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HomeMy WebLinkAbout21006_Wentworth Furniture Public Notification Package_09.18.202021006-17-18/Wentworth Furniture (September 18, 2020) 1 NOTICE OF INTENT TO REDEVELOP A BROWNFIELDS PROPERTY Site Name: Wentworth Furniture Brownfields Project Number: 21006-17-018 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 September 18, 2020, 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 21006-17-018/Wentworth Furniture (September 18, 2020) SUMMARY OF NOTICE OF INTENT TO REDEVELOP A BROWNFIELDS PROPERTY Site Name: Wentworth Furniture Brownfields Project Number: 21006-17-018 Pursuant to NCGS § 130A-310.34, Kofman Conover, 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 Conover, Catawba County, North Carolina. The Brownfields Property, which is the former site of furniture manufacturing operations by Décor Originals, Inc., Wentworth Furniture, Inc., and by Abbey Lane Cabinetry, consists of 6.26 acres and is located at 1808 Emmanuel Church Road. Environmental contamination exists on the Brownfields Property in groundwater, soil, soil gas, and indoor air. Kofman Conover, LLC has committed itself to redevelopment of the Brownfields Property for no uses other than industrial, office, warehousing, retail, parking, and with prior written DEQ approval other commercial uses. The Notice of Intent to Redevelop a Brownfields Property includes: (1) a proposed Brownfields Agreement between DEQ and Kofman Conover, 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 online at the DEQ public record database, Laserfiche, by entering the project number 21006-17-018 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 September 18, 2020, 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 21006-17-18/Wentworth Furniture (September 18, 2020) 1 Property Owner: Kofman Conover, LLC Recorded in Book ____, Page ____ Associated plat recorded in Plat Book ____, Page ____ NOTICE OF BROWNFIELDS PROPERTY Site Name: Wentworth Furniture Brownfields Project Number: 21006-17-018 This documentary component of a Notice of Brownfields Property (“Notice”), as well as the plat component, have been filed this _____ day of __________________, 2020 by Kofman Conover, LLC (“Prospective Developer”). This Notice concerns contaminated property. A copy of this Notice certified by the North Carolina Department of Environmental Quality (“DEQ”) is required to be filed in the Register of Deeds’ Office in the county or counties in which the land is located, pursuant to North Carolina General Statutes (“NCGS”), § 130A-310.35(b). This Notice is required by NCGS § 130A-310.35(a), in order to reduce or eliminate the danger to public health or the environment posed by environmental contamination at a property (“Brownfields Property”) being addressed under the Brownfields Property Reuse Act of 1997, NCGS § 130A, Article 9, Part 5 (“Act”). Pursuant to NCGS § 130A-310.35(b), the Prospective Developer must file a certified copy of this Notice within 15 days of Prospective Developer’s receipt of DEQ’s approval of the Notice or Prospective Developer’s entry into the Brownfields Agreement required by the Act, whichever is later. The copy of the Notice certified by DEQ must be recorded in the grantor index under the names of the owners of the land and, if Prospective Developer is not the owner, also under the Prospective Developer’s name. The Brownfields Property is located at 1808 Emmanuel Church Road, Conover, Catawba County, North Carolina and consists of one parcel totaling 6.26 acres. Historically, the Brownfields Property has been used for furniture manufacturing by various entities including Décor Originals, Inc. from at least 1989 to 2005, by Wentworth Furniture, Inc. from at least 2010 to 2015, and by Abbey Lane Cabinetry in 2015. The Prospective Developer (Kofman Conover, LLC) purchased 21006-17-18/Wentworth Furniture (September 18, 2020) 2 the Brownfields Property on November 3, 2016. The Prospective Developer has since leased the Brownfields Property for pallet manufacturing, a custom cabinetry facility, and automobile storage. Prospective Developer has committed itself to redevelopment of the Brownfields Property for no uses other than industrial, office, warehousing, retail, parking, and with prior written DEQ approval other commercial uses. Groundwater and soil at the Brownfields Property are known to have been impacted with metals. Groundwater, sub-slab soil gas, and indoor air at the Brownfields Property are known to have been impacted with volatile organic compounds (VOCs). 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 Brownfields 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 industrial, office, warehousing, retail, parking, and with prior written DEQ approval other commercial uses. For 21006-17-18/Wentworth Furniture (September 18, 2020) 3 purposes of this restriction, the following definitions apply: i. “Industrial” defined as the assembly, fabrication, processing, warehousing or distribution of goods or materials; ii. “Office” defined as the provision of business or professional services; iii. “Warehousing” defined as the use of a commercial building for storage of goods by manufacturers, importers, exporters, wholesalers, transport businesses among others, and also refers to the storage of goods and materials for a specific commercial establishment of a group of establishments in a particular type of industry or commercial activity. iv. “Retail” defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products; v. “Parking” defined as the temporary accommodation of motor vehicles in an area designed for same; and vi. “Commercial” 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 centers, adult care centers or schools 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 or unless in connection with work conducted in accordance with a DEQ-approved Environmental Management Plan (EMP) as outlined below in subparagraph 15.i., no activities that encounter, expose, remove or use groundwater (for example, installation of water supply wells, ponds, lakes or swimming pools, or construction or excavation activities that encounter or expose groundwater) may occur on the Brownfields Property unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. Prior sampling and analysis of groundwater to the written satisfaction of DEQ in any areas proposed for such activities, and submittal of the analytical results to DEQ is required. If such results reflect contaminant concentrations that exceed the standards and screening levels applicable to the uses authorized for the Brownfields Property, the groundwater-related activities proposed may only occur in compliance with any written conditions DEQ imposes. Activities may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a. above while fully protecting public health and the environment. 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 21006-17-18/Wentworth Furniture (September 18, 2020) 4 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; or iv. in connection to work conducted in accordance with a DEQ-approved EMP as outlined below in subparagraph 15.i. 