Restoration on West 5th BPA

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A PROFE5SIONAL LLM]TED
LIAB] L]TY COM PANY
OneWest Fourth Street
Winston-Sa-lem, NC 27 I 0 I
Telephone: (336) Z2 1-3600
Fax: [phone]
Web site: www.wcsr.com
Lori P. Hinnant
Direct Dial: [phone]
Direct Fax: [phone]
E-nail: [e-mail]
July 15,2016
Via Federal Express and Email
Bruce Nicholson
North Carolina Deparbnent of
Environment and Natural Resources
Division of Waste Management
401 Oberlin Road, Suite 150
Raleigh, NC 27605
Re: Application for Coverage
PMC Property Group
500 W. 5tr Street and 601 W. 4th Street, Winston-Salem, NC
Dear Bruce:
I enclose the Brownfields Application for the referenced property and the original
affidavit of Jerold J. Novick, on behalf of PMC Property Group, the prospective developer "PD".
The required fees will be forthcoming under separate cover. The PD is interested in the
Redevelopment Now expedited process.
We look forward to hearing from you.
Very truly yours,
WOMBLE CARLYLE SA}IDRIDGE & RICE
A Limited Liability Company
LPFVams
Enclosurescc: Shirley Liggins (via email)
Sharon Eckard (via email)
GEORG]A / NORTH CAROLINA /SOUTH CAROLINA /VIRGINIA / WASHINGTON D C
Brownfields Property Appl ication
North Carolina Brownfields Program
www. ncbrownfields.orq
l. PROSPECTIVE DEVELOPER (PD) TNFORMATTON {USE TAB KEy TO GET TO NEXT
DATA ENTRY LINE - DO NOT USE THE RETURN KEY}
A. PD information:
Entity name PMC Property Group
PrincipalOfficer Jerold J. Novick
Representative
Mailing Address 1608 Walnut Street, Suite 1400
Philadelphia, PA 19103
E-mail address [e-mail]
Phone No. 215-987-6025
Fax No. 215-665-0660
Web site www.pmcpropertygroup.com and corporate.pmcpropertygroup.com
B.
contact if different than abovd:
Name Lori P. Hinnant
Company Womble Carlyle Sandridge & Rice, LLP
Mailing Address One West 4th Street
Winston-Salem, NC 27 101
E-MailAddress [e-mail]
Phone No. 336-721-3535
Fax No. 336-733-8410
c.
separate sheetk) if necessary):
(Use for LLCs)
Member-managed ormanager-managed? Answer:
4
lf manager-manqed, provide rnme of managor ard parunt of orwrership:
Name
Ouvnerehip (%)
Mailing Addrese
E-ifiailAddress
Phone No.
Fax No.
For g!! LLGs, list all memberg of tha LLC ard Fovldc frroir pormnt of ownership:
Name
Orrnership (%)
Mailing Address
E-MailAdclress
Phone No.
Fax No.
Name
Ownership (%)
Mailing Address
E-MailAddrees
Phone No.
Fax No.
Name
Ovnership (%)
irlailing Mdress
E-MailAddreas
Phorp No.
Fax No.
Managers of manager-managed LLCs are required to execute all brownfield documents forthe LLC; as to member-managed LLCs, state name of member who will sign thesedocuments.
List all parent companies, subsidiaries and other affiliates:
PMC PropertyGroup is 100% owned by Ronald L. Caplan.
(Use for Partnerships)
Check one: nGeneral Partnership XtimiteO partnership
List all partners and percent of ownership:
Name 51 EAST FOURTH STREET ASSOCIATES, L.P.
Ownership (%)
Mailing Address
E-MailAddress
Phone No.
Fax No.
ls this person a generalor limited partner?
Name
Ownership (%)
Mailing Address
E-MailAddress
Phone No.
Fax No.
ls this person a generalor limited partner?
