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HomeMy WebLinkAbout22074_Gathings Motor Approval to PC PkgFrom:Minnich, Carolyn To:"Fish, Jason"; Franchina, David A.; Lumpkin, Samuel O. Cc:michael scott; Lorscheider, Ellen; Nicholson, Bruce; Wahl, Tracy; Leonard, Laura; Watson, Samuel; Lumpkin, Samuel O.; Day, Collin; Jesneck, Charlotte; Tatum, Katie; Macdonald, Janet K; Channell, Ryan Subject:22074 Gathings Motor Company Approval to PC Email Date:Wednesday, November 20, 2019 8:18:00 AM Attachments:22074_Gathings Motor Approval to PC Pkg.pdf Dear Mr. Fish and Mr. Franchina: Based on acceptance by the Prospective Developer of drafts of all four required brownfieldsdocuments -- the Notice of Intent to Redevelop a Brownfields Property (NI), Summary of Notice ofIntent to Redevelop a Brownfields Property (SNI), Notice of Brownfields Property (NBP) and theBrownfields Agreement (Exhibit A to the NBP) -- and DEQ's approval of the plat component of the NBP, Prospective Developer may now proceed to the tasks required by NCGS § 130.310.34(a) inconnection with the required public notice and comment period of at least 30 days regarding thesubject brownfields project. Those tasks are as follows: 1. Publish the approved SNI in a newspaper of general circulation serving the area in which thebrownfields property is located, 2. Conspicuously post a copy of the SNI at the brownfields property, 3. Mail or deliver the SNI to each owner of property contiguous to the brownfields property, 4. Provide a copy of the full NI to the local location where it will be available for public review asstated in the SNI, and 5. Provide a copy of the full NI, consisting of the one-page NI and the NBP with its three exhibits(the Brownfields Agreement, the survey plat, and the legal description), to all local governments having jurisdiction over the brownfields property. Pursuant to NCGS § 130.310.34.(b), the public comment period shall begin following completion ofthe above tasks. The NI and SNI, with a date filled in representing our belief as to how long itwill take you to complete those tasks by Wednesday, November 20, 2019, are attached hereto. The comment period shall not end any sooner than 30 days after you complete the tasks. NCGS § 130.310.34(b) also requires the Prospective Developer to submit documentation of thepublic notices to DEQ prior to DEQ entering into a Brownfields Agreement. That documentation shall be submitted by promptly providing to me, preferably at carolyn.minnich@ncdenr.gov or atBrownfields Program, 1646 Mail Service Center, Raleigh, NC 27699-1646, the following: Affidavit of publication of the SNI from the newspaper or a copy of the SNI published in the newspaper which shows the name of the newspaper and the date of publication, Photos of the SNI posted at the site, one close up to show the wording and one far enough to show the posting location relative to the property, Copies of the cover letters and copies of the mailing receipts stamped by the post office or copies of the delivery service receipts for the SNI sent to contiguous property owners, A letter confirming receipt of the full NI from each local government entity and the entity where the document will be available for viewing or delivery confirmation from the carrier confirming such receipt by these entities. Thank you for your attention to these matters. If you have any questions or require additional information, you may contact me.       22074-18-060/Gathings Motor (2019.11.15) 1 NOTICE OF INTENT TO REDEVELOP A BROWNFIELDS PROPERTY Site Name: Gathings Motor Company Brownfields Project Number: 22074-18-060 North Carolina’s Brownfields Property Reuse Act (the “Act”), North Carolina General Statutes (“NCGS”) § 130A-310.30 through 130A-310.40, provides for the safe redevelopment of properties that may have been or were contaminated by past industrial and commercial activities. One of the Act’s requirements is this Notice of Intent to Redevelop a Brownfields Property approved by the North Carolina Department of Environmental Quality (“DEQ”). See NCGS § 130A-310.34(a). The Notice of Intent must provide, to the extent known, a legal description of the location of the brownfields property, a map showing the location of the Brownfields Property, a description of the contaminants involved and their concentrations in the media of the Brownfields Property, a description of the intended future use of the Brownfields Property, any proposed investigation and remediation, and a proposed Notice of Brownfields Property prepared in accordance with NCGS § 130A-310.35. The party (“Prospective Developer”) who desires to enter into a Brownfields Agreement with DEQ must provide a copy of this Notice to all local governments having jurisdiction over the Brownfields Property. The proposed Notice of Brownfields Property for a particular brownfields project is attached hereto; the proposed Brownfields Agreement, which is attached to the proposed Notice of Brownfields Property as Exhibit A, contains the other required elements of this Notice. Written public comments may be submitted to DEQ within 30 days after the latest of the following dates: the date the required summary of this Notice is (1) published in a newspaper of general circulation serving the area in which the Brownfields Property is located, (2) conspicuously posted at the Brownfields Property, and (3) mailed or delivered to each owner of property contiguous to the Brownfields Property. Written requests for a public meeting may be submitted to DEQ within 21 days after the period for written public comments begins. Those periods will start no sooner than Tuesday, November 19, 20109, and will end on the later of: a) 30 and 21 days, respectively, after that; or b) 30 and 21 days, respectively, after completion of the latest of the three (3) above-referenced dates. All comments and meeting requests should be addressed as follows: Mr. Bruce Nicholson Brownfields Program Manager Division of Waste Management NC Department of Environmental Quality 1646 Mail Service Center Raleigh, North Carolina 27699-1646 22074-18-060/Gathings Motor (Draft 2019.11.15) SUMMARY OF NOTICE OF INTENT TO REDEVELOP A BROWNFIELDS PROPERTY Site Name: Gathings Motor Company Brownfields Project Number: 22074-18-060 Pursuant to NCGS § 130A-310.34, Tryon Investors, LLC, as Prospective Developer, has filed with the North Carolina Department of Environmental Quality (“DEQ”) a Notice of Intent to Redevelop a Brownfields Property (“Property”) in Charlotte, Mecklenburg County, North Carolina. The Brownfields Property, which is the former site of Gathings Motor Company and Top Gas & Oil Service Station, consists of 4.889 acres and is located at 1100 and 1200 South Tryon Street. Environmental contamination exists on the Brownfields Property in soil, groundwater, and vapor. Tryon Investors, LLC intends to redevelop the Brownfields Property with two eleven-story buildings for office and retail, a 200-room hotel, parking deck, and a large urban plaza for the display of public art. The approved uses will include office, retail, restaurant, brewery or food production facility, parking, hotel, open space, high density residential, and subject to DEQ’s prior written approval, other commercial uses. The Notice of Intent to Redevelop a Brownfields Property includes: (1) a proposed Brownfields Agreement between DEQ and Tryon Investors, LLC, which in turn includes (a) a map showing the location of the Property, (b) a description of the contaminants involved and their concentrations in the media of the Property, (c) the above-stated description of the intended future use of the Brownfields Property, and (d) proposed investigation and remediation; and (2) a proposed Notice of Brownfields Property prepared in accordance with NCGS § 130A-310.35. The full Notice of Intent to Redevelop a Brownfields Property may be reviewed at the