to necessary remediation of the Burlington Mill to ensure that it will be safe for its
intended uses.
Cherokee's redevelopment team is working on a strategic plan with Mooresville, state and
county economic development officials, and plan to renovate the plant to provide a total of
approximately 650 thousand square feet of mixed-use space suitable for various industrial,
commercial or residential uses.
As we discussed recently, Cherokee manages a $250 million private equity fund devoted to the
acquisition, cleanup and redevelopment of environmentally. impaired properties like the
Burlington mill site. We maintain an unwavering commitment to restoring and redeveloping
contaminated properties, and look forward to working with you on this opportunity.
If you have any questions regarding the Letter of Intent, please feel free to contact me at (919)
743-2505.
Sincerely,
Stephen C. Cadwallader
Managing Director
• •
BROWNFIELDS LETTER OF INTENT
FORMER BURLINGTON MILLS
MOORESVILLE FACILITY
MOORESVILLE, NORTH COROLINA
a. Prospective Developer
Cherokee Mooresville, LLC
702 Oberlin Road, Suite 150
Raleigh, North Carolina 27605
b. Prospective Developer Contacts
Phone: (919) 743-2500
Fax: (919) 743-2501
Project Director:
Phone:
Stephen C. Cadwallader, President
(919) 743-2505
December 10, 2002
Project Environmental:
Phone:
John Gallagher, P .E., Engineering Project Manager
(919) 743-2547
c. Prospective Developer Affiliated Companies
Cherokee Mooresville, LLC and its parent company Cherokee Investment Partners II have no
additional parent company(s). Cherokee has an interest in certain other real estate holding
companies established to manage the redevelopment and sale of the brownfields after they are
purchased. Cherokee Mooresville, LLC and Cherokee Investment Partners II and its affiliated
companies have no interest or ownership in Burlington Mills, Inc., the prior owner of the
property.
d. Property Description, Current Use, Use History and Environmental Conditions
The Burlington Mills Mooresville facility is currently idle and underused, and the redevelopment
of the property has been hindered by the threat of contamination at the site.
Property Description and Uses
The Burlington Mills property is located at 476 South Main Street in Mooresville, North
Carolina. (Tax parcels 0301Jl1000H030/4656990304.0, 0301JIIOOOH020/4656998796.0, and
0301Jl1000H021/4656984434.0).1t includes 39.29 acres ofland and 1.3 million square feet of
manufacturing buildings and supporting facilities. The facility, which is now idle and vacant,
was built around the tum of the century, and was purchased by Burlington Mills in 1955 from the
Mooresville Cotton Mill Company. It operated until 1999. Manufacturing operations included
cotton yam preparation, weaving, and fabric dyeing and finishing.
• • Brownfields Letter of Intent
Burlington Mills Site Page 2
The surrounding properties include small businesses, residences and gasoline service stations and
convenience stores owned by Exxon and BP.
Environmental Conditions
There was one known release associated with one or more leaking underground storage tanks
(LUSTs) at the property. There are no other known releases of oil or other hazardous substances
at the Burlington Mills property besides this LUST incident. There is no record of landfilling at
the property, or other indications of on-site disposal of hazardous substances. The property is not
a Superfund NPL site, and there is no indication that it is NPL~caliber.
In 1989, five underground storage tanks, which contained diesel oil, waste oil (2), gasoline and
varsol, were removed from the site. There is a reported release associated with one or more of
these tanks (Incident No. 8171). On , the Mooresville regional office 9fthe NCDENR
Division of Waste Management-Underground Storage Tanks Section issued a finding of No
Further Action with regard to this incident. A copy of that NFA letter is provided as an _,.
attachment to this Letter oflntent. c_ not ye.~ 1'f:5 nc11.
