24012_Hanover Center II_Decision Memorandum_22Nov2023

DECISION MEMORANDUM
DATE: November 22, 2023
FROM: Aditi C. Posek
TO: BF Assessment File
RE: Hanover Center II
1303 Independence Blvd; 3709 & 3727 Oleander Dr; 3709 Floral Pkwy
Wilmington, New Hanover County
Brownfields Project # 24012-20-065
Based on the following information, it has been determined that the above referenced
site, whose intended use is for no uses other than high -density rental residential, retail,
office, restaurant, parking, and with prior DEQ written approval, other commercial uses,
can be made suitable for such uses.
Introduction:
The Brownfields Property is comprised of four parcels totaling 39.26 acres and identified
as PINs R05517-001-001-000, R05517-001-003-000, R05517-001-011-000, and
R05517-001-010-000 and with the addresses of 1303 Independence Boulevard, 3709 and
3720 Oleander Drive, and 3709 Floral Parkway in Wilmington. The Brownfields
Property is located along Oleander Drive and is recognized as the Hanover Center
Shopping Mall. The Prospective Developer (PD) for this Brownfields Property is New
Market -Hanover, L.P. This is a limited partnership that is managed by Stephanie Hart.
The PD is headquartered at 3284 Northside Parkway, Suite 515, Atlanta Georgia.
Redevelopment Plans:
Redevelopment plans included the construction of multi -unit residential structures on
vacant land at the Brownfields Property, just north of the shopping center. Additional
redevelopment planned includes office space, and additional outparcel retail development
of the shopping center. Specifically, the PD plans on having office space that is ancillary
to the multi -family residential structure as well as ancillary retail spaces. The PD plans
on maintaining parking spaces on site that are associated with high -density rental
residential, retail, office, commercial, and restaurant use.
Redevelopment activities were initiated on March 7, 2022 under an approved
Environmental Management Plan, dated January 10, 2022 and amended March 7, 2022,
for the northern portion of the Brownfields Property. This area of the Brownfields
Property is identified as the Residential Development Area, which is comprised of two
four story and one single -story mid -rise apartment buildings. Residential occupancy is
planned for these buildings in phases, starting with Building 1 that began occupancy in
August 2023.
Hanover Center II/24012-20-065/22Nov2023

Site History:
The site was undeveloped vacant land until 1956 when the Hanover Center Shopping site
was constructed onto the center portion of the properties. Within the 39.26-acres of the
site, the Azalea Plaza Shopping Center was constructed on the eastern portion of the site
in 1960. Consequently, additional outparcel buildings were then constructed along
Oleander Dr. and Independence Blvd. Most recently, the shopping center underwent
renovations in 2011.
Outparcels in the corners of the Brownfields Property have been occupied by the Azalea
Plaza Shell gas station, a Crown Service Center, Modern Dry Cleaners, and former Sears
auto service center. Environmental releases have occurred in these areas, which are
associated with the following environmental incidents:
UST Incident No. 43102 —Sears Automotive
By 1965, an automotive service center was operated by Sears on the southwestern corner
of the property, which is presently occupied by a branch of Bank of America addressed as
3305 Oleander Drive. At least two USTs, a pump island, and a grease tank were
associated with these operations. The USTs were reportedly removed in 1991 prior to
building renovations and in 1992, soil samples were taken to determine if a release had
occurred from the former UST system. Results from the soil sampling revealed soil
contamination above regulatory action levels and UST Incident ID 43102 was assigned to
this portion of the Brownfields Property.
Soil and groundwater samples were collected in 2017 to assess conditions at this site and
groundwater analytical results were found to contain elevated petroleum constituents. On
May 22, 2019, a Notice of Residual Petroleum (NRP) was filed by NCDEQ to restrict
groundwater use at portion of the Brownfields Property. Subsequently, a No Further
Action (NFA) letter was issued by NCDEQ on July 24, 2019.
DSCA DC650016 -Modern Laundry and Dry Cleaners
Modern Dry Cleaners, a drycleaning facility, operated at the building presently occupied
by Talbots clothing store in the southeastern area of the Brownfields Property, addressed
as 3607 Oleander Drive. The building was previously occupied by Hanover Center
Crown Service Center from 1956 to 1976 and in 1976, Modern Cleaners moved into this
building and operated from this location until the 1990s. This portion of the Brownfields
Property is under the jurisdiction of the NC Dry Cleaners Solvent Act (DSCA) Program.