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.i. f. No enclosed building may be constructed on the Brownfields Property nor be occupied 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. On-going indoor air sampling of locations A-2, A-3, and A-4, as depicted in the Indoor Air Sample Location Floor Plan of the January 20, 2020 Brownfields Assessment Report, shall be conducted, as outlined in the September 26, 2019 Work Plan for Assessment of Indoor Air Quality Revision 1. The indoor air samples shall be sampled by EPA Method TO-15 for those VOCs that have previously been detected above method detection limits (MDL) in groundwater, sub-slab soil gas, and indoor air. Sampling shall be conducted on a quarterly basis until such time as six consecutive indoor air sampling events (eighteen months) indicate that the risk within the buildings is acceptable for the uses specified above in subparagraph 15.a. or such time that vapor intrusion mitigation measures approved in advance in writing by DEQ are installed and/or implemented at the Brownfields Property to the satisfaction of a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal on a report as provided above in subparagraph 15.f.iii. At such time either of the above occurs, a request to terminate future sampling may be submitted to DEQ that includes the public health rationale for such termination. Should the data collected from these indoor air monitoring events indicate exposures at the Brownfields Property that raise the risk to 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, DEQ may require that the then owner(s) re-evaluate that risk for areas potentially subject to said risk and conduct any actions DEQ deems necessary to reduce said risk to make the Brownfields Property suitable for the uses authorized in subparagraph 15.a above while fully protecting public health and the environment. 21006-17-18/Wentworth Furniture (September 18, 2020) 5 h. No disturbance or alteration of the slab within the existing building footprint, as depicted on the plat component of the Notice of Brownfields Property referenced in paragraph 20 below, may occur unless in accordance with a DEQ-approved EMP, unless otherwise approved in advance in writing by DEQ, or unless in the case of emergency circumstances for repair of underground infrastructure, in which case DEQ shall be provided written notice no later than the next business day and any related assessment and remedial measures required by DEQ shall be taken. i. 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 resulting from contamination identified in the Environmental Reports; ii. issues related to potential sources of contamination referenced in Exhibit 2; iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and iv. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. j. 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 (other than DEQ IHSB program 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). k. 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 21006-17-18/Wentworth Furniture (September 18, 2020) 6 interference with authorized uses of the Brownfields Property. l. 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 Catawba County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. The owner conveying an interest may use the following mechanisms to comply with the obligations of this 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. m. 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 in vehicles; iii. 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; and iv. as constituents of products and materials customarily used and stored in pallet and custom cabinet making environments, provided such products and materials are stored in original retail packaging and used and disposed of in accordance with applicable laws. n. During January of each year after the year in which the Notice referenced below in paragraph 20 is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Catawba County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Catawba County Register of Deeds office and that the land use restrictions are being complied with, and stating: 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 21006-17-18/Wentworth Furniture (September 18, 2020) 7 any buildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how; and iv. any data acquired from the indoor air sampling on the Brownfields Property referenced in subparagraph 15.g., above. 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. IN WITNESS WHEREOF, Prospective Developer has caused this instrument to be duly executed this _____ day of _______________, 2020. Kofman Conover, LLC By: __________________________________________ Jose Kofman Manager of Kofman Conover, LLC 21006-17-18/Wentworth Furniture (September 18, 2020) 8 NORTH CAROLINA CATAWBA 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 21006-17-018/ Wentworth Furniture (September 18, 2020) EXHIBIT A NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY IN THE MATTER OF: Kofman Conover, LLC UNDER THE AUTHORITY OF THE ) BROWNFIELDS AGREEMENT re: BROWNFIELDS PROPERTY REUSE ACT ) Wentworth Furniture OF 1997, NCGS § 130A-310.30, et seq. ) 1808 Emmanuel Church Road Brownfields Project # 21006-17-18 ) Conover, Catawba County I. INTRODUCTION This Brownfields Agreement (“Agreement”) is entered into by the North Carolina Department of Environmental Quality (“DEQ”) and Kofman Conover, 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 1808 Emmanuel Church Road, Conover, Catawba County (the “Brownfields Property”). A map showing the location of the Brownfields Property that is the subject of this Agreement is attached hereto as Exhibit 1. Kofman Conover, LLC is a manager-managed North Carolina limited liability company managed by Jose Kofman, and its mailing address is 731 Ocean View Avenue, Pacific Grove, CA 93950. This Agreement pertains to approximately 6.26 acres of land located at 1808 Emmanuel Church Road in the City of Conover (Catawba County tax parcel number 19324401). Kofman Conover, LLC intends to redevelop the Brownfields Property for no uses other than industrial, office, warehousing, retail, parking, and with prior written DEQ approval other commercial uses. Historically, the Brownfields Property has been used for furniture manufacturing by various entities, including Wentworth Furniture, from at least 2010 to 2015. Since purchasing 2 21006-17-018/ Wentworth Furniture (September 18, 2020) the Brownfields Property on November 3, 2016, the Prospective Developer has used the Brownfields Property for pallet manufacturing, and a tenant on the Brownfields Property operates a custom cabinetry facility. Environmental impacts at the Brownfields Property include groundwater and soil gas with elevated levels of chlorinated volatile organic compounds (VOCs). 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 Kofman Conover, LLC for contaminants at the Brownfields Property. The Parties agree that Kofman Conover, LLC’s entry into this Agreement, and the actions undertaken by Kofman Conover, LLC in accordance with the Agreement, do not constitute an admission of any liability by Kofman Conover, LLC for contaminants at the Brownfields Property. The resolution of this potential liability, in exchange for the benefit Kofman Conover, 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 Kofman Conover, LLC. 3 21006-17-018/ Wentworth Furniture (September 18, 2020) III. STATEMENT OF FACTS 3. The Brownfields Property comprises one parcel totaling approximately 6.26 acres. Prospective Developer has committed itself to redevelopment for no uses other than industrial, office, warehousing, retail, parking, and with prior written DEQ approval other commercial uses. 4. The Brownfields Property is bordered to the north by Emmanuel Church Road followed by a warehousing facility for Southern Furniture Co. to the northeast and a warehousing facility for Colonial Distribution to the northwest; to the east by rail road tracks and a warehousing facility for Ideal Italia Furniture; to the south by a metal fabrication facility called Conover Metal Products, Inc.; and to the west by a motorcycle dealership called Michael’s Cycles and More. 