The focus of the brownfields agreement is to address the perceived environmental concerns that
have complicated the property's redevelopment. Given the age of the facility (approximately 100
years), and because petroleum products and other hazardous substances were used at the site,
contamination may exist. This includes contamination that may have occurred from process and
chemical storage tanks, wastewater treatment operations, manufacturing, hydraulic systems and
other ancillary activities at the mill.
e. Intended Use of the Redeveloped Property
The intended use of the redeveloped Burlington Mills property will be for industrial, commercial
or residential uses. The particular mix and final site use will depend on the market demands at
the time of property redevelopment expected to occur in 2003.
f. Public Benefits
Environmental Benefits
Cherokee is committed to the remediation of the Burlington Mills site to ensure that it will be
safe for its intended uses. As part of the brownfields redevelopment of the site, Cherokee has or
will fund appropriate assessment and response actions to address potential contamination in soil
and groundwater.
We have undertaken a complete Phase II assessment of the property (including subsurface
investigations) to better determine the nature and extent of contamination that may be present
and to evaluate response actions that may be warranted at the mill. In addition, we have
committed to the removal of asbestos in the mill buildings and the cleanup of the old industrial
operations.
• • Brownfields Letter of Intent
Burlington Mills Site Page 3
Job Creation
The redevelopment of the site, with approximately 650 thousand square feet of mixed-use space,
will result in substantial job creation. We also anticipate the growth of additional jobs and
businesses in the vicinity of the redeveloped mill.
Tax Base Improvements
The currently idle plant is providing little tax base to the City of Mooresville. The estimated
taxable value of the redeveloped property is in excess of $20 million.
Commitment to Cleanup
Cherokee manages a $250 million private equity fund devoted to the acquisition, cleanup and
redevelopment of potentially environmentally impaired properties like the Burlington Mills site.
Cherokee maintains an unwavering commitment to restoring and redeveloping contaminated
properties.
Commitment to Site Improvements
In addition to our commitment to clean up the Burlington Mills property, we are committed to
significant site improvements. This includes renovations to the site infrastructure, parking areas,
HV AC systems, and office and manufacturing areas.
Community Involvement
As briefly discussed above, Cherokee's redevelopment team has involved Mooresville, state and
county economic development officials in the redevelopment plans for the property.
The public officials we have spoken to are very supportive of the redevelopment plan. Current
zoning allows our redevelopment plans to be implemented without changes.
g. Cherokee Investment Partners' Capabilities
Financial
Cherokee Investment Partners II manages a $250 million private equity fund devoted to the
acquisition, cleanup and redevelopment of brown fields properties such as the Burlington Mills
site. Our annual spending for redevelopment and environmental remediation of brownfields sites
puts us near the top of all private-sector companies.
Managerial
Cherokee is a nationally recognized expert in the redevelopment and management ofbrownfields
sites. Our staff includes seasoned professionals with expertise in real estate transactions, asset
and property management, and real estate finance.
• • Brownfields Letter of Intent • Burlington Mills Site
For the Burlington Mills brownfields project, we have assembled an experienced real estate
management team that will be headed by Stephen C. Cadwallader. Mr. Cadwallader is a
Managing Director in the Cherokee organization, and an expert in real estate acquisition,
redevelopment and management.
Technical
Page 4
Because Cherokee's business focus is exclusively on environmentally impaired properties, we
have significant in-house technical expertise. This will ensure we can successfully implement a
brownfields agreement, and assure the long-term safe, beneficial use of the Burlington Mills site.
We employ professional engineers, geologists and environmental scientists that are experts in the
assessment and remediation of contaminated properties. For the Burlington Mills brownfield site,
John Gallagher will manage the environmental aspects of the project. Mr. Gallagher is a
registered professional engineer in North Carolina, and a Registered Site Manager under the state
Inactive Hazardous Waste Sites program. He also served with the USEPA as a Superfund
manager.
h. Commitment to Comply with the North Carolina Brownfields Program
Cherokee is committed to complying with all applicable procedural requirements of North
Carolina's brownfields program, including the payment of all statutorily required fees.
i. Certification and Affidavit
Provided as an attachment is Cherokee's brownfields certification and afftavit. ./ ., J ,I/ • ('
7 Sil.U fl e. td 't-1-W' ;-.. r
j. Topographic Map Ckboku..M oc:> res .n.-11.(, Ll C..
