24007_Wrights Exec II_DM_20240418

DECISION MEMORANDUM
DATE: April 18, 2024
FROM: Lauren Fleming
TO: BF Assessment File
RE: Wright's Executive Sales II
721 and 723 Rigsbee Avenue; 616 and 620 Foster Street
Durham, Durham County
BF #24007-20-032
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,
restaurant, event space, recreational, open space, associated parking, and subject to
DEQ's prior approval, other commercial use, can be made suitable for such uses.
Introduction:
The Brownfields Property is located in Durham, NC and consists of two parcels totaling
approximately 2.37 acres. The assigned street addresses for these parcels are 721 and 723
Rigsbee Avenue, 620 Foster Street (Durham County Parcel Identification Number (PIN)
0822-90-3182) and 616 Foster Street (PIN 0821-99-2974). At the time of the Brownfields
Property Application (BPA) for this redevelopment, which was received in January 2020,
the property was comprised of 5 parcels (PINS 0822-08-90-4036, 0821-08-99-2971,
0822-20-41-6111, 0822-08-90-2088, and 0822-20-90-4169) but they have since been
consolidated into the two parcels noted above.
The Prospective Developer (PD) for this project is GeerHouse Partners, LLC. GeerHouse
Partners, LLC is a limited liability company with their principal office located at 1055
Thomas Jefferson Street, NW Suite 210, Washington, DC 20007 and John D. Gerber is
the entity manager.
A Letter of Eligibility for this project was issued for PINS 0822-0890-4036, 0821-08-99-
2971, 0822-20-41-6111, and 0822-20-90-4169 in June 2020. PIN 0822-08-90-2088,
located at 620 Foster Street, did not originally receive eligibility due to the terms of sale
under which there was a potential for Acme Properties of Durham, LLC (Acme), the
parcel owner at the time, to become a controlling member of the PD entity coupled with
the fact that it has not yet been established that Acme had not caused or contributed to the
contamination on the proposed Brownfields Property. With the submittal of an affidavit
that established that Acme Properties Durham, LLC did not have a controlling interest as
a PD, eligiblity for this parcel was granted in October 2020.
Redevelopment Plans:
The redevelopment of this project was planned to be completed in two phases. Phase I of
construction included building infrastructure and streetscape improvements on the
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northern portion of the Brownfields Property (620 Foster Street and 721 Rigsbee
Avenue), including a new mid -rise mixed -use building with residential, retail,
restaurant(s), and sub -grade parking that was completed in the fourth quarter of 2023.
Phase I also includes a community corridor plaza, decks, ramps, and paving on the north
side of the corridor and terrace and streetscape improvements to Motorco Music Hall
located at 723 Rigsbee Avenue.
Phase II of construction is currently ongoing and includes building, infrastructure, and
streetscape improvements to the southern portion of the Brownfields Property (616 and
620 Foster Street) including a new high-rise mixed -use building with residential, retail,
restaurant(s), and parking. Phase II will also include paving on the south side of the
community corridor and a bridge over the community corridor connecting the two mixed -
use buildings.
Based on the results from soil gas sampling activities in October and November 2020,
NCBRS determined that a limited Vapor Intrusion Mitigation System would be required
for the Phase I building. The rest of the proposed development does not require vapor
mitigation. A Vapor Intrusion Mitigation Design was approved for the Phase I mixed -use
building by Holly Samaha via a Compliance Review Letter sent via e-mail on November
30, 2022. The limited VIMS design includes a combination of a passive mitigation
system and a passive sub -slab venting system. The vapor barrier will be installed beneath
and on all four sides of the northern elevator footer only with a direct pathway to
occupied space.
Site History:
Historically, the northeastern portion of the Brownfields Property was first developed
with a commercial building in 1937 for use by Moss Bread Company. According to the
ECS Phase I report, two USTs, which have since been removed, were installed by Moss
Bread Company for fueling delivery vehicles and were reportedly located along the
southern side of the building. There were also four below -grade hydraulic lifts on the
eastern side of the building that were used by Moss Bread Company. The property was
then purchased and developed and operated as an auto dealership and automotive repair
facility. The building was renovated to include a showroom, automotive repair bays, a
wash bay, body shop, spray booth, and greasing bay on the western portion of the
property. This property was later purchased and used for automobile storage by Wright's
Executive Sales. The property at 618 Foster Street was historically occupied by Uzzle
Motor Co, Bobby Insco Realty, and Wings of Eagles Church. An 8,000-gallon UST was
formerly located on this portion of the Brownfields Property and was excavated and
removed in 1989. No UST closure report or results of excavation soil sampling/analysis
are available for this removal.