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 Phase II Environmental Site Assessment EnviroAssessments June 13, 2016 Phase I Environmental Site Assessment Blue Ridge Engineering, PLLC February 19, 2018 Summary of Analytical Results from Groundwater, Soil, and Vapor Sampling Blue Ridge Engineering, PLLC December 31, 2019 Indoor Air Quality Assessment Report Blue Ridge Engineering, PLLC January 20, 2020 6. For purposes of this Agreement, DEQ relies on the following representations by Prospective Developer and/or DEQ files as to the use and ownership of the Brownfields Property: a. According to a review of historical aerial photographs and city directories, the Brownfields Property was vacant farm land until at least 1964, when the land was cleared for 4 21006-17-018/ Wentworth Furniture (September 18, 2020) development. By 1976, the current warehouse building was present on the Brownfields Property, and the current shed was present by 1984. The Brownfields Property has historically been used for furniture manufacturing by various entities. City directories state the Brownfields Property was in use by Décor Originals, Inc. from at least 1989 to 2005, by Wentworth Furniture, Inc. from at least 2010 to 2015, and by Abbey Lane Cabinetry in 2015. Décor Originals, Inc. was listed as a Resource Conservation and Recovery Act (RCRA) small quantity generator of hazardous waste. Wentworth Furniture, Inc. was listed as a RCRA conditionally exempt small quantity generator of hazardous waste. Both companies reportedly produced waste including chlorinated solvents. The Prospective Developer purchased the Brownfields Property on November 3, 2016 from Bank of the Ozarks, which acquired the Brownfields Property though a court ordered sale to satisfy the default of a Deed of Trust. The Prospective Developer has since leased the Brownfields Property for pallet manufacturing, a custom cabinetry facility, and automobile storage. 7. Pertinent environmental information regarding the Brownfields Property and surrounding area includes the following: a. A Phase II Environmental Site Assessment report was completed by EnviroAssessments on June 13, 2016. Soil, groundwater, and geophysical assessments were conducted to investigate Recognized Environmental Conditions (RECs) identified in an EDR Radius Map Report dated April 25, 2016. Identified RECs included two former underground storage tanks (USTs) installed on June 17, 1975. One of the USTs reportedly contained 5,000- gallons of kerosene while the second UST contained up to 2,000-gallons of an unknown liquid. No evidence of USTs was observed from ground penetrating radar (GPR) and electromagnetic 5 21006-17-018/ Wentworth Furniture (September 18, 2020) (EM) surveys in the areas of the former UST canopies located near the northeastern corner of the warehouse building and on the south side of the shed building. Four soil samples were collected at a depth of 10 feet below land surface (ft BLS) from each former UST basin. Additionally, two temporary monitoring wells were installed on either side of each former UST basin for a total of four monitoring wells. Total Petroleum Hydrocarbons (TPH) were detected in two of the eight soil samples but below the DEQ UST Section Action Levels. Concentrations of volatile organic compounds (VOCs) including Methylene Chloride, Tetrachloroethylene (PCE), and Trichloroethylene (TCE) were detected above the North Carolina Administrative Code Title 15A Subchapter 2L groundwater standards (2L standard) in the two monitoring wells (WS-3 and WS- 4) in the vicinity of the former UST on the south side of the storage shed building. TCE concentrations in monitoring wells WS-3 and WS-4 exceeded the DEQ Non-Residential Vapor Intrusion Screening Level (VISL) at 341 µg/L and 434 µg/L respectively. At a concentration of 6.2 µg/L, TCE was also detected above the 2L standard and Non-Residential VISL in monitoring well WS-1 located near the northeastern corner of the warehouse building. b. In response to a Request for Additional Assessment Letter issued by the DEQ Brownfields Program on December 27, 2018, Blue Ridge Engineering, PLLC (Blue Ridge) completed a Summary of Analytical Results from Groundwater, Soil, and Vapor Sampling report on July 31, 2019 (Revised on December 31, 2019). Groundwater and soil samples were collected from three new locations including locations immediately adjacent to former monitoring wells WS-2 and WS-4 and in the open area along the southern portion of the warehouse building. Additionally, seven sub-slab soil gas samples were collected from locations throughout the warehousing and office areas of the building. TCE was detected above both the 6 21006-17-018/ Wentworth Furniture (September 18, 2020) 2L standard and the Non-Residential VISL in monitoring wells W-6 (former WS-4) and W-7. Concentrations of chromium exceeded 2L standards in monitoring wells W-5 and W-7. Concentrations of selenium, lead, -and barium exceeded 2L standards in monitoring well W-6 (former WS-4). Chromium (total) was detected in soil samples S-9, S-10, S-11, S-12, S-13, S- 14, S-15 and S-16 exceeding the DEQ Industrial/Commercial Preliminary Soil Remediation Goals (PSRGs) for Hexavalent Chromium. No concentrations of VOCs, Semi-volatile organic compounds (SVOCs), or other RCRA Metals exceeded DEQ Industrial/Commercial Preliminary Soil Remediation Goals (PSRGs) in the soil samples collected. Several VOCs were detected in the seven sub-slab soil gas samples collected. However, only sub-slab sample V-4 located in the central portion of the warehouse building contained a concentration of TCE (337 µg/m3) exceeding the Non-Residential VISL. c. Due to the results of the sub-slab soil gas sampling, Blue Ridge completed an Indoor Air Assessment Report on January 20, 2020. Indoor air samples were collected from five sample locations across the warehousing and office portions of the building. Several VOCs were detected in each of the samples but only Ethylbenzene was detected, and only in one of the five indoor air sample, sample A-4, at a concentration exceeding the DEQ Non-Residential Indoor Air Screening Level (IASL). Sample A-4 is located in the southeastern portion of the warehouse in the cabinet manufacturing area. TCE was detected in indoor air samples A-2A and A-4 but in concentrations (1.1 µg/m3 and 0.97 µg/m3, respectively) below the Non-Residential IASL. 8. The most recent environmental sampling at the Brownfields Property reported in the Environmental Reports occurred on October 16, 2019. The tables set forth in Exhibit 2 to this Agreement present contaminants present at the Brownfields Property above applicable standards 7 21006-17-018/ Wentworth Furniture (September 18, 2020) 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 acquiring the Brownfields Property on November 3, 2016, preparing and submitting to DEQ a Brownfields Property Application (BPA) dated February 3, 2017, completing interior building renovations for the office space located in the northern portion of the existing building, leasing a portion of the building for custom cabinet manufacturing, and conducting furniture pallet manufacturing operations. 10. Prospective Developer has provided DEQ with information, or sworn certifications regarding that information on which DEQ relies for purposes of this Agreement, sufficient to demonstrate that: a. Prospective Developer and any parent, subsidiary, or other affiliate has substantially complied with federal and state laws, regulations and rules for protection of the environment, and with the other agreements and requirements cited at NCGS § 130A- 310.32(a)(1); b. As a result of the implementation of this Agreement, the Brownfields Property will be suitable for the uses specified in the Agreement while fully protecting public health and the environment; c. Prospective Developer's reuse of the Brownfields Property will produce a public benefit commensurate with the liability protection provided Prospective Developer hereunder; 8 21006-17-018/ Wentworth Furniture (September 18, 2020) 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. Prospective Developer has paid to DEQ the $2,000 fee to seek a brownfields agreement required by NCGS § 130A-310.39(a) (1), and shall make a payment to DEQ of $6,000 at the time Prospective Developer and DEQ enter into this Agreement, defined for this purpose as occurring no later than the last day of the public comment period related to this Agreement. The Parties agree that such fees will suffice as the $2,000 fee to seek a brownfields agreement required by NCGS § 130A-310.39(a)(1), and, within the meaning of NCGS § 130A- 310.39(a)(2), the full cost to DEQ and the North Carolina Department of Justice of all activities related to this Agreement, unless a change is sought to a Brownfields document after it is in effect, in which case there shall be an additional fee of at least $1,000. IV. BENEFIT TO COMMUNITY 12. The redevelopment of the Brownfields Property proposed herein would provide the following public benefits: a. an increase in the Brownfields Property’s productivity; b. the creation of permanent commercial and industrial jobs upon completion of redevelopment; c. an increase in tax revenue for affected jurisdictions including both property taxes and taxes from additional employees; 9 21006-17-018/ Wentworth Furniture (September 18, 2020) d. “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. 