CBMSF-Eligibility Appoval-02182015 (2)-signed

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North Carolina Department of Environment and Natural Resources

Pat McCrory
Governor
Donald R. van der Vaart
Secretary

February 18, 2015

Sent Via E-mail and USPS

Mr. Michael Cramer, Town Manager
Town of Carolina Beach
1121 North Lake Park Boulevard
Carolina Beach, NC 28428
[e-mail]

Subject: Letter of Eligibility
Carolina Beach Municipal Storage Facility
1317 Bridge Barrier Road
Carolina Beach, New Hanover County
Brownfields Project Number 19013-15-065

Dear Mr. Cramer:

The North Carolina Department of Environment and Natural Resources (DENR) has received
and reviewed your February 11, 2015 Brownfields Property Application (BPA) submitted on behalf of the
Town of Carolina Beach as a Prospective Developer 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, or have access to,
several environmental reports and other supporting documentation regarding the site. 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
suitable for the intended reuse, as required by statute.

According to the BPA, the intended redevelopment for the site is for institutional use. Initial
use of the property is to include storage of a wide variety of inert items which will be associated with the
Town operations. 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. Also: Please
note that the Town of Carolina Beach dos not have the liability protections a Brownfields Agreement offers
unless and until it is executed. Thus, pending the execution of a Brownfields Agreement, you operate at the
Mr. Cramer
Page 2
site at the risk of jeopardizing your eligibility and/or becoming a party responsible for the contamination at
the site if an agreement is not finalized. This makes it very much in your interest to consult closely with the
Project Manager regarding any planned site activities prior to agreement finalization.

Please be aware that if the applicant Prospective Developer, the Town of Carolina Beach, does not
actually buy the property for redevelopment, it cannot be a Prospective Developer under our authorizing
statute and loses its eligibility for the Brownfields Program. This refers to the Town of Carolina Beach itself,
not an affiliate or any other party.

Also, if a party other than the Prospective Developer will own the Brownfields property at the
conclusion of the brownfields process, the final Notice of Brownfields Property (which gets recorded at the
Register of Deeds’ office and to which the Brownfields Agreement is an exhibit) must be signed not only by
the Prospective Developer but by that property owner. Failure by the Prospective Developer to ensure, by the
time Brownfields Agreement negotiations are complete, the willingness to sign of any such party, and to
provide DENR the exact name, e-mail address, telephone number and U.S. mail address of the party (along
with signatory/signatory’s title in the case of an entity) will delay, and could prevent, the Brownfields
Agreement taking effect.

We 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 the
Project Manager, Samuel Watson, by phone at [phone], or by e-mail [e-mail].

Sincerely,

Michael E. Scott
Deputy Director
Division of Waste Management

cc: Project File

ec: Bruce Nicholson, DENR
Sam Watson, WiRO
Paul Clark, Clark Group