500 W 5th BPA

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Brownfields Property Application
North Carolina Brownfields Program
www.ncbrownfields.org
I. PROSPECTIVE DEVELOPER (PD) INFORMATION {USE TAB KEY TO GET TO NEXT
DATA ENTRY LINE – DO NOT USE THE RETURN KEY}
A. PD information:
Entity name Grubb Management, Inc.
Principal Officer Clay Grubb
Representative Jonathan Nance
Mailing Address 4601 Park Road, Suite 450
Charlotte, NC 28209
E-mail address [e-mail]
Phone No.[phone]
Fax No.[phone]
Web site http://www.grubbproperties.com/
B. PD contact person information (i.e., individual who will serve as the NCBP’s point of
contact if different than above):
Name William W. Toole
Company Robinson, Bradshaw and Hinson, PA
Mailing Address 101 N. Tryon St, Suite 1900
Charlotte, NC 28246
E-Mail Address [e-mail]
Phone No.704.377.8373
Fax No.704.373.3973
C. Information regarding all parent companies, subsidiaries or other affiliates of PD (attach
separate sheet(s) if necessary):
(Use for LLCs)
Member-managed or manager-managed?Answer:
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If manager-managed, provide name of manager and percent of ownership:
Name
Ownership (%)
Mailing Address
E-Mail Address
Phone No.
Fax No.
For all LLCs, list all members of the LLC and provide their percent of ownership:
Name
Ownership (%)
Mailing Address
E-Mail Address
Phone No.
Fax No.
Name
Ownership (%)
Mailing Address
E-Mail Address
Phone No.
Fax No.
Name
Ownership (%)
Mailing Address
E-Mail Address
Phone No.
Fax No.
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Managers of manager-managed LLCs are required to execute all brownfield documents for
the LLC; as to member-managed LLCs, state name of member who will sign these
documents.
List all parent companies, subsidiaries and other affiliates:
(Use for Partnerships)
Check one:General Partnership Limited Partnership
List all partners and percent of ownership:
Name
Ownership (%)
Mailing Address
E-Mail Address
Phone No.
Fax No.
Is this person a general or limited partner?
Name
Ownership (%)
Mailing Address
E-Mail Address
Phone No.
Fax No.
Is this person a general or limited partner?
List all parent companies, subsidiaries and other affiliates:
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(Use for corporations other than LLCs)
(If information is the same as shown in 1.A., please indicate “same as 1.A.” below.)
Name same as 1.A above
Mailing Address
E-Mail Address
Phone No.
Fax No.
List all parent companies, subsidiaries and other affiliates:
Grubb Properties, Inc. (parent)
Sterling Contractors, LLC (affiliate)
(Use for individuals)
(If individual is the same as shown in 1.A., -please indicate “same as 1.A.” above.)
Name
Mailing Address
E-Mail Address
Phone No.
Fax No.
D. Does PD have or can it obtain the financial means to fully implement a brownfields
agreement and assure the safe reuse of the property?(Attach supporting documentation
such as letters of credit, financial statements, etc.)
Answer Yes
Explanation PD has ample resources to fully implement a brownfield agreement.
E. Does PD have or can it obtain the managerial means to fully implement a brownfields
agreement and assure the safe use of the property?
Answer Yes
Explanation PD has ample resources to fully implement a brownfield agreement.
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F. Does PD have or can it obtain the technical means to fully implement a brownfields
agreement and assure the safe use of the property?
Answer Yes
Explanation PD has engaged Partner Engineering North Carolina, PLLC to conduct such
work as is necessary.
G. Does PD commit that it will comply (and has complied, if PD has had a prior project in the
NCBP) with all applicable procedural requirements of the NCBP, including prompt payment of
all statutorily required fees?
Answer Yes
(List all NCBP project name(s) and NCBP project ID numbers where PD or any parent
company, subsidiary and other affiliate of PD has been a party to.)
none
H. Does PD currently own the property?
Answer No, the properties are under contract
If yes, when did PD purchase the property and from whom?(Provide name, address,
telephone number and email address of the contact person for the current
property owner.)
N/A
If no, provide the name, address, telephone number and e-mail address of the contact
person for the current property owner
Slate Winston Holdings, LLC
c/o Sabal Financial Group
Attn: Thomas Shaughnessy
4675 MacArthur Court, 15
th Floor
Newport Beach, CA 92660
678.412.0336
[e-mail]
I. If PD does not currently own the property, does PD have the property under contract to
purchase?
Answer Yes, through its parent.
