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HomeMy WebLinkAbout26004_Dilworth Auto II Draft NBP_2023111500305-020/00461736 Dilworth Auto II/26004-22-060/20231115 1 Property Owner: East South Crossing Owner, LLC Recorded in Book ____, Page ____ Associated plat recorded in Plat Book ____, Page ____ NOTICE OF BROWNFIELDS PROPERTY Brownfields Property Name: Dilworth Auto II Brownfields Project Number: 26004-22-060 This documentary component of a Notice of Brownfields Property (“Notice”), as well as the plat component, have been filed this _____ day of __________________, 20___ by ______________________________ (“Prospective Developer”). This Notice concerns contaminated property. A copy of this Notice certified by the North Carolina Department of Environmental Quality (“DEQ”) is required to be filed in the Register of Deeds’ Office in the county or counties in which the land is located, pursuant to North Carolina General Statutes (“NCGS”), § 130A-310.35(b). This Notice is required by NCGS § 130A-310.35(a), in order to reduce or eliminate the danger to public health or the environment posed by environmental contamination at a property (“Brownfields Property”) being addressed under the Brownfields Property Reuse Act of 1997, NCGS § 130A, Article 9, Part 5 (“Act”). Pursuant to NCGS § 130A-310.35(b), the Prospective Developer must file a certified copy of this Notice within 15 days of Prospective Developer’s receipt of DEQ’s approval of the Notice or Prospective Developer’s entry into the Brownfields Agreement required by the Act, whichever is later. The copy of the Notice certified by DEQ must be recorded in the grantor index under the names of the owners of the land and, if Prospective Developer is not the owner, also under the Prospective Developer’s name. The Brownfields Property is comprised of 1.1575 acres and is located at 1720 and 1728 South Boulevard and 101-115 East Boulevard, Charlotte, Mecklenburg County. The Brownfields Property was developed with at least two single-family residences and auxiliary structures around 00305-020/00461736 Dilworth Auto II/26004-22-060/20231115 2 the early 1900s. Automotive service stations including Myers Automobile Service, Automobile Service Company Inc., and Neal’s Auto Service operated from at least 1929 to 1974 on the Brownfields Property, lumber and textile warehouses operated in the western portion of the Brownfields Property in the 1950s and 1960s, and Dilworth Launderette/ Dilworth Washerette was potentially located there from at least 1953 to 1959. A pharmacy most recently operated on the Brownfields Property. The Prospective Developer intends to redevelop the Brownfields Property for no uses other than high density residential, industrial, office, retail, restaurant, brewery or food production facility, recreation, institutional, entertainment, hotel, open space, parking, and with DEQ’s prior written approval, other commercial uses. Soil, groundwater, and soil gas are impacted at the Brownfields Property. The Brownfields Agreement between Prospective Developer and DEQ is attached hereto as Exhibit A. It is required by NCGS § 130A-310.32 and sets forth the use that may be made of the Brownfields Property and the measures to be taken to protect public health and the environment. The Brownfields Agreement’s Exhibit 2 consists of one or more data tables reflecting the concentrations of and other information regarding the Brownfields Property’s regulated substances and contaminants. Attached as Exhibit B to this Notice is a reduction, to 8.5 inches x 11 inches, of the survey plat component of this Notice. This plat shows areas designated by DEQ, has been prepared and certified by a professional land surveyor, meets the requirements of NCGS § 47-30, and complies with NCGS § 130A-310.35(a)’s requirement that the Notice identify: (1) The location and dimensions of the areas of potential environmental concern with respect to permanently surveyed benchmarks. (2) The type, location and quantity of regulated substances and contaminants known to exist on the Brownfields Property. Attached hereto as Exhibit C is a legal description of the Brownfields Property that would be sufficient as a description of the property in an instrument of conveyance. LAND USE RESTRICTIONS NCGS § 130A-310.35(a) also requires that the Notice identify any restrictions on the current and future use of the Brownfields Property that are necessary or useful to maintain the level of protection appropriate for the designated current or future use of the Brownfields Property and that are designated in the Brownfields Agreement. The restrictions shall remain in force in perpetuity unless canceled by the Secretary of DEQ (or its successor in function), or his/her designee, after the hazards have been eliminated, pursuant to NCGS § 130A-310.35(e). All references to DEQ shall be understood to include any successor in function. The land use restrictions below have been excerpted verbatim from paragraph 12 of the Brownfields Agreement, and all subparagraph letters/numbers are the same as those used in the Brownfields Agreement. The following land use restrictions are hereby imposed 00305-020/00461736 Dilworth Auto II/26004-22-060/20231115 3 on the Brownfields Property: Land Uses a. No use may be made of the Brownfields Property other than for high density residential, industrial, office, retail, restaurant, brewery or food production facility, institutional, recreation, hotel, entertainment, open space, parking, and with DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply: i. “High Density Residential” is defined as for-rent-only permanent dwellings where residential units are attached to each other with common walls, such as apartments, group homes, dormitories or boarding houses, and any property outside the dwelling structures is usable by all residents and not privately owned as part of a particular unit (e.g., privately-owned courtyards are prohibited), and may include related amenities, such as pools, clubhouses, courtyards, common areas, recreation areas and parking garages. Single family homes are prohibited; townhomes, duplexes or other units with yards are prohibited unless approved in writing by DEQ in advance. ii. “Industrial” defined as the assembly, fabrication, processing, warehousing, or distribution of goods and materials, and can include flex parks and research and development uses. iii. “Office” defined as the provision of business or professional services. iv. “Retail” defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and/or beverage products. v. “Restaurant” defined as a commercial business establishment that prepares and/or serves food and/or beverages to patrons. vi. “Entertainment” defined as private, public, and community activities (such as, for example, festivals, theater, musical events or shows), which may include food and beverage service. vii. “Hotel” defined as the provision of overnight lodging to paying customers, and to associated food services, gym, reservation, cleaning, utilities, parking and on-site hospitality, management and reception services. viii. “Brewery or Food Production Facility” defined as an establishment for the manufacture, sale and/or distribution of beverages or food products, including without limitation beer, ale, and distilled spirits, together with associated public roadways and related infrastructure. ix. “Institutional” defined as the use of land, buildings or structures for public, non-profit or quasi-public purposes, such as libraries, community centers, post-secondary education facilities, or health care facilities. x. “Recreation” defined as indoor and outdoor exercise-related, physically focused, or leisure-related activities, whether active or passive, and the facilities for same, including, but not limited to, studios, swimming pools, sports-related courts and fields, open space, greenways, parks, playgrounds, walking paths, and picnic and public gathering areas. xi. “Open Space” defined as land maintained in a natural or landscaped state and used for natural resource protection, buffers, greenways, or detention facilities for 00305-020/00461736 Dilworth Auto II/26004-22-060/20231115 4 stormwater. xii. “Parking” defined as the temporary accommodation of motor vehicles in an area designed for same. xiii. “Commercial” defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. Environmental Management Plan b. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an Environmental Management Plan (“EMP”) approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each subsequent redevelopment phase) that is consistent with all the other land use restrictions and describes redevelopment activities at the Brownfields Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Brownfields Property during construction or redevelopment in any other form, including without limitation: i. demolition of existing buildings, if applicable; ii. issues related to known or potential sources of contamination, including without limitation those resulting from contamination identified in paragraph 3 above; iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and iv. plans for the proper characterization and DEQ approval of both fill soil before import to the Brownfields Property and the disposition of all soil excavated from the Brownfields Property during redevelopment. Redevelopment Reporting c. No later than January 31 after each one-year anniversary of the effective date of this Agreement for as long as physical redevelopment of the Brownfields Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Brownfields Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: i. actions taken on the Brownfields Property in accordance with Section VI: Work to be Performed above; ii. soil grading and cut and fill actions; iii. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; iv. stockpiling, containerizing, decontaminating, treating, handling, laboratory analysis and ultimate disposition of any soil, groundwater or other materials suspected or confirmed to be contaminated with regulated substances; and v. removal of any contaminated soil, water or other contaminated 00305-020/00461736 Dilworth Auto II/26004-22-060/20231115 5 materials (for example, concrete, demolition debris) from the Brownfields Property (copies of all legally required manifests shall be included). Groundwater d. Groundwater at the Brownfields Property may not be used for any purpose without the prior written approval of DEQ along with any measures DEQ deems necessary to ensure that the Brownfields Property will be suitable for the uses specified in subparagraph 12.a. above while fully protecting public health and the environment. Should groundwater be encountered or exposed during any activity on the Brownfields Property, it shall be managed in accordance with the DEQ-approved EMP outlined in subparagraph 12.b., or a plan approved in writing in advance by DEQ. Soil e. No activity that disturbs soil on the Brownfields Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 12.a. above while fully protecting public health and the environment, except: i. in connection with landscape planting to depths not exceeding 24 inches; ii. mowing and pruning of above-ground vegetation; iii. for repair of underground infrastructure, provided that DEQ shall be given written notice at least seven days in advance of a scheduled repair (if only by email) of any such repair, or in emergency circumstances no later than the next business day, and that any related assessment and remedial measures required by DEQ shall be taken; and iv. in connection to work conducted in accordance with a DEQ-approved Environmental Management Plan (EMP) as outlined above in subparagraph 12.b. Final Grade Sampling f. No use of the Brownfields Property where physical redevelopment has taken place pursuant to a DEQ-approved EMP as outlined in subparagraph 12.b above may occur until the then owner of the Brownfields Property conducts representative final grade soil sampling, pursuant to a plan approved in writing by DEQ, of any such redeveloped area(s) that is not covered by building foundations, sidewalks, asphaltic or concrete parking areas and driveways, or two feet of documented clean fill material. Soil Import and Export g. Soil may not be removed from, or brought onto, the Brownfields Property without prior sampling and analysis to DEQ’s satisfaction and the written approval of DEQ, unless conducted in accordance with an approved EMP as outlined above in subparagraph 12.b. Vapor Intrusion h. No enclosed building may be constructed on the Brownfields Property and no existing building, defined as those depicted on the plat component of the Notice of Brownfields 00305-020/00461736 Dilworth Auto II/26004-22-060/20231115 6 Property referenced in paragraph 16 below, may be occupied until DEQ determines in writing that: i. the building is or would be protective of the building’s users and public health from the risk of vapor intrusion based on site assessment data, or a site-specific risk assessment approved in writing by DEQ; or ii. a vapor intrusion mitigation system (VIMS) has been: 1. designed to mitigate the intrusion of subsurface vapors into building features in accordance with the most recent and applicable DWM Vapor Intrusion Guidance, Interstate Technology & Regulatory Council (ITRC) guidance, and American National Standards Institute (ANSI)/American Association of Radon Scientists and Technologists (AARST) standards, and that a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal, is satisfied that the design is fully protective of public health, and shall include a performance monitoring plan detailing methodologies and schedule, both of which are subject to prior written DEQ approval; and 2. installed and an installation report is submitted for written DEQ approval that includes as-built diagrams, photographs, and a description of the installation, with said engineer’s professional seal confirming that the engineer is satisfied that the system was installed per the DEQ approved design. If any deviations from the system design were necessary during installation, then the report shall include details on said deviations, as well as the engineer’s seal certifying the VIMS, as installed, was installed in such a manner so as to be fully protective of public health. Property Access i. Neither DEQ, nor any party conducting environmental assessment or remediation at the Brownfields Property at the direction of, or pursuant to a permit, order or agreement issued or entered into by DEQ, may be denied access to the Brownfields Property for purposes of conducting such assessment or remediation, which is to be conducted using reasonable efforts to minimize interference with authorized uses of the Brownfields Property. Damage to Wells j. The owner of any portion of the Brownfields Property where any existing, or subsequently installed, DEQ-approved monitoring well is damaged by the owner, its contractors, or its tenants shall be responsible for repair of any such wells to DEQ’s written satisfaction and within a time period acceptable to DEQ, unless compliance with this land use restriction is waived in writing by DEQ in advance. Chemical Storage and Use k. None of the contaminants known to be present in the environmental media at the Brownfields Property, as described in Exhibit 2 of this Agreement and as modified by DEQ in writing if additional contaminants in excess of applicable standards are discovered at the Brownfields Property, may be used or stored at the Brownfields Property without the prior written approval of DEQ, except: 00305-020/00461736 Dilworth Auto II/26004-22-060/20231115 7 i. in de minimis quantities for cleaning and other routine housekeeping and maintenance activities; ii. as constituents of fuels, lubricants and oils in emergency generators, machinery, equipment and vehicles in on-board tanks integral to said equipment or in flammable liquid storage containers totaling no more than 25 gallons; iii. in products or materials that are brought onto the Brownfields Property, kept in their original packaging or containers (that is, not used or repackaged) and later removed from the Brownfields Property in the original packaging or containers; and iv. as constituents of products customarily used and stored in high-density residential, office, retail, restaurant, entertainment, hotel, brewery or food production facility, institutional, recreation, open space, or parking environments, and subject to DEQ’s prior written approval, other commercial uses, provided such products and materials are stored in original retail packaging and used and disposed of in accordance with applicable laws. Notification of Tenants l. Any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XVII (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. The owner may use the following mechanisms to comply with the obligations of this subparagraph as to leasehold interests: (i) If every lease or rider is identical in form, the owner conveying an interest may provide DEQ with copies of a form lease or rider evidencing compliance with this subparagraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XVII (Notices and Submissions); or (ii) The owner conveying an interest may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XVII. Land Use Restriction Update m. During January of each year after the year in which the Notice referenced below in paragraph 16 is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Mecklenburg County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Mecklenburg County Register of Deeds office and that the land use restrictions are being complied with. If the Brownfields Property is transferred, the grantor shall submit a LURU (as outlined above) which covers the period of time the grantor owned the Brownfields Property during the calendar year of the transfer. The submitted LURU shall state the following: i. the Brownfields Property address, and the name, mailing address, 00305-020/00461736 Dilworth Auto II/26004-22-060/20231115 8 telephone number, and contact person’s e-mail address of the owner, or board, association or approved entity, submitting the LURU if said owner, or each of the owners on whose behalf a joint LURU is submitted, acquired any part of the Brownfields Property during the previous calendar year; ii. the transferee’s name, mailing address, telephone number, and contact person’s e-mail address, if said owner, or each of the owners on whose behalf a joint LURU is submitted, transferred any part of the Brownfields Property during the previous calendar year; iii. whether any vapor barrier and/or mitigation systems installed pursuant to subparagraph 12.h. above are performing as designed, and whether the uses of the ground floors, including any tenant renovations, of any buildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how, and under which precautions so as not to interfere with the operation of said system. For purposes of the land use restrictions set forth above, the DEQ point of contact shall be the DEQ Brownfields Property Management Branch referenced in subparagraph 31.a. of Exhibit A hereto, at the address stated therein. ENFORCEMENT The above land use restrictions shall be enforceable without regard to lack of privity of estate or contract, lack of benefit to particular land, or lack of any property interest