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HomeMy WebLinkAboutHarding_ Full Notice of Intent20009-16-060/Harding Place Assemblage (2016.09.06) 1 NOTICE OF INTENT TO REDEVELOP A BROWNFIELDS PROPERTY Site Name: Harding Place Assemblage Brownfields Project Number: 20009-16-060 North Carolina’s Brownfields Property Reuse Act (the “Act”), North Carolina General Statutes (“NCGS”) § 130A-310.30 through 130A-310.40, provides for the safe redevelopment of properties that may have been or were contaminated by past industrial and commercial activities. One of the Act’s requirements is this Notice of Intent to Redevelop a Brownfields Property approved by the North Carolina Department of Environmental Quality (“DEQ”). See NCGS § 130A-310.34(a). The Notice of Intent must provide, to the extent known, a legal description of the location of the brownfields property, a map showing the location of the brownfields property, a description of the contaminants involved and their concentrations in the media of the brownfields property, a description of the intended future use of the brownfields property, any proposed investigation and remediation, and a proposed Notice of Brownfields Property prepared in accordance with NCGS § 130A-310.35. The party (“Prospective Developer”) who desires to enter into a Brownfields Agreement with DEQ must provide a copy of this Notice to all local governments having jurisdiction over the brownfields property. The proposed Notice of Brownfields Property for a particular brownfields project is attached hereto; the proposed Brownfields Agreement, which is attached to the proposed Notice of Brownfields Property as Exhibit A, contains the other required elements of this Notice. Written public comments may be submitted to DEQ within 30 days after the latest of the following dates: the date the required summary of this Notice is (1) published in a newspaper of general circulation serving the area in which the Property is located, (2) conspicuously posted at the Property, and (3) mailed or delivered to each owner of property contiguous to the brownfields property. Written requests for a public meeting may be submitted to DEQ within 21 days after the period for written public comments begins. Those periods will start no sooner than September 7, 2016, and will end on the later of: a) 30 and 21 days, respectively, after that; or b) 30 and 21 days, respectively, after completion of the latest of the three (3) above-referenced dates. All comments and meeting requests should be addressed as follows: Mr. Bruce Nicholson Brownfields Program Manager Division of Waste Management NC Department of Environmental Quality 1646 Mail Service Center Raleigh, North Carolina 27699-1646 20009-16-060/Harding Place Assemblage (Draft 2016.09.06) 1 Property Owner: Harding Place Residential Partners, LLC Recorded in Book ____, Page ____ Associated plat recorded in Plat Book ____, Page ____ NOTICE OF BROWNFIELDS PROPERTY Site Name: Harding Place Assemblage Brownfields Project Number: 20009-16-060 This documentary component of a Notice of Brownfields Property (“Notice”), as well as the plat component, have been filed this _____ day of __________________, 201__ by Southern Apartment Group – Harding, LLC (“Prospective Developer”). This Notice concerns contaminated property. A copy of this Notice certified by the North Carolina Department of Environmental Quality (“DEQ”) is required to be filed in the Register of Deeds’ Office in the county or counties in which the land is located, pursuant to North Carolina General Statutes (“NCGS”), § 130A-310.35(b). This Notice is required by NCGS § 130A-310.35(a), in order to reduce or eliminate the danger to public health or the environment posed by environmental contamination at a property (“Brownfields Property”) being addressed under the Brownfields Property Reuse Act of 1997, NCGS § 130A, Article 9, Part 5 (“Act”). Pursuant to NCGS § 130A-310.35(b), the Prospective Developer must file a certified copy of this Notice within 15 days of Prospective Developer’s receipt of DEQ’s approval of the Notice or Prospective Developer’s entry into the Brownfields Agreement required by the Act, whichever is later. The copy of the Notice certified by DEQ must be recorded in the grantor index under the names of the owners of the land and, if Prospective Developer is not the owner, also under the Prospective Developer’s name. The Brownfields Property is located at Place 1316, 1322, 1328 Greenwood Cliff; 1315, 1317, 1321, 1325, and 1329 Harding Place in Charlotte, Mecklenburg County, bearing Tax Identification Numbers 12521214, 12521213, 12521212, 12521206, 12521207, 12521208, 12521209, and 12521210. The property was historically occupied by single-family residences and associated outbuildings, commercial uses such as offices and salons, and a dark room was utilized in the basement of the property at 1316 Greenwood Cliff. The proposed use of the 1.67-acre property that is the subject of this agreement is multi-family residential, office, retail, parking, and subject to DEQ’s prior written approval, other commercial uses. 20009-16-060/Harding Place Assemblage (Draft 2016.09.06) 2 The Brownfields Agreement between Prospective Developer and DEQ is attached hereto as Exhibit A. It sets forth the use that may be made of the Brownfields Property and the measures to be taken to protect public health and the environment, and is required by NCGS § 130A-310.32. The Brownfields Agreement’s Exhibit 2 consists of one or more data tables reflecting the concentrations of and other information regarding the Property’s regulated substances and contaminants. Attached as Exhibit B to this Notice is a reduction, to 8 1/2" x 11", of the survey plat component of this Notice. This plat shows areas designated by DEQ, has been prepared and certified by a professional land surveyor, meets the requirements of NCGS § 47-30, and complies with NCGS § 130A-310.35(a)’s requirement that the Notice identify: (1) The location and dimensions of the areas of potential environmental concern with respect to permanently surveyed benchmarks. (2) The type, location and quantity of regulated substances and contaminants known to exist on the Brownfields Property. Attached hereto as Exhibit C is a legal description of the Brownfields Property that would be sufficient as a description of the property in an instrument of conveyance. LAND USE RESTRICTIONS NCGS § 130A-310.35(a) also requires that the Notice identify any restrictions on the current and future use of the Brownfields Property that are necessary or useful to maintain the level of protection appropriate for the designated current or future use of the Brownfields Property and that are designated in the Brownfields Agreement. The restrictions shall remain in force in perpetuity unless canceled by the Secretary of DEQ (or its successor in function), or his/her designee, after the hazards have been eliminated, pursuant to NCGS § 130A-310.35(e). All references to DEQ shall be understood to include any successor in function. The restrictions are hereby imposed on the Brownfields Property, and are as follows: 1. No use may be made of the Property other than for multi-family residential, office, retail, parking, and subject to DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply. a. Multi-family residential is defined as multi-unit human dwellings, such as duplexes, triplexes, quadriplexes, condominia, or apartments. Single family homes or units with yards are prohibited unless waived in writing by DEQ in advance. b. Office is defined as the provision of business or professional services. c. Retail is defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products. d. Parking is defined as the temporary accommodation of motor vehicles in an area designed for same. e. Commercial is defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. 20009-16-060/Harding Place Assemblage (Draft 2016.09.06) 3 2. The Property may not be used for child care, adult care centers or schools without the prior written approval of DEQ. 3. Groundwater at the Property may not be used for any purpose without the prior written approval of DEQ. 4. Soil may not be removed from, or brought onto, the property without prior sampling and analysis to DEQ’s satisfaction and the written approval of DEQ, unless conducted in accordance with an approved Environmental Management Plan (EMP) as outlined in Paragraph 8. 