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HomeMy WebLinkAbout113-24 S. Water St., LLC FPermit Class Permit Number NEW 113-24 (BY CRC VARIANCE) STATE OF NORTH CAROLINA Department of Environmental Quality and Coastal Resources Commission ikrtnit for X Major Development in an Area of Environmental Concern pursuant to NCGS I I3A-118 Excavation and/or filling pursuant to NCGS 113-229 Issued to S.Water St.,LLC,901 W. 411 Street, Winston-Salem,NC 27101 Authorizing development in New Hanover County at adi. to the Cape Fear River, at 128 S. Water St. in Wilmington , as requested in the permittee's application dated 9/29/23 (MP-1, MP-4), including work plan drawings (6) Sheet 1-6 of 6 dated 9/29/23. This permit, issued on September 26,2024 , 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 civil or criminal penalties; or may cause the permit to be null and void. Enclosure of Covered Deck within Urban Waterfront 1) In keeping with the Variance(CRC-VR-24-02)granted by the Coastal Resources Commission(CRC) on August 28, 2024, and the Order signed by the CRC Chair on September 15, 2024,this permit authorizes the installation of eight removeable polyvinyl panels on three open sides of an existing covered deck, and other structures and uses located in or over the water that are expressly and specifically set forth in the permit application.No other structure, whether floating or stationary, shall become a permanent part of this development without additional authorization. [G.S. 113A-120.1(b)] 2) The authorized structure and associated activity shall not cause an unacceptable interference with navigation and shall not exceed the dimensions shown on the attached permit drawings. [07H.0208(a)(2)(G)] (See attached sheets for Additional Conditions) This permit action may be appealed by the permittee or other Signed by the authority of the Secretary of DEQ and the Chair qualified persons within twenty(20)days of the issuing date. of the Coastal Resources Commission. This permit must be accessible on-site to Department personnel when the project is inspected for compliance. Any maintenance work or project modification not covered hereunder requires further Division approval. For Tancred Miller, Director All work must cease when the permit expires on Division of Coastal Management September 26,2029 This permit and its conditions are hereby accepted. In issuing this permit,the State of North Carolina agrees that your project is consistent with the North Carolina Coastal Management Program. Signature of Permittee S. Water St., LLC Permit No. 113-24 Page 2 of 3 ADDITIONAL CONDITIONS Sedimentation and Erosion Control 3) In order to protect water quality, runoff from construction shall not visibly increase the amount of suspended sediments in adjacent waters. [07H.0209(d)(4); 113A-102(a); 07H.0207; 07H.0208] 4) Appropriate sedimentation and erosion control devices, measures or structures shall be implemented to ensure that eroded materials do not enter adjacent wetlands, watercourses or properties. [07H.0209(d)(4); 113A-IO2(a); 07H.0207; 07H.0208] General 5) All mechanized equipment will be regularly inspected and maintained to prevent contamination of waters and wetlands from fuels, lubricants, hydraulic fluids, or other toxic materials. In the recent of a spill of petroleum products or any other hazardous waste, the permittee shall immediately report it to the N.C. Division of Water Resources at (919) 733-5083, Ext. 526 or(800) 662-7956 and provisions of the North Carolina Oil Pollution and Hazardous Substances Control Act will be followed. [07H.0208(a)(2)(A); 07H.0208(a)(2)(B)] 6) This permit shall not be assigned, transferred, sold, or otherwise disposed of to a third party without the written approval of the Division of Coastal Management. [07J.0406(b)] 7) All construction debris associated with the removal or construction of the permitted development shall be contained within the authorized project area and disposed of in an approved upland location. [07J.0209(a); G.S 113A-I20(b)] 8) The permittee and/or their contractor shall meet with a representative of the Division prior to project initiation. [07J.0209(a)] NOTE: This permit action may be appealed by the permittee or other qualified persons within twenty (20)days of the issuing date. Any development authorized under this permit that occurs prior to the expiration of the twenty (20)day appeal period or completion of an appeal process, shall be done at the permittee's risk. NOTE: A CAMA/Dredge and Fill Permit is a determination that the proposed development meets the CAMA/Dredge and Fill laws and CRC's rules for coastal development. It is not a determination of private property ownership or an authorization to trespass onto property