25025_120 Kindley_DM_20221128

DECISION MEMORANDUM
DATE: November 28, 2022
FROM: Holly Samaha-Smith, PE
TO: BF Assessment File
RE: 120 Kindley Street
0, 120, 121, 130, and 131 Kindley Street and Kindley Street Easement
Area
Raleigh, Wake County
BF # 25025-21-092
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 residential, office,
parking, retail, beverage or food production facility, hotel, recreation, institutional,
educational space, post -secondary education, open space, transportation connector, and
subject to DEQ's prior written approval, other commercial and light industrial uses, can
be made suitable for such uses.
Introduction
The Brownfields Property was formerly comprised of two parcels totaling 9.85 acres.
These parcels were assigned Wake County Tax Parcel Identification Number (PIN)
1703559479 and an unassigned PIN with the address of 120 Kindley Street and an
unaddressed parcel on Kindley Street. These assigned parcels were recombined into four
parcels effective January 6, 2022, under active PINS 1703650617, 1703651298,
1703558561, and 1703559286 and the addresses 120, 121, 130, and 131 Kindley Street.
The Former Department of Transportation (DOT) Land was assigned the address of 0
Kindley Street and PIN 1703557221 in October 2022 during the public comment period
for the Brownfields Agreement. The total acreage of the Brownfields Property is 10.136
acres. The Brownfields Property is located in the southwestern portion of downtown
Raleigh.
The Prospective Developer is Capital City Urban Development, LLC, a manager -
managed LLC, headquartered at 333 Fayetteville Street, Suite 225, Raleigh, NC 27601.
Its managers are Robert W. Ferris, of the same address, and Aaron Thomas of 763
Comtech Drive, Pembroke, NC 28372.
The Seven Up Bottling Co Brownfields Property, which is an active eligible Brownfields
project (Brownfields Project No. 24031-20-092), is located immediately adjacent to the
northeast portion of the 120 Kindley Street Brownfields Property.
Redevelopment Plans:
The Prospective Developer intends to redevelop the Brownfields Property with a high -
density residential building on the southeastern portion of the property during the first
120 Kindley Street/25025-21-092/28NoQ022

phase of redevelopment. The first two floors of the building will contain residential
amenities, retail stores, and a parking garage. Construction commenced in May 2022.
Details on the other phases of redevelopment are currently under evaluation by the
Prospective Developer. Future buildings may include a hotel, another high -density
residential unit, a school, or light industrial uses.
Site History:
The Brownfields Property was originally developed prior to 1909 with residences and a
church. The structures were razed in the late 1970s, and the property remained
undeveloped for several years. In 1986, an approximately 47,000 square foot building,
with associated parking and landscaping, was constructed to serve as a data center and
office for Duke Energy. The Duke Energy data center was in operation until 2014, after
which the building remained vacant.
A 15,000-gallon diesel underground storage tank (UST) was installed in 1986 along the
south exterior wall of the Duke Energy data center building. The UST previously fueled
two emergency generators that were installed in 1986 and 2010. During the installation of
the second emergency generator, temporary generators were staged at the Brownfields
Property from late 2010 to early 2011. Approximately one gallon of fuel was released
while transferring fuel from the temporary generator fuel tanks to the 15,000-gallon UST.
Odors detected during a routine inspection in August 2011 conducted by the NC Division
of Waste Management UST Section (UST Section) are attributed to this release.
A site investigation was conducted to assess for petroleum constituents around and below
the UST on November 1, 2011. Between November and December 2011, approximately
seven cubic yards of contaminated soil and gravel were removed during mitigation
efforts. The excavated material was transported to Waste Management Richland Landfill
in Elgin, SC. The excavation was backfilled, but the source of the imported material is
unknown. A site assessment was also conducted around the perimeter of the UST, and
petroleum hydrocarbons were detected below the UST. A contractor for Duke Energy
completed a UST Suspected Release 24 Hour Notice form (UST 17A) and a UST
Suspected Release 7 Day Notice form (UST 17B), but the documents were reportedly
never submitted to the UST Section. The site is listed under Facility ID #00-0-
0000006713 with the UST Section, however a release incident has not been reported for
the facility.
In May 2017, approximately 12,000-gallons of diesel fuel and water were removed from
the UST by Coastal Carolina Recycling. On April 17, 2019, the UST Section issued a
Notice of Violation because a site representative wasn't available to provide access for a
routine inspection. The issue was later resolved, and the UST was in compliance under
temporary closure with the UST Section.
The UST was removed from the Brownfields Property on June 14, 2022, by D. H. Griffin
Wrecking Co., Inc. Soil confirmation samples were collected from the sidewalls and the
2
120 Kindlcy Strcct/25025-21-092/28NoQ022