5. No activity that disturbs soil on the Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Property will be suitable for the uses specified in paragraph 1 above while fully protecting public health and the environment, except: a. Mowing and pruning of above-ground vegetation; b. Repair of underground infrastructure; or c. Activities in accordance with an Environmental Management Plan as outlined in paragraph 8. 6. Demolition of site structures shall be conducted in accordance with all applicable local, state, and federal legal requirements, including without limitation those related to lead and asbestos abatement that are administered by the Health Hazards Control Unit within the Division of Public Health of the North Carolina Department of Health and Human Services. 7. Not later than completion of redevelopment, the known USTs, identified above in subparagraph 7.a. of Exhibit A hereto shall be removed. The removal plans for these USTs, and any new ones discovered during redevelopment activities, shall be addressed in the EMP required in paragraph 8 below. 8. Physical redevelopment of the Property may not occur other than in accord, as determined by DEQ, with an EMP approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each subsequent redevelopment phase) that is consistent with all the other land use restrictions and describes redevelopment activities at the Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Property during construction or redevelopment in any other form, including without limitation: a. soil and water management issues, including without limitation those resulting from contamination identified in the Environmental Reports; b. issues related to potential sources of contamination referenced in paragraph 8 of Exhibit A hereto; c. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and d. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. 20009-16-060/Harding Place Assemblage (Draft 2016.09.06) 4 9. By January 30 of each year after the effective date of this Agreement for as long as physical redevelopment of the Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: a. actions taken on the Property in accordance with Section V: Work to be Performed of Exhibit A hereto; b. soil grading and cut and fill actions; c. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; d. stockpiling, containerizing, decontaminating, treating, handling, laboratory analysis and ultimate disposition of any soil, groundwater or other materials suspected or confirmed to be contaminated with regulated substances; and e. removal of any UST, contaminated soil, water or other contaminated materials (for example, concrete, demolition debris) from the Property (copies of all legally required manifests shall be included). 10. Neither DEQ, nor any party conducting environmental assessment or remediation at the Property at the direction of, or pursuant to a permit, order or agreement issued or entered into by DEQ, may be denied access to the Property for purposes of conducting such assessment or remediation, which is to be conducted using reasonable efforts to minimize interference with authorized uses of the Property. 11. Any deed or other instrument conveying an interest in the Property shall contain the following notice: “The Property which is the subject of this instrument is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions) of Exhibit A hereto, though financial figures related to the conveyance may be redacted. If DEQ issues prior, written approval, Prospective Developer may use the following mechanisms to comply with the obligations of this paragraph, subject to the terms and conditions that DEQ may establish in such approval: (i) If every lease and rider is identical in form, Prospective Developer may provide DEQ with copies of a form lease or rider evidencing compliance with this paragraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notice and Submissions) of Exhibit A hereto; or (ii) Prospective Developer may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV of Exhibit A hereto. 12. None of the contaminants known to be present in the environmental media at the Property, as described in Exhibit 2 of this Agreement and as modified by DEQ in writing if additional contaminants in excess of applicable standards are discovered at the Property, may be used or stored at the Property without the prior written approval of DEQ, except: a. in de minimis quantities for cleaning and other routine housekeeping and maintenance activities; b. as constituents of products and materials customarily used and stored in office and retail environments, provided such products and materials are stored in original retail packaging and used and disposed of in accordance with applicable laws; and 20009-16-060/Harding Place Assemblage (Draft 2016.09.06) 5 c. as fuel or other fluids customarily used in vehicles, landscaping equipment, and emergency generators. 13. During January of each year after the year in which this Notice is recorded, the owner of any part of the Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Mecklenburg County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Mecklenburg County Register of Deeds office and that the land use restrictions are being complied with, and stating: a. the name, mailing address, telephone and facsimile numbers, and contact person’s e- mail address of the owner, board, association or approved entity submitting the LURU if said owner, acquired any part of the Property during the previous calendar year; b. the transferee’s name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address, if said owner transferred any part of the Property during the previous calendar year; c. A LURU submitted for any portion of the Property that contains rental units shall include a list of tenants and their addresses; d. A LURU submitted for rental units shall include the rent roll (renter/lessee’s name and address) and enough of each lease (which can be a form lease as described in paragraph 21 of Exhibit A hereto) entered into during the previous calendar year to demonstrate compliance with lessee notification requirements in paragraph 11 of this notice and paragraph 22 of Exhibit A hereto. e. A property owners’ association or other entity may perform this LURU’s duties, on behalf of some or all owners of the Property, if said association or entity has accepted responsibility for such performance pursuant to a notarized instrument satisfactory to DEQ that includes at a minimum, the name, mailing address, telephone and facsimile numbers, and e-mail address of each owner on whose behalf the LURU is proposed to be submitted. For purposes of the land use restrictions set forth above, the DEQ point of contact shall be the DEQ official referenced in paragraph 35.a. of Exhibit A hereto, at the address stated therein. ENFORCEMENT The above land use restrictions shall be enforceable without regard to lack of privity of estate or contract, lack of benefit to particular land, or lack of any property interest in particular land. The land use restrictions shall be enforced by any owner of the Brownfields Property. The land use restrictions may also be enforced by DEQ through the remedies provided in NCGS § 130A, Article 1, Part 2 or by means of a civil action; by any unit of local government having jurisdiction over any part of the Brownfields Property; and by any person eligible for liability protection under the Brownfields Property Reuse Act who will lose liability protection if the restrictions are violated. Any attempt to cancel any or all of this Notice without the approval of the Secretary of DEQ (or its successor in function), or his/her delegate, shall be subject to enforcement by DEQ to the full extent of the law. Failure by any party required or authorized to enforce any of the above restrictions shall in no event be deemed a waiver of the right to do so thereafter as to the same violation or as to one occurring prior or subsequent thereto. 