HomeMy WebLinkAbout23017_5501 Center Dr_BPA_BPABrownfields Property Application
North Carolina Brownfields Program
www.ncbrownfields.orci
I. PROSPECTIVE DEVELOPER (PD) INFORMATION {USE TAB KEY TO GET TO NEXT
DATA ENTRY LINE — DO NOT USE THE RETURN KEY}
A. PD information:
Entity name
TDC 77 Center Drive II, LLC
Principal Officer
Jeffrey Benson
Representative
Michael J. Eskra, CFO
Mailing Address
5310 S. Alston Ave. Ste. 210
Durham, NC 27713
E-mail address
meskra@dilweg.com
Phone No.
(919) 313-2766
Fax No.
(919) 402-9119
Web site
www.dilweg.com
B. PD contact person information (i.e., individual who will serve as the NCBP's point of
contact if different than above):
Name Michael J. Eskra, Chief Financial Officer
Company The Dilweg Companies, LLC
Mailing Address 5310 S. Alston Ave., Ste, 210
Durham, NC 27713
E-Mail Address meskra@dilweg.com
Phone No. (919) 313-2766
Fax No. (919) 402-9119
C. Information regarding all parent companies, subsidiaries or other affiliates of PD (attach
separate sheet(s) if necessary):
(Use for LLCs)
Member -managed or manager -managed? Answer: Manager -managed
0
If manager -managed, provide name of manager and percent of ownership:
Name
Dilweg Capital, LLC
Ownership (%)
Mailing Address
5310 S. Alston Ave. Ste. 210
Durham, NC 27713
E-Mail Address
meskra@dilweg.com
Phone No.
(919) 313--2766
Fax No.
(919) 402-9119
For all LLCs, list all members of the LLC and provide their percent of ownership:
Name TDC 77 Center Drive Member, LLC
Ownership (%) 45.60995%
Mailing Address 5310 S. Alston Ave. Ste. 210
Durham, NC 27713
E-Mail Address meskra@dilweg.com
Phone No.
Fax No.
Name
Dilweg Blue Pledge Fund, LP
Ownership (%)
54.39005%
Mailing Address
5310 S. Alston Ave. Ste. 210
Durham, NC 27713
E-Mail Address
meskra@dilweg.com
Phone No.
Fax No.
Name
Ownership (%)
Mailing Address
E-Mail Address
Phone No.
Fax No.
��
Managers of manager -managed LLCs are required to execute all brownfield documents for
the LLC; as to member -managed LLCs, state name of member who will sign these
documents.
List all parent companies, subsidiaries and other affiliates:
See attached organizational chart. Please note no Dilwig-affiliated companies have had a
prior interest in the property.
(Use for Partnerships)
Check one: ❑General Partnership ❑Limited Partnership
List all partners and percent of ownership:
Name
Ownership (%)
Mailing Address
E-Mail Address
Phone No.
Fax No.
Is this person a general or limited partner?
Name
Ownership (%)
Mailing Address
E-Mail Address
Phone No.
Fax No.
Is this person a general or limited partner?
List all parent companies, subsidiaries and other affiliates:
0
�HN0�I-C) 7bC�
Cy7 l7
v, c�D Ua
CD
CD CD ,a w
CD
'+
co
ooCD
00 �' O p y�
'�C
.= • Q. cam!
r1
vY'
o- w
cD p \
ao
.n O w O
r C7
CO
A h- \ \
0 0
`'
00 w
o N
cn O
V d
a J
0 ry CD
CD
00
u'
CD cwo� G -0 bo
00 p CD
n
00 I'D CO
OC
CD
00 J n
o
ry
.._, 60 00CD
CD
w
"
cD
w
CD
� � C�
�
? �• o 0
b
C7
w
CD
w
�
o
w
h7 fD �
CD
00
�
CD CDCD
oNw�t7
...qd
C7 G)
�o CD
A CD
o o o Cj tCDD
CD
O rl
tz
"
c�D
rn o •17 n ,,y
n
cr,
;
('�
d C7 0 ° �'
El a
NCD v, a.
