10002 Rea LOE 20060214

North Carolina Department of Environment and Natural Resources
Dexter R. Matthews, Director Division of Waste Management Michael F. Easley, Governor
William G. Ross Jr., Secretary

1646 Mail Service Center, Raleigh, North Carolina 27699-1646
Phone [phone] \ FAX [phone] \ Internet http://wastenotnc.org
An Equal Opportunity / Affirmative Action Employer – Printed on Dual Purpose Recycled Paper
February 14, 2006

Sent Via E-mail and USPS

South End Silos, LLC
c/o David A. Franchina, Esq.
Kennedy Covington Lobdell & Hickman, LLP
214 N. Tryon Street, 47th Floor
Charlotte, NC 28202
[e-mail]

Subject: Letter of Eligibility
Rea Asphalt Plant
2701 Youngblood Street
Charlotte, Mecklenburg County
Brownfields Project Number 10002-06-60

Dear Mr. Franchina:

The North Carolina Department of Environment and Natural Resources (DENR) has received and
reviewed your January 27, 2006 Letter of Intent (LOI) submitted on behalf of South End Silos, LL as a
Prospective Developer (PD) seeking a brownfields agreement regarding the subject site. Upon review of the
letters 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 documents submitted with
your LOI:

Title Prepared by Date of Report
Comprehensive Site Assessment for Former
Asphaltic Material Testing Laboratory Sites
Richard A Catlin June 5, 1997
Annual Groundwater Monitoring Report,
NC DOT #27-57
Hart & Hickman, July 27, 2005
Phase I Environmental Site Assessment Geoscience Group December 20, 2005

Mr. Franchina
February 14, 2006
Page 2 of 2

Historical site information from the files of DENR’s Division of Waste Management will also be utilized during
the evaluation process. Please forward any additional information or data you may have or can acquire for our
evaluation. This should include reports from other DENR agencies or regional offices. We will contact you
regarding any additional assessment that may be necessary to establish that the property is or can be made safe
for the intended reuse, as required by statute.

According to the LOI, the intended redevelopment for the site is mixed use with commercial, retail, and
residential. Because risk management decisions may vary depending on the nature of the redevelopment, it will
be important that DENR review the locations of the various elements. Please forward any maps or drawings
indicating these details, even if they are only preliminary or conceptual.

Please apprise me within thirty (30) days whether South End Silos, LLC anticipates becoming the
owner of the property before or after conclusion of the brownfields process. If after, we need from South End
Silos, LLC within thirty (30) days the name, e-mail address and U.S. mail address of the current owner, so we
may e-mail a request for acknowledgment regarding recordation of the Notice of Brownfields Property (NBP)
by South End Silos, LLC while that party still owns the property, add to South End Silos, LLC’s signature block
in the NBP a signature block for that party, and, at the conclusion of the process, mail the NBP to that party for
signing.

I am excited about the potential for public benefit offered by the safe reuse of the Rea Asphalt Plant Site,
and I 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
[phone], or by e-mail at [e-mail].

Sincerely,

Carolyn Minnich

Carolyn Minnich
Brownfields Project Manager
Division of Waste Management

cc: Project File

ec: Rob Gelblum, DOJ
Bruce Nicholson, DENR
Timothy Crawford, [e-mail]