25036_Clariant Corp_Decision Memo

DECISION MEMORANDUM

DATE: April 27, 2023

FROM: Peter Doorn

TO: BF Assessment File

RE: Clariant Corporation
4000/4010 Monroe Road
Charlotte, Mecklenburg County
Brownfields Project No. 25036-21-060

Based on the following information, it has been determined that the above referenced site, whose intended use is for no uses other than office, parking, retail, warehousing, and with
prior written DEQ approval other commercial uses, can be made suitable for such uses.

Introduction:
The Prospective Developer (PD) is 4000 Monroe, LLC headquartered at 1427 Mayson Street, Atlanta, Georgia 30324. The Brownfields Property comprises approximately 9.8923 acres located
at 4000/4010 Monroe Road in Charlotte, North Carolina, and identified by the Mecklenburg County parcel number 15904612. The Brownfields Property is in a light industrial/business area
east of downtown Charlotte. The Brownfields Property is zoned for light industrial use and is surrounded by properties zoned for industrial, commercial, business, and residential uses.

The initial Brownfields Property Application (BPA) was submitted on April 28, 2021, and eligibility was granted on September 10, 2021. Eligibility was granted with the condition that
tenants would vacate the premises within 12 months of eligibility. The PD purchased the Brownfields Property on October 1, 2021.

Redevelopment Plans:
The PD has committed to redevelopment for office, parking, retail, warehousing, recreational, and with prior written DEQ approval, other commercial uses. Proposed redevelopment of the
Brownfields Property includes demolition of a portion of one building and converting the current site buildings into creative loft office space and parking, with inclusion of retail,
commercial, and warehousing elements. An Environmental Management Plan (EMP) was approved by NC DEQ May 25, 2022.

Site History:
Based on records searches, it appears the Brownfields Property was undeveloped in the early 1900s, with residential structures first appearing in aerial photographs from 1938. The property
remained residential until approximately 1956 when the current buildings were constructed and occupied by Sandoz Chemicals. Site buildings were primarily used for offices, but also
include warehousing and laboratories for developing specialty chemicals and pigments. Additions and renovations to the on-site buildings occurred during the 1960s through the 1990s.
In 1995, Sandoz became Clariant Corporation which continued to occupy the property until September 2022.

The site buildings include:
an approximately 92,780 square foot (sq ft) building constructed in 1956 and sub-divided into four buildings (Buildings 1-4) comprised of offices and laboratory space
an approximately 75,606 sq ft office and warehousing building (Building 5) constructed in 1956,
an approximately 391 sq ft wastewater treatment building (Building 6); and
an approximately 100 sq ft chemical storage building (Building 7).

Potential Receptors:
Potential receptors include on-site workers, construction workers and visitors.

Environmental Concerns:

Potential environmental conditions on the Brownfields Property include:
Three former fuel oil underground storage tanks (USTs) associated with the facility’s boiler system that were removed in December 1993.
Two gasoline USTs and a heating oil UST associated with a former filling station were removed from the property in June 1998.
Storage and laboratory use of chemicals for the development of pigments and specialty chemicals.
Documented on-site groundwater contamination that appears to be from up-gradient contaminant sources

Off-site environmental conditions that may affect the Brownfields Property include:
Carolina Storage Property (formerly Takatori Intech facility; REC/IHSB NONCD0002754) located at 4102 Monroe Road, immediately across Wendover Avenue and hydraulically up-gradient of
the Brownfields Property. Groundwater at the former Takatori facility has elevated concentrations of chlorinated solvents (PCE and TCE) in groundwater above the 15A NCAC 2L Groundwater
Quality Standards (2L Standards).
Conoco Philips/Circle K/BP (UST Incidents #6915 and #36048) located at 4030 Monroe Road, adjacent to and hydraulically up-gradient from the Brownfields Property. Three 10,000-gallon

USTs were removed and replaced in 1989 and removed again in 2005. Groundwater is impacted with benzene, MTBE, naphthalene, TCE, PCE, and lead above the 2L Standards.
Craftsman Cleaners (aka Kellers Dry Cleaners and Sixty Minute Cleaners) at 3927 Monroe is located across Monroe Avenue and hydraulically cross-gradient from the Brownfields Property.
While no releases have been documented on the property, city directories indicate dry-cleaning operations occurred at the property under various names from approximately 1969 through
1994.