in particular land. The land use restrictions shall be enforced by any owner of the Brownfields Property. The land use restrictions may also be enforced by DEQ through the remedies provided in NCGS § 130A, Article 1, Part 2 or by means of a civil action; by any unit of local government having jurisdiction over any part of the Brownfields Property; and by any person eligible for liability protection under the Brownfields Property Reuse Act who will lose liability protection if the restrictions are violated. Any attempt to cancel any or all of this Notice without the approval of the Secretary of DEQ (or its successor in function), or his/her delegate, shall be subject to enforcement by DEQ to the full extent of the law. Failure by any party required or authorized to enforce any of the above restrictions shall in no event be deemed a waiver of the right to do so thereafter as to the same violation or as to one occurring prior or subsequent thereto. FUTURE SALES, LEASES, CONVEYANCES AND TRANSFERS When any portion of the Brownfields Property is sold, leased, conveyed or transferred, pursuant to NCGS § 130A-310.35(d) the deed or other instrument of transfer shall contain in the description section, in no smaller type than that used in the body of the deed or instrument, a statement that the Brownfields Property has been classified and, if appropriate, cleaned up as a Brownfields Property under the Brownfields Property Reuse Act. 00305-020/00461736 Dilworth Auto II/26004-22-060/20231115 9 IN WITNESS WHEREOF, Prospective Developer has caused this instrument to be duly executed this _____ day of _______________, 20___. East South Crossing Owner, LLC By: __________________________________________ Jay Levell Authorized Signatory NORTH CAROLINA _______________ COUNTY I certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: ________________________________. Date: ___________________ ___________________________________ Official Signature of Notary ___________________________________ (Official Seal) Notary’s printed or typed name, Notary Public My commission expires: _____________________ 00305-020/00461736 Dilworth Auto II/26004-22-060/20231115 10 ************************************ APPROVAL AND CERTIFICATION OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY The foregoing Notice of Brownfields Property is hereby approved and certified. North Carolina Department of Environmental Quality By: _________________________________________ ________________________ Bruce Nicholson, Chief Date Brownfields Redevelopment Section Division of Waste Management 00305-020/00445072 1 Dilworth Auto II/26004-22-060/202331115 EXHIBIT A NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY IN THE MATTER OF: East South Crossing Owner LLC UNDER THE AUTHORITY OF THE ) BROWNFIELDS AGREEMENT re: BROWNFIELDS PROPERTY REUSE ACT ) Dilworth Auto II OF 1997, NCGS § 130A-310.30, et seq. ) 1720 and 1728 South Boulevard; ) 101-115 East Boulevard Brownfields Project No. 26004-22-060 ) Charlotte, Mecklenburg County I. INTRODUCTION This Brownfields Agreement (“Agreement”) is entered into by the North Carolina Department of Environmental Quality (“DEQ”) and East South Crossing Owner LLC (collectively the "Parties") pursuant to the Brownfields Property Reuse Act of 1997, NCGS § 130A-310.30, et seq. (the “Act”) for the property located at 1720 and 1728 South Boulevard and 101-115 East Boulevard, Charlotte, Mecklenburg County, North Carolina (the “Brownfields Property”). A map showing the location of the Brownfields Property that is the subject of this Agreement is attached hereto as Exhibit 1. The Prospective Developer is East South Crossing Owner LLC, a limited liability company with its principal office located at 300 South Tryon Street, Charlotte, NC 28202. East South Crossing Owner LLC is member-managed with its sole member being East South Crossing Venture LLC, of the same address. Cassie McCain of the same address and Jay Levell, 4064 Colony Road, Suite 310, Charlotte, NC 28211, are Authorized Signatories of East South Crossing Owner LLC. The Parties agree to undertake all actions required by the terms and conditions of this Agreement. The purpose of this Agreement is to settle and resolve, subject to reservations and 00305-020/00445072 2 Dilworth Auto II/26004-22-060/202331115 limitations contained in Section X (Certification), Section XI (DEQ’s Covenant Not to Sue and Reservation of Rights) and Section XII (Prospective Developer’s Covenant Not to Sue), the potential liability of East South Crossing Owner LLC for contaminants at the Brownfields Property. The Parties agree that East South Crossing Owner LLC’s entry into this Agreement, and the actions undertaken by East South Crossing Owner LLC in accordance with the Agreement, do not constitute an admission of any liability by East South Crossing Owner LLC for contaminants at the Brownfields Property. The resolution of this potential liability, in exchange for the benefit East South Crossing Owner LLC shall provide to DEQ, is in the public interest. II. DEFINITIONS Unless otherwise expressly provided herein, terms used in this Agreement which are defined in the Act or elsewhere in NCGS § 130A, Article 9 shall have the meaning assigned to them in those statutory provisions, including any amendments thereto. 1. “Brownfields Property” shall mean the property which is the subject of this Agreement, and which is depicted in Exhibit 1 to the Agreement. 2. “Prospective Developer” shall mean East South Crossing Owner LLC. III. BROWNFIELDS PROPERTY INFORMATION SUMMARY 3. Relevant information about the history, ownership, and uses of the Brownfields Property is provided in the following summary table. Refer to the Exhibit 2 to this Agreement that presents data table(s) of the contaminants present at the Brownfields Property at concentrations above their applicable standards or screening levels for each media sampled. 00305-020/00445072 3 Dilworth Auto II/26004-22-060/202331115 BROWNFIELDS PROPERTY INFORMATION SUMMARY Parcel Addresses & Parcel IDs 1720 and 1728 South Boulevard and 101-115 East Boulevard (Parcel No. 12306401). The Brownfields Property was previously identified as Parcel Nos. 12306404, 12306402, and 12306401. Acreage 1.1575 Current Property Owner East South Crossing Owner LLC Current Land Use(s) Vacant Site Vicinity Land Use(s) Commercial and high density residential Proposed Reuse(s) High density residential, industrial, office, retail, restaurant, brewery or food production facility, recreation, institutional, entertainment, hotel, open space, parking, and with DEQ’s prior written approval, other commercial uses Public Benefits of Reuse Job creation, tax base increase, a return to productive use of the Brownfields Property, expanded use of public transportation, and smart growth Existing Land Use Restrictions Prior to Brownfields Agreement None ENVIRONMENTAL INFORMATION SUMMARY Historical Operations & Contaminant Sources The Brownfields Property was developed with at least two single-family residences and auxiliary structures around the early 1900s. Automotive service stations including Myers Automobile Service, Automobile Service Company Inc., and Neal’s Auto Service operated from at least 1929 to 1974 on the Brownfields Property, lumber and textile warehouses operated in the western portion of the Brownfields Property in the 1950s and 1960s, and Dilworth Launderette/ Dilworth Washerette was potentially located there from at least 1953 to 1959. A pharmacy most recently operated on the Brownfields Property. Soil impacts from petroleum compounds were identified in connection with the removal of eleven underground storage tanks from the Brownfields Property at the corner of South Boulevard and East Boulevard and the central area of the Brownfields Property (Myer’s Automotive Service/Eckard’s Construction Site; UST Incident Numbers 20235 and 27567). The DEQ issued a Notice of No Further Action for Incident Numbers 20235 and 27567 on July 7 and September 16, 1999, respectively. Current Operations/Activities Vacant 00305-020/00445072 4 Dilworth Auto II/26004-22-060/202331115 ENVIRONMENTAL INFORMATION SUMMARY Contaminated Media Soil: Arsenic, hexavalent chromium, the semi-volatile compound (SVOC) naphthalene, and volatile organic compounds (VOCs) were detected above NC Residential Preliminary Soil Remediation Goals (PSRGs). Arsenic, ethylbenzene, and naphthalene were also detected at concentrations above the Non-Residential PSRGs. Groundwater: VOCs were detected at concentrations exceeding NCAC 2L Groundwater Quality Standards. VOCs also exceeded Non-Residential NC Groundwater Vapor Intrusion Screening Levels. Exterior Soil Gas: VOCs were detected in exterior soil gas samples above NC DEQ Residential Vapor Intrusion Screening Levels. ID Numbers/Permits NC DEQ UST Incident Numbers: 20235 and 27567 (NFA July 7, 1999 and September 16, 1999, respectively) Onsite Receptors Considered Future residents, workers, visitors and construction workers Potential Offsite Receptors Considered i. Water supply wells: No water supply wells were identified within 1,500 feet. ii. Residential apartments are located north and northwest and a church is located to the southwest of the Brownfields Property iii. Surface water: No surface water is present. Potential offsite migration pathways Soil Vapor: Potential pathways via utilities 4. Environmental reports regarding the Brownfields Property referred to hereinafter as the “Environmental Reports,” include, but are not limited to: a. Those that the Prospective Developer obtained or commissioned regarding the Brownfields Property: Title Prepared by Date of Report Brownfields Assessment Report Hart & Hickman May 31, 2022 Brownfields Assessment Report Hart & Hickman September 14, 2021 00305-020/00445072 5 Dilworth Auto II/26004-22-060/202331115 Title Prepared by Date of Report Brownfields Assessment Report Hart & Hickman February 1, 2021 Phase I ESA Retail Properties Hart & Hickman September 29, 2020 Phase I ESA Retail Property Hart & Hickman December 20, 2021 Underground Storage Tank Closure Report-UST/GW-12 Geo-Environmental Consultants, Inc. August 19, 1999 Eckerd’s Drug Store Construction Site Geo-Environmental Consultants, Inc. July 1, 1999 Closure Report: Removal of Underground Storage Tanks Mountain Environmental Services, Inc. May 3, 1999 IV. PROSPECTIVE DEVELOPER’S INVOLVEMENT 5. For purposes of this Agreement DEQ relies on Prospective Developer’s representations that Prospective Developer's involvement with the Brownfields Property has been limited to obtaining or commissioning the Environmental Reports, preparing and submitting to DEQ a Brownfields Property Application (BPA) dated September 17, 2020, preparing and submitting to DEQ a January 18, 2022 BPA Amendment, contracting to purchase the Brownfields Property on January 29, 2020, acquiring ownership of the Brownfields Property on December 22, 2021, and conducting demolition of above-ground improvements on the Brownfields Property. 