O�.
r o n � "^ ;
y
O
dq
w
r.
o
�c,
n
ID
w
p
O'
a
O
p' C) w C)
0 o a z o
CD
c
O N J
�ro
o Wo Wa'
LA O y
W .y
N A
0 o co
H n
CD
0 CD
v
w W
Ozz
CD w y c�`D c�D
On2..'l�bq�
-
tTj o
o CD
0
w a
00
w CD
o UQ ..
o
w d
w
r' 00 v C�
o C
00
Cl
n \ o o
CD?
o C, CD
o
o w o,
n CD
v
O
ao
H � H
CD w d
�v
CZ
ICD
� I d
o
C
CD
C) � CC)
N
O
(Use for corporations other than LLCs)
(If information is the same as shown in 1.A., please indicate "same as 1.A. " below.)
Name
Mailing Address
E-Mail Address
Phone No.
Fax No.
List all parent companies, subsidiaries and other affiliates:
(Use for individuals)
(If individual is the same as shown in 1.A., -please indicate "same as 1.A."above.)
Name
Mailing Address
E-Mail Address
Phone No.
Fax No.
D. Does PD have or can it obtain the financial means to fully implement a brownfields
agreement and assure the safe reuse of the property? (Attach supporting documentation
such as letters of credit, financial statements, etc.)
Answer Yes
Explanation The Property is 2.44-acres in size and one parcel that is part of a larger mutli-
parcel 57.9-acre office park. With the exception of the 5501 77 Center Drive parcel, which is
the focus of this application, the balance of the office park is now subject to the Seventy
Seven Center Drive Brownfields Agreement # 16048-12-60 recorded in August 2016. Dilwig
bought the office park from WPFII REIV, LLC, the PD of the Seventy Seven Center Drive
Brownfields Property. The 5501 77 Center Drive parcel was purchased from a third party,
GFE LLC, which did not participate in the Brownfields Agreement process with WPFII REIV,
LLC.
7
The Property renovation will include significant upfitting of all tenant spaces, replacement of
obsolete building systems and any necessary work related to the brownfield agreement.
Ownership can secure financing for a full renovation of the office park that includes the
improvements currently located at the Property. However, the possible contamination at the
property and liability concerns are proving to be a hinderance to loan financing because the
parcel subject to this application was not included in the Seventy Seven Center Drive
Brownfields Property, which provides liability protection for the balance of the larger site.
E. Does PD have or can it obtain the managerial means to fully implement a brownfields
agreement and assure the safe use of the property?
Answer Yes
Explanation A coordinated effort between the in-house construction manager employed by
the property manager, The Dilweg Companies, and its general contractor, Barringer
Construction, will ensure the full implementation of the brownfields agreement.
F. Does PD have or can it obtain the technical means to fully implement a brownfields
agreement and assure the safe use of the property?
Answer Yes
Explanation The general contractor employed for the property renovation, Barringer
Construction, has the technical means to implement a brownfields agreement
G. Does PD commit that it will comply (and has complied, if PD has had a prior project in the
NCBP) with all applicable procedural requirements of the NCBP, including prompt payment of
all statutorily required fees?
Answer Yes
(List all NCBP project name(s) and NCBP project ID numbers where PD or any parent
company, subsidiary and other affiliate of PD has been a party to.)
H. Does PD currently own the property?
Answer Yes
E:
If yes, when did PD purchase the property and from whom? (Provide name, address,
telephone number and email address of the contact person for the current
property owner.)
June 8, 2018, purchased from GFE LLC
Mike Eskra
The Dilweg Companies
5310 South Alston Ave., Suite 210
Durham, NC 27713
(919) 313-2766
meskra@dilweg.com
If no, provide the name, address, telephone number and e-mail address of the contact
person for the current property owner
I. If PD does not currently own the property, does PD have the property under contract to
purchase?
Answer N/A
If yes, provide date of contract.
If no, when does the PD intend to purchase the property (e.g., after the project is determined
to be eligible for participation in the NCBP, after PD receives a draft BFA, after the
conclusion of the brownfields process)?
Describe all activities that have taken place on the property since PD or PD's parents,
subsidiaries and/or other affiliates, and/or lessees or sublessees of PD, took ownership of or
operated at the property (e.g., industrial, manufacturing or commercial activities, etc.).