Contaminated Media:
DEQ has evaluated data collected from the following media at the subject property: soil, groundwater, sub-slab vapor, and indoor air. DEQ relies on the following data to base its conclusions
regarding the subject property and its suitability for its intended reuse.

Soil
Soil sampling events occurred on the Brownfields Property in December 1993, June 1998, May 2021, and February 2022.

In December 1993, two 10,000-gallon #5 fuel oil USTs and one 1,000-gallon #2 fuel oil UST associated with the facility’s boiler system were removed from the property. Six soil samples
were collected for oil & grease and total petroleum hydrocarbons (TPH) diesel and gasoline ranges. Oil & grease was detected in one sample at 119 mg/kg and all other results were below
detectable levels. Based on soil sample results, NC DEQ issued a No Further Action letter for the UST closures on June 14, 1995.

In June 1998, two 550-gallon gasoline USTs and one 550-gallon heating oil UST were removed from the Brownfields Property. The USTs were associated with a filling station that operated
in the northwest portion of the property from approximately 1959 through possibly as late as 1993. Ten soil samples were collected from the base and sidewalls of the tank basin for
volatile and semi-volatile organic compounds (VOCs and SVOCs). Detections of VOCs and SVOCs were all below established Residential and Non-Residential Preliminary Soil Remediation Goals
(PSRGs). NC DEQ issued a No Further Action letter for this incident on April 13, 2020.

In May 2021, as part of a PD-directed environmental assessment, six soil samples were collected from below the two former UST basins noted above and two soil samples were collected from
temporary well borings in the eastern part of the property. Soil was analyzed for VOCs and SVOCs, and all results were below laboratory detection limits. If future residential use is
considered, note that the laboratory detection limits for benzo(a)pyrene and dibenz(a,h)anthracene exceeded the Residential PSRGs.

In February 2022, as part of the Brownfields assessment activities, three background soil samples and a duplicate were collected and analyzed for VOCs, SVOCs, RCRA metals plus hexavalent
chromium. VOCs and SVOCs were only detected in one sample and at levels well below established Non-Residential and Residential PSRGs. All detections of metals were below Non-Residential
PSRGs. If future residential use is considered, note that detections and/or laboratory method detection limits of arsenic, hexavalent chromium, benzo(a)pyrene, and dibenz(a,h)anthracene
exceeded the Residential PSRGs in each sample.

Groundwater
Groundwater sampling occurred on the Brownfields Property in February and May 2021.

During PD-directed environmental assessment activities in February 2021, groundwater samples were collected from 15 borings using direct-push technology and analyzed for VOCs and SVOCs.
Concentrations of benzene, MTBE, and PCE were detected above the NC 2L Standards with the highest concentrations found in groundwater near the eastern property boundary closest to upgradient
off-site sources (Conoco Philips and former Takatori facility). Benzene, chloroform, and PCE were detected above their established Non-Residential Groundwater Vapor Intrusion Screening
Levels (VISLs).

During PD-directed environmental assessment activities in May 2021, groundwater samples were collected from five temporary monitoring wells to evaluate groundwater below the former boiler
USTs and down-gradient from suspected off-site contamination sources. Samples were analyzed for VOCs only. The only compound detected above the NC 2L Standards was PCE, which was detected
in all samples at concentrations ranging from 4.7 to 111 ug/L. Chloroform and PCE were detected above their established Non-Residential Groundwater VISLs.

Soil Vapor and Sub-Slab Vapor
Soil vapor sampling occurred on the Brownfields Property in March and May 2021 and April 2022.

In March 2021, during the PD-directed assessment activities, 12 sub-slab vapor samples were collected from vapor points within the buildings on the Brownfields Property. Several VOCs
were detected, with only chloroform exceeding established Non-Residential Soil Gas VISLs. If residential use is considered in the future, note that additional constituents exceeding
the Residential Soil Gas VISLs include bromodichloromethane, dichlorodifluoromethane, naphthalene, and PCE.