A USGS topographical quadrangle map of the Burlington Mills site was previously provided.
k. Plat Survey
A plat survey of the property that is the focus of the brownfields agreement, including a
delineation of the site boundary, was previously provided.
• • Cherokee Investment Partners,· LLC
October 16, 2000
Mr. Tony Duque
Brown fields Project Manager
Division of Waste Management
' ,
RECEIVED
OCT162000
SUPERFUND SECllm'
North Carolina Department of Environment and Natural Resources
401 Oberlin Road, Suite 150
Raleigh, North Carolina 27699-1646
Re: Brownfields Letter of Intent-Burlington Mills, Mooresville Facility
Dear Mr. Duque:
702 Oberlin Road
Suite 150
Raleigh, NC 27605
(919) 743-2500
(919) 743-2501 (Fax)
Please find enclosed a Brown fields Letter of Intent for the Burlington Mills facility located in
Mooresville. The mill is currently vacant, and its redevelopment has been hindered by both real
and perceived environmental concerns. Under a brownfields agreement, Cherokee will commit
to necessary remediation of the Burlington Mill to ensure that it will be safe for its intended uses.
Cherokee's redevelopment team is working on a strategic plan with Mooresville, state and
county economic development officials, and representatives of the automobile racing community
(Dale Earnhardt, Inc.) to renovate the plant to provide a total of 400 thousand square feet of
offices, flexible, mixed-use space suitable for various racing-related activities.
As we discussed recently, Cherokee manages a $250 million private equity fund devoted to the
acquisition, cleanup and redevelopment of environmentally impaired properties like the
Burlington mill site. We maintain an unwavering commitment to restoring and redeveloping
contaminated properties, and look forward to working with you on this opportunity.
If you have any questions regarding the Letter of Intent, please feel free to contact me at (919)
743-2505.
Stephen C. Cadwallader
Managing Director
• •
CHEROKEE INVESTMENT PARTNERS
BROWNFIELDS CERTIFICATION AND AFFIDAVIT
Mr. Stephen C. Cadwallader, being duly sworn, hereby deposes and says:
1. I am Managing Director of Cherokee Investment Partners, LLC (Cherokee).
2. Cherokee is applying for a Brownfields Agreement with the North Carolina Department
of Environment and Natural Resources, pursuant to N.C.G.S. Section 130A, Article 9,
Part 5 (Brownfields Act), in relation to the Burlington Mills property (Tax parcels
030 lJllOOOH030/4656990304.0, 030 lJllOOOH020/4656998796.0, and
0301JllOOOH02l/4656984434.0) in Mooresville, North Carolina: 476 South Main Street.
3. I hereby certify, under the pains and penalties of perjury and of the Brownfields Act, that
Cherokee, and any parent, subsidiary or other affiliate meets the eligibility requirements
ofN.C.G.S. Section 130A-310.3l(b)(l0), in that it did not cause or contribute to the
contamination at the parcel(s) cited in the preceding paragraph.
4. I hereby certify, under the pains and penalties of perjury and of the Brown fields Act, that
Cherokee meets the eligibility requirement of N.C.G.S. Section 130A-310.32(a)(l) in that
it and any parent, subsidiary or other affiliate have substantially complied with:
a. the terms of any brownfields or similar agreement to which it or any parent,
subsidiary or other affiliate has been a party;
b. the requirements applicable to any remediation in which it or any parent,
subsidiary or other affiliate has previously engaged;
c. federal and state laws, regulations and rules for the protection of the environment.
