18-05 Minor Mod. 04/2005

Permit Cass Permit Number
MODIFICATION/MINOR 18-05
(By Settlement Agreement) STATE OF NORTH CAROLINA
Department of Environment and Natural Resources
and
Coastal Resources Commission
Vermit
a
for
X Major Development in an Area of Environmental Concern
pursuant to NCGS 113A-118
Excavation and/or filling pursuant to NCGS 113-229
Issued to Independent Property Owners of America, LLC, 1206 Laskin Road N., Suite 201-V, Virginia Beach, VA
Authorizing development in Dare County at Atlantic Ocean, Mile Post 1, Virginia Dare
Trail as requested in the Settlement Agreement
dated 4/19/05, letter dated 4/15/05 and attached workplan drawing 3 of 14 dated revised 4/15/05
This permit, issued on April 20. 2005 , is subject to compliance with the application (where consistent
with the permit), all applicable regulations, special conditions and notes set forth below. Any violation of these terms may
be subject to fines, imprisonment or civil action; or may cause the permit to be null and void.
I) The permittee may proceed to construct and complete the hotel building portion of the project as
depicted on the attached drawing, except that no additional construction activity may take place
f within the approximately five foot area of the hotel building footprint that would constitute an
f encroachment within the April 11, 2005 setback line, until the permittee has undertaken the activities
described in Condition No. 2 of this minor modification.
I
1
2) The permittee shall add sand, beach vegetation plantings and sand fencing as necessary to create and
f stabilize the area at least six feet (6') oceanward of the current erosion escarpment. The permittee
shall also utilize his best efforts to create such a line of vegetation on or before May 1, 2005, and to
maintain it thereafter.
3) All dune reconstruction shall be accomplished via sand trucked to the site. The sand material shall be
compatible in size and composition with existing sand material at the project site.
(See attached sheet for Additional Conditions)
! This permit action may be appealed by the permittee or Signed by the authority of the Secretary of DENR and the
other qualified persons within twenty (20) days of the issuing Chairman of the Coastal Resources Commission.
date. An appeal requires resolution prior to work initiation or
'y continuance as the case may be.
This permit must be accessible on-site to Department L
j personnel when the project is inspected for compliance. G /T
y6tfiarles S. Jones, Director
Any maintenance work or project modification not covered Division of Coastal Management
hereunder requires further Division approval.
All work must cease when the permit expires on This permit and its conditions are hereby accepted.
Y. December 31, 2008
3
fIn issuing this permit, the State of North Carolina agrees
r that your project is consistent with the North Carolina Coastal
Management Program. Signature of Permittee
..,..�r:•.:oaco-v..no rr.riao:a+.o»o

I.P.O.A. Permit # 18-05
Page 2 of 2
ADDITIONAL CONDITIONS
4) The permittee shall take additional steps to establish a dune line and a first line of stable natural
vegetation (FLSNV) at a point farther oceanward than the line to be established pursuant to Condition
No. 2 of this minor modification. The permittee shall utilize his best efforts to maintain a FLSNV as far
;. oceanward as reasonably possible within state guidelines. Additional dune creation and/or dune
expansion shall require a modification of this permit.
5) As agreed to by the permittee's agent on 4/19/05, the slope of the reconstructed dune shall be no steeper
than 2:1, as opposed to the proposed 3:1 slope shown on the attached workplan drawing (see insert
labeled "Dune Establishment Detail"). '
6) Regarding all other structures associated with the hotel project (except for the hotel building for which
f construction may proceed in accordance with Condition No. 1 of this permit), the applicable setback line
for such other structures (such as parking lots) shall be based upon the FLSNV as it exists at the time
construction of those structures is to begin. In the event any such ancillary large or small structure as
Y depicted on the attached drawing cannot meet the setback requirement as determined in accordance with
the preceding sentence, then the permittee shall comply with such requirement by either using
alternative materials that comply with the Coastal Resources Commission's (CRC) rules, or by
redesigning the project as necessary to effect compliance regarding the structure at issue.
NOTE: In issuing this minor modification, the Division of Coastal Management does not waive the right
to assess a civil penalty against the permittee or otherwise enforce future violations of the
a
Coastal Area Management Act (CAMA) or the CRC's rules, and the permittee does not waive its
right to contest or defend the same.