List all parent companies, subsidiaries and other affiliates:
PD has scores of affiliates that own or arg in the ownership structure ofproperties developed by PD. The entity listed above, in addition to
PMC'4OO NORTH CHURCH STREET ASSOCIATES, L.P., FOUR HUNDRED
NORTH cHURcH STREET AssoctATEs MASTER TENANT, Lp, are thesole entities affiliated with pD that either own, are in the ownershipstructure, or manage properties located in North carolina.
(Use for corporations other than LLGs)
(lf information is the same as shown in 1.A., please indicate "same as 1.A." betow.)
Name
Mailing Address
E-MailAddress
Phone No.
Fax No.
List all parent companies, subsidiaries and other affiliates:
None
(Use for individuals)
(lf individual is the same as shown in 1.A., -please indicate osame as 1.A." above-)
Name
Mailing Address
E-MailAddress
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 suppofting documentation
such as letters of credit, financial statements, etc.)
Answer Yes
Explanation
E. Does PD have or can it obtain the manaoerial means to fully implement a brownfields
agreement and assure the safe use of the property?
Answer Yes
Explanation
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 Hart & Hickman, PC 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 lD numbers where PD or any parent
company, subsidiary and other affiliate of PD has been a pafty to.)
None
H. Does PD currently own the property?
Answer No, the properties are anticipated to be under contract within the next seven
days.
ff yes, when did PD purchase the property and from whom? (Provide name, address,
telephone number and emailaddress of the contact person for the cunent
propefty owner.)
NA
lf 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 Shaughnesy
4675 MacArthur Court, 1sth Floor
Newport Beach, CA 92660
678-412-0336
thomas. [e-mail]
l. lf PD does not currently own the property, does PD have the property under contract to
purchase?
il.
Answer See l.H. above. When the property is placed under contract, the contractbuyer will be an entity under the control of the 1OO% owner of PD. PD is proceeding with theconsent of the owner of the Property. When the buyer entity is formed, pD will inform DEe sothis application can be amended to include that entity.
lf yes, provide date of contract. See above.
lf no, when does the PD intend to purchase the property (e.g., after the project is determinedto be eligible for participation in the NCBP, after PD receivei a draft BFA, after theconclusion of the brownfields process)?
J. Describe all activities that have taken place on the property since PD or PD's parents,
subsidiaries and/or other affiliates, ancl/or lessees or sublessees of PD, took ownership of or
operated at the property (e.9., industrial, manufacturing or commercial activities, etc.).
(lnclude a list of all regulated subsfances as defined af NCGS S 130A-310.31(b)(11) that have
been used, stored on, or otherwise present at the propefty white those activities were
conducted, and explain how they were used.)
N/A
SITE INFORMATION
A. Information reoardinq the oroposed brownfields propertv:
Proposed project name Restoration on West Sth
acreage
street address(es)
city
4.31 County Forsyth
500 W. Sth Street and 601 W. 4th Streel
Winston-Salem zip 27101
tax lD(s) or PIN(s) 6835-07-8198.00; 6835-07-9068.00; 0835-06-09978; 6835-06-
6937. 00 ; 6835-07 -7 203 : 6835-07 -6222
past use(s)500 W. sth Street - One 21-story building with a basement (North
Tower), one six-story building with a basement (South Tower), and one single-story building
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 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, a gas station, tire sales and
service, and a tobacco manufacturing facility
I
current use(s)The property is vacant.
cause(s)/source(s) of contamination:
known Among other constituents, benzene, xylene, ethylbenze, naphthalene and bis(2-ethylhexyl) phthalate in groundwater from USTs and other unknown sources; petroleum
hydrocarbons (TPH, EPH, etc) in soil as contamination from petroleum USTs. A'completelist is included on the Contaminant Media Table.
suspected
B. Reo.ulatgrv Aoencv Involvement: List the site names and all identifying numbers (lD No.)previously or cunently assigned by any federal, state or local environmbntal regulatory
agencies for the property. The lD No's may include CERCLIS numbers, RCRA geneiator
numbers for past and present operations, UST database, Division of Water Quailtv's incident
manaoement database, and/or Inactive Hazardous Sites Branch inventorv numbers. (/n
many rhsfanceg the PD will need to actively seek out this infomation by reading
environmental site assessment repofts, reviewing govemment files, contacting govemment
officials, and through the use of govemment databases, many of which may be available over
the intemet.)