Prior to redevelopment of the Brownfields Property, the eastern portion was developed
with a restaurant, bar, and retail store with community office space and parking. The
western portion contained commercial buildings occupied by Acme Plumbing and
Heating for warehousing, storage, and office uses. The northeastern portion of the
property contains a building that was and continues to be occupied by Motorco Music
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Hall. The southern portion formerly contained a building that was occupied by a yoga
studio and parking lot.
GeerHouse Partners LLC purchased the western portion of the property from Acme
Properties of Durham, LLC on November 6, 2020. On October 26, 2021, the deed was
transferred to GeerHouse Partners 2, LLC. GeerHouse Partners LLC purchased the
southern portion of the Brownfields Property from TTP III on December 31, 2019. On
October 26, 2021, the deed was transferred to GeerHouse Owner, LLC.
Phase I development first began in November 2021 with the demolition of the four on -
site buildings, excluding the Motorco Music Hall building that was retained. Two in -
ground hydraulic lifts and one associated reservoir tank were permanently closed by
removal at the site on December 7-8, 2021. Grading activities were initiated at the
Brownfields Property in December 2021 and as a result, 95.42 tons of soil was excavated
and transported for off -site disposal at Earthtec of NC in Bear Creek. These activities
were conducted in accordance with the DEQ-approved Environmental Management Plan
(EMP) dated April 16, 2021.
On November 12, 2022, a hydraulic oil release occurred at an adjacent upgradient
property located at 719 Rigsbee Avenue, which is owned by a PD-affiliated company.
This release impacted surficial soil along its flow path as it migrated onto the Wright's
Executive Sales II Brownfields Property in proximity to the southwestern exterior of the
Phase I building. This release threatened the PD's continued eligibility for this
Brownfields Property; however, steps were taken by the PD to remediate the impacted
area on this Brownfields Property, and its eligibility was thereby preserved.
A containment pit was constructed to prevent further run-off onto the Wright's Executive
Sales II Brownfields Property. On December 1, 2022, the top six inches of soil from
approximately half of the flow path onto the Brownfields Property was removed using an
excavator and was temporarily stockpiled on -site in accordance with the DEQ-approved
EMP. The western portion of the impacted soil was not excavated on December 1, 2022
due to construction shoring and could not be excavated until March 28, 2023. The top six
inches of soil from the remaining impacted areas was excavated and the soil was
transported for off -site disposal to Earthtec. NCBRS received a Letter Report of Post -
Excavation Sampling on May 8, 2023, the post -excavation laboratory analytical results
indicated that the soil excavation activities conducted on March 28, 2023 were successful
in remediating the areas impacted from the hydraulic fluid release.
Building construction continued throughout 2023 and the Phase I building was completed
in the fourth quarter of 2023. The building's Vapor Intrusion Mitigation System (VIMS)
was completed in December 2023.
Site development activities for the Phase II building are set to continue into 2024. These
activities were conducted in accordance with the DEQ-approved EMP dated June 7,
2022.
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Potential Receptors:
Potential receptors are construction workers, on -site workers, future residents, visitors,
and trespassers.
Contaminated Media:
DEQ has evaluated data collected from the following media at the subject property: soil,
groundwater, sub -slab vapor, and exterior soil gas. 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 February 2024 DEQ Risk Calculator
https:Hdeq.nc. goy/permits-rules/risk-based-remediation/risk-evaluation-resources.
The site -wide risk calculator output for this Brownfields Property indicated the following
based on available data, including the following media: groundwater, residual soil (based
on confirmatory soil data), exterior soil gas, and sub -slab vapor thresholds.
Risk for Individual Pathways
Version Date: February 2024
Basis: November 2023 EPA RSL Table
Site ID: 24007-20-032
Exposure Unit ID: Site -wide without 1,3 Butadiene
DIRECT CONTACT SOIL AND WATER CALCULATORS
Receptor
Pathway
Carciinnogenic
sk
Hazard Index
Riskexceeded?
