24008_Selles Bagwell_Revised LOE_20210830

August 30, 2021
Sent Via USPS and email
Mr. Eric Nichols
FHN 2301 South Tryon, LLC c/o Providence Group Capital
300 W. Summit Avenue, Suite 250
Charlotte, NC 28203
[e-mail]
Ms. Kathy K. Binford
South End Distribution, LLC
1780 S. Post Oak Lane
Houston, TX 77056
[e-mail]
Subject: Letter of Eligibility
Selles Bagwell Property
2301, 2311, 2321, and 2405 S. Tryon St; 2300 Distribution St.
Charlotte, Mecklenburg County
Brownfields Project Number 24008-20-060
Dear Mr. Nichols and Ms. Binford:
The North Carolina Department of Environmental Quality (DEQ) has received and
reviewed your revised June 29, 2021 Brownfields Property Application (BPA) submitted by
Matt Ingalls of Hart & Hickman, PC on behalf of South End Distribution, LLC and FHN 2301
South Tryon, LLC as joint Prospective Developers seeking a Brownfields Agreement regarding
the Brownfields Property. The revised application indicates that the new applying Prospective
Developer entity for the subject property is South End Distribution, LLC, whereas the subject
property was previously accepted into the Brownfields Program on July 2, 2020 with FHN 2301
South Tryon, LLC as the sole Prospective Developer. Upon review of the BPA and additional
information with respect to the requirements of the Brownfields Property Reuse Act of 1997,
DEQ has determined that this project is eligible for entry into the North Carolina Brownfields
Program (NCBP) and for continued evaluation for a Brownfields Agreement (BFA).
According to the BPA, the intended redevelopment for the Brownfields Property is for
office, parking, retail, high density residential, recreational and with prior written DEQ approval,
other commercial and industrial uses. Because risk management decisions may vary depending on
the nature of the redevelopment, it will be important that DEQ review the locations of the various
elements. Please forward any maps or drawings indicating these details, even if they are only
preliminary or conceptual.
Selles Bagwell
August 30, 2021
Page 2
Please note: pending execution of a final BFA, NCBP eligibility is provisional. The
protections a BFA offers the Prospective Developer are not in effect, unless and until, the BFA is
executed. If you occupy the Brownfields Property or operate or conduct activities at the
Brownfields Property that result in a release of regulated substances before a BFA has been
finalized for the Brownfields Property, you may be considered to have caused or contributed to
contamination at the Brownfields Property. Because an entity that could be considered to have
caused or contributed to contamination at the Brownfields Property cannot be a Prospective
Developer under the Act, your eligibility for participation in the NCBP would be placed in
jeopardy. Consult closely with your Project Manager regarding any planned site activities prior to
agreement finalization. You are cautioned to conduct all such operations and activities at the
Brownfields Property with great care not to cause a release of regulated substances at the
Brownfields Property that could jeopardize your eligibility for participation in the NCBP.
If a party other than the South End Distribution, LLC and FHN 2301 South Tryon, LLC
will own the Brownfields Property at the conclusion of the brownfields process, the final document
(which gets recorded at the register of deeds’ office) must be signed not only by Prospective
Developer, but by that owner. Failure by the Prospective Developer to ensure, by the time the
BFA negotiations are complete, the willingness to sign of any such party, and to provide DEQ the
exact name, email address, telephone number, and US mail address of the party (along with the
signatory/signatory’s title in the case of an entity) will delay, and could prevent, the BFA taking
effect.
We are excited about the potential for public benefit offered by the reuse of the Selles
Bagwell site and look forward to working with you to advance this brownfields redevelopment
project. If you have questions about this correspondence or require additional information, please
feel free to contact the project manager Pete Doorn by phone at [phone], or by e-mail at
[e-mail].
Sincerely,
Bruce Nicholson
Brownfields Program Manager
ec: Central Files, DEQ
Michael Scott, DEQ
Pete Doorn, DEQ
Matt Ingalls, Hart & Hickman
Kristin Gates, The Hanover Company
J.Q. Freeman, Providence Group Capital