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HomeMy WebLinkAbout22040 Metromont Concrete Facility NBP 20191021 22040-18-060/Metromont Concrete Facility (20191004) 1 Property Owner: Sugar Creek Ventures, LLC Recorded in Book ____, Page ____ Associated plat recorded in Plat Book ____, Page ____ NOTICE OF BROWNFIELDS PROPERTY Site Name: Metromont Concrete Facility Brownfields Project Number: 22040-18-060 This documentary component of a Notice of Brownfields Property (“Notice”), as well as the plat component, have been filed this _____ day of __________________, 201__ by Sugar Creek Ventures, 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 4101 Greensboro Street, Charlotte, Mecklenburg County, North Carolina. The Brownfields Property is approximately 18.49 acres and is currently developed with warehouses and former pre-cast concrete manufacturing buildings and gravel-covered equipment and materials staging areas. The Brownfields Property was predominantly undeveloped wooded land until the 1950s when it was developed with buildings used for concrete manufacturing operations until approximately 1997. Groundwater at the site is 22040-18-060/Metromont Concrete Facility (20191004) 2 contaminated with volatile organic compounds due to historical operations on the Brownfields Property and adjacent properties. The Brownfields Property is surrounded by land in commercial and industrial use. The Prospective Developer intends to redevelop the property for no uses other than high density residential, multi-family residential, office, retail, light industrial, open space, recreation, parking, restaurant, and, subject to DEQ’s prior written approval, other commercial uses. 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 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 restrictions are hereby imposed on the Brownfields Property, and are as follows: 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: a. No use may be made of the Brownfields Property other than for high density residential, multi- family residential, office, retail, light industrial, open space, recreation, parking, restaurant, and, subject to DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply: 22040-18-060/Metromont Concrete Facility (20191004) 3 i. “High Density Residential” defined as permanent dwellings where residential units are attached to each other with common walls, such as condominia, apartments, group homes, dormitories or boarding houses, and any property outside the dwelling structures is usable by all residents and not privately owned as part of a particular unit, and shall include related amenities, such as pools, clubhouses, courtyards, common areas, recreation areas and parking garages. ii. “Multi-Family Residential” defined as multi-unit human dwellings, such as condominia, or apartments. Single family homes, townhomes, duplexes, or other units with yards are prohibited unless approved in writing by DEQ in advance. iii. “Retail” 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. iv. “Parking” defined as the temporary accommodation of motor vehicles in an area designed for same. v. “Office” defined as the provision of business or professional services. vi. “Open Space” defined as land maintained in a natural or landscaped state and used for natural resource protection, buffers, greenways, detention facilities for stormwater, or similar purposes. vii. “Recreation” 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. viii. “Restaurant” defined as a commercial business establishment that prepares and serves food and beverages to patrons. ix.. “Industrial” defined as the assembly, fabrication, processing, warehousing or distribution of goods or materials. x. “Commercial” defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. b. 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 22040-18-060/Metromont Concrete Facility (20191004) 4 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. c. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an Environmental Management Plan (“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 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; d. No residential use of the Brownfields Property may occur until the then owner of the Brownfields Property conducts representative final grade soil sampling of any area within the Brownfields Property pursuant to a plan approved in writing by DEQ that is not covered by building foundations, sidewalks, or asphaltic or concrete parking areas and driveways. e. Unless otherwise approved by DEQ in writing after results of final grade soil sampling are received per subparagraph 15.d, above, 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 above in subparagraph 15.c. 22040-18-060/Metromont Concrete Facility (20191004) 5 f. 