In May 2021, six additional sub-slab vapor samples were collected within the buildings on the Brownfields Property. Several VOCs were detected with only chloroform and PCE exceeding
established Residential and Non-Residential Soil Gas VISLs.

In April 2022, during the Brownfields assessment activities, seven additional sub-slab samples and a duplicate were collected from the on-site buildings. Again, several VOCs were detected,
but no compounds exceeded the Non-Residential Soil Gas VISLs. If residential use is considered in the future, note that chloroform and PCE exceeded the Residential Soil Gas VISLs.

In March 2023, after prior site operations had ceased and building renovations were substantially complete, a follow-up round of sub-slab vapor and indoor air sampling of Buildings 2,
3, and 4 was conducted. Multiple VOCs were detected in the three sub-slab vapor samples and one duplicate. TCE was detected at 192 ug/m3, above the Non-Residential Soil Gas VISL of
180 ug/m3. All other VOCs detected were below established Non-Residential Soil Gas VISLs. If residential use is considered in the future, note that dichlorodifluoromethane and PCE exceeded
the Residential Soil Gas VISLs.

Indoor Air
During the Brownfields assessment activities in April 2022, seven indoor air samples were collected with corresponding sub-slab vapor samples. Several VOCs were detected with 1,4-dichlorobenzene
and ethyl acetate exceeding established Non-Residential Indoor Air VISLs. The concentrations of ethyl acetate detected in Buildings 2, 3, and 4 (at 430 ug/m3, 1800 ug/m3, and 220 ug/m3,
respectively) were significantly higher than the Non-Residential Indoor Air VISL of 61 ug/m3 and anomalous compared to ethyl acetate concentrations in Buildings 1 and 5. Buildings 2,
3, and 4 share walls and a roofline and appear to share indoor air interaction, whereas Building 1 has a separate roofline from Buildings 2, 3, and 4; and Building 5 shares no structural
elements with the other site buildings. Ethyl acetate is a component of chemicals stored on-site and used to develop specialty pigments in the laboratory in Building 3 which was still
in use in April 2022. Based on the documented indoor use of ethyl acetate and the lack of significant concentrations in the corresponding sub-slab vapor samples, the elevated ethyl
acetate detections in Buildings 2, 3, and 4 are determined to be from an indoor source. If residential use is considered in the future, note that additional constituents exceeding the
Residential Indoor Air VISLs include benzene, carbon tetrachloride, chloroform, ethylbenzene, naphthalene, and total xylenes.

During the March 2023 follow-up indoor air sampling in Buildings 2, 3, and 4, multiple VOCs were detected in four indoor air samples and a duplicate. Benzene, 1,3-butadiene, 1,4-dichlorobenzene,
and ethylbenzene were detected above their Non-Residential Indoor Air VISLs. PCE and TCE were not detected in indoor air. Ethyl acetate was detected but did not exceed the Residential
Indoor Air VISL, validating the prior determination that the April 2022 detections of ethyl acetate were associated with an indoor air source. If residential use is considered in the
future, note that carbon tetrachloride and chloroform exceeded the Residential Indoor Air VISLs.

Risk Calculations
The DEQ Risk Calculator was developed to evaluate the risk of multiple contaminants and multiple exposure routes associated with contaminated environmental media at a site. The risk
evaluation procedures, equations, and default parameters used to create the calculator follow the current USEPA risk assessment guidance. The DEQ Risk Calculator dated July 2022 was
used to calculate risk based on data available for media including soil, groundwater, and sub-slab vapor, and indoor air

Maximum sitewide concentrations of soil, groundwater, and sub-slab vapor from the Brownfields Property were used to calculate risks shown in Risk Calculation Table 1. Table 2 is a summary
table of the residential and non-residential risk calculations for the indoor air pathway using maximum indoor air concentrations from April 2022 for Building 1, Buildings 2, 3, and
4, and Building 5. Table 3 summarizes the risk calculations for the indoor air pathway using maximum indoor air concentrations from March 2023 for Buildings 2, 3, and 4.

