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HomeMy WebLinkAbout23017_5501 Center Dr_BPA_BPABrownfields Property Application North Carolina Brownfields Program www.ncbrownfields.orci I. PROSPECTIVE DEVELOPER (PD) INFORMATION {USE TAB KEY TO GET TO NEXT DATA ENTRY LINE — DO NOT USE THE RETURN KEY} A. PD information: Entity name TDC 77 Center Drive II, LLC Principal Officer Jeffrey Benson Representative Michael J. Eskra, CFO Mailing Address 5310 S. Alston Ave. Ste. 210 Durham, NC 27713 E-mail address meskra@dilweg.com Phone No. (919) 313-2766 Fax No. (919) 402-9119 Web site www.dilweg.com B. PD contact person information (i.e., individual who will serve as the NCBP's point of contact if different than above): Name Michael J. Eskra, Chief Financial Officer Company The Dilweg Companies, LLC Mailing Address 5310 S. Alston Ave., Ste, 210 Durham, NC 27713 E-Mail Address meskra@dilweg.com Phone No. (919) 313-2766 Fax No. (919) 402-9119 C. Information regarding all parent companies, subsidiaries or other affiliates of PD (attach separate sheet(s) if necessary): (Use for LLCs) Member -managed or manager -managed? Answer: Manager -managed 0 If manager -managed, provide name of manager and percent of ownership: Name Dilweg Capital, LLC Ownership (%) Mailing Address 5310 S. Alston Ave. Ste. 210 Durham, NC 27713 E-Mail Address meskra@dilweg.com Phone No. (919) 313--2766 Fax No. (919) 402-9119 For all LLCs, list all members of the LLC and provide their percent of ownership: Name TDC 77 Center Drive Member, LLC Ownership (%) 45.60995% Mailing Address 5310 S. Alston Ave. Ste. 210 Durham, NC 27713 E-Mail Address meskra@dilweg.com Phone No. Fax No. Name Dilweg Blue Pledge Fund, LP Ownership (%) 54.39005% Mailing Address 5310 S. Alston Ave. Ste. 210 Durham, NC 27713 E-Mail Address meskra@dilweg.com Phone No. Fax No. Name Ownership (%) Mailing Address E-Mail Address Phone No. Fax No. �� Managers of manager -managed LLCs are required to execute all brownfield documents for the LLC; as to member -managed LLCs, state name of member who will sign these documents. List all parent companies, subsidiaries and other affiliates: See attached organizational chart. Please note no Dilwig-affiliated companies have had a prior interest in the property. (Use for Partnerships) Check one: ❑General Partnership ❑Limited Partnership List all partners and percent of ownership: Name Ownership (%) Mailing Address E-Mail Address Phone No. Fax No. Is this person a general or limited partner? Name Ownership (%) Mailing Address E-Mail Address Phone No. Fax No. Is this person a general or limited partner? List all parent companies, subsidiaries and other affiliates: 0 �HN0�I-C) 7bC� Cy7 l7 v, c�D Ua CD CD CD ,a w CD '+ co ooCD 00 �' O p y� '�C .= • Q. cam! r1 vY' o- w cD p \ ao .n O w O r C7 CO A h- \ \ 0 0 `' 00 w o N cn O V d a J 0 ry CD CD 00 u' CD cwo� G -0 bo 00 p CD n 00 I'D CO OC CD 00 J n o ry .._, 60 00CD CD w " cD w CD � � C� � ? �• o 0 b C7 w CD w � o w h7 fD � CD 00 � CD CDCD oNw�t7 ...qd C7 G) �o CD A CD o o o Cj tCDD CD O rl tz " c�D rn o •17 n ,,y n cr, ; ('� d C7 0 ° �' El a NCD v, a. O�. r o n � "^ ; y O dq w r. o �c, n ID w p O' a O p' C) w C) 0 o a z o CD c O N J �ro o Wo Wa' LA O y W .y N A 0 o co H n CD 0 CD v w W Ozz CD w y c�`D c�D On2..'l�bq� - tTj o o CD 0 w a 00 w CD o UQ .. o w d w r' 00 v C� o C 00 Cl n \ o o CD? o C, CD o o w o, n CD v O ao H � H CD w d �v CZ ICD � I d o C CD C) � CC) N O (Use for corporations other than LLCs) (If information is the same as shown in 1.A., please indicate "same as 1.A. " below.) Name Mailing Address E-Mail Address Phone No. Fax No. List all parent companies, subsidiaries and other affiliates: (Use for individuals) (If individual is the same as shown in 1.A., -please indicate "same as 1.A."above.) Name Mailing Address E-Mail Address Phone No. Fax No. D. Does PD have or can it obtain the financial means to fully implement a brownfields agreement and assure the safe reuse of the property? (Attach supporting documentation such as letters of credit, financial statements, etc.) Answer Yes Explanation The Property is 2.44-acres in size and one parcel that is part of a larger mutli- parcel 57.9-acre office park. With the exception of the 5501 77 Center Drive parcel, which is the focus of this application, the balance of the office park is