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 a DEQ approved EMP as outlined above in subparagraph 15.c. g. No enclosed building may be constructed on the Brownfields Property, until DEQ determines in writing that: i. the building is or would be protective of the building’s users, public health and the environment from risk of vapor intrusion based on Brownfields Property 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. h. As part of the Land Use Restriction Update described below in subparagraph 15.m for each year after the year in which the Notice referenced below in Paragraph 20 is recorded, 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 remediation at the Brownfields Property at the direction of, or pursuant to a permit, order or agreement issued or entered 22040-18-060/Metromont Concrete Facility (20191004) 6 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 conveying an interest may use the following mechanisms to comply with the obligations of this paragraph: (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 paragraph, 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. The owner of any portion of the Brownfields Property where any existing, or 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. l. 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. as fuel or other fluids customarily used in vehicles, landscaping equipment and emergency generators. m. During January of each year after the year in which the Notice 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; 22040-18-060/Metromont Concrete Facility (20191004) 7 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.g 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. LURU’s submitted for any portion of the Brownfields Property that contains rental units shall include a list of tenants and their addresses. v. A LURU submitted for rental units shall include the rent roll and enough of each lease entered into during the previous calendar year to demonstrate compliance with lessee notification requirements in subparagraph 15.j, above, and paragraph 21, below, of this agreement provided that if standard form leases are used in every instance, a copy of such standard form lease may be sent in lieu of copies of actual leases. 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 paragraph 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 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. 22040-18-060/Metromont Concrete Facility (20191004) 8 IN WITNESS WHEREOF, Prospective Developer has caused this instrument to be duly executed this _____ day of _______________, 201__. Sugar Creek Ventures, LLC By: __________________________________________ Name typed or printed: Title typed or printed: 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 ___________________________________ Notary’s printed or typed name, Notary Public (Official Seal) My commission expires: _____________________ ************************************ 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: _________________________________________ ________________________ Ellen Lorscheider Date Deputy Director, Division of Waste Management 1 Project Number 22040-18-060/Metromont Concrete Facility (20191004) EXHIBIT A NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY IN THE MATTER OF: Sugar Creek Ventures, LLC UNDER THE AUTHORITY OF THE ) BROWNFIELDS AGREEMENT re: BROWNFIELDS PROPERTY REUSE ACT ) Metromont Concrete Facility OF 1997, NCGS § 130A-310.30, et seq. ) 4101 Greensboro Street Brownfields Project No. 22040-18-060 ) Charlotte, Mecklenburg County I. INTRODUCTION This Brownfields Agreement (“Agreement”) is entered into by the North Carolina Department of Environmental Quality (“DEQ”) and Sugar Creek Ventures, 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 4101 Greensboro Street, Charlotte, Mecklenburg County (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. Sugar Creek Ventures, LLC is a North Carolina limited liability company that was formed on December 21, 2016. Its registered agent is Greg Godley and its business address is 1001 Elizabeth Ave., Suite 1D, Charlotte, North Carolina 28204. The Brownfields Property (Parcel ID 09108106) is approximately 18.49 acres and is currently developed with warehouses and former pre-cast concrete manufacturing buildings and gravel-covered equipment and materials staging areas. Sugar Creek Ventures, LLC intends to redevelop the Brownfields Property for high density residential, multi-family residential, office, retail, light industrial, open space, recreation, parking, restaurant, and, subject to DEQ’s prior written approval, other commercial uses. The Brownfields Property is surrounded by land in commercial and light 2 Project Number 22040-18-060/Metromont Concrete Facility (20191004) industrial use. Groundwater, soil and soil vapor are impacted at the Brownfields Property due to historical activities conducted on the Brownfields Property and off site properties. 