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Home My WebLink About19023 Spencers Mill Decision Memorandum_201804031 BF# 19023-15-086/Spencer’s Mill DECISION MEMORANDUM DATE: April 3, 2018 FROM: Bill Schmithorst TO: Brownfields Agreement File RE: Spencer’s Mill 328 Willow Street Mount Airy, Surry County BF # 19023-15-086 Based on the following information, it has been determined that the above referenced Brownfields Property, whose intended use is for no uses other than high density residential, commercial, open space, recreation and parking, can be made suitable for such uses. Introduction: The Brownfields Property is approximately 9.48 acres and it consists of multiple attached industrial buildings totaling 270,440 square feet and one 2,200 square foot Professional Building which operated as a former medical building and bank (Exhibit 1). The area to be included under the Brownfields agreement includes the entire parcel and all structures. The Brownfields Property is bordered to the north by Virginia Street with a vacant lot beyond owned by Inwillva LLC.; to the east by Willow Street then from north to south Renfro Lofts Condominiums with multiple individual owners at 165 Virginia Street, then West Oak Street running east to west, followed by Spencer’s Property LLC; to the south from east to west by Spencer’s Property LLC, the Slate property at 314 Franklin Street, Franklin Street, the Mckee property at 323 Franklin Street, the Moser property at 329 Franklin Street, the Luna property at 333 Franklin Street, FranklRealty Inc. at 341 Franklin Street, and Franklin View Condominiums at 409 Franklin Street; and to the west by the Cooper and Young property at 412 Franklin Street, and the Housing Authority of the Town of Mount Airy at 221 Virginia Street. Redevelopment Plans: Redevelopment plans for the Brownfields Property include office, retail, hotel, restaurant, amenity space, recreation, parking, high density residential use and, subject to DEQ’s prior written approval, other commercial uses. Site History: The Brownfields Property formerly operated primarily as a tobacco factory from the date of construction sometime prior to 1891 until 1948 when the property was converted into a knitting mill. The original manufacturing building was constructed in 1890 and operated as a tobacco processing plant with additions made throughout the 1900s. Additional site uses recorded from 1891 through 1956 included a produce warehouse, wood working facility, lumber storage, blacksmith shop, fertilizer warehouse, livery, auto sales and service, tractor sales and service, and discount house and general merchandise. 2 BF# 19023-15-086/Spencer’s Mill Parcel # 5020-11-65-4053 was purchased by the Renfro Hosiery Mills Co. in 1964 and began textile operations at the facility. Renfro Hosiery Mills Co. sold the property to Spencer’s Inc. in 1969. Spencer’s Inc. owned the property until 2014 when it was sold to Spencer’s Property LLC. The City of Mount Airy purchased the property from Spencer’s Property LLC in 2014 and is the current owner. Parcel # 5020-15-64-5734 was purchased by I.A. Schafer. in 1968, and then by Northwestern Bank in 1979 when the structure on-site began being used as a bank. Spencer’s Incorporated of Mount Airy, North Carolina purchased the property from Northwestern Bank in 1984, and Spencer’s Property, LLC purchased the property from Spencer’s Inc. in 2014. The City of Mounty Airy purchased the property from Spencer’s Property, LLC in 2014 and is the current owner. The former bank building structure is still present on-site. Parcel # 5020-15-64-1601 was purchased by the Spencer’s Incorporated of Mount Airy, North Carolina in 1978 from Emily Lucille Miller. This property was a vacant portion of land on the southwestern corner of the property. Spencer’s Property, LLC purchased the property from Spencer’s Inc. in 2014. The City of Mounty Airy purchased the property from Spencer’s Property, LLC in 2014 and is the current owner. Spencer’s, Inc., identified as the Subject Property at 238 Willow Street, identified in the UST and LUST databases. The site was listed as owning ten USTs. There are two tanks noted as currently in use; one 20,000-gallon tank used for heating oil and one 4,000-gallon tank used for gasoline storage. There were eight tanks listed as removed from the site or temporarily out of use; the tanks ranged from 1,000-gallons to 20,000-gallons and were used for heating/fuel oil, gasoline, and diesel storage. The Brownfields Property was listed twice in the LUST database for incidents in the 1990s. During the period of ownership by Spencer’s Inc., the property is known to have had a historical incident that involved a release of petroleum fuel oil into subsurface soils from an on-site UST. The incident was reported in 1993 and closed out in 1997 (Incident no. 14084). The size and specific contents of the UST were not reported