owned by someone other than the Permittee. NOTE: This permit does not eliminate the need to obtain any additional state, federal or local permits, approvals or authorizations that may be required. NOTE: The U.S. Army Corps of Engineers has assigned the proposed project SAW Action Id. No. SAW-2023-02245 and has determined no permit is required. NOTE: The N.C. Division of Water Resources has determined no certification is required. S. Water St., LLC Permit No. 113-24 Page 3 of 3 ADDITIONAL CONDITIONS NOTE: Future development of the permittee's property may require a modification of this permit. Contact a representative of the Division at(910) 796-7215 prior to the commencement of any such activity for this determination. The permittee is further advised that many non-water dependent activities are not authorized within 30 feet of the normal high-water level. NOTE: An application processing fee of$250 was received by DCM for this project. STATE OF NORTH CAROLINA ) BEFORE THE NORTH CAROLINA COASTAL RESOURCES COMMISSION COUNTY OF NEW HANOVER ) CRC-VR-24-02 IN THE MATTER OF: ) PETITION FOR VARIANCE ) FINAL AGENCY DECISION BY S.WATER ST.LLC ) On March 11, 2024, Petitioner S. Water St. LLC submitted a request for a variance from 071-1.0209(a)(4)(B)(iii)(II)so it could install eight removeable polyvinyl panels on three open sides of an existing covered deck and dining area located over public trust waters at 128 S. Water Street in Wilmington, North Carolina. This matter was heard pursuant to N.C. Gen. Stat. § I I3A-120.1 and 15A N.C. Admin. Code 07J .0700, et seq., at the regularly scheduled meeting of the Commission held on August 28, 2024 in Beaufort, North Carolina. Assistant General Counsel Christine A. Goebel, Esq. appeared for Respondent Department of Environmental Quality, Division of Coastal Management ("DCM"). Edson Munekata, Secretary of S. Water St, LLC appeared on behalf of Petitioner. When reviewing a petition for a variance,the Commission acts in a quasi-judicial capacity. Riggings Homeowners, Inc. v. Coastal Resources Com'n, 228 N.C. App. 630, 652, 747 S.E.2d 301, 314 (2013) (Commission has "judicial authority to rule on variance requests . . . `reasonably necessary' to accomplish the Commission's statutory purpose."); see also Application of Rea Const. Co.,272 N.C. 715, 718, 158 S.E.2d 887, 890(1968)(discussing the Board of Adjustment's quasi-judicial role in allowing variances for permits not otherwise allowed by ordinance). In its role as judge,the Commission "balance[es] competing policy concerns under CAMA's statutory framework."Riggings, 228 N.C. App. at 649 n.6, 747 S.E.2d at 312. Petitioner and Respondent DCM are the parties appearing before the Commission. The 2 parties provided stipulated facts for the Commission's consideration and stipulated to the relevance and admissibility of documents. See, N.C. Admin. Code 15A 07J .0702(a). If the parties had been unable to reach agreement on the facts considered necessary to address the variance request, the matter would have been forwarded to the North Carolina Office of Administrative Hearings for a full evidentiary hearing to determine the relevant facts before coming to the Commission. Id. 07J .0702(d).As in any court,the parties before the decision-maker are responsible for developing and presenting evidence on which a decision is made. If DCM and Petitioner had stipulated to other facts, it is possible that the Commission would have reached a different decision. In this case, the record on which the Commission's final agency decision was made includes the parties' stipulations of facts, the stipulated documents provided to the Commission, and the arguments of the parties. FACTS STIPULATED TO BY PETITIONER AND DCM 1. S. Water St., LLC ("Petitioner") is a North Carolina Limited Liability Company organized in 2021, according to the Articles of Organization and 2024 Annual Report. The North Carolina Secretary of State filings indicate that Edson Munekata is a member and secretary of S. Water St., LLC. 2. Petitioner owns the property located at 128 Water Street South in Wilmington,New Hanover County (the "Site"). Petitioner purchased the Site in December of 2021 from Riverwalk Partners, LLC, according to a deed recorded at Book 6525, Page 2827 of the New Hanover Registry. The Site is shown on a survey recorded at Plat Book 49, Page 138 of the New Hanover Registry. 3 3. The George 128, Inc. (the "George") is a North Carolina Corporation created in 2021,according to the Articles of Incorporation and 2024 Annual Report and does business as The George on the Riverwalk. The George is a restaurant which occupies the building on Tract B of the Site(Tract A is located on the east side of South Water Street)and is located on the Wilmington waterfront adjacent to the boardwalk. The building was built in 2003 according to the tax cards and the George opened in 2004 under different ownership. The North Carolina Secretary of State filings indicate that Edson Munekata is the secretary of the George. 