NOTE: In initiating development under this minor modification, the permittee acknowledges the risks of
erosion associated with building on this site, and recognizes pursuant to G. S. 113A-115.1,
CAMA does not allow construction of shoreline erosion control structures such as seawalls to
protect this project.
7) This minor modification must be attached to the original of Permit No. 18-05, which was issued on
f 2/l/05, and copies of both documents must be readily available on site when a Division
representative inspects the project for compliance. All conditions and stipulations of the active
permit remain in force under this minor modification unless altered herein.
r
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��
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Coastal Management
Michael F. Easley, Governor Charles S. Jones, Director William G. Ross Jr., Secretary
April 21, 2005
Independent Property Owners of America,LLC
1206 Laskin Road North Suite 201-V
Virginia Beach,VA 23451
Dear Sir or Madam:
The enclosed permit constitutes authorization under the Coastal Area Management Act, and where applicable, the
State Dredge and Fill Law, for you to proceed with your project proposal. Please sign both the original (buff-
colored form) and the copy. Return the copy to this office in the enclosed envelope. Signing the permit and
proceeding means you have waived your right of appeal described below. Please retain the original(buff-colored
form),as it must be available on site when the project is inspected for compliance.
If you object to the permit or any of the conditions, you may request a hearing pursuant to NCGS 113A-
121.1 or 113-229. Your petition for a hearing must be filed in accordance with NCGS Chapter 150B with the Office
of Administrative Hearings, 6714 Mail Service Center, Raleigh, NC 27611-6714, [phone] within twenty
(20) days of this decision on your permit. You should also be aware that if another qualified party submits a valid
objection to the issuance of this permit within twenty(20)days,the matter must be resolved prior to work initiation.
The Coastal Resources Commission makes the final decision on any appeal.
The project plan is subject to those conditions appearing on the permit form. Otherwise, all work must be
carried out in accordance with your application. Modifications, time extensions, and future maintenance require
additional approval. Please read your permit carefully prior to starting work and review all project plans, as
approved. If you are having the work done by a contractor, it is to your benefit to be sure that he fully understands
all permit requirements.
From time to time,Department personnel will visit the project site.To facilitate this review,we request that
you complete and mail the enclosed Notice Card just prior to work initiation. However, if questions arise
concerning permit conditions, environmental safeguards, or problem areas,you may contact Department personnel
at any time for assistance. By working in accordance with the permit, you will be helping to protect our vitally
important coastal resources.
Sincerely,
P0'-C;& V tf
Douglas V. Huggett
Major Permits and Consistency Manager
Enclosure
1638 Mail Service Center, Raleigh, North Carolina 27699-1638
Phone: [phone] FAX: [phone] Internet: http://dcm2.enr.state.nc.us
An Equal Opportunity 1 Affirmative Action Employer—50%Recycled 110%Post Consumer Paper

Permit#
DCM Coordinator:
/ MAILING DISTRIBUTION:
Permitee:
-Agent: t-,,u Pro x S w- �S L//
�t
DCM Field Offices: v AL>,- 3 36 V ,/ � 7G
Elizabeth City v ��. ��S/ /(/ C-
Morehead Ci �0_fof)
Washington
Wilmington
US Army Corps of Engineers(USACE):
Washington: Mike Bell(NCDOT)
Bill Biddlecome(NCDOT)
Raleigh Bland ✓ /� I ` t cd��
l Sv J
Wilmington: Dave Timpy(NCDOT) /
Henry Wicker P /
Others: v
Cultural Resources: Renee Gledhill-Early
Environmental Health: Terry Pierce CA wirs
Marine Fisheries: Mike Street
NCDOT: Ken Pace T Gn 00
Shellfish Sanitation: Patty Fowler
State Property Office: Joseph Henderson you��
Water Quality: Cyndi Karoly(for non-DOT)
John Hennessy(NCDOT)
Water Resources: John Sutherland
Wildlife Resources: Maria Tripp
Bennett Wynne
David Cox(NCDOT)
Travis Wilson(NCDOT)
LPO: (SUS Idq j 00
FAXING DISTRIBUTION:
Permitee at
Agent at
DCM Field Offices:
Elizabeth City(252/264-3723)
Morehead City(252/247-3330)
Washington(252/948-0478)
Wilmington(910/350-2004)
US Army Corps of Engineers(USACE):
Washington: Mike Bell(NCDOT)
Bill Biddlecome(NCDOT)
Raleigh Bland(252/975-1399)
Wilmington: Dave Timpy(NCDOT)
Henry Wicker(910/251-4025)
CAMA Major Permit Process Manual Page 70 of 70

Re: [Fwd:Proposed Settlement Agreement attached]
Subject: Re: [Fwd: Proposed Settlement Agreement attached]
From: "Charles.S.Jones" <[e-mail]>
Date: Tue, 19 Apr 2005 10:06:01 -0400
To: Dan Oakley<[e-mail]>
CC: merrie jo alcoke<[e-mail]>, Ted Tyndall <[e-mail]>
I don't think we can agree to the change. My understanding was that we would agree to give them a
break on the hotel but the other structures would have to come into compliance with the applicable
setback at the time of construction. If they couldn't meet the setback, they would redesign or use
alternative materials. It looks like their new wording would always have the April line as a
"permanent" line regardless of how much erosion occurs (i.e. hurricane season starts in less than two
months) or how long it takes them to build out their project.
I'll be in Raleigh tomorrow but I'm tied up at the RBC center all day. If they agree to delete, go ahead
and sign for me.
Thanks
Dan Oakley wrote:
Note one additional change in 4b. Everything else we put in was included. The additional change
in 4b seems reasonable, based on our discussions. Agree?
Charles, do you want me to sign to for you or will you be in Raleigh this week?
Dan,
I am attaching a clean and blacklined copy of a revised agreement that incorporates all of the
changes you sent to me yesterday afternoon. The only additional change we propose is language in
paragraph 4.a. to clarify that the April setback line will apply to the extent that it is the more seaward
line at the time. While we do not expect that will be the case, we think it is appropriate to include
this clarification.
I hope we are now at the point we have consensus and can proceed to execute the
Agreement. I will be in the office today and look forward to your respoonse.
Tim
<<RALEIGH-442298-vDOC-DENR Revised Agmt.DOC>> <<RALEIGH-442298-v6-DENR Revised
Agmt.DOC>>
1 of 1 4/20/2005 7:45 AM

ENVIRONMENTAL
PROFESSIONALS
INC.
PLANNING FOR
A BETTER April 15,2005
ENVIRONMENT
North Carolina Division of Coastal Management
Attn: Mr.Ted Tyndall,Assistant Director
400 Commerce Avenue
Morehead City,NC 28557
Dear Mr.Tyndall,
Thank you for your assistance with resolution of permit conditions for the construction of improvements
authorized under CAMA Major Development Permit No. 18-05 issued to Independent Property Owners of
America,LLC(IPOA). Mr.Tim Sullivan,Legal Counsel for IPOA,in consultation with Mr.Dan Oakley,
Counsel for DENR,requested that I coordinate with you to provide a revised plat depicting the relocated
footprint of the hotel,compliance with CAMA regulations for parking area surfaces,and dune restoration
work and schedule,including sand fencing for protection. Enclosed you will find copies of the revised plat.
Clarification of the pool and decking is also provided.
IPOA desires to commence work on the dune reestablishment on Monday,April 18,2005 in order to
complete the work before the turtle moratorium May 1. Therefore,I would appreciate a verbal
authorization to proceed while the modification to the permit is drafted.
Please consider this letter as IPOA's request to modify Permit No. 18-05 for these improvements.Enclosed
is the application fee payable to DENR for$100.00.
Thank you again for your assistance with this matter.
Sincerely,
Environmental Profess' nals,Inc.
eorge H.Wood, EP,PWS
Enclosures: a/s
GHW:kac
cc: Mr. Sterling Webster
Mr.Tim Sullivan
P. O . BOX 3368 • KILL DEVIL HILLS , NORTH CAROLINA 27948 - 3368 252 -441 - 0239
FAX : [phone] 9 EMAIL : environmentalpro ®earthlink . net

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SETTLEMEt4T AGMEnawr
This Sed14 ont Agrem=t("Agremnent")is entered iato this MAT day of April 2005,by
and between Independent Property Owners of America, LLC, a forth Carolina limitod liability
cowipmy,("IPOAJ and the N.C.DeparimmU oafEnwu'ottmert'<and'N'atutal B Waurces C`DENR").