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 industrial, 10 21006-17-018/ Wentworth Furniture (September 18, 2020) office, warehousing, retail, parking, and with prior written DEQ approval other commercial uses. For purposes of this restriction, the following definitions apply: i. “Industrial” defined as the assembly, fabrication, processing, warehousing or distribution of goods or materials; ii. “Office” defined as the provision of business or professional services; iii. “Warehousing” defined as the use of a commercial building for storage of goods by manufacturers, importers, exporters, wholesalers, transport businesses among others, and also refers to the storage of goods and materials for a specific commercial establishment of a group of establishments in a particular type of industry or commercial activity. iv. “Retail” defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products; v. “Parking” defined as the temporary accommodation of motor vehicles in an area designed for same; and vi. “Commercial” 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 centers, adult care centers or schools 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 or unless in connection with work conducted in accordance with a DEQ-approved Environmental Management Plan (EMP) as outlined below in subparagraph 15.i., no activities that encounter, expose, remove or use groundwater (for 11 21006-17-018/ Wentworth Furniture (September 18, 2020) example, installation of water supply wells, ponds, lakes or swimming pools, or construction or excavation activities that encounter or expose groundwater) may occur on the Brownfields Property unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment. Prior sampling and analysis of groundwater to the written satisfaction of DEQ in any areas proposed for such activities, and submittal of the analytical results to DEQ is required. If such results reflect contaminant concentrations that exceed the standards and screening levels applicable to the uses authorized for the Brownfields Property, the groundwater-related activities proposed may only occur in compliance with any written conditions DEQ imposes. Activities may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a. above while fully protecting public health and the environment. 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 12 21006-17-018/ Wentworth Furniture (September 18, 2020) 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; or iv. in connection to work conducted in accordance with a DEQ-approved EMP as outlined below in subparagraph 15.i. 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.i. f. No enclosed building may be constructed on the Brownfields Property nor be occupied 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 13 21006-17-018/ Wentworth Furniture (September 18, 2020) implementation of said measures. The design specifications shall include methodology(ies) for demonstrating performance of said measures. g. On-going indoor air sampling of locations A-2, A-3, and A-4 as depicted in the Indoor Air Sample Location Floor Plan of the January 20, 2020 Brownfields Assessment Report, shall be conducted, as outlined in the September 26, 2019 Work Plan for Assessment of Indoor Air Quality Revision 1. The indoor air samples shall be sampled by EPA Method TO-15 for those VOCs that have previously been detected above method detection limits (MDL) in groundwater, sub-slab soil gas, and indoor air. Sampling shall be conducted on a quarterly basis until such time as six consecutive indoor air sampling events (eighteen months) indicate that the risk within the buildings is acceptable for the uses specified above in subparagraph 15.a. or such time that vapor intrusion mitigation measures approved in advance in writing by DEQ are installed and/or implemented at the Brownfields Property to the satisfaction of a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal on a report as provided above in subparagraph 15.f.iii. At such time either of the above occurs, a request to terminate future sampling may be submitted to DEQ that includes the public health rationale for such termination. Should the data collected from these indoor air monitoring events indicate exposures at the Brownfields Property that raise the risk to 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, DEQ may require that the then owner(s) re-evaluate that risk for areas potentially subject to said risk and conduct any actions DEQ deems necessary to reduce said risk to make the Brownfields Property suitable for the uses authorized in subparagraph 15.a above while fully protecting public health and the environment. 14 21006-17-018/ Wentworth Furniture (September 18, 2020) h. No disturbance or alteration of the slab within the existing building footprint, as depicted on the plat component of the Notice of Brownfields Property referenced in paragraph 20 below, may occur unless in accordance with a DEQ-approved EMP, unless otherwise approved in advance in writing by DEQ, or unless in the case of emergency circumstances for repair of underground infrastructure, in which case DEQ shall be provided written notice no later than the next business day and any related assessment and remedial measures required by DEQ shall be taken. i. 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 resulting from contamination identified in the Environmental Reports; ii. issues related to potential sources of contamination referenced in Exhibit 2; iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and 15 21006-17-018/ Wentworth Furniture (September 18, 2020) iv. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. j. 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 (other than DEQ IHSB program 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). k. 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 16 21006-17-018/ Wentworth Furniture (September 18, 2020) 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. l. 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 Catawba County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. The owner conveying an interest may use the following mechanisms to comply with the obligations of this 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. m. 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 17 21006-17-018/ Wentworth Furniture (September 18, 2020) maintenance activities; ii. in fluids in vehicles; iii. 