20024_Smokey_Hollow_BPA_20160331

4321 Lassiter at North Hills Avenue
Suite 250, Raleigh, NC 27609
919-833-7755 | KaneRealtyCorp.com
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March 31, 2016
Shirley Liggins and Bruce Nicholson
NC Brownfields Program
North Carolina Department of Environmental Quality
Division of Waste Management
1646 Mail Service Center
Raleigh, NC 27699-1646
Subject: Smokey Hollow Brownfields Redevelopment
Dear Ms. Liggins and Mr. Nicholson:
On behalf of WK Smokey Hollow, LLC, please find enclosed the completed Brownfields Property
Application for the redevelopment of the Smokey Hollow site located just off of Capital Boulevard at the
intersection of Peace Street and West Street in Raleigh. In addition to the application form, we plan to provide you with some of the attachments, particularly the large-format environmental reports, via email
or a file sharing link. We are extremely excited about the project and the contribution it will make to
downtown Raleigh’s revitalization and vibrancy.
Provided below is a brief overview of the project and information on WK Smokey Hollow, LLC, the
prospective developer we have established to take the redevelopment forward.
The Project
The approximately four-acre site is currently underutilized and now home to 1970s-era, one-story
commercial buildings. The property is also impacted by a highly polluted DSCA dry cleaning site located
next door, and potentially other off-site UST releases and contaminant sources.
The planned mixed-use redevelopment will involve approximately $120 million of capital investment, and
it will become a key component of the Capital Boulevard corridor revitalization. We are working closely
with the City of Raleigh on planning, and among other benefits, the project will provide a mixed-use
anchor consistent with Raleigh's new Unified Development Ordinance (UDO), housing opportunities and
retail services that are currently lacking in the area, and approximately 50 permanent retail-related jobs,
as well as hundreds of construction jobs during redevelopment. This project will also provide stimulus for
nearby “secondary” development and employment, such as retail, office, restaurants, etc. during
construction and when the property is completed and operating.
In addition, our work is being closely coordinated with the DOT’s and the City's plan for the Capital
Boulevard improvements and Harrington Street realignment, and other multimillion dollar infrastructure
capital improvements in and around the Capital Boulevard and Peace Street interchange. It is likely we will
be actively participating with the DOT and the City on the roadway work – including adding a Johnson
Street extension between Harrington Street and West Street as part of our redevelopment.
The Prospective Developer
The prospective developer, WK Smokey Hollow, LLC, is a North Carolina company established solely for
the project. WK Smokey Hollow, LLC currently has two members: Kane Smokey Hollow, LLC and Williams
Smokey Hollow, LLC. Neither the PD or the two current members have had a prior direct ownership
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interest in the property, or an ownership or operating interest in the businesses which have leased space
there.
Further, our management team is in discussions with equity investors about their potential participation
in the redevelopment effort. One or more of these prospective investors will have a majority, controlling
interest – becoming effectively the project “owner.” As such, Kane Smokey Hollow, LLC and Williams
Smokey Hollow, LLC will be minority members with somewhere around a combined 20% ownership
interest in the redevelopment effort.
We would like to point out that parties related to Williams Smokey Hollow, LLC have had a prior interest
in the redevelopment site; however, we believe this should not preclude Williams Smokey Hollow, LLC
from participating as a non-controlling, minority member going forward. Clearly, this is an important
matter for us, so provided below is some further information.
The Crossland Company (an affiliate of Williams Smokey Hollow, LLC) and Chaucer Investments, LLC
(Williams Smokey Hollow, LLC's parent company) currently own four parcels at the property, which the PD
intends to acquire in the fall of 2016. The parcels were originally purchased from the Raleigh
Development Commission in the late 1960s by Williams Realty & Building Company (also an affiliate of
Williams Smokey Hollow, LLC), and subsequently developed with the current improvements in the early
1970s. Over the next 45 years, Chaucer Investments and The Crossland Company, as well as other related
parties, owned portions of the redevelopment site and leased space to a variety of commercial tenants.
However, none of these parties had an ownership interest in the businesses which leased space, or
participated in the operations of those businesses. Moreover, there are no known on-site releases, spills
or other open environmental incidents or violations associated with the development site itself or the
business that lease space at the property. (A leaking UST incident at a former service station at the
property operated by a third party was cleaned up and unconditionally closed by the NC DENR in July
2011.) Operations by the lessees have and continue to be consistent with good commercial standards and
practices.
In summary, there are currently no known actionable incidents or releases which originated on-site. The
only known impacts are related to the off-site dry cleaner discussed above and potentially other off-site
sources. Throughout the ownership by Williams-related parties, none of these parties have been deemed
liable, named as a responsible party, or in any way been involved in an environmental matter. Further,
there is no indication that the Williams, solely as the owners of a portion of the redevelopment site, have
in any way caused or contributed to a contamination problem.
In closing, if you have any questions on the application, please feel free to contact Warner Kuppin directly
at 919. 719.5471. And on behalf of our entire team, we are looking forward to working with you on the
Smokey Hollow development.
Sincerely,
cc: Tony Duque, DEQ
John Gallagher, Aptus Management, PLLC
John M. Kane Manager
WK Smokey Hollow, LLC