Agency Name/lD No: NCDENR (DWM/UST) Incident No. 8943
Agency Name/lD No: NCDENR (DWM/UST) lncident No. 30480
Agency Name/lD No:
Agency Name/lD No:
Agency Name/lD No:
Agency Name/lD No:
C. In what wav(s) is the oropertv is abandoned. idled. or underused?
The office buildings are vacant and need to be razed and replaced or refurshished, as
appropriate.
D.
letters from lendinq institutionsl?
The highest and best use of the property is high density residential with mixed use
commercial/retail/office/parking. Contamination remains in soil and groundwater, and notices of
residual pertroleum have been filed at both addresses, which prohibit residential use. The
project will not be feasible and lenders will not loan money for the necessary redevelopment
unless the residential use prohibitions are eliminated.
E.
institutiond?
10
See ll.D.
F.
The property will be redeveloped for high density residential use creating between 300 and350 new units, along with mixed comm-ercial, reiail, otfice and parking ule. Theredevelopment may require removing and replacing one building, anl refurbishing theremaining buildings.
C : $3'1 million
H. Estimated capital investment in redevelopment proiect: $50-100 million
l. . Beas
creation,tax base lncreases, revitalization of btighted areas, preserued green space, preserued historicplaces, improving disadvantaged neighborhood quatity-ot-tife ielated retait ihopping
oppoftunities, affordable housing, environmental cleanup activities orsef asdes that nave
community or environmental benefts. ln gauging public benefit, NCBP places great value
upon lefters of support from community groups and local govemment that desCribe
anticipated improvements in qualfi of life for neighboring communities that the project will
bring about.
encouraoed.)
Redevelopment of this block will likely enhance future development opportunities for the
area, attracting employers, residents and retailers. The redevelopment will radically revitalize a
large blighted area located in an important segment of downtown Winston-Salem that has been
vacant and underutilized for many years. The redevelopment for high density residential and
mixed commercial/retail/office use will bring additional life to the streetscape and downtown
economy.
Soecial 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.
To the extent feasible, the prospective developer will reuse the existing buildings and interior
features, which will reduce the amount of natural resources expended.
J.
the reoister of deeds at the conclusion of the brownfields process? (lf information is the
same as 1.A. above, please indicate.)
See 1.1. above
11
Mailing Address
E-MailAddress
Phone No.
Fax No.
III. OTHER REQUIRED INFORiIATION
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 NGBP, that it
did not cause or contribute to contamination at the property and that it meets all other
statutory eligibility requirements. (Nofe; The form fo use forthis affidavit is aftached to this
application. An original hard copy of this affidavit must be filled out, signed, notarized and
submitted with this application.)
?
Answer Yes
B. Proposed Brownfields Agreement Form: PD must provide the completed form Proposed
Brownfields Agreement. (Nofe; The form fo use for this document is aftached to this
application. lt must be filled out, initialed, and attached on your submiftal.)
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. toooqraphic quadranole mao that shows the location of the property, clearly
plotted, and that measures at least anSTz by 11 inches. (Nofe: fhese maps can be
purchased through the above link, or often through retait outdoor recreation sfores that canprint out the relevant map. Often environmental repofts have location maps that use this
type of map format as the base forifs location map.)
ls the required location mao included with this apolication?
Answer lf DEQ does not have this map in its database, PD will provide.
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 enfers the public comment phase of the brownfieldsprocess, the PD witt
be required to submit a final brownfields suruey plat which includes the information tisted in
the brownfields suNev plat quidance.)
ls the required preliminarv survev plat included with this aoorication?