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; and iv. as constituents of products and materials customarily used and stored in pallet and custom cabinet making environments, provided such products and materials are stored in original retail packaging and used and disposed of in accordance with applicable laws. n. During January of each year after the year in which the Notice referenced below in paragraph 20 is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Catawba County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Catawba County Register of Deeds office and that the land use restrictions are being complied with, and stating: 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 18 21006-17-018/ Wentworth Furniture (September 18, 2020) 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; and iv. any data acquired from the indoor air sampling on the Brownfields Property referenced in subparagraph 15.g., above. 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.k. 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 19 21006-17-018/ Wentworth Furniture (September 18, 2020) the performance or oversight of any response actions at the Brownfields Property under applicable law. Such access is to occur after prior notice and using reasonable efforts to minimize interference with authorized uses of such other property except in response to emergencies and/or imminent threats to public health and the environment. While Prospective Developer owns the Brownfields Property, DEQ shall provide reasonable notice to Prospective Developer of the timing of any response actions to be undertaken by or under the oversight of DEQ at the Brownfields Property. Except as may be set forth in the Agreement, DEQ retains all of its authorities and rights, including enforcement authorities related thereto, under the Act and any other applicable statute or regulation, including any amendments thereto. 20. DEQ has approved, pursuant to NCGS § 130A-310.35, a Notice of Brownfields Property for the Brownfields Property containing, inter alia, the land use restrictions set forth in Section V (Work to Be Performed) of this Agreement and a survey plat of the Brownfields Property. Pursuant to NCGS § 130A-310.35(b), within 15 days of the effective date of this Agreement, Prospective Developer shall file the Notice of Brownfields Property in the Catawba 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 20 21006-17-018/ Wentworth Furniture (September 18, 2020) to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Catawba County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. Prospective Developer may use the following mechanisms to comply with the obligations of this paragraph: (i) If every lease and rider is identical in form, Prospective Developer may provide DEQ with copies of a form lease or rider evidencing compliance with this paragraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notices and Submissions); or (ii) Prospective Developer may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. 22. The Prospective Developer shall ensure that a copy of this Agreement is provided to 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 21 21006-17-018/ Wentworth Furniture (September 18, 2020) threatens a release of contaminants at or from the Brownfields Property while Prospective Developer owns the Brownfields Property, the Prospective Developer shall immediately take all appropriate action to prevent, abate, or minimize such release or threat of release, shall comply with any applicable notification requirements under NCGS § 130A-310.1 and 143-215.85, Section 103 of CERCLA, 42 USC § 9603, and/or any other law, and shall immediately notify the DEQ Official referenced in subparagraph 35.a. below of any such required notification. VIII. CERTIFICATION 24. By entering into this Agreement, the Prospective Developer certifies that, without DEQ approval, it will make no use of the Brownfields Property other than that committed to in the Brownfields Property Application dated February 3, 2017 by which it applied for this Agreement, as modified herein. That use is industrial, office, warehousing, retail, parking, and with prior written DEQ 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 22 21006-17-018/ Wentworth Furniture (September 18, 2020) Property except as specified in this Agreement: a. The Prospective Developer fails to comply with this Agreement. b. The activities conducted on the Brownfields Property by or under the control or direction of the Prospective Developer increase the risk of harm to public health or the environment, in which case Prospective Developer shall be liable for remediation of the areas of the Brownfields Property, remediation of which is required by this Agreement, to the extent necessary to eliminate such risk of harm to public health or the environment. c. A land use restriction set out in the Notice of Brownfields Property required under NCGS § 130A-310.35 is violated while the Prospective Developer owns the Brownfields Property, in which case the Prospective Developer shall be responsible for remediation of the Brownfields Property to unrestricted use standards. 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 23 21006-17-018/ Wentworth Furniture (September 18, 2020) 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 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 24 21006-17-018/ Wentworth Furniture (September 18, 2020) 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 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 25 21006-17-018/ Wentworth Furniture (September 18, 2020) § 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 three (3) -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 three (3) - years, upon the written request of DEQ, the Prospective Developer shall notify DEQ of the location of such documents and shall provide DEQ with an opportunity to copy any documents at the expense of DEQ. By entering into this Agreement, Prospective Developer waives no rights of confidentiality or privilege provided by the North Carolina Public Records Act or otherwise and, at the time DEQ requests to copy or inspect said documents, Prospective Developer shall provide DEQ with a log of documents withheld from DEQ, including a specific description of the document(s) and the alleged legal basis upon which they are being withheld. To the extent DEQ retains any copies of such documents, Prospective Developer retains all 26 21006-17-018/ Wentworth Furniture (September 18, 2020) 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: - Kofman Conover, LLC Attn: Jose Kofman 731 Ocean View Blvd Pacific Grove, CA 93950 - 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 27 21006-17-018/ Wentworth Furniture (September 18, 2020) 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 claims to the extent provided by NCGS § 130A-310.37(a)(5)-(6). The subject matter of this 28 21006-17-018/ Wentworth Furniture (September 18, 2020) 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. IT IS SO AGREED: NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY By: 29 21006-17-018/ Wentworth Furniture (September 18, 2020) ____________________________________________________________________________ Ellen Lorscheider Date Deputy Director, Division of Waste Management IT IS SO AGREED: Kofman Conover, LLC By: ____________________________________________________________________________ Jose Kofman Date Member-Manager Figure 1 – Site Location Map Source: USGS 7.5 Minute Topographic Map Newton, North Carolina Quadrangle 1993 Site Name: EMJA Properties LLC 1808 Emmanuel Church Road Conover, North Carolina EA Project Number: 16-10477.2 BB&T Project Number: OMS-211401 – Report #1 9111 Monroe Road, Suite 175 Charlotte, North Carolina 28270 T 704.846.8853 F 704.846.3271 enviroassessments.com enviroassessments SSSIIITTTEEE 21006-17-18/Wentworth Furniture (September 18, 2020) 1 Exhibit 2 The most recent environmental sampling at the Property reported in the Environmental Reports occurred on October 16, 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) Barium W-6 5/17/2019 1,370 700 Chromium W-5 5/17/2019 13.9 10 W-7 5/17/2019 32.6 Lead W-6 5/17/2019 20.4 15 Selenium W-6 5/17/2019 