in the databases reviewed. Another incident was also reported in 1997 after a release of No. 6 heating oil was discovered to be leaking from a 20,000 gallon heating oil UST located underneath the boiler room of the property. Free product was observed and petroleum contamination of the groundwater and soil was reported. Free product was recovered to the extent feasible, and the product was determined to be immobile based on groundwater monitoring. Due to the location of the UST beneath the boiler room and the “low-risk status” of the site, clean-up at the site was deemed not economically or technically feasible by the NCDENR. In 2013 a Notice of Residual Petroluem was prepared for the Subject Property and a land use restriction was filed (Groundwater Incident No. 19907). Two historical 1,000-gallon diesel USTs were identified in the Phase I report with one of the tanks being removed in 1988 and no date recorded for removal of the second tank (UST Incident No. 14408). In addition, four 5,000-gallon fuel oil USTs were identified in the 1979 building sketch documented as removed in 1979 and 1988. The following numbers were assigned by the NCDENR: 3 BF# 19023-15-086/Spencer’s Mill LUST Database/UST Nos. WS-4347, WS-5652 NCDENR UST Database/Facility ID 00-0-0000008860 Incident Management Database/Facility IDs 14084, 19907 The Brownfields Property is currently not occupied. The City of Mount Airy has not conducted any operations at the property. Environmental Conditions Summary A soil and groundwater assessment was conducted at the Brownfields Property in September 2015. Groundwater Groundwater samples were collected from three temporary monitoring wells, a UST excavation and one groundwater grab sample near the 20,000-gallon UST. Samples were analyzed for VOCs, SVOCs, and priority pollutant metals. No constituents were detected above NC 2L Standards. Soil A soil and groundwater assessment was completed at the Brownfields Property in September 2015. Soil samples were tested for volatile organic compounds (VOCs), semi-volatile organic compounds (SVOCs) and priority pollutant metals. Contaminants exceeding residential soil screening levels included SVOCs (benzo(a)pyrene, benzo(b)fluoranthene, indeno (1,2,3-cd) pyrene and naphthalene) and chromium, and total petroleum hydrocarbons (aliphatic and aromatics in the soils that exceed acceptable action levels). Based on the results, soils containing COCs above the residential health based goals are limited to the former boiler room area and a very limited portion of the former bleaching and dyeing room. The majority of impact to soil is present in and around the boiler room area. Soil Vapor Vapor samples were collected from soil gas sample locations, crawl spaces and indoor air. Data from samples indicate the presence of VOCs beneath the three main buildings on-site. Naphthalene, trichloroethylene and petroleum related VOCs have been detected in soil vapor. The boiler room sub-slab sample contained 27 COCs. Naphthalene, trichloroethylene, and 1,2,4- Trimethylbenzene were detected at concentrations above their respective Residential Soil Gas Screening Levels (SGSLs). All other COCs were detected below Residential and Non- Residential SGSL Standards or were below laboratory detection limits. Laboratory analytical results revealed the presence of 14 COCs detected in at least one indoor air sample above Residential and Non-Residential Indoor Air Screening Levels (IASL) and four COCs detected in at least one indoor air sample were above Residential IASL Standards but below Non-Residential IASL Standards. 4 BF# 19023-15-086/Spencer’s Mill Potential Receptors Potential receptors are: construction workers, on-site workers, visitors and residents. Contaminated Media DEQ has evaluated data collected from the following media at the subject property: soil, soil-gas, and groundwater. DEQ relies on the following data to base its conclusions regarding the subject property and its suitability for its intended reuse. Soil Contaminants exceeding residential soil screening levels included SVOCs (benzo(a)pyrene, benzo(b)fluoranthene, indeno (1,2,3-cd) pyrene and naphthalene), total petroleum hydrocarbons (aliphatic high, medium, and low), total petroleum hydrocarbons (high and medium), and chromium. Soil Vapor Soil vapor contaminants detected above IHSB Residential Screening Levels include naphthalene and trichloroethylene. Risk Calculations Risk Calculations were performed using Excel worksheets provided by Sandy Mort, NCDEQ Brownfields Toxicologist. The risk calculations indicated the following based on available data, including the following media: subsurface residual soil, indoor air and soil gas. For the purpose of assessing site risk, the site was grouped into the following areas: Boiler Room, Knitting Plant and Dye House, Sewing Front/Back and Reynolds, Sparger Back/Front. The mediums affected include indoor air, soil