20026 Kaiser Dec Memo 20201216

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Kaiser Fluids II/20026-17-060 draft 20201216
DECISION MEMORANDUM DATE: December 17, 2020 FROM: Carolyn Minnich

TO: BF Assessment File RE: Kaiser Fluid II 530 and 600 East Sugar Creek Road
Charlotte, Mecklenburg County
BF No 20026-17-060 Based on the following information, it has been determined that the above referenced site, whose intended use is for no uses other than for high density multi-family
residential, retail, office, parking, warehouse, industrial, open space and with prior
written DEQ approval, other commercial uses, can be made suitable for such uses. Introduction: This project has two Prospective Developers, Sugar Creek Station, LLC and Sugar Creek
One, LLC. They plan to form a new limited liability company for the sole purpose of
redeveloping the property. Both are North Carolina manager-managed limited liability companies. The Brownfields Property comprises two parcels totaling 8.15 acres. The former Kaiser Fluids Technology (Kaiser) Facility was located at 530 East Sugar Creek Road and is 4.43 acres (PIN 09107104). The former Henkel Chemical Corporation
(Henkel) Facility is located at 4100 Raleigh Street (also known as 600 East Sugar Creek
Road) and is 3.72 acres (PIN 09107204). Redevelopment Plans: The Brownfields Property will be improved with mixed use transit-oriented development.
The former Henkel Facility has immediate plans for redevelopment with commercial,
retail, restaurants, art galleries, music venues, breweries, and co-working spaces. The developer has named the project “The Station”, renderings and site plans are below. Redevelopment plans for the former Kaiser Fluids have not been finalized but will
include retail, commercial, office, and/or high density multi-family residential uses.

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Site History:
Prior to 1956, the Kaiser Parcel was undeveloped land. Between 1956 and 1993, Ronson
Hydraulics utilized the property to design and manufacture hydraulic fluid control systems for the aerospace industry. In 1993, Kaiser Fluid Technologies purchased Ronson Hydraulics. They continued the design and manufacturing of hydraulic fluid control systems for the aerospace industry. Operations included lathes, milling and
tooling machines, grinders, prevision homing equipment and used various oils to cut,
cool, and lubricate metals and machinery during manufacturing activities. During the finishing activities, synthetic costing and plating materials were used. The Kaiser Parcel is listed on the Inactive Hazardous Sites Branch (IHSB) inventory
number NONCD0001946 under the name Kaiser Fluids Technologies. Historic
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operations reportedly used industrial solvents to clean parts and equipment. Previous
investigations have identified areas of concern including but not limited to: former settling tank located outside the former deburring area of the warehouse; former compressors, receiving and transformer area; former trichloroethylene (“TCE”) degreaser, paint booth, and numerical control lathe area; former RCRA Room; loading dock area and former hazardous waste storage area, and floor drains in the hydraulic
pump and compressor room in the former R&O room. Kaiser Fluids had a non-generator RCRA permit NCD986192847. They incurred $100,000 in penalties pertaining to documentation, planning and practice violations. (More information is available in the environmental reports.)
The Kaiser Parcel formerly had ~65,000 sq. ft industrial building that was constructed in 1960 and associated asphalt parking lot. In November 2017, the building was razed and demolished. The concrete pads, foundation, and parking lots remain intact. Kaiser Parcel remained vacant from 2003 until 2017 except for limited storage of office supplies and Halloween props. It is currently used for temporary truck or trailer parking.