Affiant further saith not. . ~L(Jei.L/1~
Mr. Stephen C. Cadwallader
;o Itt, I~
11/ Sworn to and subs ribed before me this It:; day of 0::/ri:Jec, 20QQ_.
r:::.~~~~~~~~~~~ Notary Public
y commission expires: Z: c2-Z:. 2tJcJ0
(SEAL)
• •
BROWNFIELDS LETTER OF INTENT
FORMER BURLINGTON MILLS
MOORESVILLE FACILITY
MOORESVILLE, NORTH COROLINA
a. Prospective Developer
Cherokee Investment Partners, LLC (Cherokee)
702 Oberlin Road, Suite 150
Raleigh, North Carolina 27605
b. Prospective Developer Contacts
Phone: (919) 743-2500
Fax: (919) 743-2501
Project Director:
Phone:
Stephen C. Cadwallader, Managing Director
(919) 743-2505
RECEIVFr,
ocr 16 2000
SUPERFUND SECTION
October 16, 2000
Project Environmental:
Phone:
John Gallagher, P.E., Engineering Project Manager
(919) 743-2547
c. Prospective Developer Affiliated Companies
Cherokee Investment Partners (Cherokee) has no parent company(s). It maintains an affiliate
company (Cherokee Environmental Risk Management) that provides engineering, geologic and
environmental risk management support on the investment group's acquisition of brownfields
sites. Cherokee has an interest in certain other real estate holding companies established to
manage the redevelopment and sale of the brownfields after they are purchased. Cherokee and its
affiliated companies have no interest or ownership in Burlington Mills, Inc., or the Burlington
Mills property in Mooresville.
Subsidiary Company
Cherokee Environmental Risk Management
702 Oberlin Road, Suite 150
Raleigh, North Carolina 27605
Phone: (919) 743-2500
Fax: (919) 743-2501
d. Property Description, Current Use, Use History and Environmental Conditions
The Burlington Mills Mooresville facility is currently idle and underused, and the redevelopment
of the property has been hindered by the threat of contamination at the site.
Cherokee Investment Partners, LLC
Brownfields Letter of Intent
Burlington Mills Site •
Property Description and Uses
• Page2
The Burlington Mills property is located at 476 South Main Street in Mooresville, North
Carolina. (Tax parcels 030 1J IIOOOH030/4656990304.0, 030 1J IIOOOH020/4656998796.0, and
03011 IIOOOH021/4656984434.0). It includes 39.29 acres of land and 1.3 million square feet of
manufacturing buildings and supporting facilities. The facility, which is now idle and vacant,
was built around the tum of the century, and was purchased by Burlington Mills in 1955 from the
Mooresville Cotton Mill Company. It operated until 1999. Manufacturing operations included
cotton yam preparation, weaving, and fabric dyeing and finishing.
The surrounding properties include small businesses, residences and gasoline service stations and
convenience stores owned by Exxon and BP.
Environmental Conditions
There is one known release associated with one or more leaking underground storage tanks
(LUSTs) at the property. There are no other known releases of oil or other hazardous substances
at the Burlington Mills property besides this LUST incident. There is no record of landfilling at
the property, or other indications of on-site disposal of hazardous substances. The property is not
a Superfund NPL site, and there is no indication that it is NPL-caliber.
In 1989, five underground storage tanks, which contained diesel oil, waste oil (2), gasoline and
varsol, were removed from the site. There is a reported release associated with one or more of
these tanks (Incident No. 8171). According to Brad Newton, with the NCDENR Division of
Waste Management-Underground Storage Tanks Section, this incident is still open and
unresolved. (We understand that the state's brownfields program does not have jurisdiction over
LUST sites. It is our intention that the assessment and response to the LUST release(s) remain in
the NCDENR Division of Waste Management-Underground Storage Tanks Section.)
The focus of the brownfields agreement is not the LUST incident. Instead it is to address the
perceived environmental concerns that have complicated the property's redevelopment. Given
the age of the facility (approximately 100 years), and because petroleum products and other
hazardous substances were used at the site, contamination (in addition to the LUST release) may
exist. This includes contamination that may have occurred from process and chemical storage
tanks, wastewater treatment operations, manufacturing, hydraulic systems and other ancillary
activities at the mill.
e. Intended Use of the Redeveloped Property
The Mooresville area is a center for America's popular and growing multi-billion dollar
automotive racing industry. Approximately fifty BUSCH Series Teams, including NASCAR
champions like Dale Earnhardt Jr. and Dale Jarrett, and a number of smaller organizations are
located in the area. As a result, Mooresville has been dubbed "Race City USA."