Charlotte- Mecklenburg Public Library, Robinson-Spangler Carolina Room, 310 North Tryon Street, Charlotte, NC 28202, (704) 416-0150; or at the offices of the N.C. Brownfields Program, 217 West Jones Street, Raleigh, NC or by contacting Shirley Liggins at that address, at shirley.liggins@ncdenr.gov, or at (919) 707-8383. The full Notice of Intent may also be viewed online at the DEQ public record database, Laserfiche, by entering the project number 22074-18-060 into the search bar at the following web address: http://edocs.deq.nc.gov/WasteManagement. Written public comments may be submitted to DEQ within 30 days after the latest of the following dates: the date this Notice is (1) published in a newspaper of general circulation serving the area in which the Brownfields Property is located, (2) conspicuously posted at the Brownfields Property, and (3) mailed or delivered to each owner of property contiguous to the Brownfields Property. Written requests for a public meeting may be submitted to DEQ within 21 days after the period for written public comments begins. Those periods will start no sooner than Tuesday, November 19, 2019, and will end on the later of: a) 30 and 21 days, respectively, after that; or b) 30 and 21 days, respectively, after completion of the latest of the three (3) above-referenced dates. All public comments and public meeting requests should be addressed as follows: Mr. Bruce Nicholson Brownfields Program Manager Division of Waste Management NC Department of Environmental Quality 1646 Mail Service Center Raleigh, North Carolina 27699-1646 22074-18-060/Gathings Motor (Draft 2019.11.15) 1 Property Owner: Tryon Investors, LLC Recorded in Book ____, Page ____ Associated plat recorded in Plat Book ____, Page ____ NOTICE OF BROWNFIELDS PROPERTY Site Name: Gathings Motor Company Brownfields Project Number: 22074-18-060 This documentary component of a Notice of Brownfields Property (“Notice”), as well as the plat component, have been filed this _____ day of __________________, 201__ by Tryon Investors, LLC, registered to transact business in North Carolina under the name Tryon Owner, 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 comprises four (4) parcels totaling approximately 4.889 acres (Mecklenburg County Tax Parcel Identification Numbers 07307301, 07307307, 07307308, and 07307309). Currently, the Brownfields Property is developed with an office building, parking area, garage and small unused building. Tryon Investors, LLC intends to redevelop the 22074-18-060/Gathings Motor (Draft 2019.11.15) 2 Brownfields Property with two eleven-story buildings for office and retail, a 200-room hotel, parking deck, and a large urban plaza for the display of public art. The approved uses will include office, retail, restaurant, brewery or food production facility, parking, hotel, open space, high density residential, and subject to DEQ’s prior written approval, other commercial uses. Historical operations on the Brownfields Property include Gathings Motor Company and Top Gas & Oil. Groundwater, soil, and soil vapor are contaminated at the Brownfields Property due to historical operations conducted thereon and/or in the surrounding area. 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 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 office, retail, restaurant, brewery or food production facility, parking, hotel, open space, high density 22074-18-060/Gathings Motor (Draft 2019.11.15) 3 residential, and subject to DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply: i. “Office” is defined as the provision of business or professional services. ii. “Retail” is defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products. iii. “Restaurant” is defined as a commercial business establishment that prepares and serves food and/or beverages to patrons. iv. “Brewery or Food Production Facility” is defined as an establishment for the manufacture, sale and/or distribution of beverages or food products, including without limitation beer and ale, together with associated public roadways and related infrastructure. v. “Parking” is defined as the temporary accommodation of motor vehicles in an area designed for same. vi. “Hotel” is defined as the provision of overnight lodging to customers, and to associated food services, gym, reservation, cleaning, utilities, parking and on-site hospitality, management and reception services. vii. “Open Space” is defined as land maintained in a natural or landscaped state and used for natural resource protection, buffers, greenways, parks, or detention facilities for stormwater. viii. “High Density Residential” is 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 (e.g., courtyards owned by individual residents are prohibited), and shall include related amenities, such as pools, clubhouses, courtyards, common areas, recreation areas and parking garages. . Townhomes, duplexes, or other units with yards are prohibited unless approved in writing by DEQ in advance. ix. “Commercial” is defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. b. The Brownfields Property may not be used for child care or adult care centers, without the prior written approval of DEQ. c. Unless compliance with this Land Use Restriction is waived in writing by DEQ in advance in regard to particular activity, no activities that encounter, expose, remove or use groundwater (for example, installation of water supply wells, ponds, lakes or swimming pools, or construction or excavation activities that encounter or expose groundwater) may occur on the Brownfields Property unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. Prior sampling and analysis of groundwater to the written satisfaction of DEQ in any areas proposed for such activities, and submittal of the analytical results to DEQ is required. If such results reflect contaminant concentrations that exceed the standards and screening levels applicable to the uses authorized 22074-18-060/Gathings Motor (Draft 2019.11.15) 4 for the Brownfields Property, the groundwater-related activities proposed may only occur in compliance with any written conditions DEQ imposes. Activities may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. d. No activity that disturbs soil on the Brownfields Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment, except: i. in connection with landscape planting to depths not exceeding 24”; ii. mowing and pruning of above-ground vegetation; iii. for repair of underground infrastructure, provided that DEQ shall be given written notice at least seven days in advance of a scheduled repair (if only by email) of any such repair, or in emergency circumstances no later than the next business day, and that any related assessment and remedial measures required by DEQ shall be taken; and iv. in connection to work conducted in accordance with a DEQ-approved EMP as outlined below in subparagraph 15.g. e. Soil may not be removed from, or brought onto, the Brownfields Property without prior sampling and analysis to DEQ’s satisfaction and the written approval of DEQ, unless conducted in accordance with an approved EMP as outlined below in subparagraph 15.g. f. No enclosed building may be constructed on the Brownfields Property, and no use of any existing building, defined as those depicted on the plat component of the Notice of Brownfields Property referenced below in paragraph 20, may be changed to high density residential use as defined above in paragraph 15.a.viii, 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 site assessment data or a site- specific risk assessment approved in writing by DEQ; or ii. the building is or would be sufficiently distant from the Brownfields Property’s groundwater and/or soil contamination based on assessment data approved in writing by DEQ that the building’s users, public health and the environment will be protected from risk from vapor intrusion related to said contamination; or iii. vapor intrusion mitigation measures are installed and/or implemented to the satisfaction of a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal on a report that includes photographs and a description of the installation and performance of said measures. Any design specification for vapor intrusion mitigation measures shall be approved in writing by DEQ in advance of installation and/or implementation of said measures. The design specifications shall include methodology(ies) for demonstrating performance of said measures. g. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an EMP approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each subsequent redevelopment phase) that is 22074-18-060/Gathings Motor (Draft 2019.11.15) 5 consistent with all the other land use restrictions and describes redevelopment activities at the Brownfields Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Brownfields Property during construction or redevelopment in any other form, including without limitation: i. soil and water management issues, including without limitation those resulting from contamination identified in the Environmental Reports; ii. issues related to potential sources of contamination referenced in paragraphs 7 and 8 above or refer to Exhibit 2; iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and iv. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. h. No later than January 31 after each one-year anniversary of the effective date of this Agreement for as long as physical redevelopment of the Brownfields Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Brownfields Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: i. actions taken on the Brownfields Property in accordance with Section V: Work to be Performed above; ii. soil grading and cut and fill actions; iii. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; 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 22074-18-060/Gathings Motor (Draft 2019.11.15) 6 confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. The owner may use the following mechanisms to comply with the obligations of this subparagraph: (i) If every lease and rider is identical in form, the owner conveying an interest may provide DEQ with copies of a form lease or rider evidencing compliance with this subparagraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notice and Submissions); or (ii) The owner conveying an interest may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. k. None of the contaminants known to be present in the environmental media at the Brownfields Property, as described in Exhibit 2 of this Agreement and as modified by DEQ in writing if additional contaminants in excess of applicable standards are discovered at the Brownfields Property, may be used or stored at the Brownfields Property without the prior written approval of DEQ, except. i. in de minimis quantities for cleaning and other routine housekeeping and maintenance activities; ii. in fluids for vehicles or landscaping equipment; iii. as constituents of products and materials customarily used and stored in office, retail, restaurant, brewery or food production facility, parking, hotel, institutional, recreation, open space, and multi-family residential environments, provided such products are stored in original retail packaging and used and disposed of in accordance with applicable laws; iv. as constituents of fuels, lubricants and oils in emergency generators, machinery, equipment and vehicles in on-board tanks integral to said equipment, or in flammable liquid storage containers totaling no more than 25 gallons; or v. in products or materials that are brought onto the Brownfields Property, kept in their original packaging or containers (that is, not used or repackaged) and later removed from the Brownfields Property in the original packaging or containers. l. The owner of any portion of the Brownfields Property where any subsequently installed, DEQ-approved monitoring well is damaged by the owner, its contractors, or its tenants shall be responsible for repair of any such wells to DEQ’s written satisfaction and within a time period acceptable to DEQ, unless compliance with this Land Use Restriction is waived in writing by DEQ in advance. m. During January of each year after the year in which the Notice of Brownfields Property referenced below in paragraph 20 is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Mecklenburg County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Mecklenburg County Register of Deeds office and that the land use restrictions are being complied with. The submitted LURU shall state the following: i. the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the owner submitting the LURU if said owner acquired any part of the Brownfields Property during the previous calendar year; ii. the transferee’s name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address, if said owner transferred any part of the 22074-18-060/Gathings Motor (Draft 2019.11.15) 7 Brownfields Property during the previous calendar year; iii. whether any vapor barrier and/or mitigation systems installed pursuant to subparagraph 15.f above are performing as designed, and whether the uses of the ground floors of any buildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how. iv. A joint LURU may be submitted for multiple owners by a duly constituted board or association and shall include the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the entity submitting the joint LURU as well as for each of the owners on whose behalf the joint LURU is submitted. v. LURU’s submitted for any portion of the Brownfields Property that contains residential rental units shall include a list of tenants and their addresses. vi. A property owners’ association or other entity may perform this LURU’s duties, on behalf of some or all owners of the Brownfields Property, if said association or entity has accepted responsibility for such performance pursuant to a notarized instrument satisfactory to DEQ that includes at a minimum, the name, mailing address, telephone and facsimile numbers, and e-mail address of each owner on whose behalf the LURU is proposed to be submitted. For purposes of the land use restrictions set forth above, the DEQ point of contact shall be the DEQ official referenced in subparagraph 35.a. of Exhibit A hereto, at the address stated therein. ENFORCEMENT The above land use restrictions shall be enforceable without regard to lack of privity of estate or contract, lack of benefit to particular land, or lack of any property interest in particular land. The land use restrictions shall be enforced by any owner of the Brownfields Property. The 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. 