(Include a list of all regulated substances as defined at NCGS § 130A-310.3 1 (b) (11) that have
been used, stored on, or otherwise present at the property while those activities were
conducted, and explain how they were used.)
The property is currently vacant.
II. SITE INFORMATION
A. Information regarding the proposed brownfields property:
Proposed project name
�G7
acreage
street address(es)
city
tax ID(s) or PIN(s)
past use(s)
current use(s)
2.4363+-
5501 77 Center Drive
Charlotte
169-102-03
Office Building
Office Building
cause (s)/source(s) of contamination:
known
suspected
County Mecklenburg
zip 28217
B. Regulatory Agency Involvement: List the site names and all identifying numbers (ID No.)
previously or currently assigned by any federal, state or local environmental regulatory
agencies for the property. The ID No's may include CERCLIS numbers, RCRA generator
numbers for past and present operations, UST database, Division of Water Quality's incident
management database, and/or Inactive Hazardous Sites Branch inventory numbers. (In
many instances, the PD will need to actively seek out this information by reading
environmental site assessment reports, reviewing government files, contacting government
officials, and through the use of government databases, many of which may be available over
the internet.)
Agency Name/ID No:
Agency Name/ID No:
Agency Name/ID No:
Agency Name/ID No:
Agency Name/ID No:
Agency Name/ID No:
C. In what way(s) is the property is abandoned, idled, or underused?
5501 77 Center Drive is currently vacant (underused). The 38,000-square-foot office building
located on subject property has been vacant since ownership acquired the property on June
8, 2018.
D. In what way(s) is the actual or possible contamination at the property a hindrance to
development or redevelopment of the property (attach any supporting documentation such as
letters from lending institutions)?
The possible contamination at the property is a hinderance to loan financing, which prevents
Ownership from renovating and leasing the property. In its current condition, 5501 77 Center
10
Drive cannot be leased to prospective tenants. The building requires significant capital to remedy
deferred maintenance, upgrade the building's systems, renovate the common areas and make
the building suitable for future tenants. Ownership cannot move forward with the renovations
without loan financing, and the Lender will not finance a property with possible contamination
without a brownfield agreement.
E. In what way(s) is the redevelopment of the property difficult or impossible without a
brownfields agreement (attach any supporting documentation such as letters form lending
institutions)?
Without the brownfield agreement, redevelopment of the property is hindered, as Ownership
will be unable to secure funding to pay for the renovations. Ownership has allocated $4,000,000
to renovate the property, including improvements to the building's mechanical systems,
elevators, life safety equipment, lobby, common areas and to provide amenities for the park.
F. What are the planned use(s) of the redeveloped brownfields property to which the PD will
commit? Be as specific as specific as possible.
The planned use of 5501 77 Center Drive is to provide leasable office space and onsite
amenities for the park.
G. Current tax value of brownfields property: $4,443,000.00
H. Estimated capital investment in redevelopment project: $4,000,000.
The estimated capital investment includes $1,500,000 of cosmetic improvements, $500,000 of
functional improvements and $2,000,000 for onsite park amenities.
List and describe the public benefits that will result from the property's redevelopment. Be as
specific as possible. (Examples of public benefits for brownfields projects include job creation,
tax base increases, revitalization of blighted areas, preserved green space, preserved historic
places, improving disadvantaged neighborhood quality -of -life related retail shopping
opportunities, affordable housing, environmental cleanup activities or set asides that have
community or environmental benefits. In gauging public benefit, NCBP places great value
upon letters of support from community groups and local government that describe
anticipated improvements in quality of life for neighboring communities that the project will
bring about. The inclusion of such support letters with this application is recommended and
encouraged.)
Redevelopment of 5501 77 Center Drive will result in job creation. By redeveloping the
property, Ownership will be able to recruit companies to work in the park, creating jobs for the
community. Redevelopment of the park will also result in an increased tax base of the property,
which will benefit the public.
Special Note: Please describe all environment -friendly technologies and designs PD plans
to utilize in its redevelopment strategy. For example, environment friendly redevelopment
plans could include: Leadership in Energy and Environmental Design (LEED) Certification,
green building materials; green landscaping techniques such as using drought resistant
11
plants; energy efficient designs, materials, appliances, machinery, etc.; renewable sources of
energy, and/or recycling/reuse of old building materials such as brick or wood.