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 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 Sugar Creek Ventures, LLC for contaminants at the Brownfields Property. The Parties agree that Sugar Creek Ventures, LLC’s entry into this Agreement, and the actions undertaken by Sugar Creek Ventures, LLC in accordance with the Agreement, do not constitute an admission of any liability by Sugar Creek Ventures, LLC for contaminants at the Brownfields Property. The resolution of this potential liability, in exchange for the benefit Sugar Creek Ventures, 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 Sugar Creek Ventures, LLC. III. STATEMENT OF FACTS 3. The Brownfields Property comprises one parcel totaling 18.49 acres. Prospective 3 Project Number 22040-18-060/Metromont Concrete Facility (20191004) Developer has committed itself to redevelopment for no uses other than high density residential, multi-family residential, office, retail, light industrial, open space, recreation, parking, restaurant, and, subject to DEQ’s prior written approval, other commercial uses. 4. The Brownfields Property is bordered to the north by Little Sugar Creek and commercial properties; to the east by East Sugar Creek Road, with commercial properties beyond; to the south by Greensboro Street, with commercial and light industrial properties beyond; and to the west by Concrete Supply Company, LLC. 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 Report, Metromont Concrete Facility Hart & Hickman March 22, 2019 Limited Phase II Environmental Assessment Report, 4101 Greensboro Street ECS Southeast, LLP May 10, 2018 Phase I Environmental Site Assessment Report, Commercial Property, 6601 Greensboro Street Environmental Assessments and Consulting September 17, 2014 Groundwater Sampling Results and Recommended Actions Rodgers and Callcott Engineers, Inc. September 19, 1996 Phase III Ground Water Assessment Report, Commercial Property, 4101 Greensboro Street Rodgers and Callcott Engineers, Inc. May 1996 Phase I Environmental Assessment, Exposaic Industries 18-Acre Site Rodgers and Callcott Engineers, Inc. September 26, 1995 Underground Storage Tank (UST) Closure Report, Exposaic Industries, Inc of NC Trigon Engineering Consultants, Inc. September 15, 1995 6. For purposes of this Agreement, DEQ relies on the following representations by Prospective Developer as to use and ownership of the Brownfields Property: a. The Brownfields Property was predominantly undeveloped wooded land until 4 Project Number 22040-18-060/Metromont Concrete Facility (20191004) the 1950s when it was developed with buildings used for concrete manufacturing operations. The Brownfields Property was operated as a concrete manufacturing facility by multiple tenants from the early to mid-1950s until approximately 1997. b. The Brownfields Property was occupied by Exposaic Industries, Inc until 1995 and, until February 2019, had been occupied by the Metromont Corporation (Metromont) for structural pre-cast concrete manufacturing operations. c. The southwestern portion of the Brownfields Property is currently being used for construction materials staging by Johnson Brothers, Inc., a contractor for the City of Charlotte working on the nearby light rail system. Remaining portions of the site are currently unoccupied. 7. Pertinent environmental information regarding the Brownfields Property and surrounding area includes the following: a. The UST Closure Report (1995) indicates that one gasoline UST, one diesel UST, and two fuel oil USTs were located on the Brownfields Property. The report indicates that Tank No. 1, Tank No. 2 and Tank No. 3 were removed in August 1995. Tank No. 4 was closed in-place in August 1995 by filling the UST with concrete (NCDEQ UST Incident No. 15459). During removal of the tanks, the consultant noted apparent petroleum contamination beneath Tank No. 1 and beneath the dispenser adjacent to Tank No. 2. No apparent petroleum contamination was observed in the Tank No. 3 UST basin. Approximately 25 cubic yards of potentially impacted soil was excavated from the Tank No. 1 diesel UST basin and approximately 5 cubic yards of potentially impacted soil was excavated from the Tank No. 2 5 Project Number 22040-18-060/Metromont Concrete Facility (20191004) gasoline UST dispenser system area. Laboratory analytical results of UST Section closure soil samples indicated that total petroleum hydrocarbons as diesel range organics (TPH-DRO) were detected above the laboratory reporting limits in soil samples collected beneath the Tank No. 3 fuel oil UST (274 milligrams per kilogram [mg/kg]) and beneath the Tank No. 2 gasoline UST dispenser system (761 mg/kg). TPH concentrations were not detected above the laboratory reporting limits for closure soil samples collected from Tank No. 1 and Tank No. 2. b. The Phase III Ground Water Assessment Report (May 1996) indicates that three groundwater monitoring wells were installed at the Brownfields Property. Subsequent assessment activities involved the installation of two additional groundwater monitoring wells and the collection of groundwater samples from each of the five wells on January 3, 1996 for the analysis of volatile organic compounds (VOCs) and semi-volatile compounds (SVOCs). Laboratory results indicated the exceedance of North Carolina Administrative Code 2L Groundwater Quality Standards (NCAC 2L Standards) for naphthalene in samples collected from the well (MW-1) adjacent to the abandoned UST. c. An environmental assessment was conducted at the Brownfields Property in April 2018 to evaluate the potential for impact in the areas identified as Recognized Environmental Concerns (RECs) in the Phase I Environmental Site Assessment Report. Four soil samples and three groundwater samples were collected. The soil samples were submitted to a laboratory for the analysis of Total Petroleum Hydrocarbons diesel and gasoline range organics. The groundwater samples were submitted to a laboratory for the analysis of VOCs and SVOCs. 