13008_Pilot Mountain_LOE_20090604

North Carolina Department of Environment and Natural Resources
401 Oberlin Road, Suite 150, Raleigh, North Carolina 27605
1646 Mail Service Center, Raleigh, North Carolina 27699-1646
Phone: [phone] \ FAX: [phone] \ Internet: www.wastenotnc.org
An Equal Opportunity / Affirmative Action Employer - 50 % Recycled \ 10 % Post Consumer Paper

June 4, 2009

Sent Via E-mail and USPS

Blair Knox, MPA
Town of Pilot Mountain
124 West Main Street
Box 1
Pilot Mountain, NC 27041
[e-mail]

Subject: Letter of Eligibility
Pilot Center
Pilot Mountain, Surry County, North Carolina
Brownfields Project Number 13008-09-86

Dear Mr. Knox:

The North Carolina Department of Environment and Natural Resources (DENR) has
received and reviewed your Brownfields Property Application (BPA) dated March 31, 2009
submitted on behalf of The Town of Pilot Mountain as a Prospective Developer seeking a
brownfields agreement regarding the subject site. Upon review of the BPA with respect to the
requirements of the Brownfields Property Reuse Act of 1997, DENR has determined that this
project is eligible for entry into the North Carolina Brownfields Program and for continued
evaluation for a brownfields agreement.

The next step in the process will involve a detailed review of available environmental and
other relevant data to determine what is currently known about contamination at the site, and
what, if any, information gaps may exist that may require additional assessment. We are in
receipt of the following document submitted with your BPA:

• Phase I Environmental Site Assessment, March 23, 2009, Withers and Ravenel,
Inc.

We will contact you regarding any additional assessment that may be necessary to establish that
the property is or can be made suitable for the intended reuse, as required by statute.

According to the BPA, the intended redevelopment for the site is for a Surry County
college campus and agricultural center. Because risk management decisions may vary
Dexter Matthews, Director Division of Waste Management Beverly Eaves Perdue, Governor
Dee Freeman, Secretary

Mr. Blair Knox
June 4, 2009

Page 2
depending on the nature of the redevelopment, it will be important that DENR review the
locations of the various elements of the redevelopment. Please forward any maps or drawings
indicating these details, even if they are only preliminary or conceptual.

Please note that a Prospective Developer does not have the protections that a Brownfields
Agreement offers until the agreement is executed. If you operate at the site and cause or
contribute to contamination before we finalize an Agreement, you could jeopardize your
eligibility and assume some environmental liability. Please consult closely with me regarding
any site activities that will occur before the Brownfields Agreement is finalized.

We understand the Town of Pilot Mountain executed an option to contract on the subject
property on January 31, 2009, with a planned closing date of April 9, 2009. Please confirm that
the Town of Pilot Mountain actually purchased the property, and if not, keep us apprised
throughout the process of your plans regarding purchase of the property. If the Prospective
Developer does not actually purchase the property for redevelopment, it may lose eligibility for
the Brownfields Program.

We are enthusiastic about the potential for public benefit offered by the redevelopment of
the former Amos & Smith Hosiery Mill as the Pilot Center, and we look forward to working with
you to advance this brownfields redevelopment project. If you have questions about this
correspondence or require additional information, please feel free to contact me by phone at
(919)-508-8425 or by e-mail at [e-mail].

Sincerely,

Sharon Poissant Eckard, PG
Brownfields Project Manager
Division of Waste Management

cc: Project File
ec: Bruce Nicholson, DENR