Risk Calculation Table 2 - Indoor Air Pathway (April 2022 Sampling Event) Building Receptor Carcinogenic Risk Hazard Index Risk Exceeded? 1 Resident 1.8E-06 0.20 NO Non-Residential
Worker 4.0E-07 0.048 NO 2, 3, and 4 Resident 1.2E-05 25* YES Non-Residential Worker 2.6E06 6.0* YES 5 Resident 1.0E-05 0.23 NO Non-Residential Worker 2.4E-06 0.054 NO * risk driver
is ethyl acetate, a documented chemical product used in the development of specialty pigments in the Building 3 laboratory facilities.

Risk Calculation Table 3 - Indoor Air Pathway (March 2023 Sampling Event) Building Receptor Carcinogenic Risk Hazard Index Risk Exceeded? 2, 3, and 4 Resident 1.10E-04 1.2 YES Non-Residential
Worker 2.40E-05 0.29 NO

While soil impacts appear minimal at the Brownfields Property, standard restrictions regarding soil will be imposed based on detections of phenanthrene and p-isopropyltoluene. A groundwater
use restriction will also be used to control exposure to groundwater impacts. Based on the proposed non-residential use and the potential elevated risks to residential receptors, residential
use will be prohibited. Since PCE is a chemical of concern at the Brownfields Property and retail use is possible, dry-cleaning operations using chlorinated solvents will be prohibited.
Also, since commercial use is possible, daycare centers, adult care centers, and schools will also be prohibited without prior DEQ approval.

Using maximum sitewide groundwater concentrations, a hazard index (HI) of 1.1 was calculated for the non-residential groundwater to indoor air pathway, with PCE as the primary risk driver.
Given that off-site contamination sources noted above are no longer active, and the Carolina Storage Property (Takatori Intech facility) and Conoco Phillips sites have undergone remediation,
groundwater concentration trends are reasonably expected to decrease over time. Maximum site-wide sub-slab vapor concentrations yielded an HI of 0.35 for non-residential receptors. Concurrent
indoor air samples in buildings 1 and 5 indicated acceptable non-residential HI levels of 0.048 and 0.054, respectively, however the non-residential HI using maximum indoor air concentrations
from interconnected Buildings 2, 3, and 4 was 6.0. It was determined that ethyl acetate accounted for 98% of the indoor air risk in Buildings 2, 3, and 4, and its presence in indoor
air was from its use in Building 3’s laboratory, not from vapor intrusion. Since the tenants (including laboratories) have vacated the property, a follow-up round of sub-slab vapor
and indoor air sampling in Buildings 2, 3, and 4 was conducted following the building renovations. The results indicate that calculated risks are below risk thresholds for non-residential
use, but a follow-up round of sub-slab vapor samples from SS-6 and SS-7 during the summer months is required to confirm that PCE and TCE concentrations are not increasing in sub-slab
vapor. To help ensure the integrity of the existing slab as a barrier to sub-slab vapors, a restriction will be included that prohibits slab disturbance without DEQ approval.

The DEQ-approved Environmental Management Plan (EMP) dated May 25, 2022, is to be followed to safely direct the handling and disposal of potentially contaminated materials during demolition
of the southern half of Building 5, soil grading, and building renovations. Prior to occupying the Brownfields Property, per the terms of the EMP, final grade soil sampling will be
required for areas not covered by a minimum of 2 feet of demonstratable clean fill, landscaping soil, or asphalt, concrete, or other impervious surface.

Required Land Use Restrictions:
No use other than office, parking, retail, warehousing, and with prior written DEQ approval other commercial uses
No childcare centers, adult care centers, or schools
No dry-cleaning operations using chlorinated solvents
Environmental Management Plan (EMP) required for redevelopment
Annual redevelopment summary report required
Demolition must comply with state & local requirements

No use of groundwater
Final grade sampling required prior to occupancy
No soil disturbance without DEQ approval or EMP
No soil import/export without DEQ approval
Standard VI requirements
Indoor air sampling (TO-15) required prior to occupancy
Building slabs are not to be disturbed
DEQ shall not be denied access
Any required wells or vapor points must be maintained
Deed or other instrument conveying an interest shall contain notice that this is a brownfields property subject to a Notice of Brownfields Property
No use of contaminants known to be present on the BF Property
Annual LURU must be submitted to DEQ

Based on the site-specific data provided to the Brownfield program, the site is suitable for the approved uses only if the agreed upon land use restrictions in the BFA are abided by.

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