The former Henkel Parcel was undeveloped wooded land prior to the early 1950s. Standard Chemical developed the Henkel Parcel in 1952 for a textile chemical manufacturing facility. Henkel Corporation purchased the parcel in 1960 and operations included the manufacture, storage, and distribution of textile chemicals. Other operations
on the parcel included: Hedgecock Lumber utilized a portion of the warehouse for storage and distribution of lumber products; Bradco Supply utilizes the facility for storage of construction building materials including roofing, siding, doors, windows, and other miscellaneous building supplies; Source Recycling operates as consolidating and compaction of aluminum cans and other metal materials. In 2018, Charlotte Art League
moved their headquarters to the Henkel Parcel. Henkel Corporation, Sugar Creek Plant had an RCRA ID NCD990715062. The Henkel Parcel is not on the IHSB inventory, but assessment work has revealed soil and groundwater impacts. Previous investigations have identified areas of concern including
but limited to trench drains in the former chemical production area of the central portion of the warehouse and drains in the western portion of the warehouse; polychlorinated biphenyls (PCB)-containing Heat Transfer Fluid; No 5 Fuel Oil UST, Pump Station/Spill Collection Basin; former AST Area, former rail spur; floor drains in warehouse #2; former isopropyl UST; former Butyl Stearate Spill; former storage building; former R&D
laboratory; and former maintenance shop. PCB containing fluid was used in hot oil systems formerly located in the boiler room in the southeastern portion of the Henkel building, the production area in Warehouse #1, and the basement of the Research and development (R&D) building. During the late 1970s, a small storage building was constructed to provide storage for waste products, polychlorinated biphenyls (PCBs) and
PCB-contaminated oils. The PCBs were generated from repeated retrofill and flushing of the facility heat transfer system in compliance with an EPA established schedule. (More information is available in the environmental reports.)
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Henkel Parcel was developed in 1952 with ~48,700 sq. ft industrial warehouse building,
in the 1960s with ~15,000 sq. ft laboratory/office building, and in the late 1960s ~1,200 sq. ft storage building. In 2012, the storage building and R&D building were demolished and removed from the Henkel Property. Warehouse #3 and office area are occupied by Charlotte League. Warehouse #2 is slated to be demolished in mid-2020. Redevelopment includes two new four-story structures. Warehouse #1 is being upfitted and will be used
for various commercial purposes including retail, restaurants, art galleries, music venues, breweries, and/or co-working spaces. Potential Receptors:
Potential receptors are construction workers, on-site workers, future residences, visitors,
animals (dog park), and trespassers. Contaminated Media: DEQ has evaluated data collected from the following media at the subject property: soil,
groundwater, soil vapor, and indoor air. DEQ relies on the following data to base its
conclusions regarding the subject property and its suitability for its intended reuse. Soil The Brownfields Property as a whole has residual soil impact in several areas that are
present. Most recently in 2018, 28 soil borings were advanced across the Brownfields
Property at previously identified AOCs and in areas of future development. Results include the following: Volatile Organic Compounds (“VOCs”) Analytical results from 2018 indicated that no
VOCs were detected in the soil samples at concentrations that exceed Residential or
Industrial/Commercial Preliminary Soil Remediation Goals (“PSRGs”). In 2011, Trichloroethylene and Vinyl Chloride were detected in soil boring SB-4 and SB-10 on the Kaiser Parcel near the former loading dock and former hazardous waste storage area. These areas were sampled again in 2018 and concentrations were below laboratory
detection limits. Soil samples on the Henkel Parcel were below screening levels for
historical sampling events. Semi-Volatile Organic Compounds (SVOCs) Analytical results indicate that PAHs were detected on Henkel Parcel above Residential PSRGs, this included benzo(a)anthracene
(1.2 mg/kg) and benzo(a)pryene (0.47 mg/kg) in soil sample HHSB-22 near the former
rail spur; however duplicate sampling could not replicate these results. No other SVOCs were detected in the soil samples collected at the Brownfields Property above Residential PSRGs.
Metals: Analytical results indicated that arsenic and hexavalent chromium are naturally
occurring on the Brownfields Property and in the surrounding area. Hexavalent chromium was detected in 25 of the 28 soil samples and in each of the background soil samples at concentrations ranging from 0.20J to 2.31 mg/kg. Arsenic concentrations range from 0.91J to 8.5 mg/kg across the Brownfields Property. In addition, numerous
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metals including aluminum, iron, manganese, and vanadium were detected above the
current Residential PSRGs but below the Industrial/Commercial PSRGs.