20009-16-060/Harding Place Assemblage (Draft 2016.09.06) 6 FUTURE SALES, LEASES, CONVEYANCES AND TRANSFERS When any portion of the Brownfields Property is sold, leased, conveyed or transferred, pursuant to NCGS § 130A-310.35(d) the deed or other instrument of transfer shall contain in the description section, in no smaller type than that used in the body of the deed or instrument, a statement that the Brownfields Property has been classified and, if appropriate, cleaned up as a brownfields property under the Brownfields Property Reuse Act. IN WITNESS WHEREOF, Prospective Developer has caused this instrument to be duly executed this _____ day of _______________, 201__. Southern Apartment Group – Harding, LLC By: __________________________________________ Shane Seagle Manager, Southern Apartment Group – Harding LLC NORTH CAROLINA _______________ COUNTY I certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: ________________________________. Date: ___________________ ___________________________________ Official Signature of Notary ___________________________________ Notary’s printed or typed name, Notary Public (Official Seal) My commission expires: _____________________ 20009-16-060/Harding Place Assemblage (Draft 2016.09.06) 7 ACKNOWLEDGMENT OF PROPERTY OWNER As the current owner, or representative of said owner, of the Brownfields Property, I hereby acknowledge recordation of this Notice of Brownfields Property and the Land Use Restrictions contained herein. Owner Name: Harding Place Residential Partners, LLC By: ____________________________________ ________________ Date NORTH CAROLINA ______________ COUNTY I certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: __________________________________ Date: _________________ ________________________________ Official Signature of Notary ________________________________ (Official Seal) Notary’s printed or typed name, Notary Public My commission expires: _________________ 20009-16-060/Harding Place Assemblage (Draft 2016.09.06) 8 ************************************ APPROVAL AND CERTIFICATION OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY The foregoing Notice of Brownfields Property is hereby approved and certified. North Carolina Department of Environmental Quality By: _________________________________________ ________________________ Michael E. Scott Date Director, Division of Waste Management BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) EXHIBIT A NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY IN THE MATTER OF: Southern Apartment Group – Harding, LLC UNDER THE AUTHORITY OF THE ) BROWNFIELDS AGREEMENT re: BROWNFIELDS PROPERTY REUSE ACT ) Harding Place Assemblage OF 1997, NCGS § 130A-310.30, et seq. ) 1316, 1322, 1328 Greenwood Cliff; 1315, 1317, 1321, 1325, and 1329 Harding Place Brownfields Project # 20009-16-060 ) Charlotte, Mecklenburg County I. INTRODUCTION This Brownfields Agreement (“Agreement”) is entered into by the North Carolina Department of Environmental Quality (“DEQ”) and Southern Apartment Group – Harding, LLC (collectively the "Parties") pursuant to the Brownfields Property Reuse Act of 1997, NCGS § 130A-310.30, et seq. (the “Act”). Southern Apartment Group – Harding, LLC is a North Carolina member-managed limited liability company whose business address is 1435 West Morehead Street, Suite 130, Charlotte, North Carolina, 28208. The principal officer is Mr. Shane Seagle. This Agreement pertains to 1.67 acres located at Greenwood Cliff and Harding Place in Charlotte, Mecklenburg County, bearing Tax Identification Numbers 12521214, 12521213, 12521212, 12521206, 12521207, 12521208, 12521209, and 12521210. The proposed use of the property that is the subject of this agreement is multi-family residential, office, retail, parking, and subject to DEQ’s prior written approval, other commercial uses. A map showing the location of the property which is the subject of this Agreement is attached hereto as Exhibit 1. The Parties agree to undertake all actions required by the terms and conditions of this 2 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) Agreement. The purpose of this Agreement is to settle and resolve, subject to reservations and limitations contained in Section VIII (Certification), Section IX (DEQ’s Covenant Not to Sue and Reservation of Rights) and Section X (Prospective Developer’s Covenant Not to Sue), the potential liability of Southern Apartment Group – Harding, LLC for contaminants at the property which is the subject of this Agreement. The Parties agree that Southern Apartment Group – Harding, LLC’s entry into this Agreement, and the actions undertaken by Southern Apartment Group – Harding, LLC in accordance with the Agreement, do not constitute an admission of any liability by Southern Apartment Group – Harding, LLC. The resolution of this potential liability, in exchange for the benefit Southern Apartment Group – Harding, LLC shall provide to DEQ, is in the public interest. II. DEFINITIONS Unless otherwise expressly provided herein, terms used in this Agreement which are defined in the Act or elsewhere in NCGS § 130A, Article 9 shall have the meaning assigned to them in those statutory provisions, including any amendments thereto. 1. “Property” shall mean the Brownfields Property which is the subject of this Agreement, and which is depicted in Exhibit 1 to the Agreement. 2. "Prospective Developer" shall mean Southern Apartment Group – Harding, LLC. III. STATEMENT OF FACTS 3. The Property comprises 1.67 acres. Prospective Developer has committed itself to redevelopment for no uses other than multi-family residential, office, retail, parking, and subject 3 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) to DEQ’s prior written approval, other commercial uses. 4. The Property is bordered to the north by land used for a Wells Fargo Bank, Kenilworth Avenue, and Greenwood Cliff Road; to the south by Greenwood Cliff Road and Harding Place, beyond which is land used for residences, apartments and offices; to the east by Greenwood Cliff Road, beyond which is land used for offices and residences; and to the west by Harding Place, beyond which is land used for residences and land actively under construction and owned by Dilworth Ventures, LLC. 5. Prospective Developer obtained or commissioned the following reports, referred to hereinafter as the “Environmental Reports,” regarding the Property: Title Prepared by Date of Report Revised Phase I Environmental Site Assessment – Harding Place Assemblage Hart & Hickman, PC October 14, 2015 Phase II Soil Assessment Report – Harding Place Assemblage Hart & Hickman, PC January 12, 2016 Brownfields Receptor Survey Hart & Hickman, PC June 29, 2016 Brownfields Assessment Report – Greenwood Cliff and Harding Place Hart & Hickman, PC July 1, 2016 6. For purposes of this Agreement, DEQ relies on the following representations by Prospective Developer as to use and ownership of the Property: a. Prior to 1929 the Property was developed with single-family residences and associated outbuildings. b. From the late 1960s to the early 2000s, the single-family residences located at 1316 and 1328 Greenwood Cliff and 1315, 1317, and 1325 Harding Place transitioned to 4 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) commercial use such as offices and salons. The remaining parcels continued as residential uses. c. A dark room utilized for photograph processing was identified in the basement of the property at 1316 Greenwood Cliff. d. The Prospective Developer negotiated a contract for purchase of the parcels. The parcels comprising the Property were purchased by a related entity on August 30, 2016, known as Harding Place Residential Partners, LLC, which is partly owned by the Prospective Developer. 7. Pertinent environmental information regarding the Property and surrounding area includes the following: a. Three existing underground storage tanks (USTs) were identified at the Property at the structures associated with the following addresses: 1325 Harding Place (Tax ID 12521209), 1329 Harding Place (Tax ID 12525210), and 1328 Greenwood Cliff (Tax ID 12525212). The UST at 1328 Greenwood Cliff has not yet been evaluated for a release, due to the lack of access allowed by the property owner. There is potential for additional heating oil USTs to have been or currently be present on the Property. b. A photography studio with active dark room formerly operated in the basement of the building at 1316 Greenwood Cliff (Tax ID 12521214). A floor drain was noted in the former dark room and was reportedly connected to the City of Charlotte sewer system. 