6 Project Number 22040-18-060/Metromont Concrete Facility (20191004) Soil laboratory results did not identify an exceedance of UST Section Action Levels. Groundwater laboratory analytical results indicate that several VOCs were detected above NCAC 2L Standards. d. The NCDEQ UST Section issued a Conditional Notice of No Further Action for UST Incident No. 15459 on April 23, 2019 requiring that a Notice of Residual Petroleum be filed with the Register of Deeds in Mecklenburg County. The Notice of Residual Petroleum was filed with the Register of Deeds in Mecklenburg County on June 20, 2019 and the NCDEQ UST Section issued a No Further Action for UST Incident No. 15459 on July 10, 2019. e. An environmental assessment was conducted in January and February 2019 under a NCDEQ Brownfields Program approved work plan. Brownfields assessment activities included collection of soil, soil gas, and groundwater samples for laboratory analysis. Soil and groundwater samples were collected in the areas of the former USTs and in the area of historical acid wash operations. In addition, groundwater samples were collected near the upgradient Brownfields Property boundary to evaluate the potential for impact from nearby off-site sources. One groundwater sample was also collected in the northwestern and downgradient portion of the Brownfields Property to confirm the presence of chlorinated solvent impacts in groundwater reported in the 2018 ECS report. To evaluate the potential for structural vapor intrusion, soil gas assessment activities were conducted within the footprint of proposed buildings in the southwestern portion of the Site. However, due to shallow groundwater conditions, soil gas samples could not be collected in the west-central portion of the Brownfields Property. i. One subsurface soil sample was collected adjacent to each of the former 7 Project Number 22040-18-060/Metromont Concrete Facility (20191004) UST locations. In addition, two background subsurface samples were collected at the Brownfields Property. Soil samples were submitted to a laboratory for the analysis of VOCs, SVOCs, volatile petroleum hydrocarbons (VPH) (soil borings TW-1, TW-2, TW-3, and TW-4) and extractable petroleum hydrocarbons (EPH) (soil borings TW-1, TW-3 and TW-4) by Massachusetts Department of Environmental Protection (MADEP) methods. Soil boring TW-3 located near the former acid wash area was also analyzed for Resource Conservation and Recovery Act (RCRA) metals plus hexavalent chromium. The background soil samples were also analyzed for RCRA metals plus hexavalent chromium. Laboratory results indicate that no constituents were detected above Residential Preliminary Soil Remediation Goals (PSRGs). ii. Groundwater assessment activities included installation of nine temporary groundwater monitoring wells. Results of groundwater assessment activities indicate that groundwater flow at the Brownfields Property is to the north-northwest toward Little Sugar Creek. Shallow groundwater conditions were observed in the central and northern portions of the Brownfields Property. Samples collected from groundwater monitoring wells installed adjacent to the former UST basins (TW-1 through TW-4) were submitted to a laboratory for DEQ UST Section risk-based analysis of petroleum-related VOCs, SVOCs, and volatile and extractable petroleum hydrocarbons (VPH/EPH) by Massachusetts Department of Environmental Quality methods. The groundwater sample collected from monitor well TW-3 was also analyzed for RCRA metals due to close proximity to the historical acid wash operations. Samples collected from groundwater monitoring wells installed in upgradient and downgradient locations on the Brownfields Property (TW-5 through TW-9) were submitted to a laboratory for the 8 Project Number 22040-18-060/Metromont Concrete Facility (20191004) analysis of VOCs and SVOCs. In addition, the groundwater sample collected in the upgradient portion of the Brownfields Property (TW-5) was also submitted for laboratory analysis of RCRA metals. Laboratory results indicated an exceedance of NCAC 2L for tetrachloroethylene (TW-2, 2.6 ug/L), cis-1,2-dichloroethene (TW-7, 160 ug/L), and vinyl chloride (0.95 ug/L, TW-7). In addition, laboratory results indicate exceedances of North Carolina Groundwater Residential Vapor Intrusion Screening Levels for trichloroethene (2.8 ug/L, TW-7), and VPH (TW-1, TW-2, TW-3 and TW-4). Results from laboratory metals analyses did not exceed NCAC 2L. iii. To address the potential for structural vapor intrusion into proposed Brownfields Property residential buildings, soil gas assessment activities were conducted within the footprint of the proposed buildings in the southwestern portion of the Site. However, due to shallow groundwater conditions, soil gas samples could not be collected in the west-central portion of the site. Four soil gas samples were collected and submitted for the analysis of VOCs by USEPA Method TO-15. Laboratory results indicate that no compounds exceeded North Carolina Residential Vapor Intrusion Screening Levels. iv. A Brownfields Program receptor survey was completed in January 2019. No active water supply wells were identified within 1,500 feet of the Brownfields Property. The nearest surface water body to the Brownfields Property is Little Sugar Creek located along the northern Brownfields Property boundary. 