Resident
Soil
1.0E-05
4.8E-01
NO
Groundwater Use*
5.5E-03
8.5E+01
YES
Non -Residential Worker
Soil
1.6E-06
4.2E-02
NO
Groundwater Use*
1.3E-03
1.9E+01
YES
Construction Worker
Soil
4.0E-07
3.4E-01
NO
Recreator/Trespasser
Soil
5.6E-06
2.5E-01
NO
Surface Water*
NC
NC
NC
VAPOR INTRUSION CALCULATORS qr
Receptor
Pathway
CarcinogenicRisk
Hazard Index
Risk exceeded?
Resident
Groundwater to Indoor Air
1.2E-03
1.6E+01
YES
Soil Gas to Indoor Air
1.1E-05
1.3E+00
YES
Indoor Air
NC
NC
NC
Non -Residential Worker
Groundwater to Indoor Air
2.8E-04
3.7E+00
YES
Soil Gas to Indoor Air
8.4E-07
1.1E-01
NO
Indoor Air
NC
NC
NC
The Report of Environmental Assessment that was prepared by ECS Southeast LLP on
April 16, 2021, states that the installed exterior soil gas sample points were allowed to
equilibrate for a minimum of four hours prior to sampling activities. It is recommended to
wait 24-48 hours after drilling to sample the exterior sample points. 1,3-butadiene is a
common sampling artifact from the DPT process, so it was removed from the soil gas risk
calculator output above. The risk calculator output including 1,3-butadiene is shown
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below. The inclusion of 1,3-butadiene increases the carcinogenic and non -carcinogenic
risk for the residential and non-residential worker soil gas to indoor air scenario;
however, it is likely that the presence of this compound is related to the sampling as
noted above, and is not present as a site contaminant.
Risk for Individual Pathways 117
Version Date: February 2024
Basis: November 2023 EPA RSL Table
Site ID: 24007-20-032
Exposure Unit ID: Site -wide with 1,3-Butadiene
DIRECT CONTACT SOIL AND WATER CALCULATORS
Receptor
Pathway
Carciinnogenic
sk
Hazard Index
Risk exceeded?
Resident
Soil
1.0E-05
4.8E-01
NO
Groundwater Use*
5.5E-03
8.5E+01
YES
Non -Residential Worker
Soil
1.6E-06
4.2E-02
NO
Groundwater Use*
1.3E-03
I 1.9E+01
YES
Construction Worker
Soil
4.0E-07
3.4E-01
NO
Recreator/Trespasser
Soil
5.6E-06
2.5E-01
NO
Surface Water*
NC
NC
NC
VAPOR INTRUSION CALCULATORS
Receptor
Pathway
CarcinogenicRisk
Hazard Index
Risk exceeded?
Resident
Groundwater to Indoor Air
1.2E-03
1.6E+01
YES
Soil Gas to Indoor Air
3.0E-05
2.2E+00
YES
Indoor Air
NC
NC
NC
Non-Rcsidcntial Worker
Groundwater to Indoor Air
2.8E-04
3.7E+00
YES
Soil Gas to Indoor Air
2.3E-06
1.7E-01
NO
Indoor Air
NC
NC
NC
soil
Redevelopment activities required soil excavation ranging from 5 to 10 feet below
ground surface (bgs) in some areas of the Brownfields Property, and export for off -site
disposal, so the sampling results for these areas have not been included in these risk
calculations nor on Exhibit 2. Residual soil contamination does not exceed the acceptable
carcinogenic risk range nor the non -cancer threshold hazard index (HI) of 1 for
residential, non-residential worker, construction worker, nor trespasser exposure
pathways. With the completion of redevelopment, direct exposure to residual soil
contaminants will also be unlikely. The PD is planning to import soil for the landscaped
areas of the redevelopment and a Final Grade Sampling Work Plan was approved by
NCBRS on February 28, 2024.
Groundwater
Groundwater sampling activities were performed in 2006 and 2020, maximum values for
contaminants from both sampling events were used in the risk calculator as none of the
2020 wells were consistent with the sampling locations of MW-1 from 2006. The risk for
direct exposure to groundwater in a residential scenario exceeds both the acceptable
carcinogenic risk at 5.5E-03, and the non -cancer HI of 1 at 85. The risk drivers for direct
exposure to groundwater in residential settings are due to concentrations of naphthalene,
trichloroethylene (TCE), phenol, total xylenes, and arsenic in groundwater samples.
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Similarly, acceptable risk values for non-residential worker exposure to groundwater are
exceed at 1.3E-03 for carcinogenic risk and 19 for a noncancer HI. Risk drivers are
primarily benzene, naphthalene, and total xylenes for this pathway.