8. Environmental information regarding the groundwater, soil, and vapor on the Property includes the following: a. Two groundwater samples collected in 2016 were analyzed; however, no 5 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) constituents were identified above applicable standards. b. Soil sampling indicated concentrations of various constituents above applicable screening levels as outlined below. i. Petroleum impacted soils were identified around the UST associated with the residence at 1325 Harding Place. ii. Lead impacted soils were identified in the driplines of select site residential structures. These impacts are estimated to extend up to 8 ft from the building foundations and to a depth up to 1.25 ft below existing ground surface. iii. Antimony, cobalt, and vanadium were detected above the residential screening criteria. However, based on the lack of a likely source of these compounds and the consistent concentrations across the site horizontally and at various depths, these appear to be naturally occurring metals in site soils. iv. Manganese was identified adjacent to the floor drain in the former dark room at 1316 Greenwood Cliff at a concentration slightly above naturally occurring background levels but still above residential screening criteria c. Soil vapor sampling was not required due to the lack of groundwater impacts identified and the knowledge that petroleum impacted soils would be removed prior to new construction. d. One or more data tables reflecting the concentrations of and other information regarding the Property’s contaminants appear in Exhibit 2 to this Agreement. 9. For purposes of this Agreement DEQ relies on Prospective Developer’s 6 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) representations that Prospective Developer's involvement with the Property has been limited to obtaining or commissioning the Environmental Reports, preparing and submitting to DEQ a Brownfields Property Application (BPA) dated January 21, 2016, and negotiating purchase contracts for the Property. 10. Prospective Developer has provided DEQ with information, or sworn certifications regarding that information on which DEQ relies for purposes of this Agreement, sufficient to demonstrate that: a. Prospective Developer and any parent, subsidiary, or other affiliate has substantially complied with federal and state laws, regulations and rules for protection of the environment, and with the other agreements and requirements cited at NCGS § 130A- 310.32(a)(1); b. As a result of the implementation of this Agreement, the Property will be suitable for the uses specified in the Agreement while fully protecting public health and the environment; c. Prospective Developer's reuse of the Property will produce a public benefit commensurate with the liability protection provided Prospective Developer hereunder; d. Prospective Developer has or can obtain the financial, managerial and technical means to fully implement this Agreement and assure the safe use of the Property; and e. Prospective Developer has complied with all applicable procedural requirements. 11. The Parties agree that a $30,000 “Redevelopment Now” fee Prospective Developer 7 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) has paid suffices as the $2,000 fee to seek a brownfields agreement required by NCGS § 130A- 310.39(a)(1), and, within the meaning of NCGS § 130A-310.39(a)(2), the full cost to DEQ and the North Carolina Department of Justice of all activities related to this Agreement, unless a change is sought to a Brownfields document after it is in effect, in which case there shall be an additional fee of at least $1,000. IV. BENEFIT TO COMMUNITY 12. The redevelopment of the Property proposed herein would provide the following public benefits: a. an increase in the Property’s productivity; b. the creation of construction jobs during redevelopment; c. an increase in the tax base in a currently underutilized area; d. project location adjacent to a public greenway promotes pedestrian travel and the reduction of dependence on vehicular transportation; and e. “smart growth” through use of land in an already developed area, which avoids development of land beyond the urban fringe (“greenfields”). V. WORK TO BE PERFORMED 13. In redeveloping the Property, Prospective Developer shall consider the application of sustainability principles at the Property, using the nine (9) areas incorporated into the U.S. Green Building Council Leadership in Energy and Environmental Design certification program (Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality, Locations & Linkages, Awareness & Education, Innovation in Design 8 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) and Regional Priority), or a similar program. 14. Based on the information in the Environmental Reports, and subject to imposition of and compliance with the land use restrictions set forth below, and subject to Section IX of this Agreement (DEQ’s Covenant Not to Sue and Reservation of Rights), DEQ is not requiring Prospective Developer to perform any active remediation at the Property other than remediation that may be required pursuant to a DEQ-approved Environmental Management Plan (EMP) required by this Section. 15. By way of the Notice of Brownfields Property referenced below in paragraph 20, Prospective Developer shall impose the following land use restrictions under the Act, running with the land, to make the Property suitable for the uses specified in this Agreement while fully protecting public health and the environment instead of remediation to unrestricted use standards. All references to DEQ shall be understood to include any successor in function. a. No use may be made of the Property other than for multi-family residential, office, retail, parking, and subject to DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply. i. Multi-family residential is defined as multi-unit human dwellings, such as duplexes, triplexes, quadriplexes, condominia, or apartments. Single family homes or units with yards are prohibited unless waived in writing by DEQ in advance. ii. Office is defined as the provision of business or professional services. iii. Retail is defined as the sale of goods or services, products, or 9 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products. iv. Parking is defined as the temporary accommodation of motor vehicles in an area designed for same. v. Commercial is defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. b. The Property may not be used for child care, adult care centers or schools without the prior written approval of DEQ. c. Groundwater at the Property may not be used for any purpose without the prior written approval of DEQ. d. Soil may not be removed from, or brought onto, the property without prior sampling and analysis to DEQ’s satisfaction and the written approval of DEQ, unless conducted in accordance with an approved EMP as outlined in Paragraph 15.h. e. No activity that disturbs soil on the Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Property will be suitable for the uses specified in subparagraph 15.a. above while fully protecting public health and the environment, except: i. Mowing and pruning of above-ground vegetation; ii. Repair of underground infrastructure; 10 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) iii. Activities in accordance with an Environmental Management Plan as outlined in subparagraph 15.h. f. Demolition of site structures shall be conducted in accordance with all applicable local, state, and federal legal requirements, including without limitation those related to lead and asbestos abatement that are administered by the Health Hazards Control Unit within the Division of Public Health of the North Carolina Department of Health and Human Services. g. Not later than completion of redevelopment, the known USTs, identified above in subparagraph 7.a. shall be removed. The removal plans for these USTs, and any new ones discovered during redevelopment activities, shall be addressed in the EMP required in subparagraph 15.h. below h. Physical redevelopment of the Property may not occur other than in accord, as determined by DEQ, with an EMP approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each subsequent redevelopment phase) that is consistent with all the other land use restrictions and describes redevelopment activities at the Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Property during construction or redevelopment in any other form, including without limitation: i. soil and water management issues, including without limitation those resulting from contamination identified in the Environmental Reports; ii. issues related to potential sources of contamination referenced in paragraph 8 above; 11 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and iv. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. i. By January 30 of each year after the effective date of this Agreement for as long as physical redevelopment of the Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: i. actions taken on the Property in accordance with Section V: Work to be Performed above; ii. soil grading and cut and fill actions; iii. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; iv. stockpiling, containerizing, decontaminating, treating, handling, laboratory analysis and ultimate disposition of any soil, groundwater or other materials suspected or confirmed to be contaminated with regulated substances; and v. removal of any UST, contaminated soil, water or other contaminated materials (for example, concrete, demolition debris) from the Property (copies of all legally 12 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) required manifests shall be included). j. Neither DEQ, nor any party conducting environmental assessment or remediation at the Property at the direction of, or pursuant to a permit, order or agreement issued or entered into by DEQ, may be denied access to the Property for purposes of conducting such assessment or remediation, which is to be conducted using reasonable efforts to minimize interference with authorized uses of the Property. k. Any deed or other instrument conveying an interest in the Property shall contain the following notice: “The Property which is the subject of this instrument is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures related to the conveyance may be redacted. If DEQ issues prior, written approval, Prospective Developer may use the following mechanisms to comply with the obligations of this paragraph, subject to the terms and conditions that DEQ may establish in such approval: (i) If every lease and rider is identical in form, Prospective Developer may provide DEQ with copies of a form lease or rider evidencing compliance with this paragraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notice and Submissions); or (ii) Prospective Developer may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. l. None of the contaminants known to be present in the environmental media at the Property, as described in Exhibit 2 of this Agreement and as modified by DEQ in writing if 13 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) additional contaminants in excess of applicable standards are discovered at the Property, may be used or stored at the Property without the prior written approval of DEQ, except: i. in de minimis quantities for cleaning and other routine housekeeping and maintenance activities; ii. as constituents of products and materials customarily used and stored in office and retail environments, provided such products and materials are stored in original retail packaging and used and disposed of in accordance with applicable laws; and iii. as fuel or other fluids customarily used in vehicles, landscaping equipment, and emergency generators. m. During January of each year after the year in which the Notice referenced below in paragraph 20 is recorded, the owner of any part of the Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Mecklenburg County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Mecklenburg County Register of Deeds office and that the land use restrictions are being complied with, and stating: i. the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the owner, board, association or approved entity submitting the LURU if said owner, acquired any part of the Property during the previous calendar year; ii. the transferee’s name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address, if said owner transferred any part of the Property 14 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) during the previous calendar year; iii. A LURU submitted for any portion of the Property that contains rental units shall include a list of tenants and their addresses; iv. A LURU submitted for rental units shall include the rent roll (renter/lessee’s name and address) and enough of each lease (which can be a form lease as described in paragraph 21) entered into during the previous calendar year to demonstrate compliance with lessee notification requirements in paragraphs 15.k. and 22 of this agreement. v. A property owners’ association or other entity may perform this LURU’s duties, on behalf of some or all owners of the Property, if said association or entity has accepted responsibility for such performance pursuant to a notarized instrument satisfactory to DEQ that includes at a minimum, the name, mailing address, telephone and facsimile numbers, and e-mail address of each owner on whose behalf the LURU is proposed to be submitted. 16. The desired result of the above-referenced land use restrictions is to make the Property suitable for the uses specified in the Agreement while fully protecting public health and the environment. 17. The guidelines, including parameters, principles and policies within which the desired results are to be accomplished are, as to field procedures and laboratory testing, the Guidelines of the Inactive Hazardous Sites Branch of DEQ’s Superfund Section and Division of Waste Management Vapor Intrusion Guidance, as embodied in their most current version. 18. The consequence of achieving the desired results will be that the Property will be suitable for the uses specified in the Agreement while fully protecting public health and the 15 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) environment. The consequence of not achieving the desired results will be that modifications to land use restrictions and/or remediation in some form may be necessary to fully protect public health and/or the environment. VI. ACCESS/NOTICE TO SUCCESSORS IN INTEREST 19. In addition to providing access to the Property pursuant to subparagraph 15.j. above, Prospective Developer shall provide DEQ, its authorized officers, employees, representatives, and all other persons performing response actions under DEQ oversight, access at all reasonable times to other property controlled by Prospective Developer in connection with the performance or oversight of any response actions at the Property under applicable law, which access is to occur after prior notice and using reasonable efforts to minimize interference with authorized uses of such other property except in response to emergencies and/or imminent threats to public health and the environment. While Prospective Developer owns the Property, DEQ shall provide reasonable notice to Prospective Developer of the timing of any response actions to be undertaken by or under the oversight of DEQ at the Property. Except as may be set forth in the Agreement, DEQ retains all of its authorities and rights, including enforcement authorities related thereto, under the Act and any other applicable statute or regulation, including any amendments thereto. 20. DEQ has approved, pursuant to NCGS § 130A-310.35, a Notice of Brownfields Property for the Property containing, inter alia, the land use restrictions set forth in Section V (Work to Be Performed) of this Agreement and a survey plat of the Property. Pursuant to NCGS § 130A-310.35(b), within 15 days of the effective date of this Agreement Prospective Developer 16 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) shall file the Notice of Brownfields Property in the Mecklenburg County, North Carolina, Register of Deeds’ Office. Within three (3) days thereafter, Prospective Developer shall furnish DEQ a copy of the documentary component of the Notice containing a certification by the register of deeds as to the Book and Page numbers where both the documentary and plat components of the Notice are recorded, and a copy of the plat with notations indicating its recordation. 21. This Agreement shall be attached as Exhibit A to the Notice of Brownfields Property. Subsequent to recordation of said Notice, any deed or other instrument conveying an interest in the Property shall contain the following notice: “The property which is the subject of this instrument is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures related to the conveyance may be redacted. Prospective Developer may use the following mechanisms to comply with the obligations of this paragraph: (i) If every lease and rider is identical in form, Prospective Developer may provide DEQ with copies of a form lease or rider evidencing compliance with this paragraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notice and Submissions); or (ii) Prospective Developer may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. 