8. The most recent environmental sampling at the Brownfields Property reported in the Environmental Reports occurred on February 4, 2019. The tables set forth in Exhibit 2 to this Agreement identify contaminants present at the Brownfields Property above applicable standards 9 Project Number 22040-18-060/Metromont Concrete Facility (20191004) or screening levels for each media sampled. 9. For purposes of this Agreement DEQ relies on Prospective Developer’s representations that Prospective Developer's involvement with the Brownfields Property has been limited to obtaining or commissioning the Environmental Reports, preparing and submitting to DEQ a Brownfields Property Application (BPA) dated June 21, 2018, and contracting to purchase the Brownfields Property in November 2016. 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 10 Project Number 22040-18-060/Metromont Concrete Facility (20191004) Property; and e. Prospective Developer has complied with all applicable procedural requirements. 11. The Parties agree that a $30,000 “Redevelopment Now” fee Prospective Developer has paid suffices 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 approximately 100 construction jobs during redevelopment; d. “smart growth” through use of land in an already developed area, which avoids development of land beyond the urban fringe (“greenfields”); e. an increase in tax revenue for affected jurisdictions; and f. additional residential and commercial space for the area. V. WORK TO BE PERFORMED 13. In redeveloping the Brownfields Property, Prospective Developer shall make 11 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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 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. 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 high density residential, multi-family residential, office, retail, light industrial, open space, recreation, parking, restaurant, and, subject to DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply: i. “High Density Residential” defined as permanent dwellings where residential units are attached to each other with common walls, such as condominia, apartments, group homes, dormitories or boarding houses, and any property outside the dwelling structures is 12 Project Number 22040-18-060/Metromont Concrete Facility (20191004) usable by all residents and not privately owned as part of a particular unit, and shall include related amenities, such as pools, clubhouses, courtyards, common areas, recreation areas and parking garages. ii. “Multi-Family Residential” defined as multi-unit human dwellings, such as condominia, or apartments. Single family homes, townhomes, duplexes, or other units with yards are prohibited unless approved in writing by DEQ in advance. iii. “Retail” 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. iv. “Parking” defined as the temporary accommodation of motor vehicles in an area designed for same. v. “Open Space” defined as land maintained in a natural or landscaped state and used for natural resource protection, buffers, greenways, detention facilities for stormwater, or similar purposes. vi. “Office” defined as the provision of business or professional services. vii. “Recreation” 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. viii. “Restaurant” defined as a commercial business establishment that 13 Project Number 22040-18-060/Metromont Concrete Facility (20191004) prepares and serves food and beverages to patrons. ix. “Industrial” defined as the assembly, fabrication, processing, warehousing or distribution of goods or materials. x. “Commercial” defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. b. 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. 14 Project Number 22040-18-060/Metromont Concrete Facility (20191004) c. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an Environmental Management Plan (“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 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; d. No residential use of the Brownfields Property may occur until the then owner of the Brownfields Property conducts representative final grade soil sampling of any area within the Brownfields Property pursuant to a plan approved in writing by DEQ that is not covered by 15 Project Number 22040-18-060/Metromont Concrete Facility (20191004) building foundations, sidewalks, or asphaltic or concrete parking areas and driveways. e. Unless otherwise approved by DEQ in writing after results of final grade soil sampling are received per subparagraph 15.d, above, 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 above in subparagraph 15.c. f. 