20083_Chestnut Blowing Rock_INEMAIL_2016_10_17

Chestnut at Blowing Rock Internal DEQ Notification – Watauga County - BP# 20083-16-095

To DEQ Cleanup Programs:

This is an internal courtesy notice to inform your program that the DEQ Brownfields Program has received a Brownfields
Property Application submitted by Chestnut Development Partners, LLC as the Prospective Developer (PD) seeking entry
into the Brownfields Program for the following property:

Site Name: Chestnut at Blowing Rock
Address: 364 & 366 Chestnut Drive
City/County/Zip: Blowing Rock, Watauga County, 28605
BF Project Number: 20083-16-095
Tax ID: 2807-96-3492-000
Acres: 3.61

UST: 1) Probable UST: A letter was sent to the UST section on 8/30/2016 “Discovery of Suspected Underground Storage
Tank Release at Former Blowing Rock Hospital; suspected RP: Blowing Rock Hospital Inc. (Appalachian
Regional Healthcare System); consultant recommended UST closure
2) Registered UST: 10,000 gallon heating oil UST (Facility ID number 29683) currently in use, consultant
recommended UST closure

Map link:
A map of the parcel and Brownfields Property is attached
Link to Blowing Rock Arc GIS:
http://tobr.maps.arcgis.com/apps/webappviewer/index.html?id=71a09694db674eb19a6286e539052b39

SITE HISTORY

Currently, the property is used by the Blowing Rock Rehabilitation & Davant Extended Care Center (aka: Blowing Rock
Hospital Inc.) that is part of the Appalachian Regional Healthcare System. The rehabilitation and care center consists of
a medical complex built between 1954 and 1968 and a residential building (care center) believed to have been
constructed in 1960.

One registered UST and one probable UST are located on the site; both have not been closed by the UST Section
(10/13/2016). A Phase II was conducted at the property and 5 soil samples were collected from around both USTs (total
of 10 soil samples). Two of the soil samples (S-15 and S-16) had values in exceedance of NC DEQ action levels for TPH
GRO and/or TPH DRO. The soil samples were not analyzed for VOCs.

The PD intends to develop the property for multi-family residential use consisting of 23 condominiums with an
estimated investment of $24,000,000. The Town of Blowing Rock has submitted a letter of support with the PD’s
application. Owners of the Chestnut Development Partners, LLC include William Charles Campbell (50%) and Markan
Hunt Broyhill (50%).

We are now evaluating Chestnut Development Partners, LLC, and the subject property for eligibility for entry into the
Brownfields Program. Under the Brownfields Property Reuse Act, only entities that did not cause or contribute to the
contamination at the property are eligible to enter the program. The applicant PD listed below have asserted that: 1.)
they have not caused or contributed to the contamination at the property, and 2.) they have substantially complied with
laws, regulations, and rules for the protection of the environment. If you have any information to suggest otherwise,
please provide that information to me at [e-mail] and 919-707-8382 by 10/24/2016.

Information regarding the applicant PD is as follows:

Chestnut Development Partners, LLC
Principal Officer and Representative: William Charles Campbell
2701 Coltsgate Road, Suite 300
Charlotte, NC 28211
704-971-4894 (phone)
704-367-0196 (fax)
[e-mail] (email)

PD Contact
Sean M. Sullivan
Troutman Sanders LLP
434 Fayetteville Street, Suite 1900
Raleigh, NC 27601
919-835-4173 (phone)
919-829-8748 (fax)
[e-mail] (email)

A Brownfields Agreement (BFA) has no legal effect on your agency's authority to regulate or enforce against any and
all parties who caused or contributed to the contamination at the property. In fact, the BFA will require the
developer to provide access to the property to any party doing work under any DEQ program.

A BFA provides liability protection only to a non-causative redeveloper of the property. The developer will be
required to make the property safe for its intended re-use. Cleanup to unrestricted use standards will not be required
unless deemed necessary based on the developer's proposed use of the property. Furthermore, the BFA will not
change the developer's responsibility to obtain any and all DEQ permits (e.g. storm water, sediment control, NPDES,
etc.) as required under applicable law.

If you have any questions, please don't hesitate to contact me.

Thank you,
Sarah Hardison
Brownfields Hydrogeologist