20050_Rite Aid_Environmental Summary 201505

1

DRAFT

May 18, 2015

Jones Lang LaSalle
4201 Congress Street, Suite 300
Charlotte, North Carolina 28209

Attention: Mr .John Cashion
Managing Director

Re: Environmental Summary
Rite Aid Facility
Former Charlotte Army Missile Plant
1776 Statesville Ave.
Charlotte, NC
H&H Job No. JLL-002

Dear John:
1.0 Introduction

As requested, Hart & Hickman, PC (H&H) has prepared this environmental summary for the
Rite Aid distribution facility located at 1776 Statesville Ave. in Charlotte. This summary is
based upon our review of publically available documents and our direct knowledge of the
adjacent Hercules Industrial Park property. This document provides a brief history of the site,
results of previous environmental assessment activities, and summarizes the Brownfields process
which is a potential means to address the environmental impacts at the site.

Mr. John Cashion
May 18, 2015
Page 2

S:\AAA-Master Projects\ATCO LLC - ATC\Task-002 Phase I ESA\Rite Aid Environmental Summary.doc

2.0 Site History

The Rite Aid facility is approximately 37 acres and contains three main buildings and a number
of smaller buildings that are used primarily for warehousing and distribution. The northernmost
building at the site was developed in approximately 1924 and was initially used for the
manufacture of Model T Fords until approximately the 1930s. The Rite Aid property, the
Hercules Industrial Park property to the north, and the MV Tryon property to the east were used
by the United States government as a storage depot from the early 1940s to the mid 1950s and
then for the production of Hercules missiles from the mid 1950s to the late 1960s. A figure
showing the location of the Rite Aid property and adjacent Hercules Industrial Park and MV
Tryon properties are indicated in Figure 1. The missile production facility was known as the
Charlotte Army Missile Plant (CAMP).

The CAMP facility included six main buildings referred to as Buildings 1 through 6. CAMP
Buildings 1, 4, and, 5 are located on the Rite Aid property, CAMP Buildings 2 and 3 are located
on the Hercules Industrial Park property, and CAMP Building 6 is located on the MV Tryon
property. Activities conducted at the missile facility included metal working, plating,
degreasing, painting, assembly, wastewater treatment, assembly, and shipping of missiles. On
the Rite Aid property, Building 1 was used as a machine shop/process plant, Building 4 was used
for storage and offices, and Building 5 was used for die casting and cleaning.

Since the 1960s, the Rite Aid property has been used for warehousing and distribution.

Mr. John Cashion
May 18, 2015
Page 3

S:\AAA-Master Projects\ATCO LLC - ATC\Task-002 Phase I ESA\Rite Aid Environmental Summary.doc

3.0 Environmental Assessment

3.1 Former CAMP Assessment and Remediation

In 1996, the Army Corps of Engineers (COE), on behalf of the United States Department of
Defense, requested access from the owners of the Rite Aid and Hercules Industrial Park
properties to investigate and remediate possible contamination related to historical government
operations. Environmental investigations and remediation planning have been conducted at the
Rite Aid and Hercules Industrial Park properties from 1996 to present. Results of these activities
generally indicate the following:

 The primary compounds of concern at the CAMP site are the chlorinated solvent
trichloroethene (TCE) and its degradation products. The COE concluded that TCE is the
result of historical governmental operations conducted at the site.

 The primary source area for groundwater impacts at the CAMP site is at the eastern end
of CAMP Building 1 located on the Rite Aid site. Apparently, a process pit where
degreasing and chromium plating were performed was located in this area. In the most
recent sampling conducted in 2012, the highest concentration of TCE was 14,000 µg/l off
the east side of CAMP Building 1 on the Rite Aid property versus the North Carolina
groundwater standard of 3 µg/l. The approximate extent of groundwater impacts on the
Rite Aid property is depicted in Figure 1.

 Groundwater flow from the Rite Aid site is to the north-northwest to the adjacent
Hercules Industrial Park property. There are also sources of groundwater impacts on the
Hercules property including a former process pit in CAMP Building 2 and a former
wastewater treatment plant east of CAMP Building 2.