PCBs: Analytical results indicate that PCB Aroclors 1242 and 1248 were detected in the northwestern portion of the Henkel parcel (former R&D lab) at concentrations up to 270 mg/kg. Two samples HHSB-15 and HHSB-27 were submitted for PCB 209 Congeners
analysis by EPA Method 1668. An “Area of Known PCB Contamination” has been defined on the Brownfields Property and labeled on the plat map. This area will be covered with one foot of imported demonstrably clean fill and capped with pavement during the parking lot expansion. The area will require annual cap inspections.
In January 2018, a portion of the concrete slab inside the former production area throughout the former Henkel building was assessed. The purpose was for future commercial redevelopment. Eight concrete slab core samples were collected from the building area with heavy staining or pitting or near the floor drain.
The results indicated no VOCs were detected at concentrations above Residential or Commercial/industrial PSRGs. PCB Aroclor 1248 was detected in the former boiler room of the former Henkel Building (10 mg/kg), which exceeds the industrial/commercial standard (0.96 mg/kg). This room is currently storage for misc.
items and not an occupied space. No other PCBs were detected in the concrete slab samples above Residential or Commercial/Industrial PSRGs. Groundwater Depth to groundwater ranges from ~10 ft in the southern portion of the Brownfields
Property to ~18 ft in the northwestern portion of the Brownfields Property. The hydraulic gradient is generally to the northwest toward Little Sugar Creek.
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Groundwater impacts are likely from historical operations on the Brownfields Property at the Henkel Parcel in the area north of the Henkel building and in the vicinity of the loading dock on the Kaiser Parcel. VOC 1,4-dioxane was detected in groundwater samples on the Brownfields Property above 15A NCAC 02L Groundwater Standard (2L Standard). TCE and VC were detected near the loading dock on the Kaiser Parcel above
2L Standards. Total Chromium was detected above 2L standards on the Henkel Parcel near the R&D facility and near the former settling tank excavation area on the Kaiser Parcel.
In 2011, groundwater samples were collected on the Henkel Parcel from monitoring wells MW3, MW6, and MW-7 and analyzed for SVOCs, VOCS, and PCBs. The PCB concentrations were below reporting limits and below screening standards. MW-6 in the former AST area had detections of VOCs above 2L Standards, specifically benzene (3.2 ug/L, chlorobenzene (740 ug/L) 1,2-Dichlorobenzene (240 ug/L), 1,3-Dichlorobenzene,
and 1,4-Dichlorobenzene (49 ug/L) 1,4-Dioxane was detected above 2L standards in monitoring wells MW-6 and MW-3. Most recently, in 2018 six temporary monitoring wells were installed and sampled on the Brownfields Property. The wells were placed in previously identified AOCs and sampled
for VOCs, SVOCs, RCRA Metals. Chromium, 1,4-Dioxane, vinyl chloride, and mercury were detected above 2L standards. In 2019, mercury was detected in groundwater on the Henkel Parcel north of the warehouse building. Two additional sample events and indoor air samples were collected
to further assess the potential for mercury. In the follow up events, mercury was not detected above the laboratory method detection limit. Surface Water Surface water is not located on the Brownfields Property.
Soil Gas Soil gas sampling was conducted on the Brownfield Property in October 2018 and February 2019. The sample locations were selected based on previously identified AOCs and redevelopment plans. Nine permanent subsurface soil gas monitoring points and 12
sub slab vapor points were installed on the Brownfields Property. On the Henkel Parcel, two permanent subsurface soil gas monitoring points were installed and sampled in February 2019. The samples were analyzed by full TO-15 Method list. A portion of the sampling points were also sampled for Mercury by NIOSH
Method 6009. Soil gas impacts were identified on the Brownfields Property at depths ranging from 10-15 ft bgs in the northern portion of the Kaiser Parcel and western portion of the Henkel Parcel. Analytical results in soil gas detected xylenes above the residential SGSL (700
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µg/m3). No other compounds were detected above Residential SGSLs during the
2018/2019 event. Mercury was not detected above the lab MDL in the samples collected.