12
Answer Yes
E' Site Photooraohs: PD must provide at teast one pre-redevelopment photograph of theproperty, in either hard copy or electronic format, ihat shows existing faciliti6s and
fers to have electronic photos instead of or
ies of photographs should be emaited to:
indication as to which Brownfields
Yes, included with Phase I report.
Have electronic copies of the photooraohs been emailed to NcBp?
Answer No, the Program currently has photographs in its database.
F' Environmental Reoorts/Data: lf it makes an affirmative eligibility determination, the NCBpwill request that PD provide any and all existing environmental ieports and data for theproperty on CD only. The brownfields process may be expedited if PD submits suchreports/data with this application.
?
Answer No, the Program currently has environmental reports in its database for thisProperty. PD has contracted with Hart & Hickman to provide an updated Phase I Report.
bmitted:
It is our understanding that the following reports are in the Program's database for thispropefi:
Phase I Environmental Site Assessment Report, North Tower, 500 West Oth Street,
Winston-Salem, NC by Partner Engineering North Garolina, PLLC (January 8,20141
(draft)
Phase ll Subsurface Investigation, 500 West sth Street, Winston-Satem, NC by partner
Engineering North Garolina, PLLC (March 4,2O1Sl
Phase I Environmental Site Assessment Report, 601 West 4th Street, Winston-Satem, NGby Partner Engineering North Carolina, PLLC (July 9, 201S) (draft)
IV. ADDITIONAL REQUIRED FORiIS
The following forms are to be filled out and submifted with the application including theResponsibility and Gompliance Affidavit and the Proposed Brownfields Agreement.
13
Submittal of the Affidavit requires signature and notarization, and the Proposed
Brownfields Application requires an initial.
14
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
Nonru C^mor,rx.l Bnowxnnr,os Pnocn ltlr
IN THE MATTER OF: PMC Property Group
UNDER THE AUTHORITY OF ) AFF'IDAVIT
NORTH CAROLINA GENERAL ) RE: RESPONSIBILITY
STATUTES r l30A-31q{0, et. seq. ) AND COMPLIA}ICE
Jerold J. Novick being duly sworn, hereby deposes and says:
1. I am <<Executive>> of PMC Property Group.
2. [if signatory is not President, add this paragraph: "I am fully authorized to make the declarations
contained herein and to legally bind PMC Property Group."l
3. PMC Property Group is applying for a Brownfields Agreement with the North Carolina Department of
Environmental Quality, pursuant to N.C.G.S. : 1304, Article g,Part 5 (Brownfields Act), in relation
to the following six parcel(s) in Winston-Salem, Forsyth , Count5r, North Carolina: 6835-07-8198.00 '
6835-07-9068.00; 6835-06-9978;6835-06-6937.00; 6835-07-7203; 6835-07-6222
4. I hereby certifr, under the pains and penalties of perjury and of the Brownfields Act, that PMC
Property Group, and any parent subsidiary or other affiliate meets the eligibility requirements of
N.C.G.S.rl30A-310.31(bxl0),inthatithasabonafide,demonstrabledesireto developor
redevelop, and did not cause or contibute to the contamination at, the parcel(s) cited in the preceding
paragraph.
5. I hereby certifr, under the pains and penalties of perjury and of the Brownfields Act, that PMC
Property Group meets the eligibility requirement of N.C.G.S.al30A-310.32(a)(l) in that it and any
parent, subsidiary or other affiliate have substantially complied with:
a. the terms of any brownfields or gimilar 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
afFrliate has previously engaged;
c. federal and state laws, regulations and rules for the protection of the environment.