22074-18-060/Gathings Motor (Draft 2019.11.15) 8 IN WITNESS WHEREOF, Prospective Developer has caused this instrument to be duly executed this _____ day of _______________, 201__. Tryon Owner, LLC _________________________________________ Stephen M. McClure Manager of TSE Manager, LLC, which is a Manager of TSE Investors, LLC, which is a Manager of TSE Associates, LLC, a Delaware Limited Liability Company, which is an Authorized Member of Tryon Owner, LLC NORTH CAROLINA _______________ COUNTY I certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: ________________________________. Date: ___________________ ___________________________________ Official Signature of Notary ___________________________________ (Official Seal) Notary’s printed or typed name, Notary Public My commission expires: _____________________ ************************************ 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 22074-18-060/Gathings Motor (Draft 2019.11.20) EXHIBIT A NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY IN THE MATTER OF: Tryon Investors, LLC UNDER THE AUTHORITY OF THE ) BROWNFIELDS AGREEMENT re: BROWNFIELDS PROPERTY REUSE ACT ) Former Gathings Motor Company OF 1997, NCGS § 130A-310.30, et seq. ) 1100 and 1200 South Tryon Street Brownfields Project 22074-18-060 ) Charlotte, Mecklenburg County I. INTRODUCTION This Brownfields Agreement (“Agreement”) is entered into by the North Carolina Department of Environmental Quality (“DEQ”) and Tryon Investors, 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 1100 and 1200 South Tryon Street (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. Tryon Investors, LLC is a Delaware limited liability company formed on October 19, 2018 and registered to transact business in North Carolina since October 25, 2018 under the name Tryon Owner, LLC. Its registered agent is CT Corporation System located at 160 Mine Lake Court, Suite 200, Raleigh, North Carolina 27615. Its Manager is Tryon Member GP, LLC, and the principal office is located at 2001 Ross Avenue, Suite 3400, Dallas Texas 75201. The Brownfields Property consists of four parcels and contains approximately 4.889 acres of land currently developed with an office building, parking area, garage and small unused building. Tryon Investors, LLC intend to redevelop the Brownfields Property with two eleven-story buildings for office and retail plus a 200-room hotel, parking deck, and a large urban plaza for the display of public art. The approved uses will include office, retail, restaurant, brewery or food production facility, parking, hotel, open space, high density residential, and subject to 2 22074-18-060/Gathings Motor (Draft 2019.11.20) DEQ’s prior written approval, other commercial uses. Historical operations on the Brownfields Property include Gathings Motor Company and Top Gas & Oil. Groundwater, soil, and soil vapor are contaminated at the Brownfields Property due to historical operations conducted thereon and/or in the surrounding area. 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 Tryon Investors, LLC for contaminants at the Brownfields Property. The Parties agree that Tryon Investors, LLC’s entry into this Agreement, and the actions undertaken by Tryon Investors, LLC in accordance with the Agreement, do not constitute an admission of any liability by Tryon Investors, LLC for contaminants at the Brownfields Property. The resolution of this potential liability, in exchange for the benefit Tryon Investors, 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 Tryon Investors, LLC. III. STATEMENT OF FACTS 3. The Brownfields Property comprises four (4) parcels totaling approximately 4.889 acres (Mecklenburg County Tax Parcel Identification Numbers 07307301, 07307307, 07307308, 3 22074-18-060/Gathings Motor (Draft 2019.11.20) and 07307309). Prospective Developer has committed itself to redevelopment of the Brownfields Property for no uses other than office, retail, restaurant, brewery or food production facility, parking, hotel, open space, high density residential, and subject to DEQ’s prior written approval, other commercial uses. 4. The Brownfields Property occupies the city block bound by West Carson Boulevard, South Tryon Street, West Catherine Street and Winnifred Street. The area is characterized by mixed used including residential, office, and retail. The Charlotte Area Transit (CATs) Lynx Light Rail Blue Line is one block south of the Brownfields Property. 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 Report of Supplemental Soil-Gas Sampling & Analysis Wood July 8, 2019 Environmental Management Plan Wood April 25, 2019 Beneficial Reuse Soil Assessment Report Former Gathings Motor Company Wood April 3, 2019 Brownfields Assessment Report Former Gathings Motor Company Wood March 15, 2019 Phase I ESA 1100 & 1200 Blocks of South Tryon Street Wood July 30, 2018 Report of Sub-Slab Soil Gas Sampling 1100 South Tryon Street AMEC, Foster, Wheeler August 1, 2017 Phase I ESA Office Building, 1100 South Tryon Street NOVA Consulting June 26, 2017 Property Condition Assessment Report Office Building, 1100 South Tryon Street NOVA Consulting June 16, 2017 Notice of No Further Action UST Former Gathings Motor Company Incident No 40680 NCDEQ DWM March 15, 2017 Soil Cleanup Report Former Gathings Motor Company AMEC, Foster, Wheeler October 31, 2016 Phase II Environmental Site Assessment 1100 S Tryon St & 1225 Winnifred St Hart & Hickman September 4, 2014 Report of Phase I LSA Former Gathings Motor Company MACTEC May 31, 2007 UST Closure Report MACTEC February 5, 2007 4 22074-18-060/Gathings Motor (Draft 2019.11.20) Title Prepared by Date of Report Former Gathings Motor Company Phase II ESA 1216/1220 and 1222 South Tryon Street MACTEC February 2, 2007 Report of Phase I ESA 1216/1220 and 1222 South Tryon Street MACTEC October 28, 2005 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 is occupied by a four-story approximately 64,294 sq ft office building constructed in 1988, one approximately 1,320 sq ft brick garage building built in 1946, and one approximately 252 sq ft small brick office built in 1960. The remaining portions are occupied by asphalt paved parking lots, gravel and crushed brick parking and landscaped area. The existing structures are planned for demolition in 2019 and 2020. b. The following postal addresses have been associated with the Brownfields Property: 1100, 1120, 1202, 1208, 1216, 1220, & 1222 South Tryon Street, 116 West Catherine Street, and 1225 Winnifred Street in Charlotte. c. Historical uses on the Brownfields Property include an automotive related facility with sales, service, and repair from 1955 to 2010 known as the former Gathings Motor Company; an automotive service station called Top Gas & Oil from at least 1960 to 1986; and a printing shop for the years 1975, 1981, 1986. Most recently the site was used as paid parking lot with commercial building. d. On January 15, 2019, the Prospective Developer purchased the Brownfields Property from 1100 South Tryon Associates, LLC and LG Seven Investments, LLC. 7. Pertinent environmental information regarding the Brownfields Property and surrounding area includes the following: a. Gathings Motor Company was formerly located at 1220 South Tryon Street 5 22074-18-060/Gathings Motor (Draft 2019.11.20) from 1955 to 2010. In 2006, four (4) underground storage tanks (“USTs”) used to store fuel oil and gasoline, and an oil water separator holding tank were removed. The 1220 South Tryon Street parcel was assigned UST Incident Number 40680. In 2016, during the demolition of the garage building impacted soil was discovered, and approximately 90 cubic tons of soil were subsequently excavated and disposed. On March 15, 2017, a Notice of Residual Petroleum (NORP) was filed prohibiting groundwater use on the site and DEQ UST Section issued a Notice of No Further Action Letter. b. Top Gas & Oil Service Station was located at the1120 South Tryon Street Parcel and operated from approximately 1960 to 1986. The Facility ID is 00-0-0000013965 and it was permitted for four USTs that were installed in 1958 and removed in October 1986. The four USTs included one 7500-gallon UST with gasoline, two 10,000-gallon USTs with gasoline and one 10,000-gallon UST with diesel. The NCDEQ UST Section assigned Incident No. 40460 for the Top Gas & Oil and it remains open due to groundwater contamination that exceeds Title 15A of the North Carolina Administrative Code, Subchapter 2L, Rule .0202 (2L standard). c. The Phase I ESA reports document the surrounding area as having had several historic automotive businesses such as service stations, repair garages, or general car maintenance. Recently, the surrounding uses have changed from industrial to commercial and residential uses. d. The constituents detected in groundwater at the Brownfields Property in excess of the 2L standards were mainly petroleum compounds reflecting their historical use on the Brownfields Property. In addition, groundwater contaminants