In 1991 and 1992, analysis of groundwater samples from this area detected the presence
of chlorinated solvent and petroleum constituents. A vacuum sparging system was
installed at one location and began operation in February 1992. Two additional sparging
wells were recommended for installation in a July 1993 Progress Report of Remedial
Activities, however, no further information could be found with regards to the sparging
system.
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This portion of the Brownfields Property is presently being monitored by the DSCA
Program, with investigations including groundwater, sub -slab and soil gas, and indoor air
sampling conducted between 2017 and 2018 to evaluate if chlorinated solvent
constituents and petroleum constituents are present in the sampled media. Sample results
indicated that impacts from compounds from historic releases, associated with the
operations at the former Modern Laundry and Drycleaning and the former Crown Service
Center remain.
UST Incident No. 43101— Hanover Center Crown Service Center
Hanover Center Crown Service Center operated on 3607 Oleander Drive from at least
1956 until 1976. Soil and groundwater investigations from 1991 confirmed the presence
of several petroleum compounds downgradient of the western pump island. In 1993,
remediation efforts were undertaken, including the installation of a vacuum sparging
system. The May 22, 2019 NRP restricting groundwater use and the July 24, 2019 NFA
letter that was issued for the Former Sears Auto Service Center also incorporated the
Hanover Center Crown Service Center UST Incident. On July 24, 2019, the two on -site
UST incidents were issued an NFA by NCDEQ.
UST Incident No. 3535- Azalea Plaza Shell
The Azalea Place Shell Gasoline Station is a former occupant of what is presently the
Hardees Restaurant location, at address 1420 Floral Parkway. Soil contamination was
discovered during the removal of eight underground storage tanks (USTs) in 1987, during
which a petroleum release was identified from a heating oil UST. A groundwater pump
and treat system was installed with a recovery well on the eastern portion of the
Brownfields Property, but this system was later deactivated in 1995. Groundwater
monitoring wells were installed in 1998, which indicated continued detections of both
petroleum compounds and chlorinated solvents in groundwater, with the latter
contaminant attributed to the off -site dry cleaner located south of the Brownfields
Property. In July 2019, this incident was issued a No Further Action (NFA) letter, with a
NRP restricting soil and groundwater use on the parcel.
Off -site Contaminant Source: DSCA DC650001— Modern Dry Cleaners and Laundry
Independence Mall
A former location of a Modern Dry Cleaners facility, which operated from approximately
1966 to 1979, is located south and upgradient from the Brownfields Property; this
building is presently occupied by a Wells Fargo Bank. A groundwater contaminant plume
identified during site investigations at this offsite property was found to extend onto the
Brownfields Property in the vicinity of 3711 Oleander Drive. Environmental
investigations indicated that the contaminant plume associated with this site was stable
and decreasing. A Notice of Dry -Cleaning Solvent Remediation (NDCSR) was recorded
on October 23, 2018 at the New Hanover Register of Deeds (Book 6248, Page 447-450)
limiting groundwater use for this portion of the Brownfields Property, which was
followed by an NFA issued for this off -site incident on October 29, 2018. This this land
use restriction pertaining to groundwater is not in conflict with the planned Brownfields
land use restrictions as groundwater use would also be prohibited by the BFA.
Hanover Center II/24012-20-065/22Nov2023

The PD purchased the Brownfields Property on December 19, 2020. The shopping center
is currently occupied by commercial tenants, such as retail stores, banks, and restaurants,
with surface parking spaces. The newly constructed residential development area on the
northern portion of the Brownfields Property will undergo phased occupancy, starting in
late August 2023.
Potential Receptors:
Potential receptors are: construction workers, on -site workers, future residents, visitors,
pets, and trespassers.
Contaminated Media:
DEQ has evaluated data collected from the following media at the subject property:
groundwater, soil, soil gas, sub -slab vapor (only in Modern Laundry and Dry Cleaners),
and indoor air (only in Modern Laundry and Dry Cleaners). DEQ relies on the following
data to base its conclusions regarding the subject property and its suitability for its
intended reuse. Please see the Brownfield Agreement's Exhibit 2 for specific sample
locations, dates, and contaminants of concern (COCs).
Risk Calculations
Risk calculations were performed using the January 2023 DEQ Risk Calculator
https:Hdeq.nc. gov/permits-rules/risk-based-remediation/risk-evaluation-resources.
Updates made to the July 2023 DEQ Risk Calculator do not affect constituents of concern
at this Brownfields Property, so the risks resulting from the January 2023 DEQ Risk
Calculator remain valid for this risk evaluation.