6. Prospective Developer has provided DEQ with information, or sworn certifications regarding that information on which DEQ relies for purposes of this Agreement, sufficient to demonstrate that: a. Prospective Developer and any parent, subsidiary, or other affiliate has substantially complied with federal and state laws, regulations and rules for protection of the environment, and with the other agreements and requirements cited at NCGS § 130A- 00305-020/00445072 6 Dilworth Auto II/26004-22-060/202331115 310.32(a)(1); b. As a result of the implementation of this Agreement, the Brownfields Property will be suitable for the uses specified in the Agreement while fully protecting public health and the environment; c. Prospective Developer's reuse of the Brownfields Property will produce a public benefit commensurate with the liability protection provided Prospective Developer hereunder; d. Prospective Developer has or can obtain the financial, managerial, and technical means to fully implement this Agreement and assure the safe use of the Brownfields Property; and e. Prospective Developer has complied with all applicable procedural requirements. 7. The Parties agree that a $30,000 “Redevelopment Now” fee Prospective Developer has paid suffices as the $2,000 fee to seek a brownfields agreement required by NCGS § 130A- 310.39(a)(1), and, within the meaning of NCGS § 130A-310.39(a)(2), the full cost to DEQ and the North Carolina Department of Justice of all activities related to this Agreement, unless a change is sought to a Brownfields document after it is in effect, in which case there shall be an additional fee of at least $1,000. V. BENEFIT TO COMMUNITY 8. The redevelopment of the Brownfields Property proposed herein would provide the following public benefits: a. a return to productive use of the Brownfields Property; 00305-020/00445072 7 Dilworth Auto II/26004-22-060/202331115 b. the creation of construction and full time jobs; c. an increase in tax revenue for affected jurisdictions; d. expanded use of public transportation which reduces traffic, improves air quality, and reduces our carbon footprint; and e. “smart growth” through use of land in an already developed area, which avoids development of land beyond the urban fringe (“greenfields”). VI. WORK TO BE PERFORMED 9. The guidelines as embodied in their most current version, including parameters, principles and policies within which the desired results are to be accomplished are (as to: field procedures, laboratory testing, Brownfields Redevelopment Section requirements, and remedial or mitigation measures): a. the Guidelines of the Inactive Hazardous Sites Branch of DEQ’s Superfund Section; b. the Division of Waste Management Vapor Intrusion Guidance; c. the Brownfields Redevelopment Section Assessment Work Plan Checklist; and d. the Brownfields Survey Plat Checklist. 10. In redeveloping the Brownfields Property, Prospective Developer shall make reasonable efforts to evaluate applying sustainability principles at the Brownfields Property, using the nine (9) credit categories incorporated into the U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) certification program (Integrative Process, Location and Transportation, Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality, Innovation, and Regional 00305-020/00445072 8 Dilworth Auto II/26004-22-060/202331115 Priority), or a similar program. 11. Based on the information in the Environmental Reports, other available reports, and subject to imposition of and compliance with the land use restrictions set forth below, and subject to Section XI of this Agreement (DEQ’s Covenant Not to Sue and Reservation of Rights), DEQ is not requiring Prospective Developer to perform any active remediation at the Brownfields Property other than remediation that may be required pursuant to a DEQ-approved Environmental Management Plan (EMP) as specified in subparagraph 12.b. below. VII. LAND USE RESTRICTIONS 12. By way of the Notice of Brownfields Property referenced below in paragraph 16, Prospective Developer shall impose the following land use restrictions under the Act, running with the land, to make the Brownfields Property suitable for the uses specified in this Agreement while fully protecting public health and the environment instead of remediation to unrestricted use standards. All references to DEQ shall be understood to include any successor in function. Land Uses a. No use may be made of the Brownfields Property other than for high density residential, industrial, office, retail, restaurant, brewery or food production facility, institutional, recreation, hotel, entertainment, open space, parking, and with DEQ’s prior written approval, other commercial uses. For purposes of this restriction, the following definitions apply: i. “High Density Residential” is defined as for-rent-only permanent dwellings where residential units are attached to each other with common walls, such as apartments, group homes, dormitories or boarding houses, and any property outside the dwelling structures is usable by all residents and not privately owned as part of a particular unit (e.g., 00305-020/00445072 9 Dilworth Auto II/26004-22-060/202331115 privately-owned courtyards are prohibited), and may include related amenities, such as pools, clubhouses, courtyards, common areas, recreation areas and parking garages. Single family homes are prohibited; townhomes, duplexes or other units with yards are prohibited unless approved in writing by DEQ in advance. ii. “Industrial” defined as the assembly, fabrication, processing, warehousing, or distribution of goods and materials, and can include flex parks and research and development uses. iii. “Office” defined as the provision of business or professional services. iv. “Retail” defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and/or beverage products. v. “Restaurant” defined as a commercial business establishment that prepares and/or serves food and/or beverages to patrons. vi. “Entertainment” defined as private, public, and community activities (such as, for example, festivals, theater, musical events or shows), which may include food and beverage service. vii. “Hotel” defined as the provision of overnight lodging to paying customers, and to associated food services, gym, reservation, cleaning, utilities, parking and on- site hospitality, management and reception services. viii. “Brewery or Food Production Facility” defined as an establishment for the manufacture, sale and/or distribution of beverages or food products, including without limitation beer, ale, and distilled spirits, together with associated public roadways and related 00305-020/00445072 10 Dilworth Auto II/26004-22-060/202331115 infrastructure. ix. “Institutional” defined as the use of land, buildings or structures for public, non-profit or quasi-public purposes, such as libraries, community centers, post-secondary education facilities, or health care facilities. x. “Recreation” defined as indoor and outdoor exercise-related, physically focused, or leisure-related activities, whether active or passive, and the facilities for same, including, but not limited to, studios, swimming pools, sports-related courts and fields, open space, greenways, parks, playgrounds, walking paths, and picnic and public gathering areas. xi. “Open Space” defined as land maintained in a natural or landscaped state and used for natural resource protection, buffers, greenways, or detention facilities for stormwater. xii. “Parking” defined as the temporary accommodation of motor vehicles in an area designed for same. xiii. “Commercial” defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. Environmental Management Plan b. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an Environmental Management Plan (“EMP”) approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each subsequent redevelopment phase) that is consistent with all the other land use restrictions and describes redevelopment activities at the Brownfields Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the 00305-020/00445072 11 Dilworth Auto II/26004-22-060/202331115 Brownfields Property during construction or redevelopment in any other form, including without limitation: i. demolition of existing buildings, if applicable; ii. issues related to known or potential sources of contamination, including without limitation those resulting from contamination identified in paragraph 3 above; iii. contingency plans for addressing, including without limitation the testing of soil and groundwater, newly discovered potential sources of environmental contamination (e.g., USTs, tanks, drums, septic drain fields, oil-water separators, soil contamination); and iv. plans for the proper characterization and DEQ approval of both fill soil before import to the Brownfields Property and the disposition of all soil excavated from the Brownfields Property during redevelopment. Redevelopment Reporting c. No later than January 31 after each one-year anniversary of the effective date of this Agreement for as long as physical redevelopment of the Brownfields Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Brownfields Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: i. actions taken on the Brownfields Property in accordance with Section VI: Work to be Performed above; ii. soil grading and cut and fill actions; 00305-020/00445072 12 Dilworth Auto II/26004-22-060/202331115 iii. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; iv. stockpiling, containerizing, decontaminating, treating, handling, laboratory analysis and ultimate disposition of any soil, groundwater or other materials suspected or confirmed to be contaminated with regulated substances; and v. removal of any contaminated soil, water or other contaminated materials (for example, concrete, demolition debris) from the Brownfields Property (copies of all legally required manifests shall be included). Groundwater d. Groundwater at the Brownfields Property may not be used for any purpose without the prior written approval of DEQ along with any measures DEQ deems necessary to ensure that the Brownfields Property will be suitable for the uses specified in subparagraph 12.a. above while fully protecting public health and the environment. Should groundwater be encountered or exposed during any activity on the Brownfields Property, it shall be managed in accordance with the DEQ-approved EMP outlined in subparagraph 12.b., or a plan approved in writing in advance by DEQ. Soil e. No activity that disturbs soil on the Brownfields Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 12.a. above while fully protecting public health and the environment, except: 00305-020/00445072 13 Dilworth Auto II/26004-22-060/202331115 i. in connection with landscape planting to depths not exceeding 24 inches; ii. mowing and pruning of above-ground vegetation; iii. for repair of underground infrastructure, provided that DEQ shall be given written notice at least seven days in advance of a scheduled repair (if only by email) of any such repair, or in emergency circumstances no later than the next business day, and that any related assessment and remedial measures required by DEQ shall be taken; and iv. in connection with work conducted in accordance with a DEQ- approved Environmental Management Plan (EMP) as outlined above in subparagraph 12.b. Final Grade Sampling f. No use of any area(s) of the Brownfields Property where physical redevelopment has taken place pursuant to a DEQ-approved EMP as outlined in subparagraph 12.b above may occur until the then owner of the Brownfields Property conducts representative final grade soil sampling, pursuant to a plan approved in writing by DEQ, of any such redeveloped area(s) that is not covered by building foundations, sidewalks, asphaltic or concrete parking areas and driveways, or two feet of documented clean fill material. Soil Import and Export g. Soil may not be removed from, or brought onto, the Brownfields Property without prior sampling and analysis to DEQ’s satisfaction and the written approval of DEQ, unless conducted in accordance with an approved EMP as outlined above in subparagraph 12.b. Vapor Intrusion h. No enclosed building may be constructed on the Brownfields Property and no existing building, defined as those depicted on the plat component of the Notice of Brownfields 00305-020/00445072 14 Dilworth Auto II/26004-22-060/202331115 Property referenced in paragraph 16 below, may be occupied until DEQ determines in writing that: i. the building is or would be protective of the building’s users and public health from the risk of vapor intrusion based on site assessment data, or a site-specific risk assessment approved in writing by DEQ; or ii. a vapor intrusion mitigation system (VIMS) has been: 1. designed to mitigate the intrusion of subsurface vapors into building features in accordance with the most recent and applicable DWM Vapor Intrusion Guidance, Interstate Technology & Regulatory Council (ITRC) guidance, and American National Standards Institute (ANSI)/American Association of Radon Scientists and Technologists (AARST) standards, and that a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal, is satisfied that the design is fully protective of public health, and shall include a performance monitoring plan detailing methodologies and schedule, both of which are subject to prior written DEQ approval; and 2. installed and an installation report is submitted for written DEQ approval that includes as-built diagrams, photographs, and a description of the installation, with said engineer’s professional seal confirming that the engineer is satisfied that the system was installed per the DEQ approved design. If any deviations from the system design were necessary during installation, then the report shall include details on said deviations, as well as the engineer’s seal certifying the VIMS, as installed, was installed in such a manner so as to be fully protective of public health. Property Access 00305-020/00445072 15 Dilworth Auto II/26004-22-060/202331115 i. Neither DEQ, nor any party conducting environmental assessment or remediation at the Brownfields Property at the direction of, or pursuant to a permit, order or agreement issued or entered into by DEQ, may be denied access to the Brownfields Property for purposes of conducting such assessment or remediation, which is to be conducted using reasonable efforts to minimize interference with authorized uses of the Brownfields Property. Damage to Wells j. The owner of any portion of the Brownfields Property where any existing, or subsequently installed, DEQ-approved monitoring well is damaged by the owner, its contractors, or its tenants shall be responsible for repair of any such wells to DEQ’s written satisfaction and within a time period acceptable to DEQ, unless compliance with this land use restriction is waived in writing by DEQ in advance. Chemical Storage and Use k. None of the contaminants known to be present in the environmental media at the Brownfields Property, as described in Exhibit 2 of this Agreement and as modified by DEQ in writing if additional contaminants in excess of applicable standards are discovered at the Brownfields Property, may be used or stored at the Brownfields Property without the prior written approval of DEQ, except: i. in de minimis quantities for cleaning and other routine housekeeping and maintenance activities; ii. as constituents of fuels, lubricants and oils in emergency generators, machinery, equipment and vehicles in on-board tanks integral to said equipment or in flammable liquid storage containers totaling no more than 25 gallons; 00305-020/00445072 16 Dilworth Auto II/26004-22-060/202331115 iii. in products or materials that are brought onto the Brownfields Property, kept in their original packaging or containers (that is, not used or repackaged) and later removed from the Brownfields Property in the original packaging or containers; and iv. as constituents of products customarily used and stored in high-density residential, office, retail, restaurant, entertainment, hotel, brewery or food production facility, institutional, recreation, open space, or parking environments, and subject to DEQ’s prior written approval, other commercial uses, provided such products and materials are stored in original retail packaging and used and disposed of in accordance with applicable laws. Notification of Tenants l. Any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XVII (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. The owner may use the following mechanisms to comply with the obligations of this subparagraph as to leasehold interests: (i) If every lease or rider is identical in form, the owner conveying an interest may provide DEQ with copies of a form lease or rider evidencing compliance with this subparagraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XVII (Notices and Submissions); or (ii) The owner conveying an interest may provide abstracts of leases, rather than full copies of said leases, to the persons listed 00305-020/00445072 17 Dilworth Auto II/26004-22-060/202331115 in Section XVII. Land Use Restriction Update m. During January of each year after the year in which the Notice referenced below in paragraph 16 is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Mecklenburg County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Mecklenburg County Register of Deeds office and that the land use restrictions are being complied with. If the Brownfields Property is transferred, the grantor shall submit a LURU (as outlined above) which covers the period of time the grantor owned the Brownfields Property during the calendar year of the transfer. The submitted LURU shall state the following: i. the Brownfields Property address, and the name, mailing address, telephone number, and contact person’s e-mail address of the owner, or board, association or approved entity, submitting the LURU if said owner, or each of the owners on whose behalf a joint LURU is submitted, acquired any part of the Brownfields Property during the previous calendar year; ii. the transferee’s name, mailing address, telephone number, and contact person’s e-mail address, if said owner, or each of the owners on whose behalf a joint LURU is submitted, transferred any part of the Brownfields Property during the previous calendar year; iii. whether any vapor barrier and/or mitigation systems installed pursuant 00305-020/00445072 18 Dilworth Auto II/26004-22-060/202331115 to subparagraph 12.h. above are performing as designed, and whether the uses of the ground floors, including any tenant renovations, of any buildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how, and under which precautions so as not to interfere with the operation of said system. 