exceeded the Residential Vapor Intrusion Screening Levels (VISLs) of the Division of Waste Management (February 2018 version). Based on the groundwater data, a soil gas work plan and assessment were required to evaluate the potential for vapor intrusion. The constituents and their concentrations are listed in 6 22074-18-060/Gathings Motor (Draft 2019.11.20) Exhibit 2 to this Agreement. e. The following constituents were detected in the soil at the Brownfields Property at concentrations above their respective IHSB Residential Preliminary Soil Remediation Goals(PSRGs): arsenic, hexavalent chromium, benzo(a)pyrene, naphthalene, and total petroleum hydrocarbons (TPHs). The arsenic and hexavalent chromium concentrations are consistent across the Brownfields Property and are considered naturally occurring in the surrounding area. The constituents and their concentrations are listed in Exhibit 2 to this Agreement. f. The following constituents were detected in soil gas at the Brownfields Property at concentrations above their respective Residential Vapor Intrusion Screening Levels (VISLs) (NCDEQ February 2018): 1-3-Butadiene and Chloroform. No detections exceed the Non-Residential VISLs. 8. The most recent environmental sampling at the Brownfields Property reported in the Environmental Reports occurred in May 2019. The tables set forth in Exhibit 2 to this Agreement present contaminants present at the Brownfields Property above applicable standards or screening levels for each media sampled. 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 December 3, 2018, and purchasing the Brownfields Property on January 15, 2019. 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 7 22074-18-060/Gathings Motor (Draft 2019.11.20) substantially complied with federal and state laws, regulations and rules for protection of the environment, and with the other agreements and requirements cited at NCGS § 130A- 310.32(a)(1); b. As a result of the implementation of this Agreement, the Brownfields Property will be suitable for the uses specified in the Agreement while fully protecting public health and the environment; c. Prospective Developer's reuse of the Brownfields Property will produce a public benefit commensurate with the liability protection provided Prospective Developer hereunder; d. Prospective Developer has or can obtain the financial, managerial and technical means to fully implement this Agreement and assure the safe use of the Brownfields Property; and e. Prospective Developer has complied with all applicable procedural requirements. 11. 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; 8 22074-18-060/Gathings Motor (Draft 2019.11.20) b. a spur to additional community investment and redevelopment, through improved neighborhood appearance and otherwise; c. the creation of many jobs, including an estimated 500 temporary job (mostly construction related). Post development expects to facilitate 1,850 office, hotel, and retail jobs; d. an increase in tax revenue for affected jurisdictions; e. retail, office, and hotel space for the area; f. expanded use of public transportation which reduces traffic, improves air quality, and reduces our carbon footprint; and g. “smart growth” through use of land in an already developed area, which avoids development of land beyond the urban fringe (“greenfields”). V. WORK TO BE PERFORMED 13. In redeveloping the Brownfields Property, Prospective Developer shall make reasonable efforts to evaluate applying sustainability principles at the Brownfields Property, using the nine (9) areas incorporated into the U.S. Green Building Council Leadership in Energy and Environmental Design certification program (Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality, Locations & Linkages, Awareness & Education, Innovation in Design and Regional Priority), or a similar program. 14. Based on the information in the Environmental Reports, and subject to imposition of and compliance with the land use restrictions set forth below, and subject to Section IX of this Agreement (DEQ’s Covenant Not to Sue and Reservation of Rights), DEQ is not requiring Prospective Developer to perform any active remediation at the Brownfields Property other than remediation that may be required pursuant to a DEQ-approved Environmental Management Plan (EMP) required by this Section. 9 22074-18-060/Gathings Motor (Draft 2019.11.20) 15. By way of the Notice of Brownfields Property referenced below in paragraph 20, Prospective Developer shall impose the following land use restrictions under the Act, running with the land, to make the Brownfields Property suitable for the uses specified in this Agreement while fully protecting public health and the environment instead of remediation to unrestricted use standards. All references to DEQ shall be understood to include any successor in function. a. No use may be made of the Brownfields Property other than for office, retail, restaurant, brewery or food production facility, parking, hotel, open space, high density residential, and subject to DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply: i. “Office” is defined as the provision of business or professional services. ii. “Retail” is defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products. iii. “Restaurant” is defined as a commercial business establishment that prepares and serves food and/or beverages to patrons. iv. “Brewery or Food Production Facility” is defined as an establishment for the manufacture, sale and/or distribution of beverages or food products, including without limitation beer and ale, together with associated public roadways and related infrastructure. v. “Parking” is defined as the temporary accommodation of motor vehicles in an area designed for same. vi. “Hotel” is defined as the provision of overnight lodging to customers, and to associated food services, gym, reservation, cleaning, utilities, parking and on-site hospitality, management and reception services. vii. “Open Space” is defined as land maintained in a natural or landscaped 10 22074-18-060/Gathings Motor (Draft 2019.11.20) state and used for natural resource protection, buffers, greenways, parks, or detention facilities for stormwater. viii. “High Density Residential” is 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 (e.g., courtyards owned by individual residents are prohibited), and shall include related amenities, such as pools, clubhouses, courtyards, common areas, recreation areas and parking garages. . Townhomes, duplexes, or other units with yards are prohibited unless approved in writing by DEQ in advance. ix. “Commercial” is defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. b. The Brownfields Property may not be used for child care or adult care centers, without the prior written approval of DEQ. c. Unless compliance with this Land Use Restriction is waived in writing by DEQ in advance in regard to particular activity, no activities that encounter, expose, remove or use groundwater (for example, installation of water supply wells, ponds, lakes or swimming pools, or construction or excavation activities that encounter or expose groundwater) may occur on the Brownfields Property unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. Prior sampling and analysis of groundwater to the written satisfaction of DEQ in any areas proposed for such activities, and submittal of the analytical results to DEQ is required. If such results reflect contaminant 11 22074-18-060/Gathings Motor (Draft 2019.11.20) concentrations that exceed the standards and screening levels applicable to the uses authorized for the Brownfields Property, the groundwater-related activities proposed may only occur in compliance with any written conditions DEQ imposes. Activities may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. d. No activity that disturbs soil on the