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 a DEQ approved EMP as outlined above in subparagraph 15.c. g. No enclosed building may be constructed on the Brownfields Property, until DEQ determines in writing that: 16 Project Number 22040-18-060/Metromont Concrete Facility (20191004) i. the building is or would be protective of the building’s users, public health and the environment from risk of vapor intrusion based on Brownfields Property 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. h. As part of the Land Use Restriction Update described below in subparagraph 15.m for each year after the year in which the Notice referenced below in Paragraph 20 is recorded, 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: 17 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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 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 18 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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 conveying an interest may use the following mechanisms to comply with the obligations of this paragraph: (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 paragraph, 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. The owner of any portion of the Brownfields Property where any existing, or 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. l. 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; 19 Project Number 22040-18-060/Metromont Concrete Facility (20191004) ii. as fuel or other fluids customarily used in vehicles, landscaping equipment and emergency generators. m. During January of each year after the year in which the Notice 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.g 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. LURU’s submitted for any portion of the Brownfields Property that contains rental units shall include a list of tenants and their addresses. 20 Project Number 22040-18-060/Metromont Concrete Facility (20191004) v. A LURU submitted for rental units shall include the rent roll and enough of each lease entered into during the previous calendar year to demonstrate compliance with lessee notification requirements in subparagraph 15.j, above, and paragraph 21, below, of this agreement provided that if standard form leases are used in every instance, a copy of such standard form lease may be sent in lieu of copies of actual leases. 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 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 21 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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 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 22 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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 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 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 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 23 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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, 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 subparagraph 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 June 21, 2018, by which it applied for this Agreement. That use is high density residential, multi-family residential, office, retail, light industrial, open space, recreation, parking, restaurant, and, subject to DEQ’s prior written 24 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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. 25 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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 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 26 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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 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. 27 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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). 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 28 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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 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 29 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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: (or successor in function) Sugar Creek Ventures, LLC 1001 Elizabeth Avenue, Suite 1D Charlotte, NC 28204 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. 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. 30 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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 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 31 Project Number 22040-18-060/Metromont Concrete Facility (20191004) 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: ____________________________________________________________________________ Ellen Lorscheider Date Deputy Director, Division of Waste Management IT IS SO AGREED: By: Sugar Creek Ventures, LLC ____________________________________________________________________________ Greg Godley: Date Manager  $3352;,0$7( 6&$/(,1)((7 N 86*648$'5$1*/(0$3 48$'5$1*/( 0,187(6(5,(6 7232*5$3+,&  DERITA, NORTH CAROLINA 1996 7,7/( 352-(&7 SITE LOCATION MAP 0(7520217&21&5(7()$&,/,7< *5((16%252675((7 &+$5/277(1257+&$52/,1$ '$7( -2%12 5(9,6,2112 EXHIBIT  07& SITE 22040-18-060/Metromont Concrete Facility (20191018) 1 Exhibit 2 The most recent environmental sampling at the Property reported in the Environmental Reports occurred on February 4, 2019. The following tables sets forth, for contaminants present at the 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. 