13. The desired result of the above-referenced land use restrictions is to make the Brownfields Property suitable for the uses specified in this Agreement while fully protecting public health and the environment. 14. The consequence of achieving the desired results will be that the Brownfields Property will be suitable for the uses specified in the Agreement while fully protecting public health and the environment. The consequence of not achieving the desired results will be that modifications to land use restrictions and/or remediation in some form may be necessary to fully protect public health and/or the environment. VIII. ACCESS/NOTICE TO SUCCESSORS IN INTEREST 15. In addition to providing access to the Brownfields Property pursuant to subparagraph 12.i. above, Prospective Developer shall provide DEQ, its authorized officers, employees, representatives, and all other persons performing response actions under DEQ oversight, access at all reasonable times to other property controlled by Prospective Developer in connection with the performance or oversight of any response actions at the Brownfields Property under applicable law. Such access is to occur after prior notice and using reasonable efforts to minimize interference with authorized uses of such other property except in response to emergencies and/or imminent threats to public health and the environment. While Prospective Developer owns the Brownfields Property, DEQ shall provide reasonable notice to Prospective 00305-020/00445072 19 Dilworth Auto II/26004-22-060/202331115 Developer of the timing of any response actions to be undertaken by or under the oversight of DEQ at the Brownfields Property. Except as may be set forth in the Agreement, DEQ retains all of its authorities and rights, including enforcement authorities related thereto, under the Act and any other applicable statute or regulation, including any amendments thereto. 16. DEQ has approved, pursuant to NCGS § 130A-310.35, a Notice of Brownfields Property (“Notice”) for the Brownfields Property containing, inter alia, the land use restrictions set forth in Section VII (Land Use Restrictions) of this Agreement and a survey plat of the Brownfields Property. Pursuant to NCGS § 130A-310.35(b), within 15 days of the effective date of this Agreement, Prospective Developer shall file the Notice in the Mecklenburg County, North Carolina, Register of Deeds’ Office. Within three (3) days thereafter, Prospective Developer shall furnish DEQ a copy of the documentary component of the Notice containing a certification by the register of deeds as to the Book and Page numbers where both the documentary and plat components of the Notice are recorded, and a copy of the plat with notations indicating its recordation. 17. This Agreement shall be attached as Exhibit A to the Notice. Subsequent to recordation of said Notice, any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Mecklenburg County land records, Book ___________, Page ____________.” A copy of any such instrument shall be sent to the persons listed in Section XVII (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions 00305-020/00445072 20 Dilworth Auto II/26004-22-060/202331115 of the North Carolina Public Records Law. Prospective Developer may use the following mechanisms to comply with the obligations of this paragraph: (i) If every lease or rider is identical in form, Prospective Developer may provide DEQ with copies of a form lease or rider evidencing compliance with this paragraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XVII (Notices and Submissions); or (ii) Prospective Developer may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XVII. 18. The Prospective Developer shall ensure that a copy of this Agreement is provided to any current lessee or sublessee on the Brownfields Property within seven days of the effective date of this Agreement. IX. DUE CARE/COOPERATION 19. The Prospective Developer shall exercise due care at the Brownfields Property with respect to the manner in which regulated substances are handled at the Brownfields Property and shall comply with all applicable local, State, and federal laws and regulations. The Prospective Developer agrees to cooperate fully with any assessment or remediation of the Brownfields Property by DEQ and further agrees not to interfere with any such assessment or remediation. In the event the Prospective Developer becomes aware of any action or occurrence which causes or threatens a release of contaminants at or from the Brownfields Property while Prospective Developer owns the Brownfields Property, the Prospective Developer shall immediately take all appropriate action to prevent, abate, or minimize such release or threat of release, shall comply with any applicable notification requirements under NCGS § 130A-310.1 and 143-215.85, Section 103 of CERCLA, 42 USC § 9603, and/or any other law, and shall immediately notify the 00305-020/00445072 21 Dilworth Auto II/26004-22-060/202331115 DEQ Official referenced in subparagraph 31.a. below of any such required notification. X. CERTIFICATION 20. By entering into this Agreement, the Prospective Developer certifies that, without DEQ approval, it will make no use of the Brownfields Property other than that committed to in the Brownfields Property Application dated September 17, 2020 and amended on January 18, 2022, by which it applied for this Agreement. That use is that which is provided in subparagraph 12.a. of this Agreement. Prospective Developer also certifies that to the best of its knowledge and belief it has fully and accurately disclosed to DEQ all information known to Prospective Developer and all information in the possession or control of its officers, directors, employees, contractors and agents which relates in any way to any past use of regulated substances or known contaminants at the Brownfields Property and to its qualification for this Agreement, including the requirement that it not have caused or contributed to the contamination at the Brownfields Property. XI. DEQ’S COVENANT NOT TO SUE AND RESERVATION OF RIGHTS 21. Unless any of the following apply, Prospective Developer shall not be liable to DEQ, and DEQ covenants not to sue Prospective Developer, for remediation of the Brownfields Property except as specified in this Agreement: a. The Prospective Developer fails to comply with this Agreement. b. The activities conducted on the Brownfields Property by or under the control or direction of the Prospective Developer increase the risk of harm to public health or the environment, in which case Prospective Developer shall be liable for remediation of the areas of the Brownfields Property, remediation of which is required by this Agreement, to the extent 00305-020/00445072 22 Dilworth Auto II/26004-22-060/202331115 necessary to eliminate such risk of harm to public health or the environment. c. A land use restriction set out in the Notice of Brownfields Property required under NCGS § 130A-310.35 is violated while the Prospective Developer owns the Brownfields Property, in which case the Prospective Developer shall be responsible for remediation of the Brownfields Property to unrestricted use standards. d. The Prospective Developer knowingly or recklessly provided false information that formed a basis for this Agreement or knowingly or recklessly offers false information to demonstrate compliance with this Agreement or fails to disclose relevant information about contamination at the Brownfields Property. e. New information indicates the existence of previously unreported contaminants or an area of previously unreported contamination on or associated with the Brownfields Property that has not been remediated to unrestricted use standards, unless this Agreement is amended to include any previously unreported contaminants and any additional areas of contamination. If this Agreement sets maximum concentrations for contaminants, and new information indicates the existence of previously unreported areas of these contaminants, further remediation shall be required only if the areas of previously unreported contaminants raise the risk of the contamination to public health or the environment to a level less protective of public health and the environment than that required by this Agreement. f. The level of risk to public health or the environment from contaminants is unacceptable at or in the vicinity of the Brownfields Property due to changes in exposure conditions, including (i) a change in land use that increases the probability of exposure to contaminants at or in the vicinity of the Brownfields Property or (ii) the failure of remediation to 00305-020/00445072 23 Dilworth Auto II/26004-22-060/202331115 mitigate risks to the extent required to make the Brownfields Property fully protective of public health and the environment as planned in this Agreement. g. DEQ obtains new information about a contaminant associated with the Brownfields Property or exposures at or around the Brownfields Property that raises the risk to public health or the environment associated with the Brownfields Property beyond an acceptable range and in a manner or to a degree not anticipated in this Agreement. h. The Prospective Developer fails to file a timely and proper Notice of Brownfields Property under NCGS § 130A-310.35. 