{n,M 7. 1(,vieL
Date
,20/(D'
Notary Public
AMY SLUSHER
Notary Public - North Carolina
Stokes County
2':
15
(SEAL)
Preliminary Proposed Brownfierds Agreement
I. Property X'acts
a. Property Address(es): 500 W. 5ft Steet and 601 West 4ft Street, Winston-Salem, NC 27101
b. Property Seller: Slate Winston Holdings, LLC
c. Property Buyer: PMC property Group
d. Brief Property usage History: office, commercial, retail and industrial
e. The planned reuse will potentially involve the following use classification(s) (check all that
apply):
! SchooUchildcare/seniorcare
X Residential
X Commercial, retail (speci$)
X Other commercial (specifu) ParkingX offrce
n Light industrial
! Heavy industrial
tr Recreational
n open space
! Other (specifr)
II. Contaminant Infomation
a. The contaminant situation at the property is best described by the following (check all that
applv):
X Contaminants are from an on-property source(s)
n Contaminants are from an off-property sornce(s)
X Contaminants are from an unknown source(s)
tr Contaminants have not yet been documented on the property
16
b. Contaminated Media Table. (If known, check appropriate boxes below)
Contaminant
Tlpes
Soil Groundwater
and/or Surface
Water
Private Wells Vapor Intrusion
loown Susoected known Susoected lmorvn suspect€d known susDected
o
f
g
a
n
i
c
S
Chlorinated
Solvents
(list):
Chloro
benzen
e,
Dichlo
robenz
ene
low
potenti
al
Petoleum:
ASTs !
USrs [l
Other !
TPH,
Toluen
e, EB,
Xylene
s,
TMB,
Naphth
alene,I
8,4-
IP,
butylb
enzene
, 1-
MN,2-
MN,
Phenan
threne,
Pyrene
Fluore
trO,
EPHA/
PH
Other
petoleu
m
compou
nds
BTEX,
Napht
halene
Low
potenti
al for
petrole
um
comou
nds
Other (list):BEHP,
Bibuyt
yl
Phthal
ate
17
i
n
o
r
g
a
n
i
c
s
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):
X Contaminant remediation to risk-based levels.
X Engineered Contols (e.g., low permeability caps, vapor mitigation systems, etc)X Land use restrictions that run with the landthaf will restrict oi proniUit uses that are
nnacceptable from a risk assessmenVmanagement perspective. (lUportant tlote: In any
final brownfields agreement generated by the NCBP, land use restrictions will ultimately
come with the continuing obligation to submit an annual certification that the Land Use
Restrictions are being complied with and remain recorded at the applicable register of
deeds ofice.)
IV. X'ees
In connection with a brownfields agreement, the Act requires that the developer pay fees to
offset the cost to the Deparfinent of Environmental Quality and the Deparhnent of Justice. In
satisfaction of the Act, the following fees apply to a brownfields agreement that is developed for
this project under the standard program, subject to negotiation of the brownfields agreement:
a. A $2,000 initial fee will be due from the applicant PD when both of the following occur:
l) NCBP receives this application, the affidavit and proposed brownfields agreement, AND
2) NCBP notifies the applicant in writing that the applicant PD and the project are eligible for
participation in the NCBP and continued negotiation of a brownfields agreement.
b. A second fee of $6,000 will be due from the PD prior to execution of the brownfields
agreement. Should the prospective developer choose to negotiate changes to the agreement
that necessitate evaluation by the Deparfinent of Justice, additional fees shall apply.
18
c.
d.
Any addendum/modifications to the BFA or NBP after they are in effect will result in anadditional fee of at least $1,000. )
In the unexpected event that the environmental conditions at the property are unusuallycomplex, such that NCBP's costs will clearly exceed the above amounts, NCBp and pD willnegotiate additional fees.
Additional fees are charged for the Ready for Reuse and Redevelopment Now programs.
4lM Please check this box and initial in space provided to indicate your
ackrSwledgement of the standard brownfields fee structure.
box and initial in space provided to indicate your interest in the
:lffil:il#ffirffi #:,i:Hff s:,:i",HlTli"i*"
Consent Document (under separate cover).
1'l< -/0Date of Submittal:
19