now subject to the Seventy Seven Center Drive Brownfields Agreement # 16048-12-60 recorded in August 2016. Dilwig bought the office park from WPFII REIV, LLC, the PD of the Seventy Seven Center Drive Brownfields Property. The 5501 77 Center Drive parcel was purchased from a third party, GFE LLC, which did not participate in the Brownfields Agreement process with WPFII REIV, LLC. 7 The Property renovation will include significant upfitting of all tenant spaces, replacement of obsolete building systems and any necessary work related to the brownfield agreement. Ownership can secure financing for a full renovation of the office park that includes the improvements currently located at the Property. However, the possible contamination at the property and liability concerns are proving to be a hinderance to loan financing because the parcel subject to this application was not included in the Seventy Seven Center Drive Brownfields Property, which provides liability protection for the balance of the larger site. E. Does PD have or can it obtain the managerial means to fully implement a brownfields agreement and assure the safe use of the property? Answer Yes Explanation A coordinated effort between the in-house construction manager employed by the property manager, The Dilweg Companies, and its general contractor, Barringer Construction, will ensure the full implementation of the brownfields agreement. F. Does PD have or can it obtain the technical means to fully implement a brownfields agreement and assure the safe use of the property? Answer Yes Explanation The general contractor employed for the property renovation, Barringer Construction, has the technical means to implement a brownfields agreement G. Does PD commit that it will comply (and has complied, if PD has had a prior project in the NCBP) with all applicable procedural requirements of the NCBP, including prompt payment of all statutorily required fees? Answer Yes (List all NCBP project name(s) and NCBP project ID numbers where PD or any parent company, subsidiary and other affiliate of PD has been a party to.) H. Does PD currently own the property? Answer Yes E: If yes, when did PD purchase the property and from whom? (Provide name, address, telephone number and email address of the contact person for the current property owner.) June 8, 2018, purchased from GFE LLC Mike Eskra The Dilweg Companies 5310 South Alston Ave., Suite 210 Durham, NC 27713 (919) 313-2766 meskra@dilweg.com If no, provide the name, address, telephone number and e-mail address of the contact person for the current property owner I. If PD does not currently own the property, does PD have the property under contract to purchase? Answer N/A If yes, provide date of contract. If no, when does the PD intend to purchase the property (e.g., after the project is determined to be eligible for participation in the NCBP, after PD receives a draft BFA, after the conclusion of the brownfields process)? Describe all activities that have taken place on the property since PD or PD's parents, subsidiaries and/or other affiliates, and/or lessees or sublessees of PD, took ownership of or operated at the property (e.g., industrial, manufacturing or commercial activities, etc.). (Include a list of all regulated substances as defined at NCGS § 130A-310.3 1 (b) (11) that have been used, stored on, or otherwise present at the property while those activities were conducted, and explain how they were used.) The property is currently vacant. II. SITE INFORMATION A. Information regarding the proposed brownfields property: Proposed project name �G7 acreage street address(es) city tax ID(s) or PIN(s) past use(s) current use(s) 2.4363+- 5501 77 Center Drive Charlotte 169-102-03 Office Building Office Building cause (s)/source(s) of contamination: known suspected County Mecklenburg zip 28217 B. Regulatory Agency Involvement: List the site names and all identifying numbers (ID No.) previously or currently assigned by any federal, state or local environmental regulatory agencies for the property. The ID No's may include CERCLIS numbers, RCRA generator numbers for past and present operations, UST database, Division of Water Quality's incident management database, and/or Inactive Hazardous Sites Branch inventory numbers. (In many instances, the PD will need to actively seek out this information by reading environmental site assessment reports, reviewing government files, contacting government officials, and through the use of government databases, many of which may be available over the internet.) Agency Name/ID No: Agency Name/ID No: Agency Name/ID No: Agency Name/ID No: Agency Name/ID No: Agency Name/ID No: C. In what way(s) is the property is abandoned, idled, or underused? 