Brownfields Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment, except: i. in connection with landscape planting to depths not exceeding 24”; ii. mowing and pruning of above-ground vegetation; iii. for repair of underground infrastructure, provided that DEQ shall be given written notice at least seven days in advance of a scheduled repair (if only by email) of any such repair, or in emergency circumstances no later than the next business day, and that any related assessment and remedial measures required by DEQ shall be taken; and iv. in connection to work conducted in accordance with a DEQ-approved EMP as outlined below in subparagraph 15.g. e. Soil may not be removed from, or brought onto, the Brownfields Property without prior sampling and analysis to DEQ’s satisfaction and the written approval of DEQ, unless conducted in accordance with an approved EMP as outlined below in subparagraph 15.g. f. No enclosed building may be constructed on the Brownfields Property, and no use of any existing building, defined as those depicted on the plat component of the Notice of 12 22074-18-060/Gathings Motor (Draft 2019.11.20) Brownfields Property referenced below in paragraph 20, may be changed to high density residential use as defined above in paragraph 15.a.viii, 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 site assessment data or a site- specific risk assessment approved in writing by DEQ; or ii. the building is or would be sufficiently distant from the Brownfields Property’s groundwater and/or soil contamination based on assessment data approved in writing by DEQ that the building’s users, public health and the environment will be protected from risk from vapor intrusion related to said contamination; or iii. vapor intrusion mitigation measures are installed and/or implemented to the satisfaction of a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal on a report that includes photographs and a description of the installation and performance of said measures. Any design specification for vapor intrusion mitigation measures shall be approved in writing by DEQ in advance of installation and/or implementation of said measures. The design specifications shall include methodology(ies) for demonstrating performance of said measures. g. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an EMP approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each subsequent redevelopment phase) that is consistent with all the other land use restrictions and describes redevelopment activities at the Brownfields Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Brownfields Property during construction or redevelopment in any other form, including without limitation: i. soil and water management issues, including without limitation those 13 22074-18-060/Gathings Motor (Draft 2019.11.20) resulting from contamination identified in the Environmental Reports; ii. issues related to potential sources of contamination referenced in paragraphs 7 and 8 above or refer to Exhibit 2; iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and iv. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. h. No later than January 31 after each one-year anniversary of the effective date of this Agreement for as long as physical redevelopment of the Brownfields Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Brownfields Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: i. actions taken on the Brownfields Property in accordance with Section V: Work to be Performed above; ii. soil grading and cut and fill actions; iii. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; 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 14 22074-18-060/Gathings Motor (Draft 2019.11.20) materials (for example, concrete, demolition debris) from the Brownfields Property (copies of all legally required manifests shall be included). i. Neither DEQ, nor any party conducting environmental assessment or remediation at the Brownfields Property at the direction of, or pursuant to a permit, order or agreement issued or entered into by DEQ, may be denied access to the Brownfields Property for purposes of conducting such assessment or remediation, which is to be conducted using reasonable efforts to minimize interference with authorized uses of the Brownfields Property. j. Any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. The owner may use the following mechanisms to comply with the obligations of this subparagraph: (i) If every lease and rider is identical in form, the owner conveying an interest may provide DEQ with copies of a form lease or rider evidencing compliance with this subparagraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notice and Submissions); or (ii) The owner conveying an interest may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. k. None of the contaminants known to be present in the environmental media at the Brownfields Property, as described in Exhibit 2 of this Agreement and as modified by DEQ in writing if additional contaminants in excess of applicable standards are discovered at the 15 22074-18-060/Gathings Motor (Draft 2019.11.20) Brownfields Property, may be used or stored at the Brownfields Property without the prior written approval of DEQ, except. i. in de minimis quantities for cleaning and other routine housekeeping and maintenance activities; ii. in fluids for vehicles or landscaping equipment; iii. as constituents of products and materials customarily used and stored in office, retail, restaurant, brewery or food production facility, parking, hotel, institutional, recreation, open space, and multi-family residential environments, provided such products are stored in original retail packaging and used and disposed of in accordance with applicable laws; iv. as constituents of fuels, lubricants and oils in emergency generators, machinery, equipment and vehicles in on-board tanks integral to said equipment, or in flammable liquid storage containers totaling no more than 25 gallons; or v. in products or materials that are brought onto the Brownfields Property, kept in their original packaging or containers (that is, not used or repackaged) and later removed from the Brownfields Property in the original packaging or containers. l. The owner of any portion of the Brownfields Property where any subsequently installed, DEQ-approved monitoring well is damaged by the owner, its contractors, or its tenants shall be responsible for repair of any such wells to DEQ’s written satisfaction and within a time period acceptable to DEQ, unless compliance with this Land Use Restriction is waived in writing by DEQ in advance. m. During January of each year after the year in which the Notice of Brownfields Property referenced below in paragraph 20 is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update 16 22074-18-060/Gathings Motor (Draft 2019.11.20) (“LURU”) to DEQ, and to the chief public health and environmental officials of Mecklenburg County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Mecklenburg County Register of Deeds office and that the land use restrictions are being complied with. The submitted LURU shall state the following: i. the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the owner submitting the LURU if said owner acquired any part of the Brownfields Property during the previous calendar year; ii. the transferee’s name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address, if said owner transferred any part of the Brownfields Property during the previous calendar year; iii. whether any vapor barrier and/or mitigation systems installed pursuant to subparagraph 15.f above are performing as designed, and whether the uses of the ground floors of any buildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how. iv. A joint LURU may be submitted for multiple owners by a duly constituted board or association and shall include the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the