4. The 0.17-acre parcel upon which the George is located is developed with a 3,279 square foot structure including a thirty-seven-foot by seventy-eight-foot building, a sixteen by seventy-six foot"canopy"porch area and a ninety-eight-foot open wooden deck, as shown on the tax card. The tax card indicates that the parcel has approximately ninety-nine linear feet of riprap armored shoreline. Mean high water runs generally at the bulkhead on the Site. 5. Waterward of the open wooden deck is the twelve-foot Riverwalk Easement, and waterward of the Riverwalk Easement is a ten-foot by ninety-four-foot floating dock which was authorized as a 2002 modification of the City's original CAMA Major permit No. 149-98. 6. The open deck and "canopy porch"portions of The George Restaurant are located over the public trust waters of the Cape Fear River(waterward of mean high water). 7. The waters of the Cape Fear River are classified as SC Waters by the North Carolina Environmental Management Commission("EMU),are a designated Primary Nursery Area by the Marine Fisheries Commission and are closed to the harvest of shellfish. 4 8. The George is located over the Public Trust and Estuarine Waters Areas of Environmental Concern("AECs"),and the area of the Site landward of mean high water is within the Urban Waterfront portion of the Coastal Shorelines AEC. 9. The legal capacity of the restaurant, the "canopy porch" and the open deck is 112 occupants, according to the August 22,2005 Occupancy Certificate. 10. On September 11, 2002, DCM issued a Major Modification to CAMA Major Permit No. 149-98 to the City of Wilmington. This permit authorized the construction of a two- story building with a partially covered deck and floating dock on the Site described in Condition 1. The original permit had authorized the construction of the City's Riverwalk project on the Site. Condition 2 required the entire building be located landward of MHW. This did not include the "canopy porch and open deck, where the permit drawing located mean high water about half the width of the "canopy porch"/open deck area waterward of the building. Condition 3 required that the roofed portion of the wooden deck(the "canopy porch") "shall not be enclosed by partitions, plastic sheeting, screening, netting, lattice or solid walls" in keeping with the (new at that time) Urban Waterfront Rule. 15A N.C. Admin. Code 071-1 .0209(h)(4)(B)(iii)(II). 11. On March 8, 2022, Petitioner hired Ingram Brothers, Inc. to replace the existing vinyl curtains around the"canopy porch"which had been in place when the Site was purchased in 2021. Instead of new vinyl curtains, Petitioner opted for approximately 119 linear feet of 4-track custom vinyl siding panels (8 panels of various widths)at a cost of$40,000. The Commission was provided with a copy of the purchase contract dated March 28, 2022. The panels could either be opened and stored stacked within the 4-track frame or removed from the frame. 5 12. The Commission was provided with an affidavit from Edward Albrecht Jr., Ingram Brothers, Inc. which states that the company did not discuss CAMA permitting with Petitioners because they were being asked to replace vinyl roll-down screens with vinyl screen panels, and they"thought that no permit was required to replace the old wind screen with removable temporary polyvinyl wind panels." 13. In emails from December 12-15, 2022, George Coffin emailed DCM Wilmington District Manager Tara MacPherson to inquire about the enclosure of the "canopy deck" and whether the enclosure violated permit conditions. Mr. Coffin was a Member/Manager of Riverwalk Partners, LLC and signed the deed for the Site when it was sold to Petitioners. 14. On January 24, 2023, Petitioner received a Notice of Violation from the City of Wilmington (case number ZEWWP-001094-2023) as the enclosure was not allowed under the conditions of modified CAMA Major Permit No. 149-98. 15. March 22, 2023, a Certificate of Appropriateness application was filed by a representative of Ingram Brothers on Petitioner's behalf. This application sought a variance from the city zoning code to allow the panels. 16. Following a June 20,2023 variance hearing before the City of Wilmington Zoning Board of Appeals, a Certificate of Appropriateness was issued on June 20, 2023. 17. On September 9, 2023, Petitioner, through its CAMA Agent Debbie Wilson, applied for a CAMA major permit allowing development using the vinyl panel system to enclose the "canopy porch" area of the Site. The application was accepted as complete on October 30, 2023. 