22. Except as may be provided herein, DEQ reserves its rights against Prospective Developer as to liabilities beyond the scope of the Act. 23. This Agreement does not waive any applicable requirement to obtain a permit, license or certification, or to comply with any and all other applicable law, including the North Carolina Environmental Policy Act, NCGS § 113A-1, et seq. 24. Consistent with NCGS § 130A-310.33, the liability protections provided herein, and any statutory limitations in paragraphs 21 through 23 above, apply to all of the persons listed in NCGS § 130A-310.33, including future owners of the Brownfields Property, to the same extent as Prospective Developer, so long as these persons are not otherwise potentially responsible parties or parents, subsidiaries, or affiliates of potentially responsible parties. XII. PROSPECTIVE DEVELOPER'S COVENANT NOT TO SUE 25. In consideration of DEQ’s Covenant Not To Sue in Section XI of this Agreement and in recognition of the absolute State immunity provided in NCGS § 130A-310.37(b), the Prospective Developer hereby covenants not to sue and not to assert any claims or causes of 00305-020/00445072 24 Dilworth Auto II/26004-22-060/202331115 action against DEQ, its authorized officers, employees, or representatives with respect to any action implementing the Act, including negotiating, entering, monitoring or enforcing this Agreement or the above-referenced Notice of Brownfields Property. XIII. PARTIES BOUND 26. This Agreement shall apply to and be binding upon DEQ, and on the Prospective Developer, its officers, directors, employees, and agents. Each Party’s signatory to this Agreement represents that she or he is fully authorized to enter into the terms and conditions of this Agreement and to legally bind the Party for whom she or he signs. XIV. DISCLAIMER 27. Prospective Developer and DEQ agree that this Agreement meets the requirements of the Act, including but not limited to the requirements set forth in NCGS § 130A-310.32(a)(2). However, this Agreement in no way constitutes a finding by DEQ as to the risks to public health and the environment which may be posed by regulated substances at the Brownfields Property, a representation by DEQ that the Brownfields Property is fit for any particular purpose, nor a waiver of Prospective Developer’s duty to seek applicable permits or of the provisions of NCGS § 130A-310.37. 28. Except for the land use restrictions set forth in paragraph 12 above and NCGS § 130A-310.33(a)(1)-(5)'s provision of the Act's liability protection to certain persons to the same extent as to a prospective developer, no rights, benefits or obligations conferred or imposed upon Prospective Developer under this Agreement are conferred or imposed upon any other person. XV. DOCUMENT RETENTION 29. The Prospective Developer agrees to retain and make available to DEQ all business 00305-020/00445072 25 Dilworth Auto II/26004-22-060/202331115 and operating records, contracts, site studies and investigations, remediation reports, and documents generated by and/or in the control of the Prospective Developer, its affiliates or subsidiaries relating to storage, generation, use, disposal and management of regulated substances at the Brownfields Property, including without limitation all Material Safety Data Sheets or Safety Data Sheets, for six (6) years following the effective date of this Agreement, unless otherwise agreed to in writing by the Parties. Said records may be retained electronically such that they can be retrieved and submitted to DEQ upon request. At the end of six (6) years, the Prospective Developer shall notify DEQ of the location of such documents and shall provide DEQ with an opportunity to copy any documents at the expense of DEQ. By entering into this Agreement, Prospective Developer waives no rights of confidentiality or privilege provided by the North Carolina Public Records Act or otherwise and, at the time DEQ requests to copy or inspect said documents, Prospective Developer shall provide DEQ with a log of documents withheld from DEQ, including a specific description of the document(s) and the alleged legal basis upon which they are being withheld. To the extent DEQ retains any copies of such documents, Prospective Developer retains all rights it then may have to seek protection from disclosure of such documents as confidential business information. XVI. PAYMENT OF ENFORCEMENT COSTS 30. If the Prospective Developer fails to comply with the terms of this Agreement, including, but not limited to, the provisions of Section VI (Work to be Performed) and Section VII (Land Use Restrictions), it shall be liable for all litigation and other enforcement costs incurred by DEQ to enforce this Agreement or otherwise obtain compliance. 00305-020/00445072 26 Dilworth Auto II/26004-22-060/202331115 XVII. NOTICES AND SUBMISSIONS 31. Unless otherwise required by DEQ or a Party notifies the other Party in writing of a change in contact information or delivery method, all notices and submissions pursuant to this Agreement shall be sent by prepaid first-class U.S. mail or courier service, as follows: a. for DEQ: Brownfields Property Management Branch (or successor in function) N.C. Division of Waste Management Brownfields Redevelopment Section Mail Service Center 1646 Raleigh, NC 27699-1646 b. for Prospective Developer: Jay Levell (or successor in function) East South Crossing Owner LLC 4064 Colony Road, Suite 310 Charlotte, NC 28211 Notices and submissions sent by prepaid first-class U.S. mail shall be effective on the third day following postmarking. Notices and submissions sent by hand or by other means affording written evidence of date of receipt shall be effective on such date. XVIII. EFFECTIVE DATE 32. This Agreement shall become effective on the date the Prospective Developer signs it, after receiving the signed, conditionally approved Agreement from DEQ. DEQ’s approval of this Agreement is conditioned upon the complete and timely execution and filing of this Agreement in the manner set forth herein. Prospective Developer shall expeditiously sign the Agreement in order to effect the recordation of the full Notice of Brownfields Property within the statutory deadline set forth in NCGS § 130A-310.35(b). If the Agreement is not signed by Prospective Developer within 45 days after such receipt, DEQ has the right to revoke its 00305-020/00445072 27 Dilworth Auto II/26004-22-060/202331115 approval and certification of this Agreement, and to invalidate its signature on this Agreement. XIX. TERMINATION OF CERTAIN PROVISIONS 33. If any Party believes that any or all of the obligations under Section VIII (Access/Notice to Successors in Interest) are no longer necessary to ensure compliance with the requirements of the Agreement, that Party may request in writing that the other Party agree to terminate the provision(s) establishing such obligations; provided, however, that the provision(s) in question shall continue in force unless and until the Party requesting such termination receives written agreement from the other Party to terminate such provision(s). XX. CONTRIBUTION PROTECTION 34. With regard to claims for contribution against Prospective Developer in relation to the subject matter of this Agreement, Prospective Developer is entitled to protection from such claims to the extent provided by NCGS § 130A-310.37(a)(5)-(6). The subject matter of this Agreement is all remediation taken or to be taken and response costs incurred or to be incurred by DEQ or any other person in relation to the Brownfields Property. 35. The Prospective Developer agrees that, with respect to any suit or claim for contribution brought by it in relation to the subject matter of this Agreement, it will notify DEQ in writing no later than 60 days prior to the initiation of such suit or claim. 36. The Prospective Developer also agrees that, with respect to any suit or claim for contribution brought against it in relation to the subject matter of this Agreement, it will notify DEQ in writing within 10 days of receiving said suit or claim. XXI. PUBLIC COMMENT 37. This Agreement shall be subject to a public comment period of at least 30 days 00305-020/00445072 28 Dilworth Auto II/26004-22-060/202331115 starting the day after the last of the following public notice tasks occurs: publication of the approved summary of the Notice of Intent to Redevelop a Brownfields Property required by NCGS § 130A-310.34 in a newspaper of general circulation serving the area in which the Brownfields Property is located; conspicuous posting of a copy of said summary at the Brownfields Property; and mailing or delivery of a copy of the summary to each owner of property contiguous to the Brownfields Property. After expiration of that period, or following a public meeting if DEQ holds one pursuant to NCGS § 130A-310.34(c), DEQ may modify or withdraw its consent to this Agreement if comments received disclose facts or considerations which indicate that this Agreement is inappropriate, improper or inadequate. IT IS SO AGREED: NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY By: ____________________________________________________________________________ Bruce Nicholson Date Chief, Brownfields Redevelopment Section Division of Waste Management IT IS SO AGREED: East South Crossing Owner LLC By: ____________________________________________________________________________ Name: Jay Levell Date Title: Authorized Signatory USGS The National Map: National Boundaries Dataset, 3DEP Elevation Program, Geographic Names Information System, National Hydrography Dataset, National Land Cover Database, National Structures Dataset, and National Transportation Dataset; USGS Global Ecosystems; U.S. Census Bureau TIGER/Line data; USFS Road Data; Natural Earth Data; U.S. Department of State Humanitarian Information Unit; and NOAA National Centers for Environmental Information, U.S. Coastal Relief Model. Data refreshed May, 2020. SITE LOCATION MAP ',/:257+$8726(5,9&( 120 EAST KINGSTON AVE6287+ %28/(9$5' AND($67%28/(9$5' CHARLOTTE, NORTH CAROLINA DATE: 12-10-20 JOB NO: WPP-011 REVISION NO: 0 FIGURE. 