5501 77 Center Drive is currently vacant (underused). The 38,000-square-foot office building located on subject property has been vacant since ownership acquired the property on June 8, 2018. D. In what way(s) is the actual or possible contamination at the property a hindrance to development or redevelopment of the property (attach any supporting documentation such as letters from lending institutions)? The possible contamination at the property is a hinderance to loan financing, which prevents Ownership from renovating and leasing the property. In its current condition, 5501 77 Center 10 Drive cannot be leased to prospective tenants. The building requires significant capital to remedy deferred maintenance, upgrade the building's systems, renovate the common areas and make the building suitable for future tenants. Ownership cannot move forward with the renovations without loan financing, and the Lender will not finance a property with possible contamination without a brownfield agreement. E. In what way(s) is the redevelopment of the property difficult or impossible without a brownfields agreement (attach any supporting documentation such as letters form lending institutions)? Without the brownfield agreement, redevelopment of the property is hindered, as Ownership will be unable to secure funding to pay for the renovations. Ownership has allocated $4,000,000 to renovate the property, including improvements to the building's mechanical systems, elevators, life safety equipment, lobby, common areas and to provide amenities for the park. F. What are the planned use(s) of the redeveloped brownfields property to which the PD will commit? Be as specific as specific as possible. The planned use of 5501 77 Center Drive is to provide leasable office space and onsite amenities for the park. G. Current tax value of brownfields property: $4,443,000.00 H. Estimated capital investment in redevelopment project: $4,000,000. The estimated capital investment includes $1,500,000 of cosmetic improvements, $500,000 of functional improvements and $2,000,000 for onsite park amenities. List and describe the public benefits that will result from the property's redevelopment. Be as specific as possible. (Examples of public benefits for brownfields projects include job creation, tax base increases, revitalization of blighted areas, preserved green space, preserved historic places, improving disadvantaged neighborhood quality -of -life related retail shopping opportunities, affordable housing, environmental cleanup activities or set asides that have community or environmental benefits. In gauging public benefit, NCBP places great value upon letters of support from community groups and local government that describe anticipated improvements in quality of life for neighboring communities that the project will bring about. The inclusion of such support letters with this application is recommended and encouraged.) Redevelopment of 5501 77 Center Drive will result in job creation. By redeveloping the property, Ownership will be able to recruit companies to work in the park, creating jobs for the community. Redevelopment of the park will also result in an increased tax base of the property, which will benefit the public. Special Note: Please describe all environment -friendly technologies and designs PD plans to utilize in its redevelopment strategy. For example, environment friendly redevelopment plans could include: Leadership in Energy and Environmental Design (LEED) Certification, green building materials; green landscaping techniques such as using drought resistant 11 plants; energy efficient designs, materials, appliances, machinery, etc.; renewable sources of energy, and/or recycling/reuse of old building materials such as brick or wood. Ownership plans to investigate using environment friendly redevelopment plans including green building materials, green landscaping