entity submitting the joint LURU as well as for each of the owners on whose behalf the joint LURU is submitted. v. LURU’s submitted for any portion of the Brownfields Property that contains residential rental units shall include a list of tenants and their addresses. vi. A property owners’ association or other entity may perform this LURU’s duties, on behalf of some or all owners of the Brownfields Property, if said association or entity has accepted responsibility for such performance pursuant to a notarized instrument 17 22074-18-060/Gathings Motor (Draft 2019.11.20) 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 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 18 22074-18-060/Gathings Motor (Draft 2019.11.20) 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 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 19 22074-18-060/Gathings Motor (Draft 2019.11.20) 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 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 paragraph 35.a. below of any such required notification. VIII. CERTIFICATION 24. By entering into this Agreement, the Prospective Developer certifies that, without 20 22074-18-060/Gathings Motor (Draft 2019.11.20) DEQ approval, it will make no use of the Brownfields Property other than that committed to in the Brownfields Property Application dated December 3, 2018, by which it applied for this Agreement. Tryon Investors, LLC intends to redevelop the Brownfields Property with two eleven-story buildings with office and retail uses, plus a 200-room hotel, parking deck, and large urban plaza for the display of public art. The approved uses will include office, retail, restaurant, brewery or food production facility, parking, hotel, open space, high density residential, and subject to DEQ’s prior written approval, other commercial uses. Prospective Developer also certifies that to the best of its knowledge and belief it has fully and accurately disclosed to DEQ all information known to Prospective Developer and all information in the possession or control of its officers, directors, employees, contractors and agents which relates in any way to any past use of regulated substances or known contaminants at the Brownfields Property and to its qualification for this Agreement, including the requirement that it not have caused or contributed to the contamination at the Brownfields Property. IX. DEQ’S COVENANT NOT TO SUE AND RESERVATION OF RIGHTS 25. Unless any of the following apply, Prospective Developer shall not be liable to DEQ, and DEQ covenants not to sue Prospective Developer, for remediation of the Brownfields Property except as specified in this Agreement: a. The Prospective Developer fails to comply with this Agreement. b. The activities conducted on the Brownfields Property by or under the control or direction of the Prospective Developer increase the risk of harm to public health or the environment, in which case Prospective Developer shall be liable for remediation of the areas of the Brownfields Property, remediation of which is required by this Agreement, to the extent necessary to eliminate such risk of harm to public health or the environment. c. A land use restriction set out in the Notice of Brownfields Property required 21 22074-18-060/Gathings Motor (Draft 2019.11.20) under NCGS § 130A-310.35 is violated while the Prospective Developer owns the Brownfields Property, in which case the Prospective Developer shall be responsible for remediation of the Brownfields Property to unrestricted use standards. d. The Prospective Developer knowingly or recklessly provided false information that formed a basis for this Agreement or knowingly or recklessly offers false information to 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 22 22074-18-060/Gathings Motor (Draft 2019.11.20) 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. 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 23 22074-18-060/Gathings Motor (Draft 2019.11.20) 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 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 24 22074-18-060/Gathings Motor (Draft 2019.11.20) 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 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: Jason Fish Tryon Investors, LLC c/o Spectrum Companies 25 22074-18-060/Gathings Motor (Draft 2019.11.20) 300 South Tryon Street, Suite 200 Charlotte, NC 28202 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. 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 26 22074-18-060/Gathings Motor (Draft 2019.11.20) 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 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. 27 22074-18-060/Gathings Motor (Draft 2019.11.20) IT IS SO AGREED: NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY By: ____________________________________________________________________________ Ellen Lorscheider Date Deputy Director, Division of Waste Management IT IS SO AGREED: Tryon Owner, LLC By: ____________________________________________________________________________ Stephen M. McClure Date Manager of TSE Manager, LLC, which is a Manager of TSE Investors, LLC, which is a Manager of TSE Associates, LLC, a Delaware Limited Liability Company, which is an Authorized Member of Tryon Owner, LLC USGS The National Map: National Boundaries Dataset, National ElevationDataset, Geographic Names Information System, National HydrographyDataset, National Land Cover Database, National Structures Dataset, andNational Transportation Dataset; U.S. Census Bureau - TIGER/Line; HERERoad Data. Data Refreshed July, 2017. PREPARED BY: LM DATE: 3/12/2019 DATE: 3/12/2019CHECKED BY: RCF Site Boundary Document Path: F:\AMEC_Projects\2018\6228-18-0495\MXD\Topo.mxd¯ PROJECT NO: 6228-18-0495 FIGURE NO: 1 SITE TOPOFormer Gathings Motor Company1100-1200 South Tryon StreetCharlotte, North CarolinaBrownfields Project #: 22074-18-060 0 1,000 2,000500Feet 22074-18-060/Gathings Motors DRAFT 2019.10.01 Exhibit 2 The most recent environmental sampling at the Property reported in the Environmental Reports occurred in July 2019.The following tables set 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) Benzene MW-3 2/25/2019 5.5 1 TW-1 8/20/2014 230 TW-2 8/20/2014 2100 Chromium MW-3 2/25/2019 50 10 1,2-Dibromoethane TW-2 8/20/2014 260 0.02 1,2-Dichloroethane MW-3 2/25/2019 1.4J 0.4 TW-2 8/20/2014 34 MW-TANK 4/18/2007 2.2 MW-03 4/18/2007 1.1 Ethylbenzene TW-1 8/20/2014 3900 600 TW-2 8/20/2014 3700 Isopropylbenzene TW-1 8/20/2014 85 70 TW-2 8/20/2014 270 2-Hexanone (Methyl Butyl Ketone ) TW-1 8/20/2014 270 40 TW-2 8/20/2014 180 1-Methyl naphthalene TW-1 8/20/2014 44 1 TW-2 8/20/2014 76 2-Methyl naphthalene TW-1 8/20/2014 80 30 TW-2 8/20/2014 160 Naphthalene MW-3 2/25/2019 45 6 TW-1 8/20/2014 830 TW-2 8/20/2014 1800 n-Propylbenzene TW-1 8/20/2014 260 70 TW-2 8/20/2014 420 1,2,4-Trimethylbenzene TW-1 8/20/2014 1900 400 TW-2 8/20/2014 1300 Toluene TW-1 8/20/2014 3900 600 TW-2 8/20/2014 19000 Xylene, Total TW-1 8/20/2014 14000 500 TW-2 8/20/2014 16000 22074-18-060/Gathings Motors DRAFT 2019.10.01 Groundwater Contaminant Sample Location Date of Sampling Concentration Exceeding Standard (µg/L) Standard (µg/L) Total Lead TW-2 8/20/2014 32 15 TPH Aliphatics, Low, C5-C8 TW-1 8/20/2014 6,800 400 TW-2 8/20/2014 30,000 TPH Aliphatics, Medium C9-C18 TW-1 8/20/2014 8,200 700 TW-2 8/20/2014 16,740 TPH Aromatics, Medium C9-C22 TW-1 8/20/2014 5,190 200 TW-2 8/20/2014 8,510 TPH Aromatics, Medium C9-C23 MW-TANK 4/18/2007 370 200 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 and Non-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 Standard (µg/L) Residential VI Screening Level1 (µg/L) Non-Residential VI Screening Level1 (µg/L) Benzene TW-1 8/20/2014 230 16 69 TW-2 8/20/2014 2100 1,2-Dibromoethane TW-2 8/20/2014 260 1.8 7.7 1,2-Dichloroethane TW-2 8/20/2014 34 22 98 Ethylbenzene MW-3 