24008_Selles Bagwell_Decision Memo

DECISION MEMORANDUM
DATE: October 18, 2022
FROM: Peter Doorn TO: BF Assessment File

RE: Selles Bagwell 2301 S. Tryon Street Charlotte, Mecklenburg County Brownfields Project No. 24008-20-060

Based on the following information, it has been determined that the above referenced site, whose intended use is for no uses other than high-density residential, office, parking, retail, recreational, and with prior written DEQ approval other commercial, industrial, and warehousing uses, can be made suitable for such uses.

Introduction: The Prospective Developer (PD) is HANIMPJV South End NC, LLC and is managed by The Hanover Company at 1780 South Post Oak Lane, Houston, Texas 77056. The Brownfields Property comprises approximately 4.0619 acres located at 2301 S. Tryon
Street in Charlotte, North Carolina, and identified by the Mecklenburg County parcel
number 12104301. The Brownfields Property is located in the South End Municipal Services District of Charlotte within walking distance of the CATS Light Rail Line and recreational, office, dining, and retail development. The area is zoned for Transit Oriented Development.

The current address and parcel number is a re-combination of six parcels at 2301, 2311, 2321, and 2405 S. Tryon Street, and 2300 and 2322/2324 Distribution Street identified as parcel numbers 12104301, 12104302, 12104303, 12104304, 12104319, and 12104317.
The original February 7, 2020, Brownfields Property Application (BPA) was submitted
with FHN 2301 South Tryon, LLC as the sole PD and was granted eligibility on July 2, 2020. A revised June 29, 2021, BPA requested that South End Distribution, LLC and FHN 2301 South Tryon, LLC be considered joint PDs with eligibility granted on August 30, 2021. On December 7, 2021, an amended BPA was submitted requesting
HANIMPJV South End NC, LLC as sole PD with eligibility granted on February 25,
2022. Redevelopment Plans: The PD has committed to redevelopment for high-density residential, office, parking,
retail, recreational, and with prior written DEQ approval, other commercial, industrial,
and warehousing uses. Proposed redevelopment of the Brownfields Property includes construction of a seven-story residential apartment building with associated amenities and a multi-story parking deck.
All tenants vacated the property by late 2021 when site redevelopment activities were
initiated. NC DEQ approved the revised Environmental Management Plan (EMP) on
December 8, 2021. The Vapor Intrusion Mitigation Plan (VIMP) dated April 29, 2022 was approved by NC DEQ on May 3, 2022.
Site History: Aerial photography from 1938 shows the Brownfields Property as undeveloped and/or
agricultural land. The individual parcels were developed as follows:
1. 2301 S. Tryon Street was agricultural land with two small buildings occupied by Standard Memorial Works and Beasley Coal in the late 1930s. A single-family residence occupied the property from the 1940s through the 1960s. In the 1960s, the residence was razed, and the parcel was vacant land until 1984 when an
approximately 4,500-square ft office/warehouse building was constructed. The
building was occupied by a laboratory supply business until 2010, then by Kelly & McArdle Construction, a residential construction company until 2021. 2. 2311 S. Tryon Street was undeveloped until the property was graded in the 1950s and remained undeveloped until 1967 when an approximately 13,000-square ft
office/warehouse building was constructed. Until the 2000s, the building was used by Selles Bagwell as a machine shop and for storage of textile machinery and
business furniture. Since the 2000s until approximately 2021, the building was
occupied by Best Tile for storage and distribution of floor tile supplies. 3. 2321 S. Tryon was also undeveloped until grading activities occurred in the early 1950s. In 1959 an approximately 10,151-square ft light industrial office/ warehouse building was constructed for Interstate Electric Company, an electrical
contractor which occupied the building until approximately 2021.
4. 2405 S. Tryon was undeveloped until it was graded in the early 1950s. In 1976 an approximately 9,670 square ft light industrial warehouse building was constructed. The building was occupied by an auto parts distributor, miscellaneous warehousing tenants, a martial arts studio, a garage door company,
and most recently a paper distributor.
5. 2300 Distribution Street was undeveloped until an approximately 15,508-square ft office/warehouse building was constructed in 1966. The building was occupied by a metal distributor, a manufacturers agent, a specialty metal tool supplier, and most recently by World of Stone, a stone countertop fabricator.
6. 2322-2324 Distribution Street was undeveloped until 1964 when an
approximately 11,370-square ft duplex warehouse building was constructed. Various tenants have occupied the building including an industrial machining company, janitorial supplier, construction company, auto service, custom iron works, a wood shop, and most recently by Charlotte Grill (a retail grill store) and
Pet Wants Urban Feed store.
Potential Receptors: Potential receptors include residents, on-site workers, construction workers and visitors.
Potential Environmental Concerns:
Environmental conditions on the Brownfields Property include the following: (i) a former gasoline underground storage tank (UST) on the Interstate Electric property; (ii) a diesel above-ground storage tank (AST) fueling system on the Interstate Electric Property; (iii) a former area of metal filings on the ground behind the former Selles Bagwell building;
(iv) a former coal pile on the 2301 S. Tryon Street property; and (v) a former in-ground
hydraulic automobile lift in Charlotte Grill’s warehouse at 2324 Distribution Street. An off-site environmental condition suspected to impact the Brownfields Property is the Dunavant Street Brownfields Property (Brownfields Project #19038-15-060) located
approximately 125 feet northeast and hydraulically up-gradient of the subject property.
The Dunavant Street Notice of Brownfields Property dated February 11, 2016, documents the presence of several volatile organic compounds (VOCs) in groundwater including trichloroethylene (TCE) and tetrachloroethylene (PCE) which have been found in groundwater at the subject property.