If yes, provide date of contract.December 2, 2014, as amended
If no, when does the PD intend to purchase the property (e.g., after the project is determined
to be eligible for participation in the NCBP, after PD receives a draft BFA, after the
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conclusion of the brownfields process)? Note: the Act requires the PD to demonstrate that it
intends to either buy or sell the property.
J. Describe all activities that have taken place on the property since PD or PD’s parents,
subsidiaries and/or other affiliates, and/or lessees or sublessees of PD, took ownership of or
operated at the property (e.g., industrial, manufacturing or commercial activities, etc.).
(Include a list of all regulated substances as defined at NCGS § 130A-310.31(b)(11) that have
been used, stored on, or otherwise present at the property while those activities were
conducted, and explain how they were used.)
PD has not taken ownership nor begun any operations at the properties.
II. SITE INFORMATION
A. Information regarding the proposed brownfields property:
Proposed project name 500 W. 5
th Street Revitalization
acreage 4.31 street address(es)500 W. 5
th Street and 601 W. 4
th Street
city Winston-Salem County Forsyth zip 27101
tax ID(s) or PIN(s)6835-07-8198.00; 6835-07-9068.00; 6835-06-9978; 6835-06-6937.00;
6835-07-7203; 6835-07-6222 601
past use(s)500 W. 5th Street -- One 21-story building with a basement (North
Tower), one six-story building with a basement (South Tower), and one single-story building
which houses an emergency generator. Historical Sanborn Fire Insurance Maps dated 1950
and 1957 depicted a filling station with four tanks located on the southwest corner of the
subject property. Other historical uses include residential and house of worship.
601 W. 4th Street has a four deck parking garage with attached two story commercial/retail
space. Prior uses include residential, used car dealership, tire sales and service, and a
tobacco manufacturing facility.
current use(s)500 W. 5th Street is vacant. 601 W. 4th Street is currently operating
as a parking garage, with the attached office/retail space being underutilized.
cause(s)/source(s) of contamination:
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known benzene, xylene, ethylbenze, naphthalene and bis(2-ethylhexyl)phthalate in
groundwater from USTs and other unknown sources; total petroleum hydrocarbons soil
contamination from 10,000 gallon diesel UST
suspected
B. Regulatory Agency Involvement: List the site names and all identifying numbers (ID No.)
previously or currently assigned by any federal, state or local environmental regulatory
agencies for the property. The ID No’s may include CERCLIS numbers, RCRA generator
numbers for past and present operations,UST database,Division of Water Quality’s incident
management database, and/or Inactive Hazardous Sites Branch inventory numbers.(In
many instances, the PD will need to actively seek out this information by reading
environmental site assessment reports, reviewing government files, contacting government
officials, and through the use of government databases, many of which may be available over
the internet.)
Agency Name/ID No:NCDENR (DWM/UST) Incident No. 8943
Agency Name/ID No:NCDENR (DWM/UST) Incident No. 30480
Agency Name/ID No:
Agency Name/ID No:
Agency Name/ID No:
C. In what way(s) is the property abandoned, idled, or underused?
The office buildings are vacant and need to be razed and replaced or upfitted, as
appropriate.
D. In what way(s) is the actual or possible contamination at the property a hindrance to
development or redevelopment of the property (attach any supporting documentation such as
letters from lending institutions)?
The highest and best use of the property is high density residential with mixed use
commercial/retail. Contamination remains in soil and groundwater, and filed notices of residual
petroleum prohibit residential use. Lenders will not loan money for the necessary redevelopment
until the contamination has been properly addressed and the residential use prohibitions
modified.
E. In what way(s) is the redevelopment of the property difficult or impossible without a
brownfields agreement (attach any supporting documentation such as letters form lending
institutions)?
See II.D.
F. What are the planned use(s) of the redeveloped brownfields property to which the PD will
commit? Be as specific as specific as possible.
The property will be redeveloped for high density residential use creating between 300 and
343 new units, along with mixed commercial and retail use.. The redevelopment will require
removing and replacing one building, and completely upfitting the remaing buildings.
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G. Current tax value of brownfields property: $31 million
H. Estimated capital investment in redevelopment project: $83 million
I. List and describe the public benefits that will result from the property’s redevelopment. Be as
specific as possible. (Examples of public benefits for brownfields projects include job creation,
tax base increases, revitalization of blighted areas, preserved green space, preserved historic
places, improving disadvantaged neighborhood quality-of-life related retail shopping
opportunities, affordable housing, environmental cleanup activities or set asides that have
community or environmental benefits. In gauging public benefit, NCBP places great value
upon letters of support from community groups and local government that describe
anticipated improvements in quality of life for neighboring communities that the project will
bring about. The inclusion of such support letters with this application is recommended and
encouraged.)