For the purposes of looking at the site spatially, two risk calculators were generated based
on the time at which the data was collected and analyzed and the proposed reuse. As
discussed above, residential use is only proposed within the northern area of the
Brownfields Property, north of the existing multi -tenant shopping center building. As a
result, a risk calculator to evaluate the proposed Residential Development Area was
created separately from a risk calculator for the commercial area south of the Residential
Development Area, both of which are based on the more recent data collected from 2016
onwards at the Brownfields Property..
The risk calculations indicated the following based on available recent data collected
from 2016 onward, including the following media: groundwater, soil, exterior soil gas,
sub -slab vapor (limited to the former Modern Laundry building), and indoor air samples
(limited to former Modern Laundry building).
Residential Development Area
The risk calculations indicated the following based on available data, including the
following media: groundwater, residual soil, and exterior soil gas (2018).
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Risk for Individual Pathways
Version Date: January 2023
Basis: November 2022 EPA RSL Iable
Site ID: 24012-20 065
Exposure Unit ID: Residential Development Area
DIRECT CONTACT SOIL AND WATER CALCULATORS
Receptor
Pathway
Carciinnoggenic
Hazard Index
Risk exceeded?
sk
Soil
7 4E 05
1.8E 01
NO
Resident
......... .........
Groundwater Use*
2.0E-03
1.8E+01
YES
Soil
4.4E-06
1.3E-02
NO
Non -Residential Worker
Groundwater Use*
4.0E-04
2.5E+00
YES
Construction Worker
Soil
6AE-06
1.1E-01
NO
Soil
4.4E-05
1.0E-01
NO
Recreator/Trespasser
Surface Neater*
NC
NC
NC
VAPOR INTRUSION CALCULATORS
Receptor
Pathway
CarcinogenicRisk
Hazard Index
Risk exceeded?
Groundwater to Indoor Air
0.0E+00
0.0E+00
NO
Resident
........ ......... ......... .........
Soil Gas to Indoor Air
........ ......... ......... .........
.........
2.0E-06
.........
7.0E-02
NO
Indoor Air
NC
NC
NC
Groundwater to Indoor Air
0.0E+00
0.0E+00
NO
Non -Residential Worker
Soil Gas to Indoor Air
........ ......... ........ .........
1.5E-07
......... .........
5.6E-03
NO
Indoor Air
I NC
NC
NC
As indicated by the risk calculator's output, groundwater use exceeds both the acceptable
carcinogenic risk of 1E-04 and the threshold non -cancer HI of 1.0 for both residential and
non-residential worker exposure scenarios with arsenic concentrations driving the risk.
Calculated risk values with respect to soil in the Residential Development Area do not
exceed either the acceptable carcinogenic risk range nor the noncancer hazard index of
1.0 for any exposure scenario.
Vapor intrusion outputs were not exceeded for any of the pathways though soil gas data
is limited to exterior soil gas samples collected in 2018. However, based on these data,
the soil gas to indoor air calculated risk values raning from 0.07 to 0.0056 for residential
and nonresidential exposures respectively, and the lack of detections of VOCs in
groundwater and soil in the Residential Development Area, a vapor intrusion mitigation
system (VIMS) was not required for the multi -family residential buildings constructed
within the Residential Development Area of the Brownfields Property.
Commercial Area based on Maximum Concentrations from 2016 —present Data
The risk calculations indicated the following based on available data, including the
following media: groundwater, residual soil, sub -slab vapor, exterior soil gas, and indoor
air (obtained only in the former Modern Laundry building). It includes areas that are
under long-term monitoring for the DSCA Program.
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Hanover Center II/24012-20-065/22Nov2023

Risk for Individual Pathways
Version Date: January 2023
Basis: November 2022 EPA RSL Table
Site ID: 24012-20-065
ExposureUnit ID: Commercial Area - Maximum Values 2016-present
DIRECT CONTACT SOIL AND WATER CALCULATORS
Receptor
Pathway
Carciinsogenic
Hazardtndex
Risk exceeded?
Resident
Soil
1.9E-08
5.0E-03
NO
Groundwater Use*
1.8E-02
4.3E+02
YES
Non -Residential Worker
Soil
3.1E-09
1.0E-03
NO
Groundwater Use*
4.3E-03
9.4E+01
YES
Construction Worker
Soil
7.3E-10
5.8E-03
NO
Recreator/Trespasser
Soil
2.3E-09
7.0E-04
NO
Surface Water*
NC
NC
NC
VAPOR INTRUSION CALCULATORS
Receptor
Pathway
Carciinsogenic
Ri
Hazard Index
Risk exceeded?