WnWESSETIL
WFMREA8, IPOA proposes to cowuuct a major hotel CWDtel Prajecn on the ocean
front in xitty Hawk,WOM C.arolim
WHEMAS, the HOW Project is proposed W be lucamd in the Occsan lUzard Area of
Fnvironmetitai Concern, old tharfore IPOA is required to obtain a permit for the Hotel PrgjW
pursuant to thm North Carolina Coastal A va Management Act, ("CAhW') and 10Cate the Hotel
Project behind a setback lino cztablished according to X$A.'NCAC 7 a0300.
wHBFtRA.S, determinaFaou of the proper W&B60u of the setback lug applicable to the
Hotel Project is necessary for the hotel project to proewd.
WEEREAS, IPOA contends that on or about Nwiember 9, 2004, it was issued a CAMA,
permit by operation of lawn pursuant to G.S. 113Ar122(c)because 1D iR failed to de" or issue
the peewit wilbin the required statutory time limit, and fiuther coateads tb;tt wbsequent to such
issuance by law the appropriate seibaa&IWC witb which 1130 iHotcl Pr*ct u-aW Qmnply uQQordi>zg
to spplicab;<e nilea is the line that was stud by D W ofcWs with WOA represemntives
pit oa December 21,2005("December setba&liner).
SAS, n'OA fard= contends t1sut its position is supportad by several decisions by
North Carolina's Supreme Court and couLT of Appeals; and IPOA has prescnmd to DEM a
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proposed Comolaint appropriate,for filing in the Stt eor Cvwt sealdng it>unctive relief in this
master.
W1MRBAS, IPOA eonteads that it vTended otsiderabla ids to fWaliae dc4p of tt e
Hotel Project, ineuaring con=ftmenft under coz=cT-S and initiating =twu Bite preparation
acavitiees based on. and in reliance upon,the Decemnber setbak line.
WSMAS, IPOA contends 'that it is entitled to rely on the Deoember solback line
pursuant to established 1aga1 principles as vo®1l as 15A NCAC 7J.0403(d)_
WEEREAS,DENR contends that the applicable CAMA permit is the one imled to IPOA
on Febai y 1, 2005 end that accordit g to appliaaWe rules The sedu ok line causr be established
subsequent to that date.
R ERRBAS, IPOA,was iv%nsd a Na6re of'Violatuoa on April S, 2005. which was based
on eonsnucz�activity taking plaov oa the cite without DmaL statldng a setback lino following
DENI;'s issua=of the February 1,2005 peanut
VIEUMEAS, DENR oMcials did stake a setback lice on April 11, 200., v*h IPOA
representatives present {"April setback line"), and die April wtback line is, in pam landward of
the December setback line.
YnxlakEAS, the main bowl building as finally designed by IPOA is azzeptebly located
bcbind the December setback line.but is seaward of the April secbarac tine by approadm rely 4 to
5 feels this encroschmm primm ly affecting tba outsdo pal,&Parch areas of the met hotel
building,
VMERRAS, ttm cucroaclunent within the April setback line its liWy wised by the
collapse of an old bulkhead during a v4t7st" atom cvcm resulling in erosion of'the first line of
2
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APR-19-2005 19:20 FR01A-HILTON GARDEN INN LAX EL SEGUNDO T-542 P-004/000 F-731
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I
stable nafinvi veg ("FY SW"). anti a FLSNw may recstablisli seawwd of its prosvi t
location with SUOCeSaf d dune sud wcgetauon rees=Msh went and Bmoxable weatbar conditions.
'VfT ,", 1PO,A contends that additiorwl TW=ign of the Hard Project to avoid the
minimal encroachments within the April set wk tine, ever if possible, will cause subst=Ual
additional expense and delay its eons:rnet an,wWch together would make the project iofasNe.