Redevelopment of this block will likely enhance future development opportunities for the
area, attracting high-quality employers, residents and retailers. The redevelopment will radically
revitalize a large blighted area located in an important segment of downtown Winston-Salem.
The redevelopment for high density residential and mixed commercial/retail use will bring
additional life to the streetscape. The new apartment development is planned to include at least
20% affordable housing. The development budget includes substantial infrastructure
improvements on the block, including new roadways, sidewalk, and utilities. The goal for the
office tower is to secure a corporate relocation or regional headquarters that would bring up to
300 - 600 permanent new jobs to Winston-Salem. It is estimated the project will create
approximately 150 construction jobs and add $75 million to the assessed community tax base
once completed.
Special Note: Please describe all environment-friendly technologies and designs PD plans
to utilize in its redevelopment strategy. For example, environment friendly redevelopment
plans could include: Leadership in Energy and Environmental Design (LEED) Certification,
green building materials; green landscaping techniques such as using drought resistant
plants; energy efficient designs, materials, appliances, machinery, etc.; renewable sources of
energy, and/or recycling/reuse of old building materials such as brick or wood.
Prospective Developer intends to seek Bronze Certification National Green Building
Standard for the multi-family portion of the development.
J. Who will own the brownfields property when the Notice of Brownfields Property is filed with
the register of deeds at the conclusion of the brownfields process?(If information is the
same as 1.A. above, please indicate.)
Name same as 1.A
Mailing Address
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E-Mail Address
Phone No.
Fax No.
III. OTHER REQUIRED INFORMATION
A. Brownfields Affidavit: PD must provide its certification, in the form of a signed and
notarized original of the unmodified model brownfields affidavit provided by NCBP, that it
did not cause or contribute to contamination at the property and that it meets all other
statutory eligibility requirements.(Note: The form to use for this affidavit is attached to this
application. It must be filled out signed notarized, and submitted with this application.)
Is the required affidavit, as described above, included with this application?
Answer Yes
B. Proposed Brownfields Agreement Form: PD must provide the completed form Proposed
Brownfields Agreement.(Note: The form to use for this document is attached to this
application. It must be filled out, initialed, and attached on your submittal.)
Is the required Proposed Brownfields Agreement , as described above, included with this
application?
Answer Yes
C. Location Map: PD must provide a copy of the relevant portion of the 1:24,000 scale
U.S.G.S. topographic quadrangle map that shows the property clearly plotted, and that
measures at least an 8 ½ by 11 inches.(Note: these maps can be purchased through the
above link, or often through retail outdoor recreation stores that can print out the relevant
map. Often environmental reports have location maps that use this type of map as the base
for its location map.)
Is the required location map included with this application?
Answer Yes
D. Survey Plat: PD must provide a preliminary survey plat of the brownfields property with the
property boundaries clearly identified, and a metes and bounds legal description that
matches the property description on the plat. At this stage of the brownfields process; one
or more existing survey plats from a previous property conveyance will suffice.(Before the
brownfields project enters the public comment phase of the brownfields process, the PD will
be required to submit a final brownfields survey plat which includes the information listed in
the brownfields survey plat guidance.)
Is the required preliminary survey plat included with this application?
Answer Yes
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E. Site Photographs: PD must provide at least one pre-redevelopment photograph of the
property, in either hard copy or electronic format that shows existing facilities and
structures.Please note that the NCBP prefers to have electronic photos instead of or
in addition to hard copies.Electronic copies of photographs should be emailed to:
[e-mail] with a clear indication as to which Brownfields
Application they apply to.
Are photographs of the property included with this application?
Answer Yes, included with Phase I reports
Have electronic copies of the photographs been emailed to NCBP?
Answer Yes
F. Environmental Reports/Data: If it makes an affirmative eligibility determination, the NCBP
will request that PD provide any and all existing environmental reports and data for the
property on CD only. The brownfields process may be expedited if PD submits such
reports/data with this application.
Are any environmental reports/data being submitted with this application?
Answer Yes
If environmental reports/data are being submitted with this application, please provide the title,
date and author of each item being submitted:
Phase I Environmental Site Assessment Report, North Tower, 500 West 5th Street,
Winston-Salem, NC by Partner Engineering North Carolina, PLLC (January 8, 2014)
(draft)
Phase II Subsurface Investigation, 500 West 5
th Street, Winston-Salem, NC by Partner
Engineering North Carolina, PLLC (March 4, 2015)
Phase I Environmental Site Assessment Report, 601 West 4th Street, Winston-Salem,
NC by Partner Engineering North Carolina, PLLC (July 9, 2015) (draft)
IV. ADDITIONAL REQUIRED FORMS
The following forms are to be filled out and submitted with the application including the
Responsibility and Compliance Affidavit and the Proposed Brownfields Agreement.