6 18. On November 2,2023, DCM Field Representative completed a Field Investigation Report. 19. As required, Petitioner sent notice of the application to the two adjacent riparian property owners and to the public through onsite posting and a newspaper advertisement. Mr. Marshburn received notice on October 16, 2023 and the City of Wilmington received notice on October 10,2023.Neither of the adjacent owners objected to the project.No public comment about the permit application was received by DCM. 20. All comments received from resource agencies were either no comment or no objection. 21. The Commission adopted urban waterfront rules in 2001. The rules describe urban waterfronts as "waterfront areas, not adjacent to Outstanding Resource Waters, in the Coastal Shorelines category that lie within the corporate limits of any municipality duly chartered within the 20 coastal counties of the state." 15A N.C. Admin. Code 07H .0209(g)(1). 22. The George is within the City of Wilmington's Central Business District and an Urban Waterfront as that term is defined in 15A N.C. Admin. Code 07H .0209(g)(1). 23. The management objectives for urban waterfronts recognize that"activities such as in-fill development,reuse and redevelopment facilitate efficient use of already urbanized areas and reduce development pressure on surrounding areas." 15A N.C.Admin.Code 07H.0209(g)(3).The urban waterfront rules expressly allow "non-water dependent uses over estuarine waters, public trust waters, and coastal wetlands" if such uses occur within designated"Urban Waterfront"areas and comply with the specific urban waterfront use standards in 15A N.C. Admin. Code 07H.0209(g)(4)(B). 7 24. The urban waterfront Use Standards in 15A N.C.Admin.Code 07H .0209(g)(4)(B) specifically provide, "Non-water dependent uses over estuarine waters [and] public trust waters . shall be allowed only within Urban Waterfronts" if the following conditions are met: (i) Existing structures over coastal wetlands,estuarine waters or public trust areas may be used for commercial non-water dependent purposes.Commercial,non-water dependent uses shall be limited to restaurants and retail services. (ii) For the purposes of this Rule, existing enclosed structures may be replaced or expanded vertically provided that vertical expansion does not exceed the original footprint of the structure, is limited to one additional story over the life of the new structure, and is consistent with local requirements or limitations. (iii) New structures built for non-water dependent purposes are limited to pile-supported, single-story, unenclosed decks and boardwalks, and shall meet the following criteria: (II) May be roofed, but shall not be enclosed by partitions, plastic sheeting, screening, netting, lattice or solid wood walls of any kind[.] 25. On January 24, 2024, DCM denied Petitioner's application because the proposed development does not comply with 15A NCAC 7H .0209(g)(4)(B)(iii)(II) which limits new structures built for non-water dependent purposes to pile-supported, single-story, unenclosed decks and boardwalks. 26. Petitioner stipulates that the proposed development is inconsistent with 15A N.C. Admin. Code 07H .0209(g)(4)(B)(iii)(II) which limits new structures to pile-supported, single- story, unenclosed decks and boardwalks. 27. Except for the proposed panel enclosure around the "canopy porch," Petitioner's project is otherwise consistent with the relevant use standards outlined in the Commission's rule. 8 28. Petitioner sent notice of the variance to the adjacent property owners as required by 15A N.C. Admin. Code 07J .0701(c)(7). 29. Petitioner seeks a variance from the Commission of 15A N.C. Admin. Code 07H .0209(g)(4)(B)(iii)(II) install vinyl panels at the Site. 30. Without a variance, Petitioner could use vinyl roll-up curtains like those in place when Petitioner purchased the Site or use no curtains on the"canopy porch." 31. Photos of the Site were provided to the Commission in the PowerPoint presentation shown during the Commission meeting and as a stipulated exhibit. EXHIBITS PROVIDED TO THE COMMISSION BY PETITIONER AND DCM 1. S. Water St., LLC Articles of Organization and 2024 Annual Report 2. George 128, Inc. Articles of Incorporation and 2024 Annual Report 3. Deed in at Book 6525-2827 4. Plat 49-138 5. Tax Card for Site 6. CAMA Major Permit No. 149-98 as modified on September 12, 2002 7. Certificate of Occupancy 8. Purchase agreement for vinyl panels and two specification brochures 9. Affidavit from Ingram Brothers, Inc. 10. December 12 through 15, 2022 emails from Mr. Coffin to DCM 11. January 24, 2023 Notice of Violation 12. March 22, 2023 Application for Zoning Certificate of Appropriateness 13. Certificate of Appropriateness issued June 20, 2023 14. CAMA Major Permit Application 15. DCM Field Investigation Report dated November 2, 2023 16. Notice of CAMA Application to Adjacent Riparian Owners 17. Letter denying application for CAMA Permit dated January 24, 2024 18. Notice of Variance Petition to Adjacent Riparian Owners 9 19. PowerPoint showing aerial and ground level photos of the Site CONCLUSIONS OF LAW 1. The Commission has jurisdiction over the parties and the subject matter. 