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) Cis-1,2-Dichloroethylene TW-7 1/29/2019 160 70 GW-1 4/26/2018 170 2-Methylnaphthalene MW-1 1/3/1996 40 30 Naphthalene MW-1 7/22/1996 22 6 Tetrachloroethylene TW-2 1/29/2019 2.6 0.7 Trichloroethylene GW-1 4/26/2018 24 3 Vinyl Chloride TW-7 1/29/2019 0.95 J 0.03 GW-1 4/26/2018 3.3 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 with Potential for Vapor Intrusion Sample Location Date of Sampling Concentration Exceeding Screening Level (µg/L) Residential VI Screening Level1 (µg/L) Trichloroethylene TW-7 1/29/2019 2.8 1.0 Vinyl Chloride GW-1 4/26/2018 3.3 1.5 C5-C8 Aliphatics TW-3 1/30/2019 5.3 J 1.7 22040-18-060/Metromont Concrete Facility (20191018) 2 TW-4 1/30/2019 8.1 C9-C18 Aliphatics TW-1 2/4/2019 27 J 0.15 TW-2 1/29/2019 12 J TW-3 1/30/2019 12 J TW-4 1/30/2019 11 J 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. J- Compound detected above laboratory detection limit, but below the laboratory reporting limit resulting in a laboratory estimated concentration. SOIL Soil contaminants in milligrams per kilogram (the equivalent of parts per million), the screening levels for which are derived from the Preliminary Residential 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) Hexavalent Chromium TW-3 DUP-1 4-5 1/28/2019 0.86 0.85 0.31 BGS-1 204 1/29/2019 1.37 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. Exhibit C Legal Description for Metromont Concrete Facility Brownfields Project No. 22040-18-060 Being that certain parcel of land lying and being in the City of Charlotte, Mecklenburg County, North Carolina, and being more particularly described as follows: COMMENCING at an existing NGS monument “McDowell” having NC NAD 83(2011) coordinates of N: 541,237.39’; E: 1,452,816.02’; thence N 46°08'20" E a ground distance of 16,355.92 feet to a ½” new iron rod situated on the southwesterly margin of the right-of-way of East Sugar Creek Road (variable width public r/w), the POINT OF BEGINNING; said iron also being the northerly most corner of the Vasilios K. & Konstantinos V. Beligrinis property as described in Deed Book 5547, Page 573 of the Mecklenburg County Public Registry; thence with said property, two courses and distances as follows: 1) S 64°13'47" W a distance of 239.03 feet to an inaccessible corner under material pile; 2) S 25°43'35" E a distance of 93.29 feet to a ½” existing iron rod situated on the northerly margin of the right-of-way of Greensboro Street (60’ public r/w); thence with said margin, two (2) courses and distances as follows: 1) S 81°17'20" W a distance of 672.52 feet to a bent ½” existing iron rod; 2) with the arc of a circular curve turning to the left having a radius of 259.46 feet, an arc length of 430.36 feet, (chord: S 33°46'07" W, 382.70 feet), to a ½” existing iron rod situated at the intersection with the northerly margin of the right-of- way of Raleigh Street (60’ public r/w); thence with said margin, two (2) courses and distances as follows: 1) with a reverse curve turning to the right having a radius of 20.00 feet, an arc length of 32.04 feet, (chord: S 32°10'28" W, 28.72 feet) to a ½” existing iron rod; 2) S 77°52'34" W a distance of 81.05 feet to a ½” new iron rod; said iron being the southeasterly corner of Lot B, “Boundary & Partial Topo of Property of Concrete Supply Company & Portion of Property of Exposaic Industries, Inc. of North Carolina” as shown in Map Book 25, Page 8 of the Mecklenburg County Public Registry; thence with Lot B, seven (7) courses and distances as follows: 1) N 32°42'30" W a distance of 147.01 feet to a ½” existing iron rod; 2) N 08°03'23" E a distance of 95.98 feet to a ½” existing iron rod; 3) N 12°02'22" E a distance of 145.17 feet to a ½” existing iron rod; 4) N 38°46'45" E a distance of 152.39 feet to a ½” new iron rod; 5) N 30°24'31" W a distance of 135.81 feet to a ½” new iron rod; 6) S 59°26'00" W a distance of 67.83 feet to a new nail; 7) N 30°34'00" W a distance of 207.21 feet to a calculated point lying within Little Sugar Creek; thence with Little Sugar Creek, five (5) courses and distances as follow: 1) N 53°05'30" E a distance of 22.13 feet to a calculated point; 2) N 62°08'40" E a distance of 333.22 feet to a calculated point; 3) N 59°19'40" E a distance of 254.00 feet to a calculated point; 4) N 58°21'00" E a distance of 279.41 feet to a calculated point; 5) N 60°21'16" E a distance of 274.90 feet to a calculated point situated on the southwesterly margin of the right-of-way of East Sugar Creek Road; thence with said margin, three courses and distances as follows: 1) S 25°44'28" E a distance of 526.03 feet to a ½” new iron rod; 2) S 65°03'56" W a distance of 2.03 feet to a ½” new iron rod; 3) S 23°21'44" E a distance of 215.39 feet back to the Point and Place of BEGINNING. Containing 805,254 sq. ft. or 18.4861 acres according to a survey by R. B. Pharr & Associates, P. A. dated March 6, 2019. (Job No. 89698)