WHEREAS, IPOA and DOEM both recognize and ackwwledge the risk of litigatiou and
desire w avoid Radon regarding rwWch setback line is applicable to the project by settlims this
matter In a fW r and equitable manner comistent with[he letter and spirlh of the law.
NOW, WORF, the parties agee to the proper location of the sdbwk line, and
agme that construccim of ttw AAtel Froject may proceed as follows:
1. 8ubjeot to the provisians of this Asreemeat,YPOA will aCdept and will proceed in
accasdanae with The conditions of ft issued LAMA Pe nit No. 18.05 dated February 1., 2005
(the"Peanu). IFOA will submit a req=t for minor modificatim of the Permit showing Ehe
main hotel building's cm nplianee with the December setback Hue ad requesting authorization for
dU= rebuilding and planting. DFNR agr= to promptly modify the Pesxah. upon request,
authflrizing dune and vegeta ion reestablishmout as ameswry to estWish vegetation at lit six
feet(6)oodmward of the great escarpment.
2. XPOA will mW aaud,bcach vegetation plantings and sand fencing as neoome y to
curate aM smabiR=this area, and will use 9ts best cabrts w create such line ofvegeta4m on m'
before May 1,2005,and to maintain it thereafter-
3. IPOA agrees to take additional steps to establish a dLum lino and,S VLSNV at a
point farther ocearnward than the line to be established pursuant to paragraph 2 of this
3
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,Agreement, and Will mffiac its bast dbrts to ma ktW a FLSNV as far ac=wsrd as reasonably
gomble,
4. MIL I agrees that IPOA may proaWd with coagmation of its HOW Project imder
the Permit as fonows,
a. IPOA may proceed To oaust ud and compleu the hotted building poraan of
the Hotel Project as depicted on the attached drawing, except tbo no additional construction
activity py debt plaoo within the approx4nately five foot area of the hotri. building footpzint
that woute] constitute as et2craechnvoj a within tho April setback line, until TPOA l"updertaken
activities in avcaAasyce with Pampaph 2 orthis Agramnazz to restore the FLSNVV.
b. Regarding all other alsuctures associated with the Hato]Project(wceept for
the hotel building for which cousp c ion may proceed in accordance with Paragraph 4(a) of this
AgeemenS), the applicable setback line for such other stru[cmm (such as pwidug lots) will be
based upon the FLSW as it exists at the time consbucticm of those structures is to bin In tha
any such ancillary large or small structure as depicted on the attached druuting c a mat tweet
the setback requirement as de=mined in moomdanee with tho ptocedimg ufluftnc., then IPOA
shall comply with such requirement by either using ahemative materials rhaT comply with
CAMA and the Coasm].Resmrcea Commission's{"CRC")stiles, oz by redesigning the project as
necessary to arect commplia nee regarding the gmwtwe at issue.
5. By emering into this Agreement, VMM does not waive the right to assess a civil
pw=lty sgaingt IPOA or+otbmwise en&n ce Mine violations of CAMA or the CFX's rules. and
IPOA does not WMvc its right to conetcat:or ddsad the same-
4
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Lgrees,
6. TPOA w+Wiout c=test,to rexuit to rOM a civil;Penatt.Y in the amount of
one%housand doUm($1,000.00) for the alleged violation outllaed in the AprU 9,2005 Nodce of
Vialaaica;payiueai to be made Within teen(10)days oFtMc mwagion of this As=mom
7. IPOA admowfedges the risks of erosion ass daW4 with building on this site, and
reoagni=a puma= to O.S. 113A-115.1, CAVA does not allow cormv4cdm of shordine
erosion control structures such as seawalls to prat=tbi$grajoct.
IN WITN7ES$'GATEREOF,the parties heraw,ac fmg dmmgh their duty wAhonmed
agora,have c med ibis Agreomcm To be aru=wd as of tho date first above written.
II UENDMgT P'KIOPERTY OWNWS NORTH CAROLINA DEPARTbUENT OF
OF AMERRICA,LY.0 AND NATUPAL RESOURCES
-- - - 'stalfng qTa cherlos S.Jones, cwr
General er Plviwu of efiasw Mmngemcm
(P,(1t.73Q1g74tZt9 G r•T
5
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