2. All notices for the proceeding were adequate and proper. 3. As set forth in detail below, Petitioner has met the requirements in N.C. Gen. Stat. § I I3A-120.1(a)and 15 N.C. Admin. Code 07J .0703(f)which must be satisfied before a variance can be granted. a. Strict application of the rule will cause unnecessary hardships. The Commission affirmatively finds that strict application of the Commission's Urban Waterfront rules will cause Petitioner unnecessary hardship.The Urban Waterfront rules recognize that in the central business districts of waterfront municipalities, there is often existing development which is of cultural, historical and economic importance, and that these areas are suitable for maintaining or promoting dense development along the shore. 15A N.C.Admin.Code 07H .0209(g)(2). For these reasons, the Urban Waterfront rules provide exceptions to both the Commission's thirty-foot Buffer Rule and the limitations on non-water dependent uses over Public Trust Waters. The Commission's Urban Waterfront rules allow certain existing structures associated with restaurants and retail services to be replaced within the original footprint and expanded up to one- story within that footprint, provided there is a "public benefit." 15A N.C. Admin. Code 07H .0209(g)(4)(B)(i)). After the rule was adopted in 1999, new non-water-dependent structures over public trust waters were limited to "pile-supported, single-story, unenclosed decks and boardwalks"that met twelve specific requirements 15A NCAC 7H .0209(g)(4)(B)(iii)(I-XII). 10 The Commission agrees that as shown by the stipulated facts, strict application of the rule would cause Petitioner unnecessary hardship. The Commission's Urban Waterfront rules acknowledge the need for in-fill development, reuse and redevelopment in urban areas. The George is in a designated Urban Waterfront area. As allowed, the George developed an outdoor seating area over the water with an open deck and the"canopy deck" which was enclosed during inclement weather with vinyl curtains. Petitioner asserts that having the ability to enclose the deck eliminates most of the seasonality factor and helps stabilize business. Previously, the restaurant had vinyl currents that could be rolled down during inclement weather and during cooler parts of the year. Petitioner has requested a variance to replace the vinyl curtains with sliding panels that would serve the same function in the same location as the previously installed vinyl curtains. Petitioner removed the existing roll-down vinyl curtains and purchased new vinyl wall panels for the canopy deck without asking DCM Staff if such development is allowed and before proceeding through the permitting process.After purchase,DCM denied the application requesting a CAMA permit authorizing installation of the panels. However, clear vinyl roll-up curtains had previously been allowed under CAMA. In this case, both panels and curtains allow the public a view of the water and both are temporary in nature as during warm weather the curtains are rolled up and the panels can slide open and/or be removed from the tracks. Under these circumstances, the Commission affirmatively finds that denying the request for panels (when vinyl curtains have been allowed) would cause Petitioner unnecessary hardship. Accordingly, , the Commission affirmatively finds that Petitioners have met the first factor without which a variance cannot be granted. 11 b. The hardship results from conditions peculiar to Petitioner's property. The Commission affirmatively finds that Petitioners have demonstrated that the hardship results from conditions peculiar to the property. Specifically, the Site is small and located in an Urban Waterfront area. The Site is already developed with an eleven-foot-wide open deck, an eight-foot-wide riverwalk, and a ten-foot-wide floating dock all waterward of the covered deck. These features allow for a view of the water and public access. The Urban Waterfront rules are designed to maximize use of existing restaurant space which already has restricted public access. This variance request does not appear to measurably increase restrictions on public access as the deck is already covered