Submittal of the Affidavit requires signature and notarization, and the Proposed
Brownfields Application requires an initial.
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NORTH CAROLINA DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
NORTH CAROLINA BROWNFIELDS PROGRAM
IN THE MATTER OF: Grubb Management, Inc.
UNDER THE AUTHORITY OF ) AFFIDAVIT
NORTH CAROLINA GENERAL ) RE: RESPONSIBILITY
STATUTES § 130A-310.30, et. seq. ) AND COMPLIANCE
Jonathan Nance, being duly sworn, hereby deposes and says:
1. I am the Senior Vice President of Grubb Management, Inc.
2.I am fully authorized to make the declarations contained herein and to legally bind
Grubb Management, Inc.
3.Grubb Management, Inc.is applying for a Brownfields Agreement with the North
Carolina Department of Environment and Natural Resources, pursuant to N.C.G.S. §
130A, Article 9, Part 5 (Brownfields Act), in relation to the following six parcels in
Winston-Salem,Forsyth County, North Carolina:
6835-07-8198.00
6835-07-9068.00
6835-06-9978
6835-06-6937.00
6835-07-7203
6835-07-6222 601
4. I hereby certify, under the pains and penalties of perjury and of the Brownfields Act, that
Grubb Management, Inc., and any parent, subsidiary or other affiliate meets the
eligibility requirements of N.C.G.S. § 130A-310.31(b)(10), in that it has a bona fide,
demonstrable desire to buy sell for the purpose of developing or redeveloping, and
did not cause or contribute to the contamination at, the parcel(s) cited in the preceding
paragraph.
5. I hereby certify, under the pains and penalties of perjury and of the Brownfields Act, that
Grubb Management, Inc.meets the eligibility requirement of N.C.G.S.§130A-
310.32(a)(1) in that it and any parent, subsidiary or other affiliate have substantially
complied with:
a. the terms of any brownfields or similar agreement to which it or any parent,
subsidiary or other affiliate has been a party;
b. the requirements applicable to any remediation in which it or any parent,
subsidiary or other affiliate has previously engaged;
c. federal and state laws, regulations and rules for the protection of the environment.
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Preliminary Proposed Brownfields Agreement
I. Property Facts
a. Property Address(es):500 W. 5th Street and 601 West 4th Street, Winston-Salem, NC 27101
b. Property Seller:Slate Winston Holdings, LLC
c. Property Buyer:Grubb Properties, Inc.
d. Brief Property Usage History:Office, commerical, retail, industrial has resulted in a variety of
petroleum releases that continue to contaminate soil and groundwater. Notices of residual
petroleum issued in connection with regulatory oversight from the NCDENR Division of Waste
Management, UST Section prohibit residential use at the property.
e. The planned reuse will potentially involve the following use classification(s) (check all that
apply):
School/childcare/senior care
Residential
Commercial, retail (specify)
Other commercial (specify)
Office
Light industrial
Heavy industrial
Recreational
Open space
Other (specify)
II. Contaminant Information
a. The contaminant situation at the property is best described by the following (check all that
apply):
Contaminants are from an on-property source(s)
Contaminants are from an off-property source(s)
Contaminants are from an unknown source(s)
Contaminants have not yet been documented on the property
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b. Contaminated Media Table. (If known, check appropriate boxes below)
Contaminant
Types
Soil Groundwater
and/or Surface
Water
Private Wells Vapor Intrusion
known Suspected known Suspected known suspected known suspected
o
r
g
a
n
i
c
s
Chlorinated
Solvents
(list):
Petroleum:
ASTs
USTs
Other
X X
Other (list):
i
n
o
r
g
a
n
i
c
s
Metals
(list):
Other (list):
III. Protective Measures
I am prepared to take steps necessary to make the property suitable for its planned uses while
fully protecting public health and the environment. I propose that NCBP consider a brownfields
agreement that will make the property suitable for the planned use(s) through the following
mechanism(s) (check all that apply):
Contaminant remediation to risk-based levels.
Engineered Controls (e.g., low permeability caps, vapor mitigation systems, etc)
Land use restrictions that run with the land that will restrict or prohibit uses that are
unacceptable from a risk assessment/management perspective. (Important Note:In any