10034 NEWCO LOE 20060724

North Carolina Department of Environment and Natural Resources
Dexter R. Matthews, Director Division of Waste Management Michael F. Easley, Governor
William G. Ross Jr., Secretary

1646 Mail Service Center, Raleigh, North Carolina 27699-1646
Phone [phone] \ FAX [phone] \ Internet http://wastenotnc.org
An Equal Opportunity / Affirmative Action Employer – Printed on Dual Purpose Recycled Paper
July 24, 2006

Sent Via E-mail and USPS

RM 36th Street Investors, LLC
c/o David A. Franchina, Esq.
Kennedy Covington Lobdell & Hickman, LLP
214 N. Tryon Street, 47th Floor
Charlotte, NC 28202
[e-mail]

Subject: Letter of Eligibility
NEWCO Fibre Property
430 East 36th and 409 E 35th Streets
Charlotte, Mecklenburg County
Brownfields Project Number 10034-06-60

Dear Mr. Franchina:

The North Carolina Department of Environment and Natural Resources (DENR) has received and
reviewed your June 20, 2006 Letter of Intent (LOI) submitted on behalf of the RM 36th Street Investors LLC,
as a Prospective Developer (PD) seeking a brownfields agreement regarding the subject site. Upon review of
the letters with respect to the requirements of the Brownfields Property Reuse Act of 1997, DENR has
determined that this project is eligible for entry into the North Carolina brownfields program and for continued
evaluation for a brownfields agreement.

The next step in the process will involve a detailed review of available environmental and other relevant
data to determine what is currently known about contamination at the site, and what, if any, information gaps
may exist that may require additional assessment. We are in receipt of the following document submitted with
your LOI: Phase I Environmental Site Assessment prepared by GeoScience Group dated April 12, 2005.
Historical site information from the files of DENR’s Division of Waste Management will also be utilized during
the evaluation process. Please forward any additional information or data you may have or can acquire for our
evaluation. This should include reports from other DENR agencies or regional offices. We will contact you
regarding any additional assessment that may be necessary to establish that the property is or can be made safe
for the intended reuse, as required by statute.

According to the LOI, the intended redevelopment for the site is commercial and/or residential use.
Because risk management decisions may vary depending on the nature of the redevelopment, it will be
important that DENR review the locations of the various elements. Please forward any maps or drawings
indicating these details, even if they are only preliminary or conceptual.
July 24, 2006
Page 2 of 2

Please apprise me within thirty (30) days whether RM 36th Street Investors, LLC anticipates becoming
the owner of the property before or after conclusion of the brownfields process. If after, we need from RM 36th
Street Investors, LLC within thirty (30) days the name, e-mail address and U.S. mail address of the current
owner, so we may e-mail a request for acknowledgment regarding recordation of the Notice of Brownfields
Property (NBP) by RM 36th Street Investors, LLC while that party still owns the property, add to RM 36th Street
Investors, LLC’s signature block in the NBP a signature block for that party, and, at the conclusion of the
process, mail the NBP to that party for signing.

I am enthusiastic about the potential for public benefit offered by the safe reuse of the NEWCO Fibre
Property, and I look forward to working with you to advance this brownfields redevelopment project. If you
have questions about this correspondence or require additional information, please feel free to contact Carolyn
Minnich by phone at [phone], or by e-mail at [e-mail].

Sincerely,

Carolyn Minnich

Carolyn F. Minnich
Brownfields Project Manager

cc: Project File

ec: Rob Gelblum, Rob Gelblum, Special Deputy Attorney General
Bruce Nicholson, DENR