Resident
Groundwater to Indoor Air
5.5E_03
1.4E+02
YES
Soil Gas to Indoor Air
4.6E-05
2.7E+00
YES
Indoor Air
7.1E-06
9.7E-01
NO
Non -Residential Worker
Groundwater to Indoor Air
1.2E-03
3.4E+01
YES
Soil Gas to Indoor Air
3.4E-06
2.1E-01
NO
Indoor Air
1.6E-06
2.3E-01
NO
As indicated by the risk calculator's output, the acceptable carcinogenic risk of 1E-04 and
the noncancer HI of 1.0 is exceeded for direct groundwater exposure pathways for both
residential and non-residential worker scenarios.
The risk calculator output indicates that both the residential and non-residential
groundwater to indoor air exposure pathways exceed the acceptable carcinogenic range
and the threshold noncancer HI, while the soil gas to indoor air pathway is exceeded only
for the noncancer HI for residential exposure pathways. The risk drivers for vapor
intrusion are the concentrations of PCE and TCE in sub -slab and exterior soil gas
samples, the concentrations of which are highest in the former Modern Laundry building.
The risk calculator output based on indoor air concentrations indicates that although the
acceptable carcinogenic risk range and threshold noncancer HI of 1.0 are not exceeded,
the HI for residential indoor air pathways is just below 1.0 at 0.97, and the HI for
nonresidential indoor air pathways is at 0.23. This indicates that residential use should
not occur in these known contaminated areas in the commercial portion of the
Brownfields Property without further assessment and/or mitigation for vapor intrusion.
Nonresidential use is acceptable with this HI of 0.23; however, though a vapor intrusion
mitigation system (VIMS) is not required, this HI falls into the category of sites where we
would recommend that a VIMS be considered for new building construction.
Further, a VIMS is recommended for any new non-residential buildings within the
commercial area, along with pre- and post -occupancy indoor air and sub -slab vapor
sampling in accordance with DEQ requirements.
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Soil
Most recently, eleven soil samples were taken on the Brownfields Property by Geosyntec.
Soil samples have been analyzed for volatile organic compounds (VOCs), semi -volatile
organic compounds (SVOCs), and Resource Conservation and Recovery Act (RCRA)
metals. Soil samples collected within the northern area of the Brownfields Property,
designated as the Residential Development Area, indicated elevated results for arsenic,
chromium, and one detection of benzo(a)pyrene above residential Preliminary Soil
Remedial Goals (PSRGs). Soil collected in the Residential Development Area, indicated
that hexavalent chromium was detected above its residential PSRG in numerous samples
with a maximum concentration of 22.5 milligrams per kilogram (mg/kg). One detection
of arsenic exceeded its residential PSRG at 2.5 mg/kg. Several polynuclear aromatic
hydrocarbons (PAHs) were also detected in excess of their respective residential PSRGs.
Soil was also collected in some of the older assessment phases; however, the calculated
environmental risk values for the contaminants detected in soil, both in the Residential
Development Area and in the Commercial Area did not exceed an acceptable
carcinogenic risk range nor the threshold non -cancer hazard index of 1.0 for any direct
contact exposure pathways for soil (residential, nonresidential worker,
recreator/trespasser, construction worker). Care should be taken when disturbing soil in
known contaminated areas or in close proximity to such areas.
Groundwater
There have been at least 38 temporary or permanent monitoring wells installed in the
commercial area of the Brownfields Property since 1991. A number of these wells have
been sampled multiple times as a part of monitoring activities under the NC DSCA
Program and NC UST Section. Analysis of groundwater samples collected from the
southern parking lot and commercial areas of the Brownfields Property indicated
petroleum hydrocarbon and chlorinated solvents contaminants including certain RCRA
metals, PAHs, VOCs, and SVOCs in concentrations exceeding their respective NC 2L
Groundwater Standards (2L). The compounds benzene, 1,2-dibromoethane,
ethylbenzene, naphthalene, tetrachloroethene (PCE), toluene, cis-1,2- dichloroethene),
trichloroethylene (TCE), vinyl chloride, and xylenes have been detected in concentrations
that exceed their respective non-residential vapor intrusion screening levels (VISLs) in
groundwater. For constituents that were analyzed in groundwater multiple times from the
same well or from wells installed in the proximate area where prior samples were
collected, concentrations have generally decreased over time.