Ownership plans to investigate using environment friendly redevelopment plans including
green building materials, green landscaping techniques and energy efficient designs. The
mechanical improvements to the building (HVAC improvements, BMS upgrades) will reduce
the building's energy use, making the building more efficient.
J. Who will own the brownfields property when the Notice of Brownfields Property is filed with
the register of deeds at the conclusion of the brownfields process? (If information is the
same as 1.A. above, please indicate.)
Name TDC 77 Center Drive II, LLC
Mailing Address 5310 S. Alston Ave., Ste. 210
Durham, NC 27713
E-Mail Address meskra@dilweg.com
Phone No.
Fax No.
III. OTHER REQUIRED INFORMATION
A. Brownfields Affidavit: PD must provide its certification, in the form of a signed and
notarized original of the unmodified model brownfields affidavit provided by NCBP, that it
did not cause or contribute to contamination at the property and that it meets all other
statutory eligibility requirements. (Note: The form to use for this affidavit is attached to this
application. An original hard copy of this affidavit must be filled out, signed, notarized and
submitted with this application.)
Is the required affidavit, as described above, included with this application?
Answer Yes
B. Proposed Brownfields Agreement Form: PD must provide the completed form Proposed
Brownfields Agreement. (Note: The form to use for this document is attached to this
application. It must be filled out, initialed, and attached on your submittal.)
Is the required Proposed Brownfields Agreement , as described above. included with this
application?
Answer Yes
C. Location Map: PD must provide a copy of the relevant portion of the 1:24,000 scale
U.S.G.S. topographic quadrangle map that shows the location of the property, clearly
plotted, and that measures at least an 8 1/2by 11 inches. (Note: these maps can be
purchased through the above link, or often through retail outdoor recreation stores that can
12
print out the relevant map. Often environmental reports have location maps that use this
type of map format as the base for its location map.)
Is the required location map included with this application?
Answer Yes
D. Survey Plat: PD must provide a preliminary survey plat of the brownfields property with the
property boundaries clearly identified, and a metes and bounds legal description that
matches the property description on the plat. At this stage of the brownfields process, one
or more existing survey plats from a previous property conveyance will suffice. (Before the
brownfields project enters the public comment phase of the brownfields process, the PD will
be required to submit a final brownfields survey plat which includes the information listed in
the brownfields survey platguidance.)
Is the required preliminary survey plat included with this application?
Answer Yes.
E. Site Photographs: PD must provide at least one pre -redevelopment photograph of the
property, in either hard copy or electronic format, that shows existing facilities and
structures. Please note that the NCBP prefers to have electronic photos instead of or
in addition to hard copies. Electronic copies of photographs should be emailed to:
Shirley. Liggins@ncdenr.gov with a clear indication as to which Brownfields
Application they apply to.
Are photographs of the property included with this application?
Answer See attached Phase I.
Have electronic copies of the photographs been emailed to NCBP?
Answer See attached Phase I.
F. Environmental Reports/Data: If it makes an affirmative eligibility determination, the NCBP
will request that PD provide any and all existing environmental reports and data for the
property on CD only. The brownfields process may be expedited if PD submits such
reports/data with this application.
Are any environmental reports/data being submitted with this application?
Answer See attached Phase I.
If environmental reports/data are being submitted with this application, please provide the
title, date and author of each item being submitted:
Also, please refer to the large number of reports and other information associated with
the Seventy Seven Center Drive Brownfields Property.
13
IV. ADDITIONAL REQUIRED FORMS
The following forms are to be filled out and submitted with the application including the
Responsibility and Compliance Affidavit and the Proposed Brownfields Agreement.
Submittal of the Affidavit requires signature and notarization, and the Proposed
Brownfields Application requires an initial.