Mr. John Cashion
May 18, 2015
Page 4

S:\AAA-Master Projects\ATCO LLC - ATC\Task-002 Phase I ESA\Rite Aid Environmental Summary.doc
 The results of the COE investigations indicate no complete exposure pathways for
surface or subsurface soil at the CAMP site (a complete exposure pathway is one in
which there is a reasonable potential that human or environmental receptors could be
exposed to compounds at levels of concern). As such, the COE determined that no soil
remediation is warranted at the CAMP site. However, please note that no soil samples
have been collected by the COE from below the Rite Aid buildings for analysis.
Therefore, it is possible that soil impacts are present below the site buildings that have
not been assessed.

 The COE also evaluated potential vapor intrusion into buildings from underlying
impacted ground water. The results of the evaluation indicated that vapor intrusion was
not a concern for current use of the site buildings for commercial/industrial purposes.

 No complete exposure pathways were identified for impacted ground water; however,
ground water impacts do exceed North Carolina groundwater standards. Thus, the COE
evaluated groundwater remediation alternatives in a Feasibility Study (FS) prepared in
2004.

 As a result of the FS, the COE initially chose to actively remediate groundwater at the
CAMP site using a technique called in-situ chemical oxidation. In this process, chemical
oxidants are injected into the ground which chemically destroy the compounds to
harmless by-products.

 In 2005 and 2006, the COE conducted a pilot test of the planned chemical oxidation to
determine the effectiveness of the remediation technique and to select design parameters
for full scale implementation. The results of the pilot test indicated that the chemical
oxidation was generally successful and effective in reducing compound concentrations in
groundwater.

Mr. John Cashion
May 18, 2015
Page 5

S:\AAA-Master Projects\ATCO LLC - ATC\Task-002 Phase I ESA\Rite Aid Environmental Summary.doc
 The COE recently performed a revised evaluation of remedial alternatives and indicated
that they planned to modify the remedial alternative for the groundwater impacts to
monitored natural attenuation. The COE is in the process of addressing DENR and
Stakeholder comments associated with the revised remedial approach.

3.2 Former Underground Storage Tanks

It appears that 12 former petroleum underground storage tanks (USTs) were located at the site
associated with CAMP Building 1, Building 4, Building 5, and the boiler house. There are two
separate release incidents associated with the USTs. Incident No. 7617 was reported in 1990 and
is associated with 11 USTs that contained heating oil, gasoline, or diesel fuel. Further
assessment of the USTs occurred in 2005 and the release incident was closed out in 2011.
Incident No. 20520 is associated with a heating oil UST release that was reported in 1998. The
release incident was closed out in 1999.

4.0 Brownfields

We understand that Rite Aid will likely be vacating the site in the near future and that the
property will be for sale. Although the Department of Defense is responsible for the
contamination at the site, potential purchasers may want to obtain additional protections for the
environmental impacts through a Brownfields agreement with the North Carolina Department of
Environment and Natural Resources (DENR). Brownfields agreements can be obtained for
properties that have actual or perceived contamination, that are abandoned or under-utilized, and
for party that has a bona fide interest in buying or selling a property as long as they did not cause
or contribute to the contamination. Based upon our extensive experience, we believe that the
Rite Aid property would be eligible for a Brownfields agreement. As a matter of note, a
Brownfields agreement was obtained for the adjacent Hercules Industrial Park property when it
was sold in 2007.

Mr. John Cashion
May 18, 2015
Page 6

S:\AAA-Master Projects\ATCO LLC - ATC\Task-002 Phase I ESA\Rite Aid Environmental Summary.doc
In the Brownfields program, a Prospective Developer (as it is referred to in the legislation) and
DENR enter into an agreement which provides for State liability protection for cleanup of
identified soil, groundwater, or other impacts in exchange for making the site safe for its future
intended use. Making the site safe for its intended use is typically accomplished by
implementing site land use restrictions (i.e., restriction on groundwater usage) and engineering
controls (such as capping impacted soil) and not through remediation. In addition to the
Prospective Developer, North Carolina General Statutes at 130A 310.33 (Liability Protection)
indicate that any future owner of the property, occupants of the facility, a successor or assign,
and any lender or fiduciary are also provided liability protection for contamination at the
property (provided that they did not cause or contribute to contamination). DENR oversees
these Brownfields activities and ensures that the site is safe for its intended use. In addition,
please note that there is a property tax deferral for improvements made to a Brownfields property
which can be significant if there is redevelopment at the site. The property tax deferral is on a
declining scale over a five-year period beginning with the year after eligible improvements are
made (90% deferral the first year, 70% the second year, 50% the third year, 30% the fourth year,
and 10% the fifth year).

