14006 Classic Coffee LOE 20100521

May 21, 2010

Sent Via E-mail

Mr. Joshua T. Knipp
Moretz& Skufca, PLLC
37 Union Street South, Suite B
Concord, NC 28025
[e-mail]

Subject: Letter of Eligibility
Classic Coffee Concepts
1016 & 1024 Montana Drive
Charlotte, Mecklenburg County
Brownfields Project Number 14006-10-60

Dear Mr. Knipp:
The North Carolina Department of Environment and Natural Resources (DENR) has received and
reviewed your March 17, 2010 Brownfields Property Application (BPA) and revised application on May
3, 2010 BPA submitted on behalf of Pearl Pacific Properties, LLC, 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
documents submitted:

Title Prepared by Date of Report
Phase I Environmental Site Assessment Law Engineering and
Environmental Services
7/26/2002
Phase II ESA MACTEC 5/31/2006
Report of Groundwater Monitoring MACTEC 8/05/2009

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.
North Carolina Department of Environment and Natural Resources
Dexter Matthews, Director Division of Waste Management Beverly Eaves Perdue, Governor
Dee Freeman, Secretary

Mr. Knipp
May 2010
Page 2 of 2

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 industrial. 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. Also: Pending execution of a Brownfields
Agreement, eligibility is provisional. You do not have the protections such an agreement offers unless
and until it is executed. Thus, you operate at the site pending conclusion of a Brownfields Agreement at
the risk of jeopardizing your eligibility and/or becoming a party responsible for the contamination at the
site if an agreement is not finalized. This makes it very much in your interest to consult closely with
Carolyn Minnich regarding any planned site activities prior to agreement finalization.

If a party other than the Prospective Developer will own the Brownfields property at the
conclusion of the brownfields process, the final document (which gets recorded at the Register of Deeds’
office) must be signed not only by the Prospective Developer but by that owner. Failure by the
Prospective Developer to ensure, by the time Brownfields Agreement negotiations are complete, the
willingness to sign of any such party, and to provide DENR the exact name, e-mail address, telephone
number and U.S. mail address of the party (along with signatory/signatory’s title in the case of an entity)
will retard, and could prevent, the Brownfields Agreement taking effect.

If the Prospective Developer does not actually buy the property for redevelopment, it loses its
eligibility for the Brownfields Program. That means the Prospective Developer itself, not an affiliate or
any other party.

If you have questions about this correspondence or require additional information, please feel free
to contact Carolyn by phone at 704/661-0330, or by e-mail at [e-mail].

Sincerely,

Linda M. Culpepper
Deputy Director
Division of Waste Management

cc: Central Files

ec: Bruce Nicholson, Brownfields Program Manager
Rob Gelblum, Special Deputy Attorney General
Carolyn Minnich, NCDENR
Victor Kung, [e-mail]