The risk calculations for the residential groundwater to indoor air vapor intrusion
pathway indicate that both the calculated carcinogenic risk and the non -cancer HI exceed
acceptable risk thresholds at 1.2E-03 and 16, respectively. The risk drivers for this
pathway are primarily benzene, naphthalene, and total xylenes. The risk calculations for
the non-residential groundwater to indoor air vapor intrusion pathway indicate
exceedances of acceptable risk thresholds as well with a calculated carcinogenic risk of
2.8E-04 and a noncancer HI of 3.7 with benzene and total xylenes acting as the risk
drivers.
The construction of a limited VIMS in the Phase I building will mitigate the potential for
vapor intrusion from these compounds. The Brownfields Agreement will also include
land use restrictions that prohibit use of the groundwater to break the exposure pathway
for direct exposures to groundwater.
Exterior Soil Gas
Exterior soil gas sampling was performed in 2020. It was combined with sub -slab vapor
data into one site -wide calculator. When including 1,3-butadiene in the calculations, the
resulting residential soil gas to indoor air risk values did not exceed an acceptable
carcinogenic risk, but did exceed the threshold HI of 1.0 at 2.2 for the calculated
noncancer HI. However, as we noted above, 1,3-butadiene was not included in the soil
gas risk calculator output due to it being a sampling artifact from the DPT process. The
risk drivers for these calculations are 1,2,4-trimethylbenzene, total xylenes, and 1,3,5-
trimethylbenzene. The non-residential worker soil gas to indoor air pathway based on the
combined exterior soil gas and sub -slab vapor results do not indicate an exceedance of
acceptable risk values for both carcinogenic and noncancer HI; however, the HI of 0.11 is
just at the cut-off for which we recommend a VIMS system, particularly if TCE is
detected at the site, which it is here. These detections were located within the footprint of
the Phase I building so based on these results and sub -slab sampling results, a limited
VIMS has been installed in the building.
Sub -Slab Vapor
These detections were located within the footprint of the Phase I building and the
Motorco Music Hall building. The non -carcinogenic risk threshold was exceeded for the
residential soil gas to indoor air scenario but not for the non-residential worker scenario
in the Motorco Music Hall building. A limited VIMS has been installed in the Phase I
building and a risk calculator output for the sub -slab soil gas and indoor air sampling
results in the VIMS Post -Construction Testing Report is included below. The residential
soil gas to indoor air risk value and the indoor air risk value calculated based on the pre-
occupancy data collected in the Phase I building do not exceed an acceptable
carcinogenic risk of 1E-04, and the HIs are 0.25 and 0.31, respectively, with the
compounds detected in these media likely related to off -gassing of finishing products or
indoor air interferences, and not related to vapor intrusion. Occupancy for the sampled
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areas in the Phase I building was approved on March 6, 2024 and there were no
objections to the VIMS being operated as a passive system.
Risk for Individual Pathways 1
Version Date: February 2024
Basis: November 2023 EPA RSL Table
Site ID: 24007-20-032
Exposure Unit ID: V1M3 Pre -Occupancy Results for Phase I Building
DIRECT CONTACT SOIL AND WATER CALCULATORS
Receptor
Pathway
Carciinnogenic
sk
Hazard Index
Riskexceeded?
Resident
Soil
NC
NC
NC
Groundwater Use*
NC
NC
NC
Non -Residential Worker
Soil
NC
NC
NC
Groundwater Use*
NC
NC
NC
Construction Worker
Soil
NC
NC
NC
Recreator/Trespasser
Soil
NC
NC
NC
Surface Water*
NC
NC
NC
VAPOR INTRUSION CALCULATORS
Receptor
Pathway
Carciinnogenic
sk
Hazard Index
Ri sk exceeded?
Resident
Groundwater to Indoor Air
NC
NC
NC
Soil Gas to Indoor Air
1.1E-05
2.5E-01
NO
Indoor Air
3.1E-06
3.1E-01
NO
Non -Residential Worker
Groundwater to Indoor Air
NC
NC
NC
Soil Gas to Indoor Air
8.7E-07
2.0E-02
NO
Indoor Air
7.0E-07
7.4E-02
NO
Below is a separate risk calculator output for the Motorco Music Hall building, which
will continue being used as an event space. The acceptable risk values for direct
residential groundwater, non-residential direct groundwater pathway, residential
groundwater to indoor air, and non-residential groundwater to indoor air pathways exceed
an acceptable carcinogenic risk maximum of 1E-04. The threshold value of HI=1 is
exceeded in all of these pathways mentioned above. In addition, the soil gas to indoor air
pathway, while not exceeding acceptable carcinogenic risk, is at the threshold for
noncancer risk of 1.0 for residential exposure to soil gas. The HI calculated for non-
residential exposure for the soil gas to indoor air pathway is low at 0.081.