70.8 20 Methylene Chloride WS-3 6/1/2016 5.7 5 WS-4 6/1/2016 5.6 Tetrachloroethylene WS-3 6/1/2016 5.1 0.7 WS-4 6/1/2016 7.2 Trichloroethylene WS-1 6/1/2016 6.2 3 WS-3 6/1/2016 341 WS-4 6/1/2016 434 W-6 5/17/2019 230 W-7 5/17/2019 6.7 21006-17-18/Wentworth Furniture (September 18, 2020) 2 GROUNDWATER VAPOR INTRUSION RISK Groundwater contaminants with potential for vapor intrusion (VI) in micrograms per liter (the equivalent of parts per billion), the vapor intrusion screening levels for which are derived from the Residential Vapor Intrusion Screening Levels of the Division of Waste Management February 2018 version): Groundwater Contaminant with Potential for Vapor Intrusion Sample Location Date of Sampling Concentration Exceeding Screening Level (µg/L) Non-Residential VI Screening Level1 (µg/L) Trichloroethylene WS-1 6/1/2016 6.2 4.4 WS-3 6/1/2016 341 WS-4 6/1/2016 434 W-6 5/17/2019 230 W-7 5/17/2019 6.7 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. SOIL Soil contaminants in milligrams per kilogram (the equivalent of parts per million), the screening levels for which are derived from the Preliminary Industrial/Commercial Health- Based Soil Remediation Goals of the Inactive Hazardous Sites Branch of DEQ’s Superfund Section (December 2019 version): Soil Contaminant Sample Location Depth (ft) Date of Sampling Concentration Exceeding Screening Level (mg/kg) Industrial/Commercial Screening Level1 (mg/kg) Chromium (Total) S-9 0-2 5/16/2019 34.3 6.5/350,0002 S-10 0-2 5/16/2019 45.2 S-11 16-18 5/16/2019 30.3 S-12 0-2 5/16/2019 36.7 S-13 15-17 5/16/2019 40.3 S-14 0-2 5/16/2019 33.7 S-15 16-18 5/16/2019 26.6 S-16 0-2 10/16/2019 43.5 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. 2Industrial Commercial Preliminary Soil Remediation Goals displayed as hexavalent chromium/trivalent chromium. 21006-17-18/Wentworth Furniture (September 18, 2020) 3 SUB-SLAB SOIL GAS Soil gas contaminants in micrograms per cubic meter, the screening levels for which are derived from Non-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) Non-Residential Screening Limit1 (µg/m3) Trichloroethylene V-4 5/17/2019 337 180 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. INDOOR AIR Indoor air contaminants in micrograms per cubic meter, the screening limits for which are derived from Non-Residential Vapor Intrusion Screening Levels of the Division of Waste Management (February 2018 version): Indoor Air Contaminant Sample Location Date of Sampling Concentration Exceeding Screening Level (µg/m3) Non- Residential Screening Level1 (µg/m3) Ethylbenzene A-4 10/16/2019 6.7 4.9 1Screening limits 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. R/WR/WR/WR/WR/W R /WR/WR/WR/WR/W R /WR/WR/W R /WR/WR/WR/WR/W R /WR/WR/WR/WR/W R /WR/WR/WR/WR/W R /WR/WR/W R /WR/W R /WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/W R /WR/WR/WR/WR/WR/WR/WR/W R /WR/WR/WR/WR/W R /WR/WR/WR/W R /WR/W R /WR/WR/W R /WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/WR/W>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>OHE OHE O H E OHE O H E OHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHE OHE OHE OHE OHE OHE OH E OH E OH E OHE OHE OHEOHEOHEOHE OHE OHE 1/2" RebarFoundMag Nail5/8" Iron Rod FoundE: 1,349,353.46'N: 715,121.71' Elev.: 1,023.40'5/8" IronRod Set5/8" RebarFoundComputed Pointin Center ofRailroad Tracks1/2" RebarFound1/2" RebarFoundPK NailFoundSSSSSSSSSSSSSSSSC/OC/OGAS GAS GAS GAS GFFE: 1,020.45'FFE: 1,020.21'FFE: 1,020.18'FFE: 1,020.13'FFE: 1,020.97'Fire HoseCabinetFire HoseCabinetFire Hydrant(typ.)FDC VaultHVAC UnitFFE:1,020.23'Gate PostsLoading DockUtility Pole(typ.)Utility Pole(typ.)GrassGrassGrassGrassGrassGrassGrassAsphaltAsphaltAsphaltAsphaltConcreteGravelGrassConc .WoodedWoodedWoodedWoodedWoodedTree Line(typ.)Tree Line(typ.)Warehouse Building(54,898 sf)1808 Emmanuel Church RoadStorageBuildingExisting StorageBuilding ][][][OHEOHEOHEOHEStorage Plus of Conover, LLCBK 3271 PG 1424PB 48 PG 158, Tract 1Parcel 374112952557Colonial Investors, LLCBK 3145 PG 1997Parcel 374112968190Southern Furniture Company of Conover, Inc.BK 1300 PG 650Parcel 375109053890American Builders & ContractorsSupply Company, Inc.BK 3169 PG 124PB 60 PG 103, Lot AParcel 375109056130M&M Real Estate, Inc.BK 3264 PG 1445Parcel 374116949458Conover Metal Products, Inc.BK 982 PG 695Parcel 374116941927Sanitary Sewer BoxTop: 1,016.49'4" PVC CL Inv: 1,013.16'Drainage Ditch(typ.)Drainage Ditch(typ.)42" Steel CulvertUnder Railroad8" CMU PitRailwayRailwayDropInletDropInletElec. Trans. onConc. PadTele.PedestalElec.MeterEmmanuel Church Road - S.R.1734(60' Public R/W)PB 48 PG 158100'100'SignAirHandlerLight Pole(typ.)Light Pole(typ.)Guy Anchor(typ.)SSSanitarySewerPumpN24°57'39"E29.98'S53°56'28"E410.42'S52°27'01"E259.01'S61°45 '56 "W650.56 'N46°01'25"W24.72'N46°01'25"W79.84'N46°01'25"W173.00'N24°36'01"E535.94'S62°35'57"E38698.53'(Grid)N64°08'06"W164.02' (Tie)N32°20'43"W100.19' (Tie)N61°39'35"E349.42' (Tie)S61°43 '43 "W263.00 ' (T ie )1/2" PipeFoundGas ValveCity SewerManholeSouthe rn Ra i l road 200 ' R /WPB 60 PG 103Railroad TracksEdge ofPavementShedCanopyConc.SidewalkBFPWaterMeterWWWWWWWWWWWWWWWWWater Line(Exact Location Unknown)GASGASGASGASGASGASGas Line(Exact Location Unknown)Edge ofPavementDrainage Ditch(typ.)WExact Location ofWater LineUnknownDrainage Ditch(typ.)Drainage51.8 '12.1'16.3 '12.1'150. 3 '100.2'126. 0 '24.1'24.1'76.3'33.0'100.1'401.1'100.3'41.0 '41.5'WS-3V-4S-9S-16W-7W-6S-10S-11A-4WS-412" RCP è12" RCP èç 12" C M P 42" DIP èç 18 " H D P E 15" HDPE è18" CMP èComputed Pointin Center ofRailroad TracksAWSVSWSWWWSS-12S-13W-5WWS-1S-14S-15A-4JMNDRAWN BYSCALE1"=50'DATEof 2SHEET160471PROJECT #Revisions 10050250 Scale in Feet Vicinity MapBlue Ridge Engineering PLLC 924 Main Street - Suite 200 North Wilkesboro, NC 28659 (336) 838-2500 Firm #P-0205 NSEWNC GRIDSee NotesLEGEND Property Line (surveyed)Adjoiner Line (not surveyed)Tie Line (surveyed)Right-of-WayGas LineOverhead ElectricSanitary SewerWater LineEnvironmental Sampling Locations(See Exhibit 2 on Sheet 2)SoilGroundwaterIndoor AirSoil Gas (Vapor)R/WR/WGASGASOHEOHESSSSNCGS CORS "NCHI"N: 732,931.24'E: 1,314,996.55'Elev: 1,176.1'Exit132I-40I-40 HWY 16 Thornburg DrEmmanuel Church RdEmmanuelChurch RdHWY 70SouthernRailroadSITEWWFormerly Wentworth Furniture 1808 Emmanuel Church Road, Conover, NC 28613 Newton Township, Catawba County, North Carolina9-8-2020Kofman Conover, LLC Property Owner:EXHIBIT B to the Notice of Brownfields Property - SURVEY PLAT Kofman Conover, LLC Attn: Jose Kofman 731 Ocean View Blvd Pacific Grove, CA 93950Surveyor's Notes:1.The property which is the subject of this survey includes all of the land described in Deed Book 3370, Page 193, Catawba County Registry. Theproperty owner shown in the deed at the time of survey was: Kofman Conover, LLC2.This survey is classified as an Urban Land Survey (Class A) having a calculated ratio of precision better than 1:10,000 before adjustments, and/orneither axis of the 95 percent confidence level error ellipse for any control point or property corner exceeds 0.10 feet.3.The grid tie shown on this map was taken from an actual GPS survey made under my supervision. The GPS portion of this survey meets theclassification requirements of an Urban Land Survey (Class A) such that neither axis of the 95 percent confidence level error ellipse for the projectcontrol point(s) exceeds 0.10 feet. The GPS survey was performed on November 14, 2018 with Trimble R8 receivers. National Geodetic Survey (NGS)CORS station "NCHI" was used as the fixed control station having published NC Grid coordinates NAD83(2011) and orthometric height (elevation)NAVD 88 as shown. Vectors were adjusted utilizing Trimble Geomatics Office Business Solutions software. The geoid model used was GEOID12b. Thehorizontal positional accuracy relative to the remote control station prior to adjustment was 0.03 feet. The vertical positional accuracy relative to theremote