Although a groundwater plume has been identified in the southern area of the
Brownfields Property, recent groundwater data collected within the Residential
Development Area in the north in the footprint of the new apartment buildings confirmed
that there were no detected VOC groundwater impacts in this portion of the Brownfields
Property.
Risk analysis for groundwater data collected within the Residential Development Area
indicates no exceedances for vapor intrusion based on the groundwater to indoor air
pathway; however, the acceptable carcinogenic risk range and the noncancer HI of 1 are
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exceeded for the direct contact with groundwater based on the concentration of arsenic as
the risk driver. Groundwater will be prohibited as a water supply; therefore, this
exposure pathway is incomplete.
Surface Water
Surface water is not located on the site.
Exterior Soil Gas
Soil gas samples collected during investigations for the Hardees parcel and the Talbots
parcel in the Commercial Area indicated detections of benzene, ethylbenzene,
naphthalene, PCE, and TCE above their respective residential VISL but this area of the
Brownfields Property will only be designated for commercial, retail, parking, and
restaurant use . where residential use is prohibied. Only ethylbenzene was detected in
exceedance of its non-residential VISL in one sample on the Hardees parcel. The
calculated risk values indicated that residential soil gas to indoor air exposures would
exceed the threshold noncancer HI value of 1.0; however, this area is not slated for
residential development.
Exterior soil gas samples were collected in November 2018 within the Residential
Development Area. Analytical results for benzene exceeded their respective Residential
VISLs, however, the environmental risk analysis for the Residential Development Area
indicated that the acceptable carcinogenic risk and the threshold noncancer risk HI of 1
were not exceeded for the residential soil gas to indoor air exposure pathways.
Sub -Slab Vapor
Four sub -slab vapor samples were collected in November 2017 as a part of DSCA's
ongoing monitoring of the building formerly occupied by Modern Laundry and Dry
Cleaners, now occupied by Talbots. Analytical results for two sub -slab gas samples
indicated risk exceedances for Residential VISLs, with PCE detections of 2,400
micrograms per cubic meter (µg/rn) and 1,900 µg/m3 for samples SGMP-1 and SGMP-2,
respectively. These data were combined with the exterior soil gas data referenced above
and were included in the soil gas to indoor air calculations for the Commercial Area.
Indoor Air
Two indoor air samples were collected within the building formerly occupied by Modern
Laundry and Dry Cleaners (the Talbots parcel) in November 2017. The indoor air results
for PCE and TCE indicated concentrations above their respective residential VISLs, but
not above their respective non-residential VISLs. Further the calculated risk values for
indoor air indicates that there is not an exceedance of the acceptable carcinogenic risk for
both residential and nonresidential uses; however, the calculated HI of 0.97 is very close
to the threshold of 1.0 for residential uses. The calculated HI of 0.23 for nonresidential
uses as discussed above falls within a range for which we would recommend vapor
intrusion mitigation for new construction.
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Required Land Use Restrictions:
The Brownfields Agreement will contain our standard LURs with respect to approved
uses, specific prohibitions as to childcare or schools on portions of the Brownfields
property, and requirements for an Environmental Management Plan (EMP), a
Redevelopment Summary Report, prohibitions on groundwater use, soil disturbance,
import to or export of soil from the Brownfields Property without approval, and vapor
intrusion, notice, access, separation of new from old contamination, well abandonment,
and land use restriction update.
Based on previously recorded land use restrictions from the DSCA Program, and as
confirmed with this Brownfields assessment, residential uses are prohibited on the
commercial area of the Brownfields Property.
Based on the site -specific data provided to the Brownfield program, the site reuse is
suitable for the site as long as the agreed upon land use restrictions in the BFA are abided
by.
Property Management Issues
Occupancy of the new residential development in the north of the Brownfields Property
was granted on August 4, 2023 based on the evaluation of data collected in that area.
VOCs were not detected in exterior soil gas nor in groundwater collected In the
Residential Development Area, though known groundwater and soil gas impacts have
been identified on the Commercial areas of the Brownfields Property. VIMS should be
evaluated for any new construction in the southern portion of the Brownfields Property,
which has been impacted by chlorinated solvents and petroleum hydrocarbons
compounds.
No VIMS was planned nor installed in the Residential Development Area based on site
data, and risk calculations (residential soil gas to indoor air HI=0.07) suggest that no pre -
or post -occupancy sampling is necessary at this time.
Final grade soil sampling results was submitted in Fall 2023.
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