1 2923 South Tryon Street - Suite 100 Charlotte, North Carolina 28203 704-586-0007 (p) 704-586-0373 (f) License # C-1269 / # C-245 Geology TITLE PROJECT 0 2,000 4,000 SCALE IN FEET Path: \\HHFS01\Redirectedfolders\sperry\My Documents\ArcGIS\PROJECTS\WPP-011\Figure 1.mxdN U.S.G.S. QUADRANGLE MAP CHARLOTTE EAST, NORTH CAROLINA 2013 QUADRANGLE 7.5 MINUTE SERIES (TOPOGRAPHIC) SITE Exhibit 1 00305-020/00498731 Dilworth Auto II/26004-22-060/20231115 Exhibit 2 Brownfields Property Name: Dilworth Auto II Brownfields Project Number: 26004-22-060 The following tables set forth, for contaminants present at the Brownfields Property above unrestricted use standards or screening levels as reported in the Environmental Reports in paragraph 4 of the Brownfields Agreement to which this is an exhibit, the concentration found at each sample location, and the applicable standard or screening level. Screening levels and standards are shown for reference only and are not set forth as cleanup or mitigation levels for purposes of this Agreement. GROUNDWATER Groundwater contaminants in micrograms per liter (the equivalent of parts per billion), the standards for which are contained in Title 15A of the North Carolina Administrative Code, Subchapter 2L (2L), Rule .0202, (April 1, 2022 version): Groundwater Contaminant Sample Location Date of Sampling Concentration Exceeding Standard (µg/L) Standard (µg/L) Benzene TMW-7 11/18/2020 7.8 1 Tetrachloroethylene TMW-5 11/17/2020 0.74 0.70 GROUNDWATER VAPOR INTRUSION RISK Groundwater contaminants with potential for vapor intrusion (VI) in micrograms per liter (the equivalent of parts per billion), the vapor intrusion screening levels for which are derived from the Residential and Non-Residential Vapor Intrusion Screening Levels of the Division of Waste Management (July 2023 version): Groundwater Contaminant with Potential for Vapor Intrusion Sample Locatio n Date of Sampling Concentration Exceeding Screening Level (µg/L) Residential VI Screening Level1 (µg/L) Non-Residential VI Screening Level (µg/L) Acetone TMW-7 11/28/2020 3.7 J NE NE Benzene TMW-7 11/18/2020 7.8 1.6 6.9 Chloroform TMW-4 11/17/2020 1.4 0.81 3.6 Trichloroethene TMW-5 11/17/2020 2.0 1.0 4.4 1 Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-6 lifetime incremental cancer risk. NE-Screening or regulatory level not established J – Laboratory estimated concentration 00305-020/00498731 Dilworth Auto II/26004-22-060/20231115 SOIL Soil contaminants in milligrams per kilogram (the equivalent of parts per million), the screening levels for which are derived from the Preliminary Industrial Health- Based Soil Remediation Goals of the Inactive Hazardous Sites Branch of DEQ’s Superfund Section (July 2023 version): Soil Contaminant Sample Location Depth (ft) Date of Sampling Concentration Exceeding Screening Level (mg/kg) Residential Screening Level1 (mg/kg) Commercial/ Industrial Screening Level1 (mg/kg) Arsenic SB-12 1-3 11/16/2020 4.0 0.68 3.0 SB-13 1-3 11/16/2020 3.1 SB-14 1-3 11/16/2020 2.1 SB-15 1-3 11/16/2020 2.2 SB-16 1-3 11/17/2020 5.2 SB-17 8-10 11/17/2020 3.7 SB-17/ SB-DUP 8-10 11/17/2020 2.6 SB-19/ Soil-Dup-1 11-13 8/2/2021 1.5 Benzene SB-19/ Soil-Dup-1 11-13 8/2/2021 4.6 1.2 5.4 Ethylbenzene SB-19/ Soil-Dup-1 11-13 8/2/2021 52 6.1 27 Hexavalent Chromium SB-12 1-3 11/16/2020 1.1 J 0.31 6.5 SB-16 1-3 11/17/2020 0.60 J SB-19/ Soil-Dup-1 11-13 8/2/2021 0.729 J Methylcyclohexane SB-17/ SB-DUP 8-10 11/17/2020 0.0051 J NE NE Naphthalene SB-19/ Soil-DuP-1 11-13 8/2/2021 15 2.1 8.8 Phenanthrene SB-13 1-3 11/16/2020 0.021 J NE NE SB-17/ SB-DUP 8-10 11/17/2020 0.039 J 1,2,4-Trimethylbenzene SB-19/ Soil-Dup-1 11-13 8/2/2021 120 63 370 1Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-6 lifetime incremental cancer risk. NE – Screening or regulatory level not established J – Laboratory estimated concentration 00305-020/00498731 Dilworth Auto II/26004-22-060/20231115 SOIL GAS Soil gas contaminants in micrograms per cubic meter, the screening levels for which are derived from Residential Vapor Intrusion Screening Levels of the Division of Waste Management (July 2023 version): Soil Gas Contaminant Sample Location Date of Sampling Concentration Exceeding Screening Level (µg/m3) Residential Screening Limit1 (µg/m3) Non- Residential Screening Limit (µg/m3) Acetone SG-1 11/20/2020 14 NE NE SG-2 11/20/2020 12 SG-4 11/20/2020 14 J SG-10 11/20/2020 25 SG-11 11/20/2020 400 SG-15 4/22/2022 27.1 SG-16 4/22/2022 17.4 SG-17/ SG-DUP 4/22/2022 27.4 Benzene SG-4 11/20/2020 21 J 12 160 SG-16 4/22/2022 17.6 SG-17/ SG-DUP 4/22/2022 14.7 Chloroform SG-1 11/20/2020 8.8 4.1 53 SG-2 11/20/2020 4.6 J SG-4 11/20/2020 44 J SG-11 11/20/2020 12 Dichlorofluoromethane SG-16 4/22/2022 5,510 700 8,800 4-Ethyltoluene SG-1 11/20/2020 38 NE NE SG-10 11/22/2020 4.5 SG-11 11/22/2020 33 SG-15 4/22/2022 1.69 J SG-16 4/22/2022 1.01 J SG-17/ SG-DUP 4/22/2022 1.96 J Hexane SG-3/ SG-Dup-11/20/20 11/20/2020 5,000 4,900 61,000 Naphthalene SG-1 11/20/2020 3.0 2.8 36 SG-11 11/20/2020 6.6 Trichlorofluoromethane SG-1 11/20/2020 2.2 J NE NE 00305-020/00498731 Dilworth Auto II/26004-22-060/20231115 Soil Gas Contaminant Sample Location Date of Sampling Concentration Exceeding Screening Level (µg/m3) Residential Screening Limit1 (µg/m3) Non- Residential Screening Limit (µg/m3) SG-10 11/22/2020 7.5 SG-11 11/20/2020 5.6 SG-15 4/22/2020 19.4 SG-16 4/22/2022 11.3 SG-17 4/22/2022 4.93 SG-17 DUP 4/22/2022 4.58 1Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-6 lifetime incremental cancer risk. NE-Screening or regulatory level not established J-Laboratory estimated concentration 00305-020/00498731 Dilworth Auto II/26004-22-060/20231115 SUB-SLAB SOIL GAS Soil gas contaminants in micrograms per cubic meter, the screening levels for which are derived from Residential Vapor Intrusion Screening Levels of the Division of Waste Management (July 2023 version): Soil Gas Contaminant Sample Location Date of Sampling Concentration Exceeding Screening Level (µg/m3) Residential Screening Limit1 (µg/m3) Non- Residential Screening Limit1 (µg/m3) Acetone SSV-1 4/21/2022 130 NE NE SSV-2 4/21/2022 41.9 SSV-3 4/21/2022 107 SSV-4 4/21/2022 112 4-Ethyltoluene SSV-1 4/21/2022 0.551 J NE NE Trichlorofluoromethane SSV-1 4/21/2022 3.83 NE NE SSV-2 4/21/2022 2.06 J SSV-4 4/21/2022 2.01 J 1Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for carcinogens are for a 1.0E-6 lifetime incremental cancer risk. NE-Screening or regulatory level not established J- Laboratory estimated concentration 00305-020/00495245 Exhibit C Legal Description Project Name: Dilworth Auto II Project No.: 26004-22-060 That certain tract or parcel of land situated, lying and being in the City of Charlotte, County of Mecklenburg, State of North Carolina and being more particularly described as follows: BEGINNING at an existing 1/2-inch iron rod on the northwestern margin of South Boulevard (a variable width public right-of-way), said iron being the southernmost corner of the property of South End Property Owning Sub, LLC (now or formerly) as described in Deed Book 36145, Page 181 of the Mecklenburg County Public Registry (the “Registry”); Thence with and along aforesaid northwestern margin of South Boulevard for the following two (2) courses and distances: 1) S 43°20'07" W a distance of 70.09 feet to an existing 1/2-inch iron rod; 2) S 43°20'53" W a distance of 79.93 feet to an existing 1/2-inch iron rod at the intersection of the northwesterly margin of South Boulevard and the northeasterly margin of East Boulevard (an 80-foot public right-of-way); Thence with and along aforesaid northeasterly margin of East Boulevard for the following two (2) courses and distances: 1) N 46°39'07" W a distance of 199.97 feet to an existing nail; 2) N 46°31'32" W (passing an existing nail at 94.03 feet on the southeasterly margin of the 130-foot right-of-way of Norfolk-Southern Railway) a total distance of 124.39 feet; Thence leaving aforesaid northeasterly margin of East Boulevard with and along a new line N 34°39'16" E a distance of 151.84 feet to a point on the southwesterly boundary of the property of WP Kingston, LLC as described in Deed Book 33305, Page 368 of said registry; Thence with and along aforesaid southwesterly boundary of the property of WP Kingston, LLC S 46°35'39" E a distance of 152.63 feet to a new nail at the southern most corner of aforesaid property of WP Kingston, LLC, said nail also being the southwest corner of the property of South End Property Owning Sub, LLC (now or formerly) as described in Deed Book 36145, Page 181 of said Registry; Thence with and along the southwesterly boundary of the aforesaid property of South End Property Owning Sub, LLC S 46°35'39" E (passing an existing nail at 5.02 feet) a total distance of 194.67 feet to the POINT OF BEGINNING; Having an area of 50,419 square feet or 1.1575 acres of land, more or less, as shown on a survey prepared by R. B. Pharr & Associates, P.A., dated October 11, 2023 (bearing Job No. 95436).