control station prior to adjustment was 0.13 feet. The combined grid factor at the project control point is 0.9998589188. All bearings shownare relative to NC Grid, NAD 83(2011). All elevations shown are relative to NAVD 88. All distances shown are horizontal distances in U.S. Survey Feetunless otherwise noted. All areas shown were computed by coordinate computation.4.Flood Hazard: The property lies within "Zone X" Other Areas, an area determined to be outside the 0.2% annual chance floodplain. Informationobtained from the Federal Emergency Management Agency (FEMA), National Flood Insurance Program (NFIP), Flood Insurance Rate Map (FIRM),Panel Number 3741, Map Number 3710-3741-00J, having an effective date of September 5, 2007.5.This plat reflects information discovered by the surveyor in the normal course of work and does not necessarily show every possible conditionaffecting the property. A complete title abstract was not performed by Blue Ridge Engineering. With respect to investigation of property boundariesand recorded easements, the most recent deeds and recorded plats adjacent to the subject property were examined, as well as all deeds and platsrecorded after the date of the deed or plat upon which the survey is being based. Utilities shown are based on observed evidence. Other utilities mayexist which are not shown. The exact location of underground utilities cannot be accurately, completely, and reliably depicted without excavation.This property may be subject to easements and/or rights-of-way of record not shown. Other easements, rights-of-way, building ordinances, zoning,and other legal encumbrances may also exist. Adjoining property owner information was obtained from Catawba County GIS.Brownfields Property: 6.26 AcresSite Name: Wentworth FurnitureBrownfields Project Number: 21006-17-018Surveyor's CertificationI certify that this plat was drawn under my supervision from an actual survey made under mysupervision; that the boundaries not surveyed are indicated as drawn from the information noted onthis plat of survey; that the ratio of precision and/or positional accuracy is as described on the face ofthis plat; and that this map meets the requirements of The Standards of Practice for Land Surveying inNorth Carolina (21 NCAC 56.1603).I further certify that this survey is of an existing parcel or parcels of land or one or more existingeasements and does not create a new street or change an existing street. [GS 47-30(f)(11)(c)(1)]Witness my hand, seal and date.C. Neil Shepherd, PLS #L-4746*Parcel ID #374112956283 LRK/REID #33797 Site Name: Wentworth FurnitureBrownfields Project Number: 21006-17-018The areas and types of contaminationdepicted hereon are approximations derivedfrom the best available information at thetime of filing. A listing of the technicalreports used to prepare this plat areavailable in the Brownfields Agreement forthis property.Planning Department Review Not Required*This plat depicts an existing parcel of land and isexempt from Planning Department and/or ReviewOfficer certifications prior to recording;see NCGS-47-30(f)(11)(c)(1).VWSA JMNDRAWN BYSCALE1"=50'DATEof 2SHEET160472PROJECT #Revisions Blue Ridge Engineering PLLC 924 Main Street - Suite 200 North Wilkesboro, NC 28659 (336) 838-2500 Firm #P-02059-8-2020Kofman Conover, LLC Property Owner:EXHIBIT B to the Notice of Brownfields Property - SURVEY PLAT Kofman Conover, LLC Attn: Jose Kofman 731 Ocean View Blvd Pacific Grove, CA 93950______________________ for the purposes of N.C.G.S. § 130A-310.35______________________________________ ___________________________Ellen Lorscheider, Deputy Director DateDivision of Waste ManagementState of North CarolinaCounty of WakeLAND USE RESTRICTIONSNCGS 130A-310.35(a) requires recordation of a Notice of Brownfields Property (“Notice”) that identifies any restrictions on the current and future use of a Brownfields Property that are necessaryor useful to maintain the level of protection appropriate for the designated current or future use of the property and that are designated in a Brownfields Agreement pertaining to the property. Thissurvey plat constitutes one of three exhibits to the Notice pertaining to the Brownfields Property depicted on this plat and recorded at the Cawtaba County Register of Deeds' office. The exhibits tothe Notice are: the Brownfields Agreement for the subject property, which is attached as Exhibit A to the Notice; a reduced version of this survey plat, which is attached as Exhibit B to the Notice;and a legal description for the subject property, which is attached as Exhibit C to the Notice. The land use restrictions below have been excerpted verbatim from paragraph ___ of the BrownfieldsAgreement, and all paragraph letters/numbers are the same as those used in the Brownfields Agreement. The following Land Use Restrictions are hereby imposed on the Brownfields Property andshall remain in force in perpetuity unless canceled by the Secretary of the North Carolina Department of Environmental Quality (or its successor in function), or his/her designee, after the hazardshave been eliminated, pursuant to NCGS § 130A-310.35(e):a.No use may be made of the Brownfields Property other than for industrial, office, warehousing, retail, parking, and with prior written DEQ approval other commercial uses. For purposes of thisrestriction, the following definitions apply:i.“Industrial” defined as the assembly, fabrication, processing, warehousing or distribution of goods or materials;ii.“Office” defined as the provision of business or professional services;iii.“Warehousing” defined as the use of a commercial building for storage of goods by manufacturers, importers, exporters, wholesalers, transport businesses among others, and also refersto the storage of goods and materials for a specific commercial establishment of a group of establishments in a particular type of industry or commercial activity. iv.“Retail” defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food andbeverage products;v.“Parking” defined as the temporary accommodation of motor vehicles in an area designed for same; andvi.“Commercial” 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 centers, adult care centers or schools 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 or unless in connection with work conducted in accordance with aDEQ-approved Environmental Management Plan (EMP) as outlined below in subparagraph 15.i., no activities that encounter, expose, remove or use groundwater (for example, installation of watersupply 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 inwriting, 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 usesspecified 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 proposedfor 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 usesauthorized 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 outalong 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 theenvironment.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 alongwith 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 theenvironment, 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 inemergency circumstances no later than the next business day, and that any related assessment and remedial measures required by DEQ shall be taken; oriv.in connection to work conducted in accordance with a DEQ-approved EMP as outlined below in subparagraph 15.i.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 inaccordance with an approved EMP as outlined below in subparagraph 15.i.f. No enclosed building may be constructed on the Brownfields Property nor be occupied 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 assessmentapproved in writing by DEQ; orii.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 thebuilding's users, public health and the environment will be protected from risk from vapor intrusion related to said contamination; oriii.