2/25/2019 150 35 150 TW-1 8/20/2014 3900 TW-2 8/20/2014 3700 Isopropylbenzene TW-2 8/20/2014 270 180 750 Naphthalene MW-3 2/25/2019 45 35 150 TW-1 8/20/2014 830 TW-2 8/20/2014 1800 1,2,4-Trimethylbenzene MW-3 2/25/2019 150 50 210 TW-1 8/20/2014 1900 TW-2 8/20/2014 1300 MW-TANK 4/18/2007 51 1,3,5-Trimethylbenzene MW-3 2/25/2019 150 35 150 TW-1 8/20/2014 530 TW-2 8/20/2014 760 Toluene TW-1 8/20/2014 3900 3800 16000 TW-2 8/20/2014 19000 22074-18-060/Gathings Motors DRAFT 2019.10.01 Groundwater Contaminant with Potential for Vapor Intrusion Sample Location Date of Sampling Concentration Exceeding Standard (µg/L) Residential VI Screening Level1 (µg/L) Non- Residential VI Screening Level1 (µg/L) Xylene-P MW-3 2/25/2019 440 74 310 Xylene, Total MW-3 2/25/2019 630 77 320 TW-1 8/20/2014 14000 TW-2 8/20/2014 16000 TPH Aliphatics, Low, C5-C8 TW-1 8/20/2014 6,800 1.7 7.1 TW-2 8/20/2014 30,000 MW-TANK 4/18/2007 59 TPH Aliphatics, Medium C9-C18 TW-1 8/20/2014 8,200 0.15 0.63 TW-2 8/20/2014 16,740 TPH Aliphatics, Medium C9-C19 MW-TANK 4/18/2007 500 0.15 0.63 TPH Aliphatics, Medium C9-C20 MW- OWS 4/18/2007 290 0.15 0.63 TPH Aromatics, Medium C9-C22 TW-1 8/20/2014 5,190 32 130 TW-2 8/20/2014 8,510 TPH Aromatics, Medium C9-C23 MW-TANK 4/18/2007 370 32 130 TPH Aromatics, Medium C9-C24 MW-OWS 4/18/2007 158 32 130 1 Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-5 lifetime incremental cancer risk. 2 NS – Screening level or regulatory not established. TPH is defined at Total Petroleum Hydrocarbons That certain parcel or tract of land situated, lying and being in the City of Charlotte, County of Mecklenburg, State of North Carolina and being all of the lands as described in Deed Book 32192, Page 483; Deed Book 32498, Page 994; Deed Book 32498, Page 997 and Deed Book 32499, Page 1, also as shown on Map Book 58, Page 184 and Map Book 58, Page 186, all Deed and Map Books recorded in the Mecklenburg County Public Register of Deeds and being more particularly described as follows: Commencing at an existing NGS Monument “McDowell” having NC Grid NAD 83 (2011) coordinates of N:541,237.39, E:1,452,816.02; thence South 78°25'12" West a horizonal ground distance of 6,273.32 feet to an existing nail with washer, situated at the intersection of the northerly margin of South Tryon Street (a variable width public right-of-way) with the westerly margin of West Carson Boulevard (a variable width public right-of-way) and being the Point of Beginning; thence along the aforesaid northerly margin South 41°26'35" West passing a new 1/2" iron rod at 200.67 feet, continue and passing a new 1/2" iron rod at 68.00 feet, continue and passing a new 1/2" iron rod at 30.58 feet, continue and passing an existing 5/8" iron rod at 149.56 feet, for a total distance of 498.36 feet to a new 1/2" iron rod, situated on the easterly margin of West Catherine Street (a 30’ public right-of-way) as shown on Map Book 50, Page 542; thence along the aforesaid easterly margin for the following three (3) courses and distances; 1) North 48°07'57" West a distance of 135.92 feet to an existing nail at the base of an existing 5/8" iron rod; 2) North 48°04'00" West a distance of 96.23 feet to an existing nail at the base of an existing 5/8" iron rod; 3) North 48°03'48" West a distance of 146.50 feet to an existing 5/8" iron rod, situated on the southerly margin of Winnifred Street (a variable width public -of-way); thence along the aforesaid southerly margin for the following three (3) courses and distances; 1) North 41°07'17" East a distance of 93.46 feet to an existing 5/8" iron rod; 2) North 41°08'28" East a distance of 131.04 feet to an existing 1/2" iron rod; 3) North 41°11'10" East passing a new 1/2" iron rod at 68.03 feet for a total distance of 341.47 feet to an existing nail with washer, situated on the westerly margin of the aforesaid West Carson Boulevard; thence along the aforesaid westerly margin for the following four (4) courses and distances; 1) with a curve along the arc of a curve to the right said curve having an arc length of 42.18 feet a radius of 23.01 feet (chord bearing of South 86°09'54" East and chord distance of 36.52 feet) to an existing nail with washer; 2) with a reverse curve along the arc of a curve to the left said curve having an arc length of 66.03 feet a radius of 621.12 feet (chord bearing of South 36°44'56" East and chord distance of 66.00 feet) to an existing nail with washer; 3) South 39°47'36" East a distance of 256.11 feet to an existing nail with washer; 4) with a curve along the arc of a curve to the right said curve having an arc length of 58.01 feet a radius of 41.09 feet (chord bearing of South 00°47'29" West and chord distance of 53.31 feet) to the Point of Beginning; Containing 213,119 square feet or 4.8925 acres, as shown on a survey prepared by R. B. Pharr & Associates, P.A. dated May 21, 2018 (Map File No. W-5567)(Project No. 88890). and also known as being all of: Tract 1 (Parcel No. 073-073-10) as shown on Map Book 58, Page 184 and described in Deed Book 32192, Page 483; with Tract 2 (Parcel No. 073-073-08) as shown on Map Book 58, Page 184 and described in Deed Book 32499, Page 1; with Tract 1 (Parcel No. 073-073-11) as shown on Map Book 58, Page 186 and described in Deed Book 32191, Page 483; with Tract 2 (Parcel No. 073-073-07) as shown on Map Book 58, Page 186 and described in Deed Book 32498, Page 994; with (Parcel No. 073-073-01) all of the lands as described in Deed Book 32498, Page 994; with (Parcel No. 073-073-09) all of Tract 1 as described in Deed Book 33192, Page 483. Together with rights under those certain easements established in Book 30244, Page 697, Mecklenburg County Public Registry. 22074-18-060/Gathings Motors DRAFT 2019.10.01 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 (May 2018 version): Soil Contaminant Sample Location Depth (ft) Date of Sampling Concentration Exceeding Screening Level (mg/kg) Residential Screening Level1 (mg/kg) Arsenic 2 GP-1 0-2 2/23/2019 1.5 0.68 GP-2 4-6 2/23/2019 1.9 GP-4 0-2 2/23/2019 1.5 GP-5 2-4 2/23/2019 2.7 BG 0-2 2/23/2019 0.95 BG 10-12 2/23/2019 1 1-Comp 0-3.5 3/9/2019 1.6 2-Comp 0-2.5 3/9/2019 2.1 3-Comp 0-3.5 3/9/2019 2.5 4-Comp 0-3.5 3/10/2019 2.9 5-Comp 0-2.5 3/10/2019 2.7 6-Comp 0-2.5 3/10/2019 1.8 7-Comp 0-3.5 3/9/2019 1.9 8-Comp 0-4.5 3/9/2019 2.6 9-Comp 0-2.5 3/9/2019 1.2 10-Comp 0-4 3/9/2019 1.6 DUP-4 0-3.5 3/10/2019 2.6 Chromium VI GP-1 0-2 2/25/2019 1.2 0.31 1-Comp 0-3.5 3/9/2019 1.8 2-Comp 0-2.5 3/9/2019 1.9 Benzo(a)pyrene GP-2 10-12 2/23/2019 0.21J 0.11 Naphthalene T-3 West 8 1/24/2007 5.7 4.1 Aromatics Medium (C9-C22) T-3 South 8 1/24/2007 117.5 22 T-3 East 8 1/24/2007 56.6 T-3 West 8 1/24/2007 255 OWS 8-10 4/10/2007 140 Aliphatics Medium (C9-C18) T-3 South 8 1/24/2007 62.7 20 T-3West 8 1/24/2007 78.98 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. NE – No established screening level 2 The IHSB’s tabulated generic residential use preliminary remediation goal (“remedial goal”) for arsenic is 0.68 mg/kg. Based on site specific assessment data, the arsenic impacts on the Brownfields Property appear to be naturally occurring and anthropogenic background. Further, based on a site specific risk calculation using the current NCDEQ Risk Calculator, arsenic levels on the Brownfields Property do not exceed a Hazard Index of 1. 22074-18-060/Gathings Motors DRAFT 2019.10.01 SOIL GAS Soil gas contaminants in micrograms per cubic meter, the screening levels for which are derived from Residential Vapor Intrusion Screening Levels of the Division of Waste Management (February 2018 version): Soil Gas Contaminant Sample Location Date of Sampling Concentration Exceeding Screening Level (µg/m3) Residential Screening Limit1 (µg/m3) 1,3-Butadiene SG-7 2/25/2019 15 14 Chloroform SG-2 2/25/2019 110 41 DUP-2 2/25/2019 140 SG-9 5/24/2019 42 1Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-5 lifetime incremental cancer risk.