techniques and energy efficient designs. The mechanical improvements to the building (HVAC improvements, BMS upgrades) will reduce the building's energy use, making the building more efficient. J. Who will own the brownfields property when the Notice of Brownfields Property is filed with the register of deeds at the conclusion of the brownfields process? (If information is the same as 1.A. above, please indicate.) Name TDC 77 Center Drive II, LLC Mailing Address 5310 S. Alston Ave., Ste. 210 Durham, NC 27713 E-Mail Address meskra@dilweg.com Phone No. Fax No. III. OTHER REQUIRED INFORMATION A. Brownfields Affidavit: PD must provide its certification, in the form of a signed and notarized original of the unmodified model brownfields affidavit provided by NCBP, that it did not cause or contribute to contamination at the property and that it meets all other statutory eligibility requirements. (Note: The form to use for this affidavit is attached to this application. An original hard copy of this affidavit must be filled out, signed, notarized and submitted with this application.) Is the required affidavit, as described above, included with this application? Answer Yes B. Proposed Brownfields Agreement Form: PD must provide the completed form Proposed Brownfields Agreement. (Note: The form to use for this document is attached to this application. It must be filled out, initialed, and attached on your submittal.) Is the required Proposed Brownfields Agreement , as described above. included with this application? Answer Yes C. Location Map: PD must provide a copy of the relevant portion of the 1:24,000 scale U.S.G.S. topographic quadrangle map that shows the location of the property, clearly plotted, and that measures at least an 8 1/2by 11 inches. (Note: these maps can be purchased through the above link, or often through retail outdoor recreation stores that can 12 print out the relevant map. Often environmental reports have location maps that use this type of map format as the base for its location map.) Is the required location map included with this application? Answer Yes D. Survey Plat: PD must provide a preliminary survey plat of the brownfields property with the property boundaries clearly identified, and a metes and bounds legal description that matches the property description on the plat. At this stage of the brownfields process, one or more existing survey plats from a previous property conveyance will suffice. (Before the brownfields project enters the public comment phase of the brownfields process, the PD will be required to submit a final brownfields survey plat which includes the information listed in the brownfields survey platguidance.) Is the required preliminary survey plat included with this application? Answer Yes. E. Site Photographs: PD must provide at least one pre -redevelopment photograph of the property, in either hard copy or electronic format, that shows existing facilities and structures. Please note that the NCBP prefers to have electronic photos instead of or in addition to hard copies. Electronic copies of photographs should be emailed to: Shirley. Liggins@ncdenr.gov with a clear indication as to which Brownfields Application they apply to. Are photographs of the property included with this application? Answer See attached Phase I. Have electronic copies of the photographs been emailed to NCBP? Answer See attached Phase I. F. Environmental Reports/Data: If it makes an affirmative eligibility determination, the NCBP will request that PD provide any and all existing environmental reports and data for the property on CD only. The brownfields process may be expedited if PD submits such reports/data with this application. Are any environmental reports/data being submitted with this application? Answer See attached Phase I. If environmental reports/data are being submitted with this application, please provide the title, date and author of each item being submitted: Also, please refer to the large number of reports and other information associated with the Seventy Seven Center Drive Brownfields Property. 13 IV. ADDITIONAL REQUIRED FORMS The following forms are to be filled out and submitted with the application including the Responsibility and Compliance Affidavit and the Proposed Brownfields Agreement. Submittal of the Affidavit requires signature and notarization, and the Proposed Brownfields Application requires an initial. 