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'sprofessional 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 shallbe 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 saidmeasures.g. On-going indoor air sampling of locations A-2, A-3, and A-4 as depicted in the Indoor Air Sample Location Floor Plan of the January 20, 2020 Brownfields Assessment Report, shall beconducted, as outlined in the September 26, 2019 Work Plan for Assessment of Indoor Air Quality Revision 1. The indoor air samples shall be sampled by EPA Method TO-15 for those VOCs thathave previously been detected above method detection limits (MDL) in groundwater, sub-slab soil gas, and indoor air. Sampling shall be conducted on a quarterly basis until such time as sixconsecutive indoor air sampling events (eighteen months) indicate that the risk within the buildings is acceptable for the uses specified above in subparagraph 15.a. or such time that vapor intrusionmitigation measures approved in advance in writing by DEQ are installed and/or implemented at the Brownfields Property to the satisfaction of a professional engineer licensed in North Carolina, asevidenced by said engineer's professional seal on a report as provided above in subparagraph 15.f.iii. At such time either of the above occurs, a request to terminate future sampling may be submittedto DEQ that includes the public health rationale for such termination. Should the data collected from these indoor air monitoring events indicate exposures at the Brownfields Property that raise therisk to 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, DEQ may require thatthe then owner(s) re-evaluate that risk for areas potentially subject to said risk and conduct any actions DEQ deems necessary to reduce said risk to make the Brownfields Property suitable for theuses authorized in subparagraph 15.a above while fully protecting public health and the environment.h. No disturbance or alteration of the slab within the existing building footprint, as depicted on the plat component of the Notice of Brownfields Property referenced in paragraph 20 below, mayoccur unless in accordance with a DEQ-approved EMP, unless otherwise approved in advance in writing by DEQ, or unless in the case of emergency circumstances for repair of undergroundinfrastructure, in which case DEQ shall be provided written notice no later than the next business day and any related assessment and remedial measures required by DEQ shall be taken.i. 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'swritten 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, thetiming of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Brownfields Property during construction or redevelopment in any other form,including without limitation:i. soil and water management issues, including without limitation those resulting from contamination identified in the Environmental Reports;ii. issues related to potential sources of contamination referenced in Exhibit 2;iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs,tanks, drums, septic drain fields, oil-water separators, soil contamination); andiv.plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment.j. 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 thefinal 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 onenvironment-related activities (other than DEQ IHSB program 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 becontaminated with regulated substances; andv. removal of any contaminated soil, water or other contaminated materials (for example, concrete, demolition debris) from the Brownfields Property (copies of all legally required manifestsshall be included).k. 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 enteredinto 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 minimizeinterference with authorized uses of the Brownfields Property.l.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 Ato the Notice of Brownfields Property recorded in the Catawba County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Noticesand 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 secretprovisions of the North Carolina Public Records Law. The owner conveying an interest may use the following mechanisms to comply with the obligations of this subparagraph: (i) If every lease andrider 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 thepersons listed in Section XV.m.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 ifadditional 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 in vehicles;iii.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 storagecontainers totaling no more than 25 gallons; andiv.as constituents of products and materials customarily used and stored in pallet and custom cabinet making environments, provided such products and materials are stored in originalretail packaging and used and disposed of in accordance with applicable laws.n.During January of each year after the year in which the Notice referenced below in paragraph 20 is recorded, the owner of any part of the Brownfields Property as of January 1st of that yearshall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Catawba County, certifying that, as of said January 1st, theNotice of Brownfields Property containing these land use restrictions remains recorded at the Catawba County Register of Deeds office and that the land use restrictions are being complied with, andstating: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 BrownfieldsProperty 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 theprevious 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 anybuildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how; andiv.any data acquired from the indoor air sampling on the Brownfields Property referenced in subparagraph 15.g., above.Exhibit 2The most recent environmental sampling at the Property reported in the Environmental Reportsoccurred on October 16, 2019. The following tables set forth, for contaminants present at the Propertyabove 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 shownfor reference only and are not set forth as cleanup levels for purposes of this Agreement.Site Name: Wentworth FurnitureBrownfields Project Number: 21006-17-018Parcel ID #374112956283 LRK/REID #33797 10050250 Scale in FeetFormerly Wentworth Furniture 1808 Emmanuel Church Road, Conover, NC 28613 Newton Township, Catawba County, North Carolina EXHIBIT C Legal Description Wentworth Furniture NCBP# 214006-17-018 Being an existing tract of land owned by Kofman Conover, LLC, Deed Book 3370 PG 193, surveyed by C. Neil Shepherd, PLS of Blue Ridge Engineering PLLC, Project #16047, September 8, 2020, tied to NC Grid, NAD 83. A metes and bounds description taken from said survey is as follows: BEGINNING at a 5/8 inch iron rod found at the southeast corner of Tract 1, Plat Book 48, Page 158, said iron rod having NC grid coordinates of N: 715,121.71’, E: 1,349,353.46’; thence from the POINT OF BEGINNING, with the eastern line of Tract 1, North 24°36'01" East, 535.94 feet to a 1/2 inch rebar found at the southern margin of the right-of-way of Emmanuel Church Road, SR 1734; thence continuing North 24°57'39" East, 29.98 feet to a mag nail found in the center of the road; thence with the center of Emmanuel Church Road the following two courses: (1) South 53°56'28" East, 410.42 feet to a point; (2) South 52°27'01" East, 259.01 feet to a point in the center of the railroad; thence with the center of the railroad, South 61°45'56" West, 650.56 feet to a point; thence leaving the railroad with the line of Conover Metal Products, BK 982, PG 695, the following 3 courses: (1) North 46°01'25" West, 24.72 feet to a 5/8 inch rebar found; (2) North 46°01'25" West, 79.84 feet to a 5/8 inch iron rod set; (3) North 46°01'25" West, 173.00 feet to a 5/8 inch iron rod, the POINT OF BEGINNING; having an area of 6.26 acres by coordinate computation.