The intended use. of the redeveloped Burlington Mills property will be as a facility designed and
operated to support the automobile racing industry. This could include, among other things, shop
Cherokee Investment Partners, LLC
Brownfields Letter of Intent
Burlington Mills Site • • Page3
space for racing teams, maintenance areas, racing-related research and development operations,
and offices to support the growing business aspects of the race industry.
f. Public Benefits
Environmental Benefits
Cherokee is committed to the remediation of the Burlington Mills site to ensure that it will be
safe for its intended uses. As part of the brownfields redevelopment of the site, Cherokee is
planning to fund appropriate assessment and response actions to address contamination found in
soil and groundwater.
We are currently undertaking a complete Phase II assessment of the property to better determine
the nature and extent of contamination that may be present and to evaluate response actions that
may be warranted at the mill.
The LUST incident discussed above will be addressed outside of the brownfields agreement in
accordance with the requirements administered by the NCDENR Division of Waste Management
-Underground Storage Tanks Section.
Job Creation
The redevelopment of the site, with approximately 400 thousand square feet of mixed-use space,
will result in job creation of an estimated 200 positions. We also anticipate the growth of
additional jobs and businesses in the vicinity of the redeveloped mill. This includes race related
support operations, product suppliers, and restaurants and hotel/motels.
Tax Base Improvements
The currently idle plant is providing little tax base to the City of Mooresville. The estimated
taxable value of the redeveloped property is in excess of $20 million.
Commitment to Cleanup
Cherokee manages a $250 million private equity fund devoted to the acquisition, cleanup and
redevelopment of potentially environmentally impaired properties like the Burlington Mills site.
Cherokee maintains an unwavering commitment to restoring and redeveloping contaminated
properties.
Commitment to Site Improvements
In addition to our commitment to clean up the Burlington Mills property, we are committed to
significant site improvements. This includes an estimated $15 million in spending on basic
renovations to the site infrastructure, parking areas, HV AC systems, offices and manufacturing
areas.
Cherokee Investment Partners, LLC
Brownfields Letter of Intent
Burlington Mills Site
Community Involvement
• • Page4
As briefly discussed above, Cherokee's redevelopment team has begun discussions on a strategic
plan with Mooresville, state and county economic development officials, and representatives of
the racing community (Dale Earnhardt, Inc.)
The public officials and racing teams we have spoken to are very supportive of the
redevelopment plan, and see the intended use of the closed mill as a center for racing-related
activities as a very good fit. Current zoning allows our redevelopment plans to be implemented
without changes. Letters of support on the redevelopment plan for the Burlington site will be
provided as an addendum to this Letter of Intent.
g. Cherokee Investment Partners' Capabilities
Financial
Cherokee manages a $250 million private equity fund devoted to the acquisition, cleanup and
redevelopment of brownfields properties such as the Burlington Mills site. Our annual spending
for redevelopment and environmental remediation of brownfields sites puts us near the top of all
private-sector companies.
Managerial
Cherokee is a nationally recognized expert in the redevelopment and management of brownfields
sites. Our staff includes seasoned professionals with expertise in real estate transactions, asset
and property management, and real estate finance.
For the Burlington Mills brownfields project, we have assembled an experienced real estate
management team that will be headed by Stephen C. Cadwallader. Mr. Cadwallader is a
Managing Director in the Cherokee organization, and an expert in real estate acquisition,
redevelopment and management. We are also working with the Restructure Group of Fluor
Daniel. Fluor Daniel is a multi-billion dollar architectural and engineering firm. The Restructure
Group specializes in the redevelopment of real estate assets such as the Burlington Mills site.
Technical
Because Cherokee's business focus is exclusively on environmentally impaired properties, we
have significant in-house technical expertise. This will ensure we can successfully implement a
brownfields agreement, and assure the long-term safe, beneficial use of the Burlington Mills site.