14 NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY NORTH CAROLINA BROWNFIELDS PROGRAM IN THE MATTER OF: TDC 77 CENTER DRIVE II, LLC UNDER THE AUTHORITY OF ) AFFIDAVIT NORTH CAROLINA GENERAL ) RE: RESPONSIBILITY STATUTES 3130A-310.30, et sect ).__. AND COMPLIANCE JEFFREY A. BENSON, being duly sworn, hereby deposes and says: 1. I am <<PRESIDENT>> of DILWEG CAPITAL, LLC, THE MANAGER OF TDC 77 CENTER DRIVE II, LLC. 2. [if signatory is not President, add this paragraph: "I am fully authorized to make the declarations contained herein and to legally bind TDC 77 CENTER DRIVE II, LLC."] 3. TDC 77 CENTER DRIVE II, LLC is applying for a Brownfields Agreement with the North Carolina Department of Environmental Quality, pursuant to N.C.G.S. 3 130A, Article 9, Part 5 (Brownfields Act), in relation to the following Parcel Number(s)16910203 parcel(s) in Charlotte, Mecklenburg , County, North Carolina: 5501 Seventy Seen Center Drive. 4. I hereby certify, under the pains and penalties of perjury and of the Brownfields Act, that TDC 77 CENTER DRIVE II, LLC, and any parent, subsidiary or other affiliate meets the eligibility requirements of N.C.G.S. 3130A-310.31(b)(10), in that it has a bona fide, demonstrable desire to develop or redevelop, and did not cause or contribute to the contamination at, the parcel(s) cited in the preceding paragraph. 5. I hereby certify, under the pains and penalties of perjury and of the Brownfields Act, that TDC 77 CENTER DRIVE II, LLC meets the eligibility requirement of N.C.G.S.3130A-310.32(a)(1) 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 sa' h not. -� Signa[ n'i—idle Date Sworn to and subscribed before me MATTHF��i,G this �� 0 day of A A A it (',k , 2011. O s Notary Public NotacVCO%JVN `I Y�� caWIYV�LSSIGV� �IYY.S �a-G-�� - &.1 My commission expires: (SEAL) 16 Preliminary Proposed Brownfields Agreement I. Property Facts a. Property Address(es): 5501 Seventy Seven Center Drive, Charlotte, NC b. Property Seller: TDC 77 Center Drive, LLC c. Property Buyer: TDC 77 Center Drive II, LLC d. Brief Property Usage History: Office Building e. The planned reuse will potentially involve the following use classification(s) (check all that apply): ❑ School/childcare/senior care ❑ Residential ❑ Commercial, retail (specify) ❑ Other commercial (specify) ® Office ❑ Light industrial ❑ Heavy industrial ® Recreational ❑ Open space ❑ Other (specify) II. Contaminant Information a. The contaminant situation at the property is best described by the following (check all that apply): ❑ Contaminants are from an on -property source(s) ® Contaminants are from an off -property source(s) ❑ Contaminants are from an unknown source(s) ❑ Contaminants have not yet been documented on the property 17 b. Contaminated Media Table. (If known, check appropriate boxes below) Contaminant Soil Groundwater Private Wells Vapor Intrusion Types and/or Surface Water known Suspected known Suspected known suspected known suspected 0 Chlorinated X X r Solvents 9 (list): a n i c s Petroleum: ASTs ❑ USTs ❑ Other ❑ Other (list): i Metals n (list): 0 r 9 a n Other (list): c s III. Protective Measures I am prepared to take steps necessary to make the property suitable for its planned uses while fully protecting public health and the environment. I propose that NCBP consider a brownfields agreement that will make the property suitable for the planned use(s) through the following mechanism(s) (check all that apply): ® Contaminant remediation to risk -based levels. ® Engineered Controls (e.g., low permeability caps, vapor mitigation systems, etc) ® Land use restrictions that run with the land that will restrict or prohibit uses that are unacceptable from a risk assessment/management perspective. (Important Note: In any im final brownfields agreement generated by the NCBP, land use restrictions will ultimately come with the continuing obligation to submit an annual certification that the Land Use Restrictions are being complied with and remain recorded at the applicable register of deeds office.) IV. Fees In connection with a brownfields agreement, the Act requires that the developer pay fees to offset the cost to the Department of Environmental Quality and the Department of Justice. In