The risk drivers for the residential and non-residential direct groundwater, and non-
residential groundwater to indoor air pathway calculations are benzene, naphthalene, and
xylenes. The risk drivers for the residential soil gas to indoor air pathway in the Motorco
building are 1,2,4-trimethylbenzene, 1,3,5-trimethylbenzene, and total xylenes. However,
the non-residential worker soil gas to indoor air pathway values do not indicate an
exceedance of acceptable risk values for both carcinogenic and noncancer HI; therefore, a
VIMS is not required in this building as long as the building remains non-residential in
nature. The Brownfields Agreement will include land use restrictions that prohibit use of
the groundwater to break the exposure pathway for direct exposures to groundwater.
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Risk for Individual Pathways
Version Date: February 2024
Basis: November 2023 EPA RSL Table
Site ID: 24007-20-032
Exposure Unit ID: Motorco Music Hall building only
DIRECT CONTACT SOIL AND WATER CALCULATORS
Receptor
Pathway
Carciinnogenic
sk
Hazard Index
Risk exceeded?
Resident
Soil
6.2E-06
4.1E-01
NO
Groundwater Use*
5.4E-03
8.3E+01
YES
Non -Residential Worker
Soil
1.4E-06
2.9E-02
NO
Groundwater Use*
1.3E-03
1.8E+01
YES
Construction Worker
Soil
2.4E-07
1.7E-01
NO
Recreator/Trespasser
Soil
3.5E-06
2.3E-01
NO
Surface Water*
NC
NC
NC
VAPOR INTRUSION CALCULATORS
Receptor
Pathway
CarcinogenicRisk
Hazard Index
Risk exceeded?
Resident
Groundwater to Indoor Air
1.2E-03
1.6E+01
YES
Soil Gas to Indoor Air
9.3E-06
1.0E+00
YES
Indoor Air
NC
NC
NC
Non -Residential Worker
Groundwater to Indoor Air
2.8E-04
3.7E+00
YES
Soil Gas to Indoor Air
7.1E-07
8.1E-02
NO
Indoor Air
NC
NC
NC
Land Use Restrictions:
The Brownfields Agreement will include the standard brownfields land use restrictions as
to allowable land uses, groundwater use prohibition, soil disturbance, soil export/import,
EMP, vapor intrusion, damage to wells, redevelopment reporting, access, notice,
separation of old from new contaminants, and the annual obligation of the land use
restriction update submittal. There is a specific prohibition that no dry-cleaning
operations using solvents may be placed at the Brownfields Property and the Motorco
Music Hall building on the Brownfields Property may not be used for residential use
without the prior written approval of DEQ.
Based on the site -specific data provided to the Brownfields Redevelopment Section, 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:
A System Effectiveness Work Plan was submitted to NCBRS for approval on September
15, 2023. A revised System Effectiveness Work Plan was submitted on January 5, 2024
to address NCBRS' request for additional sub -slab soil gas samples, and adjusted
monitoring point locations were proposed. Kelly Johnson, VI Specialist, provided follow-
up comments regarding the adjusted sample locations and approved the work plan on
January 17, 2024. NCBRS received a VIMS Post -Construction Testing Report on
February 22, 2024 and a revised report with a corrected risk calculator output was
submitted on March 12, 2024.
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Based on the results of the pre -occupancy indoor air and sub -slab testing and risk
calculator output, occupancy for the sampled areas in the Phase I building was approved
on March 6, 2024. The level 3 retail areas where SG-13 and SG-14 are to be installed
after the slab is poured have not yet received approval for occupancy and we are waiting
to receive sampling data for those areas. It was also approved for the VIMS to be
operated as a passive system which will require semi-annual sub -slab vapor sampling.
According to the VIMS design submitted by the PD, the portion of the system accessible
on the roof will be visually inspected annually and the inspection results will be reported
in the annual Land Use Restriction Update.
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