22. The Prospective Developer shall ensure that a copy of this Agreement is provided to any current lessee or sublessee on the Property within seven days of the effective date of this 17 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) Agreement. VII. DUE CARE/COOPERATION 23. The Prospective Developer shall exercise due care at the Property with respect to the manner in which regulated substances are handled at the Property and shall comply with all applicable local, State, and federal laws and regulations. The Prospective Developer agrees to cooperate fully with any assessment or remediation of the Property by DEQ and further agrees not to interfere with any such assessment or remediation. In the event the Prospective Developer becomes aware of any action or occurrence which causes or threatens a release of contaminants at or from the Property, the Prospective Developer shall immediately take all appropriate action to prevent, abate, or minimize such release or threat of release, shall comply with any applicable notification requirements under NCGS § 130A-310.1 and 143-215.85, Section 103 of CERCLA, 42 USC § 9603, and/or any other law, and shall immediately notify the DEQ Official referenced in paragraph 35.a. below of any such required notification. VIII. CERTIFICATION 24. By entering into this Agreement, the Prospective Developer certifies that, without DEQ approval, it will make no use of the Property other than that committed to in the Brownfields Property Application dated January 21, 2016 by which it applied for this Agreement. That use is for multi-family residential, office, retail, parking, and subject to DEQ’s prior written approval, other commercial uses. Prospective Developer also certifies that to the best of its knowledge and belief it has fully and accurately disclosed to DEQ all information known to Prospective Developer and all information in the possession or control of its officers, 18 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) directors, employees, contractors and agents which relates in any way to any past use of regulated substances or known contaminants at the Property and to its qualification for this Agreement, including the requirement that it not have caused or contributed to the contamination at the Property. IX. DEQ’S COVENANT NOT TO SUE AND RESERVATION OF RIGHTS 25. Unless any of the following apply, Prospective Developer shall not be liable to DEQ, and DEQ covenants not to sue Prospective Developer, for remediation of the Property except as specified in this Agreement: a. The Prospective Developer fails to comply with this Agreement. b. The activities conducted on the Property by or under the control or direction of the Prospective Developer increase the risk of harm to public health or the environment, in which case Prospective Developer shall be liable for remediation of the areas of the Property, remediation of which is required by this Agreement, to the extent necessary to eliminate such risk of harm to public health or the environment. c. A land use restriction set out in the Notice of Brownfields Property required under NCGS § 130A-310.35 is violated while the Prospective Developer owns the Property, in which case the Prospective Developer shall be responsible for remediation of the Property to unrestricted use standards. d. The Prospective Developer knowingly or recklessly provided false information that formed a basis for this Agreement or knowingly or recklessly offers false information to demonstrate compliance with this Agreement or fails to disclose relevant information about 19 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) contamination at the Property. e. New information indicates the existence of previously unreported contaminants or an area of previously unreported contamination on or associated with the Property that has not been remediated to unrestricted use standards, unless this Agreement is amended to include any previously unreported contaminants and any additional areas of contamination. If this Agreement sets maximum concentrations for contaminants, and new information indicates the existence of previously unreported areas of these contaminants, further remediation shall be required only if the areas of previously unreported contaminants raise the risk of the contamination to public health or the environment to a level less protective of public health and the environment than that required by this Agreement. f. The level of risk to public health or the environment from contaminants is unacceptable at or in the vicinity of the Property due to changes in exposure conditions, including (i) a change in land use that increases the probability of exposure to contaminants at or in the vicinity of the Property or (ii) the failure of remediation to mitigate risks to the extent required to make the Property fully protective of public health and the environment as planned in this Agreement. g. DEQ obtains new information about a contaminant associated with the Property or exposures at or around the Property that raises the risk to public health or the environment associated with the Property beyond an acceptable range and in a manner or to a degree not anticipated in this Agreement. h. The Prospective Developer fails to file a timely and proper Notice of 20 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) Brownfields Property under NCGS § 130A-310.35. 26. Except as may be provided herein, DEQ reserves its rights against Prospective Developer as to liabilities beyond the scope of the Act. 27. This Agreement does not waive any applicable requirement to obtain a permit, license or certification, or to comply with any and all other applicable law, including the North Carolina Environmental Policy Act, NCGS § 113A-1, et seq. 28. Consistent with NCGS § 130A-310.33, the liability protections provided herein, and any statutory limitations in paragraphs 25 through 27 above, apply to all of the persons listed in NCGS § 130A-310.33, including future owners of the Property, to the same extent as Prospective Developer, so long as these persons are not otherwise potentially responsible parties or parents, subsidiaries, or affiliates of potentially responsible parties. X. PROSPECTIVE DEVELOPER'S COVENANT NOT TO SUE 29. In consideration of DEQ’s Covenant Not To Sue in Section IX of this Agreement and in recognition of the absolute State immunity provided in NCGS § 130A-310.37(b), the Prospective Developer hereby covenants not to sue and not to assert any claims or causes of action against DEQ, its authorized officers, employees, or representatives with respect to any action implementing the Act, including negotiating, entering, monitoring or enforcing this Agreement or the above-referenced Notice of Brownfields Property. XI. PARTIES BOUND 30. This Agreement shall apply to and be binding upon DEQ, and on the Prospective Developer, its officers, directors, employees, and agents. Each Party’s signatory to this 21 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) Agreement represents that she or he is fully authorized to enter into the terms and conditions of this Agreement and to legally bind the Party for whom she or he signs. XII. DISCLAIMER 31. This Agreement in no way constitutes a finding by DEQ as to the risks to public health and the environment which may be posed by regulated substances at the Property, a representation by DEQ that the Property is fit for any particular purpose, nor a waiver of Prospective Developer’s duty to seek applicable permits or of the provisions of NCGS § 130A- 310.37. 