and has been previously protected with roll-down vinyl curtains. Accordingly, the Commission affirmatively finds that Petitioner has demonstrated that the hardship results from conditions peculiar to the property and has met the second factor required for the grant of a variance. C. Petitioner has demonstrated that hardship do not result from their actions. The Commission affirmatively holds that Petitioner has demonstrated that the hardship does not result from its actions. Specifically, Petitioner simply seek to replace the roll down curtains that were in place when the restaurant was purchased to improve the aesthetics of the restaurant by installing sliding panels serving the same purpose. Both types of protection are designed to be open during warm weather and to enclose the space during inclement weather. For this reason, the Commission affirmatively finds that Petitioner has demonstrated that it did not cause the hardship and has met the third factor required for a variance. I? d. Petitioners have demonstrated that the requested variance is consistent with the spirit, purpose and intent of the Commission's rules, will secure public safety and welfare,and will preserve substantial justice. Petitioners have demonstrated (a) that the requested variance is consistent with the spirit, purpose and intent of the Commission's rules,(b)that it will secure public safety and welfare,and (c) that it will preserve substantial justice. The Commission's rules generally limit non-water dependent uses over public trust waters but allow exceptions to this limitation through the Urban Waterfront rules. These rules recognize urban waterfront areas as having"cultural, historical, and economic significance"and are"suitable for maintaining and promoting dense development." 15A N.C. Admin. Code 07H .0209(g)(2). The Commission conditions the exception allowing non- water-dependent uses over public trust waters to limit private,commercial uses of this public trust area. In this case, Petitioner (and its predecessors) have availed themselves of the Urban Waterfront rules to develop the Site including inside seating, covered outdoor seating and open deck seating. The Urban Waterfront rules prohibit the enclosure of new deck structures by partitions, plastic sheeting, screening, netting, lattice or solid walls of any kind, to prevent the blocking of the view of the water by the public on land and enclosing public area into private commercial use. 15A N.C. Admin. Code 07H .0209(g)(4)(B)(iii)(11). The George, and nearby restaurants, have been allowed to use roll-up vinyl curtains to enclose canopy deck areas. The Commission concluded that the proposed vinyl wall panels are similar and meet the reasonable limitations found in the Commission's exception to the Urban Waterfront rules for non-water dependent uses over Public Trust Waters. 15A N.C. Admin. Code 07H .0208(a)(1). Thus, the Commission concludes that the variance would be consistent with the spirit, purpose, and intent 13 of the rules because on balance the use of the panels does not impede the view of navigable waters or obstruct pedestrians accessing the water to a greater extent than previously allowed. Furthermore, the spirit, purpose, and intent of the Commission's rules is to manage Urban Waterfront areas, such as this one in the heart of the Historic Downtown District in Wilmington, North Carolina, to allow managed development under certain circumstances. Finally, the Commission notes that the City of Wilmington has approved the use of the removable vinyl panels. The Commission affirmatively finds that public safety and welfare will be enhanced by replacing the old roll-up vinyl curtains with new removable panels which serve the same purpose to protect guests from rainy and windy conditions. Finally, the Commission affirmatively finds that substantial justice will be preserved by allowing "panels" to be installed in the same location as the vinyl "curtains". There is nothing about this product that would appear to interfere with vessels traveling the Cape Fear River,as the outdoor sitting area is approximately twenty-five feet frorn navigable waters, with the dock and Riverwalk waterward of the covered deck. In addition, given that enclosures, albeit curtains not panels, have previously and are currently allowed, in the Urban Waterfront area,justice will be preserved if the variance is granted to allow the replacement of the previously installed curtains. Nothing in the stipulated facts or documents indicates any the panels will obstruct views of the public trust waters. The custom window systems will be installed within the post and beam structure of the existing deck using white aluminum frames and clear vinyl panels designed to"let