We employ professional engineers, geologists and environmental scientists that are experts in the
assessment and remediation of contaminated properties. For the Burlington Mills brownfields
site, John Gallagher will manage the environmental aspects of the project. Mr. Gallagher is a
registered professional engineer in North Carolina, and a Registered Site Manager under the state
Inactive Hazardous Waste Sites program. He also served with the USEPA as a Superfund
manager.
Cherokee Investment Partners, LLC
Brownfields Letter of Intent
Burlington Mills Site • •
h. Commitment to Comply with the North Carolina Brownfields Program
Cherokee is committed to complying with all applicable procedural requirements of North
Carolina's brownfields program, including the payment of all statutorily required fees.
i. Certification and Affidavit
Provided as an attachment is Cherokee's brownfields certification and affidavit.
j. Topographic Map
Page 5
A USGS topographical quadrangle map of the Burlington Mills site is provided as an attachment
to this letter of intent.
k. Plat Survey
A plat survey of the property that is the focus of the brownfields agreement, including a
delineation of the site boundary, will be provided as an addendum to this letter of intent.
Cherokee Investment Partners, LLC
•
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Source: USGS 1993 7.5 Minute Series
Mooresville, NC Quadrangle
•
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The IT Corporation
Greenville, SC
Job ~o.: 809776
Site Location ~lap
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Mooresville, !"C
Date: 06/05/00 Figure !\'o: 3
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SITE PLAN
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Burlington ·
Industries, Inc.
t::·· REstructure Group I RUOR DANIEL ··;:::J. 1 ·
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-BUILDINGS TO BE DEMOLISHED
~~!!HI PAVEMENTTOBEREMOVED
•
No.2
Mill
Rnishing
Resldanlial
MOORESVILLE, NaC .
SITE PLA~
DEMOLITION
Buildings To Remain
1. No.1 Mill
3.
6.
9.
11.
Two Story
150,000 sq. ft.
No.2 Mill Finishing
Two Story
120,000 sq. ft.
No.6 Mill
Two Story
80,000 sq. ft.
Tank Storage
Two Story
3,500 sq. ft.
Garage
Two Story
3,000 sq. ft.
Buildings To Ba Demolished
2. 1AOpenlng
One Story
37,000 sq. ft.
4. No.3 Mill
Two Story
58,000 sq. ft.
5. No.4 Mill
Two Story
75,000 sq. ft .
7. 6BAnnex
One Story
15,000 sq. ft .
8. Waste house
Two Story
14,000 sq. ft.
10 . Chemical Lab
One Story
3,500 sq. ft.
12 • Softener Building
One Story
1,600 sq. ft.
13. Fiber Plant
One Story
1,200 sq. ft.
14. Shop Areas
Two Story
33,000 sq. ft.
15. BollerHouse
One Story
10,000 sq. ft.
16. Raw Stock
Two Story
30,000 sq. ft.
Burlington
Industries, Inc.
e· REstructure Group I RUOR DANIEL·~ .i
•
NEWBFSITE
SITE NAME: Burlington Mills
SITE ADDRESS: 476 South Main Street
CITY: Mooresville COUNTY: Iredell ZIP: ______ _
PD NAME: Cherokee Investment Partners. LLC
PD CONTACT: Stephen C. Caawallader. Managing Director
PD CONTACT PHONE:_,_( .L..91'"'9'-'l'-'7.:r.43.~..:-""25""0!.>L5 ______ _
PD ADDRESS~ 702 Oberlin Road
PD CITY/STATE: Raleigh. NC 27605
PD PHONE: ( 919) 743-2505 FAX: ( 919) 743-2501
LOIRECEIVED: ~O~c&to~b~eLr~l2~.~2~0~00L-__________ ___
CONTAMINATION: Suspected solvents. hydrocarbons. and metals
CONTAM MEDIA: Suspected groundwater and soil
ADDITIONAL INFORMATION: __________________ _