32. Except for the Land Use Restrictions set forth in paragraph 15 above and NCGS § 130A-310.33(a)(1)-(5)'s provision of the Act's liability protection to certain persons to the same extent as to a prospective developer, no rights, benefits or obligations conferred or imposed upon Prospective Developer under this Agreement are conferred or imposed upon any other person. XIII. DOCUMENT RETENTION 33. The Prospective Developer agrees to retain and make available to DEQ all business and operating records, contracts, site studies and investigations, remediation reports, and documents generated by and/or in the control of the Prospective Developer, its affiliates or subsidiaries relating to storage, generation, use, disposal and management of regulated substances at the Property, including without limitation all Material Safety Data Sheets or Safety Data Sheets, for six (6) years following the effective date of this Agreement, unless otherwise agreed to in writing by the Parties. Said records may be retained electronically such that they can be retrieved and submitted to DEQ upon request. At the end of six (6) years, the Prospective 22 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) Developer shall notify DEQ of the location of such documents and shall provide DEQ with an opportunity to copy any documents at the expense of DEQ. To the extent DEQ retains any copies of such documents, Prospective Developer retains all rights it then may have to seek protection from disclosure of such documents as confidential business information. XIV. PAYMENT OF ENFORCEMENT COSTS 34. If the Prospective Developer fails to comply with the terms of this Agreement, including, but not limited to, the provisions of Section V (Work to be Performed), it shall be liable for all litigation and other enforcement costs incurred by DEQ to enforce this Agreement or otherwise obtain compliance. XV. NOTICES AND SUBMISSIONS 35. Unless otherwise required by DEQ or a Party notifies the other Party in writing of a change in contact information, all notices and submissions pursuant to this Agreement shall be sent by prepaid first class U.S. mail, as follows: a. for DEQ: Joselyn Harriger (or successor in function) N.C. Division of Waste Management Brownfields Program Mail Service Center 1646 Raleigh, NC 27699-1646 b. for Prospective Developer: Shane Seagle Southern Apartment Group – Harding, LLC 1435 West Morehead Street, Suite 130 Charlotte, North Carolina, 28208 23 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) Notices and submissions sent by prepaid first class U.S. mail shall be effective on the third day following postmarking. Notices and submissions sent by hand or by other means affording written evidence of date of receipt shall be effective on such date. XVI. EFFECTIVE DATE 36. This Agreement shall become effective on the date the Prospective Developer signs it, after receiving the signed, conditionally approved Agreement from DEQ. DEQ’s approval of this Agreement is conditioned upon the complete and timely execution and filing of this Agreement in the manner set forth herein. Prospective Developer shall expeditiously sign the Agreement in order to effect the recordation of the full Notice of Brownfields Property within the statutory deadline of 15 days following such receipt. If the Agreement is not signed by Prospective Developer within 45 days after such receipt, DEQ has the right to revoke its approval and certification of this Agreement, and invalidate its signature on this Agreement. XVII. TERMINATION OF CERTAIN PROVISIONS 37. If any Party believes that any or all of the obligations under Section VI (Access/Notice to Successors in Interest) are no longer necessary to ensure compliance with the requirements of the Agreement, that Party may request in writing that the other Party agree to terminate the provision(s) establishing such obligations; provided, however, that the provision(s) in question shall continue in force unless and until the Party requesting such termination receives written agreement from the other Party to terminate such provision(s). XVIII. CONTRIBUTION PROTECTION 38. With regard to claims for contribution against Prospective Developer in relation to 24 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) the subject matter of this Agreement, Prospective Developer is entitled to protection from such claims to the extent provided by NCGS § 130A-310.37(a)(5)-(6). The subject matter of this Agreement is all remediation taken or to be taken and response costs incurred or to be incurred by DEQ or any other person in relation to the Property. 39. The Prospective Developer agrees that, with respect to any suit or claim for contribution brought by it in relation to the subject matter of this Agreement, it will notify DEQ in writing no later than 60 days prior to the initiation of such suit or claim. 40. The Prospective Developer also agrees that, with respect to any suit or claim for contribution brought against it in relation to the subject matter of this Agreement, it will notify DEQ in writing within 10 days of service of the complaint on it. XIX. PUBLIC COMMENT 41. This Agreement shall be subject to a public comment period of at least 30 days starting the day after the last to occur of the following: publication of the approved summary of the Notice of Intent to Redevelop a Brownfields Property required by NCGS § 130A-310.34 in a newspaper of general circulation serving the area in which the Property is located, conspicuous posting of a copy of said summary at the Property, and mailing or delivery of a copy of the summary to each owner of property contiguous to the Property. After expiration of that period, or following a public meeting if DEQ holds one pursuant to NCGS § 130A-310.34(c), DEQ may modify or withdraw its consent to this Agreement if comments received disclose facts or considerations which indicate that this Agreement is inappropriate, improper or inadequate. 25 BF # 20009-16-060/ Harding Place Assemblage (DRAFT 2016.09.06) IT IS SO AGREED: NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY By: ____________________________________________________________________________ Michael E. Scott Date Director, Division of Waste Management IT IS SO AGREED: SOUTHERN APARTMENT GROUP – HARDING, LLC By: ____________________________________________________________________________ Shane Seagle Date Manager, Southern Apartment Group – Harding, LLC EXHIBIT 1. SITE LOCATION MAP Harding Place Assemblage Harding Place and Greenwood Cliff Charlotte, North Carolina DATE: JOB NO: REVISION NO: FIGURE NO: 8-24-2016 0 1SAG-006 0 2000 4000 APPROXIMATE SCALE IN FEET N U.S.G.S. QUADRANGLE MAP 7.5 MINUTE SERIES (TOPOGRAPHIC) 2923 S. Tryon Street, Suite 100Charlotte, NC 28203704.586.0007(p) 704.586.0373(f) CHARLOTTE EAST, NORTH CAROLINA 1991 SITE BF# 20009-16-060/Harding Place Assemblage (Draft 2016.09.06)   1 Exhibit 2 The most recent environmental sampling at the Property reported in the Environmental Reports occurred on May 16, 2016. The following table sets forth, for contaminants present at the Property above unrestricted use standards or screening levels, the concentration found at each sample location, and the applicable standard or screening level. Screening levels are shown for reference only and are not set forth as cleanup levels for purposes of this Agreement. SOIL Soil contaminants in milligrams per kilogram (the equivalent of parts per million), the screening levels for which are derived from the Preliminary Residential Health- Based Soil Remediation Goals of the Inactive Hazardous Sites Branch of DEQ’s Superfund Section (April 2016 version) or for aliphatics and aromatics from the DEQ UST Section Maximum Soil Contaminant Concentration Levels (MSCCs, December 1, 2013). Soil Contaminant Sample Location Depth (ft) Date of Sampling Maximum Concentration Exceeding Screening Level (mg/kg) Residential Screening Level 1 (mg/kg) Antimony 2 Block 2 0-2 4/11/2016 6.5 6.2 Block 2 2-10 4/11/2016 6.4 Block 4 0-2 4/13/2016 8.3 Block 5 0-2 4/13/2016 7.41 Block 5 19-29 4/13/2016 7.19 Cobalt 2 Block 2 0-2 4/11/2016 13.2 4.6 Block 2 2-10 4/11/2016 46.6 Block 2 10-20 4/11/2016 20.1 Block 2 20-33 4/11/2016 29.2 Block 3 0-2 4/12/2016 15.0 Block 3 2-9 4/12/2016 48.1 Block 3 9-18 4/12/2016 25.8 Block 3 18-28 4/12/2016 24.8 Block 4 0-2 4/13/2016 8.35 Block 4 2-8 4/13/2016 6.53 Block 4 8-16 4/13/2016 21.5 Block 4 16-25 4/13/2016 20.4 Block 4 Dup 2 Grab 2-8 4/13/2016 9.95 BF# 20009-16-060/Harding Place Assemblage (Draft 2016.09.06)   2 Soil Contaminant Sample Location Depth (ft) Date of Sampling Maximum Concentration Exceeding Screening Level (mg/kg) Residential Screening Level 1 (mg/kg) Cobalt 2 Block 5 0-2 4/13/2016 21.4 4.6 Block 5 2-9 4/13/2016 40.3 Block 5 9-19 4/13/2016 23.5 Block 5 19-29 4/13/2016 26.7 Block 6 0-2 4/12/2016 9.37 Block 6 2-8 4/12/2016 12.8 Block 6 8-16 4/12/2016 11.6 Block 6 16-25 4/12/2016 14.6 Lead Block 3 0-0.5 4/15/2016 744 400 Block 5 0-0.5 4/15/2016 997 Block 6 0-0.5 4/15/2016 514 Manganese FD-1 (1316 Greenwood Cliff) 5 12/14/2015 3710 360 Block 4 8-16 4/13/2016 835 2 Block 4 16-25 4/13/2016 940 2 Vanadium 2 Block 2 0-2 4/11/2016 170 78 Block 2 2-10 4/11/2016 197 Block 2 10-20 4/11/2016 99.0 Block 2 20-33 4/11/2016 146 Block 3 0-2 4/12/2016 116 Block 3 2-9 4/12/2016 129 Block 3 9-18 4/12/2016 80.7 Block 3 18-28 4/12/2016 110 Block 4 0-2 4/13/2016 241 Block 4 2-8 4/13/2016 119 Block 4 8-16 4/13/2016 114 Block 4 16-25 4/13/2016 84.4 Block 4 Dup 2 Grab 2-8 4/13/2016 105 Block 5 0-2 4/13/2016 159 Block 5 2-9 4/13/2016 99.5 