the outside in." The Commission recognizes that the City of Wilmington determined that the project was consistent with the City's "Design Standards for Historic Districts and Landmarks, is compatible with the materials,features,design,context,form,and character of the district in which 14 it is located,and is congruous with the historic aspects and special character of the Central Business District-Historic District Overlay [] as a whole"and issued a certificate of appropriateness. For these reasons, the Commission affirmatively holds that Petitioner's proposed development is consistent with the spirit,purpose,and intent of the Commission's rule,will secure public safety and welfare, and will preserve substantial justice. Accordingly, the Commission affirmatively finds that Petitioner has met the fourth factor required by N.C.G.S. § 113A-120.1(a). ORDER THEREFORE, the requested variance from 15A N.C. Admin. Code 07H .0209(a)(4)(B)(iii)(II) is GRANTED. The granting of this variance does not relieve Petitioner of the responsibility for obtaining any other required permits from the proper permitting authority. This variance is based upon the Stipulated Facts set forth above. The Commission reserves the right to reconsider the granting of this variance and to take any appropriate action should it be shown that any of the above Stipulated Facts are not accurate or correct. This the 16Ih day of September 2023. M. Renee Cahoon Chair Coastal Resources Commission 15 CERTIFICATE OF SERVICE This is to certify that I have this day served the foregoing FINAL AGENCY DECISION upon the parties by the methods indicated below: Method of Service Edson Munekata, Secretary E-mail: S. Water St. LLC edson@cowboybraziliansteakhouse.com George 128, Inc. 6575 Summerfield Place SW Ocean Isle Beach,NC 28469 Christine A. Goebel Electronically: Assistant General Counsel Christine.goebel@deq.nc.gov NC Department of Environmental Quality 217 West Jones Street Raleigh,NC 27603 Tancred Miller, DCM Director Electronically: Mike Lopazanski, DCM Deputy Director Tancred.Miller@deq.nc.gov Angela Willis,Assistant to DCM Director Mike.Lopazanski@deq.nc.gov Division of Coastal Management Angela.Willis@deq.nc.gov 400 Commerce Ave. Morehead City,NC 28557 Tara MacPherson, DCM WiRO DM tara.macpherson@deq.nc.gov Kelsey Beachman, DCM Field Rep kelsey.beachman@deq.nc.gov NC Division of Coastal Management 127 Cardinal Drive Ext Wilmington,NC 28405 This the 16'h day of September 2024. Mary L. Lucasse Special Deputy Attorney General and Commission Counsel N.C. Department of Justice P.O. Box 629 Raleigh,N. C. 27602 N*C REPLY TO: JOSH STEIN STATE OF NORTH CAROLINA MARY L.LUCASSE ATTORNEY GENERAL DEPARTMENT OF JUSTICE ENVIRONMENTAL DIVISION (919)716-6962 MLUCASSE[7Q NCDOJ.GOV September 15, 2024 Edson Munekata, Secretary E-mail: S. Water St. LLC edson@cowboybraziliansteakhouse.com George 128, Inc. 6575 Summerfield Place SW Ocean Isle Beach,NC 28469 Re: Variance Request S. Water St. LLC (CRC-VR-24-02) Dear Mr. Munekata: At its August 28, 2024 meeting, the Coastal Resources Commission granted Petitioner S. Water St. LLC's request for a variance. Attached is a copy of the final agency decision signed by the Acting Chair of the Coastal Resources Commission. Prior to undertaking the development for which a variance was sought, Petitioner must obtain a CAMA permit. If for some reason you do not agree to the variance as issued, you have the right to appeal the Coastal Resources Commission's decision by filing a petition for judicial review in the superior court as provided in N.C.G.S. § 150B-45 within thirty days after receiving the final agency decision. A copy of the judicial review petition must be served on the Coastal Resources Commission's agent for service of process at the following address: William F. Lane, General Counsel Dept. of Environmental Quality 1601 Mail Service Center Raleigh,NC 27699-1601 If you choose to file a petition for judicial review, I request that you also serve a copy of the petition for judicial review on me at the email address listed in the letterhead. If you have any questions,please feel free to contact me. Sincerely, Mary L. Lucasse Special Deputy Attorney General and Counsel for the Coastal Resources Commission WWW.NCDOJ.GOV 114 W.EDENTON STREET,RALEIGH,NC 27603 919.716.6600 P.O. Box 629,RALEIGH,NC 27602-0629 Edson Munekata,Secretary S.Water St.LLC September 15,2024 Page 2 cc: M. Renee Cahoon, Chair electronically Christine A. Goebel, Esq. electronically Tancred Miller, DCM Director, electronically Michael Lopazanski, DCM Deputy Director, electronically Angela Willis,Assistant to the Director, electronically WWW.NCDOJ.GOV 114 W.EDENTON STREET,RALEIGH,NC 27603 919.716.6600 P.O.Box 629,RALEIGH,NC 27602-0629