floor of the excavation prior to backfilling with onsite soil from the excavation and the
surrounding area. No soil was disposed of offsite.
In addition to the two emergency generators and associated UST, the Duke Energy data
center also contained five 55-gallon aboveground storage tanks (ASTs) of ECARO 25, a
gaseous chemical fire suppressant, that were connected to the fire suppression system, a
battery storage area that was used as backup power sources, and several interior floor
drains that discharged to the sanitary sewer. A water supply well is located on the
southern portion of the site. It was previously used for irrigation and as a secondary water
source for the building's chiller system.
The Prospective Developer or its affiliates began ownership of the Brownfields Property
in April 2016. An Environmental Management Plan prepared by the Prospective
Developer was dated January 12, 2022, and it was approved by the Brownfields Program
on January 18, 2022. Activities conducted since that time include demolition of the
former Duke Energy data center building, removal of the 15,000-gallon diesel UST, and
beginning construction of the high -density residential building on the southeastern
portion of the property.
On February 1, 2022, NC DOT transferred a portion of the Brownfields Property with
Wake County Parcel ID 1703557221 to WNDTL, LLC, an entity under common
ownership as the Prospective Developer. That parcel was subsequently transferred from
WNDTL, LLC to Prospective Developer on August 25, 2022. On September 30, 2022, a
portion of the Brownfields Property with Wake County Parcel ID 1703650617 was
transferred to The Exploris School.
Geotechnical investigations were conducted in August 2016 and April 2018.
Environmental assessments were conducted in April, October, and November 2021 to
support the Brownfields process, the results of which are discussed below.
Potential Receptors:
Potential receptors are construction workers, on -site workers, future residents, visitors,
and trespassers.
Contaminated Media:
DEQ has evaluated data collected from the following media at the subject property: soil,
groundwater, and exterior soil gas. DEQ relies on the following data to base its
conclusions regarding the subject property and its suitability for its intended reuse. Please
see the Brownfield Agreement's Exhibit 2 for specific sample locations, dates, and
contaminants of concern (COCs).
Risk Calculations:
Risk calculations were performed using the January 2022 DEQ Risk Calculator
hgps:Hdeq.nc. goy/permits-rules/risk-based-remediation/risk-evaluation-resources.
For the purposes of looking at the site spatially, the site was assessed on a site -wide basis.
120 Kindlcy Strcct/25025-21-092/28NoQ022