Block 5 9-19 4/13/2016 105 Block 5 19-29 4/13/2016 131 Block 6 0-2 4/12/2016 99.0 BF# 20009-16-060/Harding Place Assemblage (Draft 2016.09.06)   3 Soil Contaminant Sample Location Depth (ft) Date of Sampling Maximum Concentration Exceeding Screening Level (mg/kg) Residential Screening Level 1 (mg/kg) EPH Aliphatic C9-C18 UST-2 - 1325 Harding Place 9 12/15/2015 2,750 1,500 Total C9-C18 Aliphatics UST-2 (1325 Harding Place) 9 12/14/2015 2,836.3 1,500 Total C9-C22 Aromatics UST-2 (1325 Harding Place) 9 12/14/2015 871.9 469 Notes: 1) Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-6 lifetime incremental cancer risk. 2) Concentrations of select metals believed to represent naturally occurring background level of metal in soil. 3) “Block” sample designation indicates a composite sample collected across Blocks 2 through 6 as shown on the Plat. K e n i l w o r t h A v e n u e STOPCALL N.C. ONE-CALL BEFORE YOU DIG 800-632-4949 AVOID UTILITY DAMAGE G r e e n w o o d C l i f f HARDING PLACE ASSEMBLAGE 1" = 20'057-16-001 07/05/16 CLK CLK 21CLIENT: SOUTHERN APARTMENT GROUP - P.O. BOX 34781 CHARLOTTE, NC 28234 CITY OF CHARLOTTE, MECKLENBURG COUNTY, NC EXHIBIT B to the Notice of Brownfields property-SURVEY PLAT 2- 4 2- 6 3- 1 3-3 3-53-66-5 3- 26- 2 5- 2 5- 1 4- 1 4- 5 4- 4 4- 3 4- 6 5- 4 5- 3 6-3 6-4 2- 2 2- 1 2- 5 3-46-1 FD - 1 FOR PROSPECTIVE DEVELOPER:SOUTHERN APARTMENT GROUP- HARDING, LLC P.O. BOX 34781 CHARLOTTE, NC 28234 SEE PROPERTY OWNER AT TIME OF FILING LISTMETROLINAENGINEERING &SURVEYING ASSOCIATES 4400 STUART ANDREW BLVD SUITE N CHARLOTTE, NC 28217 P (704) 334-1325 F (704) 334-1330 NC #C-1170 & SC #C00946 H a r d i n g P l a c e 057-16-001 07/05/16 CLK CLK 22CLIENT: SOUTHERN APARTMENT GROUP - P.O. BOX 34781 CHARLOTTE, NC 28234 CITY OF CHARLOTTE, MECKLENBURG COUNTY, NC EXHIBIT B to the Notice of Brownfields property-SURVEY PLAT HARDING PLACE ASSEMBLAGE FOR OWNER AND PROSPECTIVE DEVELOPER:SOUTHERN APARTMENT GROUP- HARDING, LLC P.O. BOX 34781 CHARLOTTE, NC 282344400 STUART ANDREW BLVD SUITE N CHARLOTTE, NC 28217 P (704) 334-1325 F (704) 334-1330METROLINAENGINEERING &SURVEYING ASSOCIATES NC #C-1170 & SC #C00946 SEE PROPERTY OWNER AT TIME OF FILING LIST So i l Co n t a m i n a n t Sa m p l e Lo c a t i o n De p t h (f t ) Da t e o f Sa m p l i n g Ma x i m u m Co n c e n t r a t i o n Ex c e e d i n g Sc r e e n i n g Le v e l ( m g / k g ) Re s i d e n t i a l Sc r e e n i n g Le v e l 1 (m g / k g ) An t i m o n y 2 Bl o c k 2 0 - 2 4 / 1 1 / 2 0 1 6 6 . 5 6. 2 Bl o c k 2 2 - 1 0 4 / 1 1 / 2 0 1 6 6 . 4 Bl o c k 4 0 - 2 4 / 1 3 / 2 0 1 6 8 . 3 Bl o c k 5 0 - 2 4 / 1 3 / 2 0 1 6 7 . 4 1 Bl o c k 5 1 9 - 2 9 4 / 1 3 / 2 0 1 6 7 . 1 9 Co b a l t 2 Bl o c k 2 0 - 2 4 / 1 1 / 2 0 1 6 1 3 . 2 4. 6 Bl o c k 2 2 - 1 0 4 / 1 1 / 2 0 1 6 4 6 . 6 Bl o c k 2 1 0 - 2 0 4 / 1 1 / 2 0 1 6 2 0 . 1 Bl o c k 2 2 0 - 3 3 4 / 1 1 / 2 0 1 6 2 9 . 2 Bl o c k 3 0 - 2 4 / 1 2 / 2 0 1 6 1 5 . 0 Bl o c k 3 2 - 9 4 / 1 2 / 2 0 1 6 4 8 . 1 Bl o c k 3 9 - 1 8 4 / 1 2 / 2 0 1 6 2 5 . 8 Bl o c k 3 1 8 - 2 8 4 / 1 2 / 2 0 1 6 2 4 . 8 Bl o c k 4 0 - 2 4 / 1 3 / 2 0 1 6 8 . 3 5 Bl o c k 4 2 - 8 4 / 1 3 / 2 0 1 6 6 . 5 3 Bl o c k 4 8 - 1 6 4 / 1 3 / 2 0 1 6 2 1 . 5 Bl o c k 4 1 6 - 2 5 4 / 1 3 / 2 0 1 6 2 0 . 4 Bl o c k 4 Du p 2 Gr a b 2 - 8 4/ 1 3 / 2 0 1 6 9 . 9 5 Bl o c k 5 0 - 2 4 / 1 3 / 2 0 1 6 2 1 . 4 Bl o c k 5 2 - 9 4 / 1 3 / 2 0 1 6 4 0 . 3 Bl o c k 5 9 - 1 9 4 / 1 3 / 2 0 1 6 2 3 . 5 Bl o c k 5 1 9 - 2 9 4 / 1 3 / 2 0 1 6 2 6 . 7 Bl o c k 6 0 - 2 4 / 1 2 / 2 0 1 6 9 . 3 7 Bl o c k 6 2 - 8 4 / 1 2 / 2 0 1 6 1 2 . 8 Bl o c k 6 8 - 1 6 4 / 1 2 / 2 0 1 6 1 1 . 6 Bl o c k 6 1 6 - 2 5 4 / 1 2 / 2 0 1 6 1 4 . 6 Le a d Bl o c k 3 0 - 0 . 5 4 / 1 5 / 2 0 1 6 7 4 4 40 0 Bl o c k 5 0 - 0 . 5 4 / 1 5 / 2 0 1 6 9 9 7 Bl o c k 6 0 - 0 . 5 4 / 1 5 / 2 0 1 6 5 1 4 Ma n g a n e s e FD -1 (1 3 1 6 Gr e e n w o o d Cl i f f ) 5 1 2 / 1 4 / 2 0 1 5 3 7 1 0 36 0 Bl o c k 4 8 - 1 6 4 / 1 3 / 2 0 1 6 8 3 5 2 Bl o c k 4 1 6 - 2 5 4 / 1 3 / 2 0 1 6 9 4 0 2 Va n a d i u m 2 Bl o c k 2 0 - 2 4 / 1 1 / 2 0 1 6 1 7 0 78 Bl o c k 2 2 - 1 0 4 / 1 1 / 2 0 1 6 1 9 7 Bl o c k 2 1 0 - 2 0 4 / 1 1 / 2 0 1 6 9 9 . 0 Bl o c k 2 2 0 - 3 3 4 / 1 1 / 2 0 1 6 1 4 6 Bl o c k 3 0 - 2 4 / 1 2 / 2 0 1 6 1 1 6 Bl o c k 3 2 - 9 4 / 1 2 / 2 0 1 6 1 2 9 Bl o c k 3 9 - 1 8 4 / 1 2 / 2 0 1 6 8 0 . 7 Bl o c k 3 1 8 - 2 8 4 / 1 2 / 2 0 1 6 1 1 0 Bl o c k 4 0 - 2 4 / 1 3 / 2 0 1 6 2 4 1 Bl o c k 4 2 - 8 4 / 1 3 / 2 0 1 6 1 1 9 Bl o c k 4 8 - 1 6 4 / 1 3 / 2 0 1 6 1 1 4 Bl o c k 4 1 6 - 2 5 4 / 1 3 / 2 0 1 6 8 4 . 4 Bl o c k 4 Du p 2 Gr a b 2 - 8 4/ 1 3 / 2 0 1 6 1 0 5 Bl o c k 5 0 - 2 4 / 1 3 / 2 0 1 6 1 5 9 Bl o c k 5 2 - 9 4 / 1 3 / 2 0 1 6 9 9 . 5 Bl o c k 5 9 - 1 9 4 / 1 3 / 2 0 1 6 1 0 5 Bl o c k 5 1 9 - 2 9 4 / 1 3 / 2 0 1 6 1 3 1 Bl o c k 6 0 - 2 4 / 1 2 / 2 0 1 6 9 9 . 0 EP H A l i p h a t i c C9 - C 1 8 US T - 2 - 1 3 2 5 Ha r d i n g P l a c e 9 1 2 / 1 5 / 2 0 1 5 2 , 7 5 0 1 , 5 0 0 To t a l C 9 - C 1 8 Al i p h a t i c s US T - 2 (1 3 2 5 H a r d i n g Pl a c e ) 9 1 2 / 1 4 / 2 0 1 5 2 , 8 3 6 . 3 1 , 5 0 0 To t a l C 9 - C 2 2 Ar o m a t i c s US T - 2 (1 3 2 5 H a r d i n g Pl a c e ) 9 1 2 / 1 4 / 2 0 1 5 8 7 1 . 9 4 6 9 No t e s : 1) S c r e e n i n g l e v e l s d i s p l a y e d f o r n o n - c a r c i n o g e n s a re f o r a h a z a r d q u o t i e n t e q u a l t o 0 . 2 . S c r e e n i n g l ev e l s d i s p l a y e d f o r ca r c i n o g e n s a r e f o r a 1 . 0 E - 6 l i f e t i m e i n c r e m e n t a l c an c e r r i s k . 2) C o n c e n t r a t i o n s o f s e l e c t m e t a l s b e l i e v e d t o r e p r es e n t n a t u r a l l y o c c u r r i n g b a c k g r o u n d l e v e l o f m e t a l i n s o i l . 3) “ B l o c k ” s a m p l e d e s i g n a t i o n i n d i c a t e s a c o m p o s i t e s a m p l e c o l l e c t e d a c r o s s B l o c k s 2 t h r o u g h 6 a s s h o w n o n t h e P l a t . Ex h i b i t 2 SO I L LA N D U S E R E S T R I C T I O N S EXHIBIT C HARDING PLACE ASSEMBLAGE BROWNFIELDS PROPERTY METES AND BOUND DESCRIPTION LYING AND BEING SITUATE IN THE CITY OF CHARLOTTE, MECKLENBURG COUNTY, NORTH CAROLINA AND MORE PARTICULARLY DESCRIBED AS FOLLOWS; BEGINNING AT AN EXISTING IRON PIPE IN THE EASTERLY MARGIN OF HARDING PLACE HAVING A RIGHT-OF-WAY WIDTH OF 40 FEET AND BEING THE COMMON CORNER OF LOTS 10 & 11 OF MAP BOOK 332 AT PAGE 382 IN THE MECKLENBURG COUNTY PUBLIC REGISTRY; THENCE WITH SAID LOTS NORTH 54-05-56 EAST 150.25 FEET TO AN IRON PIPE FOUND; THENCE WITH SAID LOTS AND LOT 6 OF MAP BOOK 3 AT PAGE 453 IN THE MECKLENBURG COUNTY PUBLIC REGISTRY NORTH 35-45-31 WEST 9.61 FEET TO A POINT; THENCE LEAVING LOTS 10 & 11 AND RUNNING WITH SAID LOT 6 AND WACHOVIA BANK AND TRUST COMPANY N/A AS RECORDED IN DEED BOOK 3070 AT PAGE 88 IN THE MECKLENBURG COUNTY PUBLIC REGISTRY NORTH 53-54-52 EAST 139.92 FEET TO IRON PIPE FOUND AND BEING IN THE WESTERLY MARGIN OF GREENWOOD CLIFF AND HAVING A RIGHT-OF-WAY WIDTH OF 40 FEET; THENCE WITH SAID RIGHT-OF-WAY THE FOLLOWING SEVEN (7) COURSES AND DISTANCES (1st) SOUTH 35-53-31 EAST 32.39 FEET A POINT; (2nd) WITH THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 110.92 FEET AND AN ARC LENGTH OF 27.62 FEET AND A CHORD BEARING AND DISTANCE OF SOUTH 27-25-54 EAST 27.55 FEET TO A POINT; (3rd) WITH THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 110.92 FEET AN ARC LENGTH OF 18.59 FEET AND A CHORD BEARING AND DISTANCE OF SOUTH 15-29- 41 EAST 18.57 FEET TO A POINT; (4th) SOUTH 09-22-01 EAST 193.93 FEET TO A SET#4 REBAR; (5th) SOUTH 09-06-31 EAST 27.29 FEET TO A POINT; THENCE (6th) WITH THE ARC OF A CURVE TO THE RIGHT AND HAVING A RADIUS OF 100.00 FEET AN ARC LENGTH OF 40.52 FEET AND A CHORD BEARING AND DISTANCE OF SOUTH 02-24-29 WEST 40.24 FEET TO A POINT; (7th) SOUTH 14-00-59 WEST 5.94 FEET TO A POINT 1.43 FEET NORTH EAST OF AN EXISTING IRON PIPE; THENCE LEAVING SAID RIGHT OF WAY SOUTH 54-11-06 WEST PASSING A EXISTING IRON PIPE AT 1.43 FEET FOR A TOTAL DISTANCE OF 150.72 FEET TO AN EXISTING IRON PIPE SAID PIPE BEING IN THE EASTERLY MARGIN OF HARDING PLACE HAVING A RIGHT-OF-WAY WIDTH OF 40 FEET; THENCE WITH SAID RIGHT-OF-WAY AND LOTS 15, LOT 14, LOT 13THE FOLLOWING FIVE (5) COURSES AND DISTANCES' (1st) NORTH 35-56-17 WEST 60.01 FEET TO AN IRON PIPE FOUND; (2nd) NORTH 35-56-29 WEST 60.01 FEET TO AN IRON PIPE FOUND; (3rd) NORTH 36-02-14 WEST 59.99 FEET TO AN IRON PIPE FOUND; (4th) NORTH 36-15-44 WEST 60.12 FEET TO AN IRON PIPE FOUND; (5th) NORTH 35-47-38 WEST 59.91 FEET TO THE POINT OF BEGINNING AND CONTAINING 1.67 ACRES AS SHOWN ON BROWNFIELDS SURVEY BY CHEVIS L. KING, L-5188, DATED 07-05-16.