14
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
NORTH CAROLINA BROWNFIELDS PROGRAM
IN THE MATTER OF: TDC 77 CENTER DRIVE II, LLC
UNDER THE AUTHORITY OF ) AFFIDAVIT
NORTH CAROLINA GENERAL ) RE: RESPONSIBILITY
STATUTES 3130A-310.30, et sect ).__. AND COMPLIANCE
JEFFREY A. BENSON, being duly sworn, hereby deposes and says:
1. I am <<PRESIDENT>> of DILWEG CAPITAL, LLC, THE MANAGER OF TDC 77 CENTER
DRIVE II, LLC.
2. [if signatory is not President, add this paragraph: "I am fully authorized to make the declarations
contained herein and to legally bind TDC 77 CENTER DRIVE II, LLC."]
3. TDC 77 CENTER DRIVE II, LLC is applying for a Brownfields Agreement with the North Carolina
Department of Environmental Quality, pursuant to N.C.G.S. 3 130A, Article 9, Part 5 (Brownfields
Act), in relation to the following Parcel Number(s)16910203 parcel(s) in Charlotte, Mecklenburg ,
County, North Carolina: 5501 Seventy Seen Center Drive.
4. I hereby certify, under the pains and penalties of perjury and of the Brownfields Act, that TDC 77
CENTER DRIVE II, LLC, and any parent, subsidiary or other affiliate meets the eligibility
requirements of N.C.G.S. 3130A-310.31(b)(10), in that it has a bona fide, demonstrable desire to
develop or redevelop, and did not cause or contribute to the contamination at, the parcel(s) cited in the
preceding paragraph.
5. I hereby certify, under the pains and penalties of perjury and of the Brownfields Act, that TDC 77
CENTER DRIVE II, LLC meets the eligibility requirement of N.C.G.S.3130A-310.32(a)(1) in that it
and any parent, subsidiary or other affiliate have substantially complied with:
a. the terms of any brownfields or similar agreement to which it or any parent, subsidiary or
other affiliate has been a party;
b. the requirements applicable to any remediation in which it or any parent, subsidiary or other
affiliate has previously engaged;
c. federal and state laws, regulations and rules for the protection of the environment.
Affiant further sa' h not. -�
Signa[ n'i—idle
Date
Sworn to and subscribed before me MATTHF��i,G
this �� 0 day of A A A it (',k , 2011. O s
Notary Public NotacVCO%JVN `I
Y�� caWIYV�LSSIGV� �IYY.S �a-G-�� - &.1
My commission expires:
(SEAL)
16
Preliminary Proposed Brownfields Agreement
I. Property Facts
a. Property Address(es): 5501 Seventy Seven Center Drive, Charlotte, NC
b. Property Seller: TDC 77 Center Drive, LLC
c. Property Buyer: TDC 77 Center Drive II, LLC
d. Brief Property Usage History: Office Building
e. The planned reuse will potentially involve the following use classification(s) (check all that
apply):
❑ School/childcare/senior care
❑ Residential
❑ Commercial, retail (specify)
❑ Other commercial (specify)
® Office
❑ Light industrial
❑ Heavy industrial
® Recreational
❑ Open space
❑ Other (specify)
II. Contaminant Information
a. The contaminant situation at the property is best described by the following (check all that
apply):
❑ Contaminants are from an on -property source(s)
® Contaminants are from an off -property source(s)
❑ Contaminants are from an unknown source(s)
❑ Contaminants have not yet been documented on the property
17
b. Contaminated Media Table. (If known, check appropriate boxes below)
Contaminant
Soil
Groundwater
Private Wells
Vapor Intrusion
Types
and/or Surface
Water
known
Suspected
known
Suspected
known
suspected
known
suspected
0
Chlorinated
X
X
r
Solvents
9
(list):
a
n
i
c
s
Petroleum:
ASTs ❑
USTs ❑
Other ❑
Other (list):
i
Metals
n
(list):
0
r
9
a
n
Other (list):
c
s
III. Protective Measures
I am prepared to take steps necessary to make the property suitable for its planned uses while
fully protecting public health and the environment. I propose that NCBP consider a brownfields
agreement that will make the property suitable for the planned use(s) through the following
mechanism(s) (check all that apply):
® Contaminant remediation to risk -based levels.
