22073_Tarheel Army Missile_LED_20200825

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
MICHAEL SCOTT
Director
NORTH CAROLINA
Environmental Quality
August 25, 2020
SENT VIA E-MAIL and CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Mr. David Tsui, Executive Officer and Managing Member
Central Park Burlington, LLC
7120 Creek Wood Drive
Chapel Hill, NC 27514
[e-mail]
Subject: DEQ Denial of Brownfields Property Application
Tarheel Army Missile Plant Property
204 North Graham Hopedale Church Road
Burlington, Alamance County, North Carolina
Brownfields Project Number 22073-18-001
Dear Mr. Tsui:
The North Carolina Department of Environmental Quality (DEQ) has received and
reviewed your November 27, 2018 Brownfields Property Application (BPA) on behalf of Central
Park Burlington, LLC, as a Prospective Developer seeking a brownfields agreement regarding the
approximately 22.15 acre Tarheel Army Missile Plant (TAMP) property. Upon review of the
information with respect to the requirements of the Brownfields Property Reuse Act of 1997 (the
"Act"), DEQ has determined that Central Park Burlington, LLC, is not eligible to obtain or to enter
into a brownfields agreement at this site. This determination is based on the following:
1) Central Park Burlington, LLC purchased the TAMP property in June 2018. Since that
time, you have been responsible to control access in order to prevent further contamination during
your ownership of the candidate property. Documentation in Superfund files indicates that there
have been incidents of vandalism at the property and that at least one contractor working at the
site had concerns for the safety of their personnel.
2) A letter from Kirsten Hiortdahl, Environmental Engineer with the Superfund Section of
the Division of Waste Management, NC DEQ, dated December 11, 2018 indicates that in an onsite
visit by Ms. Hiortdahl on December 5, 2018, Ms. Hiortdahl noted that "the site appears to be
insecure, as seen by the cut master locks on the gates and extensive vandalism" and that there were
"unsecured drums of various petroleum products and other various `auto mechanical chemicals'
present".
NORTHC�Ll.
peparh—d of E ffl ul Dma lty
North Carolina Department of Environmental Quality I Division of Waste Management
217 West Jones Street 1 1646 Mail Service Center I Raleigh, North Carolina 27699-1646
919.707.8200

TAMP
August 25, 2020
Page 2
3) A subcontractor, CCI Environmental Services, was called to the site on December 27,
2018 to locate and identify any onsite drums, wastes, and oil containing containers. A total of 45
drums and several smaller oil containers were inventoried. On December 28, 2018, CCI
documented the drums, conducted field Hazcat analysis and on January 1, 2019, collected three
composite samples for laboratory analysis. Sample results indicated the presence of significant
concentrations of multiple chemical compounds including petroleum hydrocarbons and
chlorinated solvents such as tetrachloroethylene (PCE). Available documentation indicates that a
percentage of these drums were in a deteriorated condition with evidence that certain of the drums
had been leaking.
Based on the findings contained in this letter, Central Park Burlington, LLC does not meet
all of the statutory requirements necessary to be a Prospective Developer, see N.C.G.S. § 130A-
310.31(b)(10), counter to your attestation in the Brownfields Property Application affidavit, signed
and notarized on November 14, 2018. An entity must demonstrate, among other things, that it has
not "caused or contributed to contamination at the property" in order to be a Prospective Developer
eligible for a brownfields agreement. Documentation based on observation and sampling at the
site indicates that deteriorated drums leaked contamination on the candidate property during your
ownership.
4) In addition, it is our understanding that you authorized the demolition of an onsite
clarifier without the necessary permits and without required notification and work plan submittal
to the U.S. Army Environmental Command (AEC) and DEQ. This unpermitted demolition was
conducted in a known contaminated area and resulted in a "Stop Work Order" from the City of
Burlington Inspections Department on September 12, 2018 in order to halt the unpermitted actions.
The reason for the stop work order was that no environmental approvals and no demolition permits
were obtained for this scope of work by Central Park Burlington, LLC. Further, fill material
imported from offsite was placed at the property without sampling and analysis to first demonstrate
that the fill material was clean and appropriate for such use.
5) Lastly, it has come to the attention of the Brownfields Program that you have been
prosecuted for, among other things, defrauding government programs in violation of federal
criminal and civil statutes. On February 15, 2008, Dr. 2 Shoes, Inc. pleaded guilty to federal
criminal violations, including two criminal counts of making false claims to a government agency.
As President of Dr. 2 Shoes, Inc., you signed the Plea Agreement admitting guilt. On January 5,
2009, you were sentenced to terms of imprisonment for these convictions, and ordered to pay fines
and restitution. Restitution to victims for damages caused by these offenses totaled $731,307.54.
Additionally, more recently on February 25, 2019 you entered into a civil settlement agreement
with the U.S. Attorney's Office, Northern District of Oklahoma. The settlement agreement also
involves fraudulent conduct, and addresses your alleged receipt, from January to August 2013, of
illegal kickbacks affecting government healthcare programs in violation of False Claims Act. See
31 U.S.C. §§ 3729-33. These kickbacks caused $180,046.99 in damage to federal government
backed health care programs. To resolve the matter outside of litigation, you agreed with the U.S.
Attorney's Office, Northern District of Oklahoma to a settlement amount of $414,108.08.

TAMP
August 25, 2020
Page 3
Similar to federal government backed healthcare programs, the Brownfields Program is a
governmental program which enters into agreements that rely on the accurate submission of
relevant data, the accurate assessment of that data and the accurate implementation of required
actions. Accordingly, the Brownfields Property Reuse Act requires, among other things, that a
Prospective Developer show a history of substantial compliance with past agreements. A
Prospective Developer must also present reliable evidence demonstrating that it can meet all of the
requirements of N.C.G.S. § 130A-310.32, including the managerial means to fully and lawfully
implement the Brownfields Agreement in a manner that assures the safe use of the brownfields
property. See N.C.G.S. § 130A-310.32(a). These facts, coupled with information provided
through the DWM Superfund Section described above, make it difficult for NC DEQ to envision
developing a brownfields agreement with you in a manner that will meet the requirements of the
Brownfields Property Reuse Act.
In summary, there is evidence of the lack of security at the candidate property as noted in
December 2018 and subsequent email correspondence; the presence of unsecured, leaking drums
at the property with evidence indicating a release to the property while owned by Central Park
Burlington, LLC; the unpermitted demolition and grading activities in a known contaminated area;
and a history of prior criminal convictions and civil settlements for defrauding and making false
claims to government agency programs. Accordingly, the DEQ Brownfields Program exercises
its statutory discretion as granted by the Act, and will not develop or enter into a brownfields
agreement with Central Park Burlington, LLC.
Under the Act, specifically under § 130A-310.36, Appeals, this decision is reviewable
through the Office of Administrative Hearings (OAH) in accordance with the requirements of
Article 3 of Chapter 150B of the North Carolina General Statutes (N.C.G.S. § 150B-22 et se .
If you have questions about this determination, please feel free to contact me at
919.441.2504 or by email at bruce.nicholson&ncdenr.gov, or Sharon Eckard at
sharon. eckard&ncdenr. gov.
Sincerely,
Bruce Nicholson
Brownfields Program Manager
ec: Central Files, DEQ
Sharon Eckard, DEQ
Rohit Warrior, DEQ Superfund
Jay Osborne, DEQ