The risk calculations indicated the following based on available data, including the
following media: soil, groundwater, and exterior soil gas.
Risk for Individual Pathways
Version Date: July 2022
Basis: May 2022 EPA RSL Table
Site ID: 25025-21-092
Exposure Unit ID: Site -Wide
DIRECT CONTACT SOIL AND WATER CALCULATORS
Receptor
Pathway
CarcinogenicRisk
Hazardlndex
Risk exceeded?
Resident
Soil
4.5E-06
1.1E-01
NO
Groundwater Use*
8.2E-06
7.4E-01
NO
Non -Residential Worker
Soil
5.2E-07
7.6E-03
NO
Groundwater Use*
7.2E-07
1.3E-01
NO
Construction Worker
Soil
1.9E-07
6.6E-02
NO
Recreator/Trespasser
Soil
2.5E-06
5.9E-02
NO
Surface Water*
NC
NC
NC
VAPOR INTRUSION CALCULATORS
Receptor
Pathway
Carciin genic
Ri
Hazardindex
Risk exceeded?
Resident
Groundwater to Indoor Air
8.0E-07
1.8E-01
NO
Soil Gas to Indoor Air
2.0E-05
6.1E-01
NO
Indoor Air
NC
NC
NC
Non -Residential Worker
Groundwater to Indoor Air
1.3E_07
4.3E-02
NO
Soil Gas to Indoor Air
1.4E-06
4.8E-02
NO
Indoor Air
NC
NC
NC
Soil
Soil samples were collected to a depth of 20 feet below ground surface (ft bgs). Based on
the risk calculator output, the acceptable cancer risk range maximum of lE-4 and the
threshold noncancer hazard index of 1.0 are not exceeded for soil for residential, non-
residential worker, construction worker, nor recreator/trespasser exposure scenarios.
Groundwater
Groundwater is found between 40 and 50 ft bgs at the Brownfields Property.
Groundwater was sampled during a one-time sampling event of two wells, although one
of the wells was below approximately 30 feet of bedrock and dry and could not be
sampled. There is no ongoing monitoring of groundwater by another NCDEQ program.
Based on the risk calculator output, the acceptable cancer risk range maximum of lE-4
and the threshold noncancer hazard index of 1.0 are not exceeded for groundwater or the
groundwater to indoor air vapor intrusion pathway for residential or non-residential
worker exposure scenarios. Although risks aren't exceeded based on the risk calculator
output, benzo(a)pyrene and dibenzo(a,h)anthracene exceed their respective NC 2L
Groundwater Standards. Therefore, limitations on direct contact groundwater are
included in the Land Use Restrictions of the Brownfields Agreement.
Surface Water
4
120 Kindley Street/25025-21-092/28Nov2022

Surface water is not located on nor borders the Brownfields Property.
Exterior Soil Gas
Exterior soil gas samples were collected in vacant areas and below paved parking areas at
the Brownfields Property. Based on the risk calculator output, the calculated vapor
intrusion soil gas risk ranges do not exceed either the acceptable carcinogenic risk range
maximum of lE-4 or the threshold non -cancer hazard index of 1.0 for either residential
nor non-residential worker exposure scenarios.
Given that we only have exterior soil gas samples and not sub -slab samples and based on
the working draft NCDEQ Brownfields New Construction Minimum Redevelopment
Mitigation and Sampling Requirements, a vapor intrusion mitigation system (VIMS) is
recommended, and one pre -occupancy and two post -occupancy sub -slab sampling events
are required in the new high -density residential building at the Brownfields Property.
Because the general area where the Brownfields Program was told the proposed school
building would likely go is closer to the known TCE plume on the adjacent property, a
additional assessment and likely a VIMS are strongly recommended for the future school
building at the Brownfields Property.
Sub -Slab Vapor
Sub -slab vapor samples were not collected because the existing building was initially
unsafe to enter, was later demolished, and did not overlap with the proposed footprints of
the future buildings.
Indoor Air
Indoor air samples were not collected because the existing building was initially unsafe to
enter, was later demolished, and did not overlap with the proposed footprints of the future
buildings.
Land Use Restrictions:
LURs will include the standard land use restrictions including approved uses, land use
definitions, requirement for an EMP, groundwater, soil disturbance, known contaminants,
access, notification, vapor intrusion, and land use restriction update LURs. Abandonment
of the onsite water supply well is also included in the LURs.
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.
Property Management Issues:
The EMP dated January 12, 2022 was approved by the Brownfields Program on January
18, 2022. The EMP requires final grade sampling, one pre -occupancy soil gas sampling,
and two post -occupancy soil gas sampling events for the planned high -density residential
building. The PD does not intend to install a VIMS for the planned building, but locations
for pre- and post -occupancy sampling locations were discussed in emails between the PD
and DEQ dated March 8, 2022 and March 15, 2022. A draft work plan for the pre- and
5
120 Kindlcy Strcct/25025-21-092/28Nov2022

post -occupancy sampling at the high -density residential building is currently being
developed by the PD.
Additional assessment and likely a VIMS are strongly recommended for the future school
building on the Brownfields Property. Additional vapor intrusion data should be collected
once the details of the planned school are known.
The fill source for the first phase of construction related to the high -density residential
building has not been identified yet and will need to be reviewed prior to any soil import
activities to the Brownfields Property. The redevelopment plans for the later phases of
redevelopment are also unknown at this time, and additional data may need to be
collected to support those portions of the redevelopment.
The existing water supply well will be abandoned per the LURs.
6
120 Kindlcy Strcct/25025-21-092/28Nov2022