® Engineered Controls (e.g., low permeability caps, vapor mitigation systems, etc)
® Land use restrictions that run with the land that will restrict or prohibit uses that are
unacceptable from a risk assessment/management perspective. (Important Note: In any
im
final brownfields agreement generated by the NCBP, land use restrictions will ultimately
come with the continuing obligation to submit an annual certification that the Land Use
Restrictions are being complied with and remain recorded at the applicable register of
deeds office.)
IV. Fees
In connection with a brownfields agreement, the Act requires that the developer pay fees to
offset the cost to the Department of Environmental Quality and the Department of Justice. In
satisfaction of the Act, the following fees apply to a brownfields agreement that is developed for
this project under the standard program, subject to negotiation of the brownfields agreement:
a. A $2,000 initial fee will be due from the applicant PD when both of the following occur:
1) NCBP receives this application, the affidavit and proposed brownfields agreement, AND
2) NCBP notifies the applicant in writing that the applicant PD and the project are eligible for
participation in the NCBP and continued negotiation of a brownfields agreement.
b. A second fee of $6,000 will be due from the PD prior to execution of the brownfields
agreement. Should the prospective developer choose to negotiate changes to the agreement
that necessitate evaluation by the Department of Justice, additional fees shall apply.
c. Any addendum/modifications to the BFA or NBP after they are in effect will result in an
additional fee of at least $1,000.
d. In the unexpected event that the environmental conditions at the property are unusually
complex, such that NCBP's costs will clearly exceed the above amounts, NCBP and PD will
negotiate additional fees.
e. Additional fees are charged for the Ready for Reuse and Redevelopment Now programs.
❑ Please check this box and initial in space provided to indicate your
acknowledgement of the standard brownfields fee structure.
Please check this box and initial in space provided to indicate your interest in the
Re pment Now program and your acknowledgement of the alternate fee structure as
outlined in the Redevelopment Now Fee Consent Document (under separate cover).
❑ Please check this box and initial in space provided to indicate your interest in the
Ready for Reuse program.
Date of Submittal: , . A 0 - I I
Wel
North Carolina Brownfields Program
Redevelopment Now
Fee Consent Document
I, the undersigned, am the authorized agent of TDC 77 Center Drive ll, LLC ("Prospective
Developer"), who seeks to engage the North Carolina Brownfields Program ("Program") to develop
a brownfields agreement under N.C.G.S. 130A-310.30, et seq. for the following property:
Proposed Site Name: TDC 77 Center Drive
Street Address: 550177 Center Drive
City: Charlotte
Zip Code: 28217
County: Mecklenburg
Prospective Developer is herewith paying a $30,000.00 fee to the Program, by check payable to
"NCDEQ," in satisfaction of a Prospective Developer's obligations under N.C.G.S. 130A-
310.39(a). Prospective Developer understands that payment of this fee entitles Prospective
Developer to expedited Program review of technical documents and processing of a draft
Brownfields Agreement and ancillary documents regarding the project in question.
Prospective Developer further understands that payment of this fee in no way guarantees successful
completion of the brownfields process regarding the project.
I understand that, pursuant to payment of the fees, the Program shall handle the subject project under
the Program's expedited processing provisions, with appropriate staff resources, so long as
Prospective Developer is engaging in the process in good faith and complying with the Program's
procedures.
Should the Program determine that the resources required to complete the brownfields process in
regard to the subject project ever exceed the fee set forth herein due to unforeseen technical,
administrative, or regulatory complexities, the Program may (1) remove the project from the
expedited processing program and return it to standard processing status, or (2) expend resources it
deems reasonable seeking to negotiate an additional fee that the Program deems sufficient to
complete the brownfields process in regard to the project.
Disclaimers:
1) The Program makes no promises or claims that payment of the subject fee will result in successful completion
of the Brownfields process regarding this project.
2) Public comment shall be solicited pursuant to N.C.G.S. 130A-310.34, and may affect the outcome of the brownfields
process regarding this project, including without limitation its timing and/or provisions/features of the Brownfields
documents and plat.
Prospective Developer: TDC 77 Center Drive ll, LLC
Mailing Address: Attn: Mike Eskra
5310 South Alston Ave, Suite 210
Durham, NC 27713
Nark t ped or anted: Jeffrey A. Benson
Title type anted: President, Dilweg Capital
3-90"11
Date