Sub-Slab Vapor Sub-slab samples were collected in January 2018, October 2018 and February 2019.
Laboratory analytical results collected from the Henkel Parcel building indicate numerous VOCs detected at concentrations above laboratory method detection limits, but below the Residential and non-residential SGSLs. Mercury was not detected at concentrations above the laboratory MDL.
Vapor intrusion assessment at the former Kaiser Building slab detected concentrations of 1,2-dibromomethane (also known as ethylene dibromide) and TCE in several sub slab vapor samples at concentrations above Residential SGSLs. The TCE concentrations in a portion of the Kaiser Parcel in the former hydraulic pump and compressor room exceeds the Non-Residential SGSL. Additional vapor assessment will be necessary prior to
redevelopment on the Kaiser Parcel. The Soil Gas laboratory report have several petroleum related compounds detected in nine samples above laboratory MDL and several were above Residential SGSLs, but below the non-residential SGSLs.

Indoor Air Indoor air samples were collected in February 2019 on the Henkel Parcel in the building to assess for mercury by NIOSH Method 6009. The results of the indoor air sampling did not indicate mercury at concentrations above the laboratory method detection limits in
any of the three samples collected. Indoor air sampled were collected via laboratory supplied passive dosimeter (aka badge sampler). The badges were placed open to collect ambient air over an 8-hour period.

Risk Calculations Risk calculations were performed using the most recent DEQ Risk Calculator https://deq.nc.gov/permits-rules/risk-based-remediation/risk-evaluation-resources. For the purposes of looking at the site spatially, the site was divided into two areas Kaiser
Parcel and Henkel Parcel.
The risk calculations indicated the following based on available data, including the following media: groundwater, residual soil (based on confirmatory soil data), soil gas, and indoor air soil samples
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Kaiser Parcel
At the current time, no structures are on the Kaiser Parcel. Based on the assessment to date, residential redevelopment would require vapor mitigation. Prior to non-residential redevelopment, the additional assessment may be required by DEQ. The calculated risk
Hazard Index is 0.66. The standard VI LUR restriction is included in Exhibit A to the Notice of Brownfield Property. The current use on former Kaiser Parcel is periodic tractor-trailer parking.
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Henkel Parcel
The risk calculator above does not include the Area of Known PCB impacted soils. The
area excludes that portion in the risk calculator. Two additional risk calculators for PCB
containing soils in the area of HHSB-15 and HHSB-27 were completed.

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Area of Known PCB Soil Contamination is denoted on the plat map. These areas will be
inspected annually and caps must be maintained. Soil may not be exposed in these areas without DEQ notice, approval, and in accordance with approved EMP. Henkel Property required LURs for groundwater exposure and non-residential uses. High-density multi-family is not permitted on Henkel Parcel without the prior written
approval of DEQ. Additional vapor assessment would be necessary for vapor intrusion mitigation systems for residential uses. Non-residential use does not require additional vapor assessment or mitigation at this time. Results indicate the vapor mitigation is not warranted on the Henkel Parcel of the
Brownfields Property based on the acceptable calculated carcinogen and non-carcinogenic risk under both residential and non-residential use scenarios. Required Land Use Restrictions: Based on the site-specific data provided to the Brownfield program, the site reuse is
suitable for the site as long as the agreed upon land use restrictions in the BFA are abided by.
• No groundwater usage
• Install, maintain, inspect soil cap in Area of Known Soil Contamination
• No soil disturbance without DEQ approval
• Soil may not be removed from or soil imported without DEQ approval
• EMP required prior to redevelopment
• Annual development summary report required
• No use of known contaminants on the BF Property
• Standard VI
• DEQ shall not be denied access
• Deed conveyance of Notice
• Maintenance of existing and future monitoring wells as needed to remain on site
• LURU submittal