The following general steps are typically performed for a Brownfields Agreement:
1. submission of a Brownfields eligibility application
2. DENR review of previous reports and request for additional assessment
3. completion of Brownfields site assessment activities requested by DENR
4. issuance of a Draft Brownfields Agreement from DENR
5. negotiation of the Brownfields Agreement
6. completion of a Brownfields site survey and plat preparation
7. negotiation of the Final Brownfields Agreement language and ancillary documents
8. 30-day public comment period
9. issuance of the Final Brownfields Agreement
10. recordation of the Brownfields Agreement and survey plat with the property deed

Mr. John Cashion
May 18, 2015
Page 7

S:\AAA-Master Projects\ATCO LLC - ATC\Task-002 Phase I ESA\Rite Aid Environmental Summary.doc
The standard Brownfields agreement process usually takes approximately 12 to 18 months to
complete. However, transactions involving Brownfields sites are often done during the
Brownfields process including after eligibility (typically 30-45 days from submittal), after the
Brownfields assessment activities are performed (typically 4-8 months from eligibility), once a
draft Brownfields agreement is obtained (typically 6-10 months from eligibility), or once the
Brownfields agreement is agreed upon and is in public comment (typically 8-14 months from
eligibility). Please note that DENR does have an expedited Brownfields process in which an
agreement can be completed in 4-8 months but the DENR fees are increased from $8,000 for the
standard process to $30,000 for the expedited process.

Below are estimated rough costs associated with obtaining a Brownfields agreement.

Task Rough Cost Notes
Eligibility Application $2,000 - $3,000
Brownfields Assessment $15,000 - $25,000 Although significant assessment has
been conducted by the COE, the
DENR Brownfields program may
request additional assessment such as
vapor intrusion assessment and/or soil
sampling below the buildings
Brownfields Agreement
Negotiation Assistance
$2,000-$3,000
Surveyor Costs for Brownfields
Plat
$10,000-$15,000 Costs may be reduced if there is an
existing survey plat or one is prepared
as part of the sale of the property
Public Notice $5,000-$7,000
DENR Brownfields Fees $8,000 $2,000 initial fee and $6,000 at time of
final agreement. Note that expedited
program fee is an additional $22,000
($8,000 + $22,000 = $30,000)
Legal Fees May want to consult with attorney for
costs to assist in review and
negotiation of Brownfields agreement
$42,000-$61,000 Estimated Costs – DENR Standard
Program
$64,000-$83,000 Estimated Costs – DENR Expedited
Program

Mr. John Cashion
May 18, 2015
Page 8

S:\AAA-Master Projects\ATCO LLC - ATC\Task-002 Phase I ESA\Rite Aid Environmental Summary.doc

5.0 Summary
In summary, groundwater impacts are present at the Rite Aid property which are related to
former use of the property for missile production by the United States government. The United
States government has taken responsibility for assessment and remediation of contamination
related to their former operations at the site. The results of assessment activities indicate that the
primary groundwater impacts are located in the northeastern portion of the Rite Aid site.
Evaluation conducted by the COE indicates that there are no complete exposure pathways for
contamination identified at the site. Prospective purchasers of the property may want to consider
obtaining a Brownfields agreement for the site for further liability protection for the site impacts
and for the potentially significant property tax reduction benefits.

We appreciate the opportunity to assist with this project. Should you have any questions or need
additional information, please do not hesitate to call me at [phone].

Very truly yours,
Hart & Hickman, PC
Steve Hart, PG
Principal

S:\AAA-Master Projects\ATCO LLC - ATC\Task-002 Phase I ESA\Rite Aid Environmental Summary.doc