Contaminated Media: DEQ has evaluated data collected from the following media at the subject property: soil,
groundwater, and soil gas/sub-slab vapor. DEQ relies on the following data to base its
conclusions regarding the subject property and its suitability for its intended reuse. Soil Soil sampling events occurred on the Brownfields Property in April 1991, May-August
2002, and December 2020.
In April 1991, a 1,000-gallon gasoline UST was removed from the Interstate Electric property. Petroleum impacted soil was excavated from the UST basin and two confirmation samples were collected and analyzed for total petroleum hydrocarbons.
Results were below action levels and NC DEQ concluded that no additional assessment
was warranted. Soil from the excavation was stockpiled on plastic, bermed, and covered, however DEQ has no records of the final disposition of the stockpiled soil. Subsequent site evaluations found no staining or evidence of a stockpile suggesting the soil had been removed.

In May, June, and August 2002, Buxton Environmental conducted soil sampling at the former Selles Bagwell property to assess a paint holder and small pile of metal filings generated by the machine shop. Sixteen soil samples were collected from 0-6 feet depth and analyzed for oil & grease, volatile organic compounds (VOCs), and RCRA metals.
Soil samples indicated levels of oil & grease ranging from BDL to 8,130 mg/kg with
several exceeding the action level at the time of 250 mg/kg. Arsenic was detected at 0.8 mg/kg exceeding the Residential Preliminary Soil Remediation Goal (PSRG) of 0.68 mg/kg. All VOCs were below the Residential PSRGs. Based on the delineation of the oil and grease exceedances, approximately 68.81 tons of affected soil were excavated and
disposed off-site. Confirmation sampling indicated that oil and grease exceedances were
removed. In December 2020, under an approved Brownfields Assessment Work Plan, soil was sampled in five areas including the AST system and former UST basin on the Interstate
Electric property, the former coal pile area behind the Kelly McArdle Construction
building, at the former in-ground lift and near the loading dock at the Charlotte Grill building. All VOCs were non-detect except for acetone and methylene chloride, which were well below the lowest PSRGs. All SVOCs were below laboratory detection levels. Concentrations of arsenic ranged from <1.3 to 11 mg/kg exceeding the Residential
PSRG of 0.68 mg/kg; and the sample from the former coal pile (11 mg/kg) exceeded the
Non-Residential PSRG of 3 mg/kg. Similarly, hexavalent chromium concentrations ranged from <0.49 to 1.7 mg/kg exceeding the Residential PSRG of 0.31 mg/kg. Groundwater
Groundwater sampling occurred on the Brownfields Property in May 2002, November
2019 and in January 2021.
In May 2002, while assessing potential impacts from the metal filings pile, Buxton Environmental advanced three Geoprobe borings below the water table and collected
groundwater samples for VOC analysis. All VOCs were below laboratory detection
levels. In November 2019, a Phase II Environmental Site Assessment was conducted at the World of Stone property (2300 Distribution Street). Two temporary wells were installed
to evaluate potential groundwater impacts from the up-gradient Dunavant Street
Brownfields Property. Hexachloro-1,3-butadiene, PCE, and TCE were detected above their 15A NCAC 02L Groundwater Standards (02L Standards). The estimated concentration of hexachloro-1,3-butadiene (0.62 J ug/L), and the laboratory detection limit for vinyl chloride (<0.24 ug/L) exceeded the Residential Vapor Intrusion Screening
Levels (VISLs) of 0.3 ug/L and 0.15 ug/L, respectively. The concentration of TCE (97.1
ug/L) in groundwater exceeded the Non-Residential VISL of 4.4 ug/L. In January 2021, during the Brownfields Assessment, five additional temporary monitoring wells were installed: three on the Interstate Electric parcel, one on the Kelly
& McArdle parcel, and one on the World of Stone parcel. Low levels of VOCs were
detected in groundwater, but the only contaminants exceeding the 02L Standards were 1,4-Dioxane and vinyl chloride. In addition, one detection of TCE (2.3 ug/L) and two detections of vinyl chloride (32 ug/L and 2.2 ug/L) exceeded the Residential VISLs of 1 ug/L and 0.15 ug/L, respectively. All SVOCs were below laboratory detection limits,
and all detections of metals were below the 2L Standards.