gas and subsurface soil. The risk drivers for subsurface soil are SVOCs and chromium, and the risk drivers for indoor air and soil gas include VOCs and SVOCs. The PD is proposing to conduct additional soil gas assessment work during development and adding appropriate vapor mitigation systems to buildings constructed onsite to address potential vapor intrusion issues, if needed. In addition, the PD will add appropriate dust control measures to address potential exposure to chromium and SVOCs during construction. The vapor intrusion risk calculators were prepared for the areas depicted in Figure 2 of the Vapor Intrusion Assessment Report, February 2017 prepared by Apex. These included the Boiler Room; Knitting Plant and Dye House (combined); Sewing Front, Sewing Back, and Reynolds (combined); and Sparger Back and Sparger Front (combined). Each of these areas exceeded the Hazard Index of 1. All four areas exceeded the HI of 1.0 for indoor air and the Boiler Room exceeded the HI of 1.0 for soil gas. The soil risk calculators were prepared for the areas depicted in Figure 5 of the Vapor Intrusion Assessment Report, February 2017 prepared by Apex. The only area showing an exceedance of the Hazard Index of 1 is the Boiler Room area. Boiler Room 5 BF# 19023-15-086/Spencer’s Mill Receptor Pathway Carcinogenic Risk Hazard Index Risk exceeded? Groundwater to Indoor Air 0.0E+00 0.0E+00 NO Soil Gas to Indoor Air 1.7E-05 1.8E+00 YES Indoor Air 6.9E-05 2.6E+00 YES Groundwater to Indoor Air 0.0E+00 0.0E+00 NO Soil Gas to Indoor Air 1.1E-06 1.4E-01 NO Indoor Air 1.5E-05 6.3E-01 NO VAPOR INTRUSION CALCULATORS Resident Non-Residential Worker Receptor Pathway Carcinogenic Risk Hazard Index Risk exceeded? Soil Combined Pathways 0.0E+00 0.0E+00 NO Groundwater Combined Pathways* 0.0E+00 0.0E+00 NO Soil Combined Pathways 0.0E+00 0.0E+00 NO Groundwater Combined Pathways* 0.0E+00 0.0E+00 NO Construction Worker Soil Combined Pathways 3.6E-07 7.5E+00 YES Soil Combined Pathways 0.0E+00 0.0E+00 NO Surface Water Combined Pathways* 0.0E+00 0.0E+00 NO PRIMARY CALCULATORS Resident Non-Residential Worker User Defined Knitting Plant and Dye House Receptor Pathway Carcinogenic Risk Hazard Index Risk exceeded? Groundwater to Indoor Air 0.0E+00 0.0E+00 NO Soil Gas to Indoor Air 0.0E+00 0.0E+00 NO Indoor Air 7.7E-04 7.1E+00 YES Groundwater to Indoor Air 0.0E+00 0.0E+00 NO Soil Gas to Indoor Air 0.0E+00 0.0E+00 NO Indoor Air 1.8E-04 1.7E+00 YES VAPOR INTRUSION CALCULATORS Resident Non-Residential Worker Sewing Front, Sewing Back and Reynolds Receptor Pathway Carcinogenic Risk Hazard Index Risk exceeded? Groundwater to Indoor Air 0.0E+00 0.0E+00 NO Soil Gas to Indoor Air 0.0E+00 0.0E+00 NO Indoor Air 2.5E-04 8.0E+00 YES Groundwater to Indoor Air 0.0E+00 0.0E+00 NO Soil Gas to Indoor Air 0.0E+00 0.0E+00 NO Indoor Air 5.7E-05 1.9E+00 YES VAPOR INTRUSION CALCULATORS Resident Non-Residential Worker Sparger Back and Sparger Front Receptor Pathway Carcinogenic Risk Hazard Index Risk exceeded? Groundwater to Indoor Air 0.0E+00 0.0E+00 NO Soil Gas to Indoor Air 0.0E+00 0.0E+00 NO Indoor Air 6.4E-04 2.2E+01 YES Groundwater to Indoor Air 0.0E+00 0.0E+00 NO Soil Gas to Indoor Air 0.0E+00 0.0E+00 NO Indoor Air 1.5E-04 5.2E+00 YES VAPOR INTRUSION CALCULATORS Resident Non-Residential Worker 6 BF# 19023-15-086/Spencer’s Mill Required Land Use Restrictions Based on the site-specific data provided to the Brownfield program, the site reuse is suitable for office, retail, hotel, restaurant, amenity space, recreation, parking, high density residential use and, subject to DEQ’s prior written approval, other commercial uses, as long as the agreed upon land use restrictions in the BFA are followed. 1. No use other than for office, retail, hotel, restaurant, amenity space, recreation, parking, high density residential use and, subject to DEQ’s prior written approval, other commercial uses 2. No groundwater use 3. No disturbing soil without DEQ approval or for landscape/mowing/pruning/repair of underground infrastructure (written notice to DEQ)/work for EMP. 5. Soil Import/Export protocol is followed. 6. No new buildings until DEQ says indoor air is safe/no VI issues/VI protection installed. 7. No use of property for child care, adult care centers, or schools. 8. EMP 9. Access to Brownfields Property for environmental assessment. 10. NBP reference in deed. 11. No contaminants on property except for de minimis amounts, fluid in vehicles, fuels for generators/equipment. 14. Ongoing maintenance of vapor mitigation systems. 15. Final grade soil sampling for RCRA metals, SVOCs, and VOCs will be conducted in exposed areas. 14. LURU submission January 1st Based on the site-specific data provided to the Brownfields program, the site reuse is suitable for the Brownfields Property as long as the agreed upon land use restrictions in the BFA are abided by and appropriate soil vapor mitigation systems are used.