satisfaction of the Act, the following fees apply to a brownfields agreement that is developed for this project under the standard program, subject to negotiation of the brownfields agreement: a. A $2,000 initial fee will be due from the applicant PD when both of the following occur: 1) NCBP receives this application, the affidavit and proposed brownfields agreement, AND 2) NCBP notifies the applicant in writing that the applicant PD and the project are eligible for participation in the NCBP and continued negotiation of a brownfields agreement. b. A second fee of $6,000 will be due from the PD prior to execution of the brownfields agreement. Should the prospective developer choose to negotiate changes to the agreement that necessitate evaluation by the Department of Justice, additional fees shall apply. c. Any addendum/modifications to the BFA or NBP after they are in effect will result in an additional fee of at least $1,000. d. In the unexpected event that the environmental conditions at the property are unusually complex, such that NCBP's costs will clearly exceed the above amounts, NCBP and PD will negotiate additional fees. e. Additional fees are charged for the Ready for Reuse and Redevelopment Now programs. ❑ Please check this box and initial in space provided to indicate your acknowledgement of the standard brownfields fee structure. Please check this box and initial in space provided to indicate your interest in the Re pment Now program and your acknowledgement of the alternate fee structure as outlined in the Redevelopment Now Fee Consent Document (under separate cover). ❑ Please check this box and initial in space provided to indicate your interest in the Ready for Reuse program. Date of Submittal: , . A 0 - I I Wel North Carolina Brownfields Program Redevelopment Now Fee Consent Document I, the undersigned, am the authorized agent of TDC 77 Center Drive ll, LLC ("Prospective Developer"), who seeks to engage the North Carolina Brownfields Program ("Program") to develop a brownfields agreement under N.C.G.S. 130A-310.30, et seq. for the following property: Proposed Site Name: TDC 77 Center Drive Street Address: 550177 Center Drive City: Charlotte Zip Code: 28217 County: Mecklenburg Prospective Developer is herewith paying a $30,000.00 fee to the Program, by check payable to "NCDEQ," in satisfaction of a Prospective Developer's obligations under N.C.G.S. 130A- 310.39(a). Prospective Developer understands that payment of this fee entitles Prospective Developer to expedited Program review of technical documents and processing of a draft Brownfields Agreement and ancillary documents regarding the project in question. Prospective Developer further understands that payment of this fee in no way guarantees successful completion of the brownfields process regarding the project. I understand that, pursuant to payment of the fees, the Program shall handle the subject project under the Program's expedited processing provisions, with appropriate staff resources, so long as Prospective Developer is engaging in the process in good faith and complying with the Program's procedures. Should the Program determine that the resources required to complete the brownfields process in regard to the subject project ever exceed the fee set forth herein due to unforeseen technical, administrative, or regulatory complexities, the Program may (1) remove the project from the expedited processing program and return it to standard processing status, or (2) expend resources it deems reasonable seeking to negotiate an additional fee that the Program deems sufficient to complete the brownfields process in regard to the project. Disclaimers: 1) The Program makes no promises or claims that payment of the subject fee will result in successful completion of the Brownfields process regarding this project. 2) Public comment shall be solicited pursuant to N.C.G.S. 130A-310.34, and may affect the outcome of the brownfields process regarding this project, including without limitation its timing and/or provisions/features of the Brownfields documents and plat. Prospective Developer: TDC 77 Center Drive ll, LLC Mailing Address: Attn: Mike Eskra 5310 South Alston Ave, Suite 210 Durham, NC 27713 Nark t ped or anted: Jeffrey A. Benson Title type anted: President, Dilweg Capital 3-90"11 Date