Soil Vapor and Sub-Slab Vapor Soil vapor sampling occurred on the Brownfields Property in November 2019 and in January 2021.

In November 2019 during the Phase II ESA assessment activities, two sub-slab vapor sampling points were installed through the slab of the World of Stone building. Several VOCs were detected, but all were below established Residential VISLs.
In January 2021, during the Brownfields Assessment, five additional sub-slab vapor
points and one soil gas sampling point were installed on the Brownfields Property. Soil vapor samples were collected from the two original sub-slab vapor points, and the six new sample points along with a duplicate. Multiple VOCs were detected in the soil vapor samples but only TCE (1,400 ug/m3) and benzene (52 mg/m3) exceeded their established
Residential VISLs of 14 ug/m3 and 12 ug/m3, respectively. Notably the elevated
concentrations were detected in the exterior soil gas sample point (SG-1) located near the temporary monitoring well (TW-1) with the highest TCE concentrations. Indoor Air
Indoor air at the Brownfields Property was not collected because all buildings were
demolished prior to construction of the apartment buildings.
Risk Calculations The DEQ Risk Calculator was developed to evaluate the risk of multiple contaminants
and multiple exposure routes associated with contaminated environmental media at a site.
The risk evaluation procedures, equations, and default parameters used to create the calculator follow the current USEPA risk assessment guidance. The DEQ Risk Calculator dated July 2022 was used to calculate risk based on data available for media including soil, groundwater, and soil/sub-slab vapor.

Maximum concentrations of soil, groundwater, and soil/sub-slab vapor from the entire Brownfields Property were used to calculate risks shown in Risk Calculation Table 1.

Based on the detections of metals in soil, restrictions regarding soil will be imposed at the site. A groundwater use restriction will also be included in the BFA to control exposure to groundwater impacts at the Brownfields Property. Using maximum sitewide concentrations, a hazard index (HI) of 20 was calculated for the soil gas to indoor air
pathway for residential receptors, with the primary risk driver being TCE. A vapor intrusion mitigation system that is at least passive with the capability of being made active will be required for the apartment building. As noted above, a Vapor Intrusion Mitigation Plan dated April 29, 2022, has been approved by DEQ.
The DEQ-approved Environmental Management Plan (EMP) dated December 7, 2021 is to be followed to safely direct the handling and disposal of potentially contaminated materials when building demolition, soil grading, or excavation activities begin. Prior to
occupying the Brownfields Property, per the terms of the EMP, final grade soil sampling will be required for areas not covered by a minimum of 2 feet of demonstratable clean
fill, landscaping soil, or asphalt, concrete, or other impervious surface.
Required Land Use Restrictions: a. No use other than high-density residential, office, parking, retail, recreational,
warehousing and with prior written DEQ approval, other commercial and industrial
uses b. Environmental Management Plan (EMP) required for redevelopment c. Annual development summary report required d. Demolition must comply with state & local requirements
e. No use of groundwater
f. Final grade sampling required prior to occupancy g. No soil disturbance without DEQ approval or EMP h. No soil import/export without DEQ approval i. Vapor intrusion mitigation required
j. Sub-slab vapor and indoor air sampling (TO-15) required prior to occupancy
k. DEQ shall not be denied access l. Any required wells or vapor points must be maintained m. Deed or other instrument conveying an interest shall contain notice that this is a brownfields property subject to a Notice of Brownfields Property
n. No use of contaminants known to be present on the BF Property
o. Annual LURU must be submitted to DEQ Based on the site-specific data provided to the Brownfield program, the site is suitable for the approved uses only if the agreed upon land use restrictions in the BFA are abided by.