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HomeMy WebLinkAboutSW8080414_Historical File_20080604:K P. 01 TRANSACTION REPORT �c :K JUN-04-2008 WED 11:12 AM :K FOR: NCDENR 9103502004 :K >K SEND >K :K :K DATE START RECEIVER TX TIME PAGES TYPE NOTE M# DP :K JUN-04 11:11 AM 919102932766 1'40" 9 FAX TX OK 542 �c :K TOTAL : 1M 40S PAGES: 9 State of North Carolina Department of Environment and Natural Resources Wilmington Regional Ofte Michael F. Ba0ey, Governor FAX COVER SHEET D: • To. 1i a z Azt Co: Pax: Re:r William G. Ross, Jr., Secretary No. Pages (excl. cover): Express Permitting From: Sandra Exum Phone (910) 796-7265 Fax: (910) 350-2004 127 C4rdiml Drive FxtenSdon, Wilmington, NC 28405 • (910) 796-7215 • An Equal Opportunity Affirmative Action Employer North Carolina Secretary of State Page 1 of 1 r+y,.ig4 CI.YYy North 1 Carolina L i 1-7 ENT 01- `I I IL } Elaine F Marshall � , �'� -� Secretary E1REi RY i- . TAT' i` PO Box 23822 RaWgh, NC 2762E-0627 (919)807-2007 CORPORATIONS Corporations Home ScFrch By Corporate Name Sezji,ch For Nevi Corporation Sz.Irch By Registered Agent Impo: ant Notice Corporations FAQ Homeown -,rs' AE.sociaU )n FAQ Tobacco i,'anufactur�rs Dissolution Reports Ikon -Profit 71enoris W�xifu Cei i ificat; •n Onlins. Annuod Reports LINKS & LEGISLATIO-R! KBBE W" B Annual Reports SOSFD Number Corr<<ct7o:7 2001 Bill Summari•-C, 1.999 S.n<,te Bills Annual Reports 1997 Corr)oraticns 1997 R gister for E-Procumment Dept. of R^venue ())LINE ORDERS Stait An Order New Payment Procedures CONTACT US Corporations Division TOOLE 5= reia:ry of Stage Home Ce-cretary Of `:a(e Site i lap Print -able Page Date: 5/23/2008 Click here to: View Document Filings i Sign Up for E-Notifications 1 Print apre-populated Annual Report Form I Annual Report Count i File an Annual Report i Corporation Names Name Name Type WC SD West, LLC � Legal Limited Liability Company Information SOSID: Status: Date Formed: Citizenship: State of Inc.: Duration: Registered Agent Agent Name: Registered Office Address: Registered Mailing Address: Principal Office Address Frincipai Mailing Address: 1036672 Current -Active 4/4/2008 Domestic NC Perpetual Penton, Howard A., III 6105 Oleander Drive, Suite 201 Wilmington NC 28403 6105 Oleander Drive, Suite 201 Wilmington NC 28403 6105 Oleander Drive, Suite 201 Wilmington NC 28403 6105 Uleander Drive, Suite 201 Wilmington NC 28403 hq://www. secretary.state.nc.us/corporations/Corp.aspx?PitemId=8781929 5/23/2008 C200809400567 SOSID: 1036672 Date Filed: 4/4/2008 8:43:00 AM Elaine F. Marshall ARTICLES OF ORGANIZATION North Carolina Secretary of State OF C200809400567 SD West, LLC Pursuant to 57C-2-20 of the General Statutes of North Carolina, the undersigned Organizer hereby submits these Articles of Organization for the purpose of forming a limited liability company. 1. The name of the limited liability company is: SD West, LLC 2. If the limited liability company is to dissolve by a specific date, the latest date on which the limited liability company is to dissolve is: None. 3. The name and address of each person executing these articles of organization is as follows: W. Talmage Jones, Organizer 101 South Third Street Wilmington, North Carolina 29401 4. The street address and county of the initial registered office of the limited liability company is 6105 Oleander Drive, Suite 201, Wilmington, North Carolina, 28403, located in New Hanover County, North Carolina. 5. The mailing if different from the street of the initial registered office is: Same. 6. The name of the initial registered agent is: Howard A. Penton, III 7, principal office information.: (Select either a or b.) a. ® The limited liability company has a principal office. The street address and county of the principal office of the limited liability company is: Number and Street 6105 Oleander Drive, Suite 201 City, State, Zip Code Wilmington, NC, 28403 County New Hanover The mailing address, if different from the street address, of the principal office of the corporation is: Same. b. ❑ The limited liability company does not have a principal office. 8. Check one of the following: X Member -managed LLC: all of the members by virtue of their status as members shall be managers of this limited liability company. Manager -managed LLC: except as provided by NCGS §57C3-20(a), the members of this limited liability company shall not be managers by virtue of their status as members. 9. These articles will be effective upon filing. This the 2' day of April, 2008. W. Talmage Jo t!ter THEADAMS COMPANYINC. CONSTRUCTION AND DEVELOPMENT 708 Abner Phillips Road Warsaw. North Carolina 28398 (910)293-2770 Fax (910) 293-2766 JOB � 4 . SHEET NO. 2 OF Z CALCULATED 8Y rnn^F Q DATE a'�G� �d CHECKED 8Y / t I' l- DATE S_ l 1— a O SCALE (� n/I, a_ �c IL re-c-p 11 dL� �1 f% � = 3 = 1.4( L 3a ,c o.48 -+ 3 C•�F� _ U. 4S? 3o f Z x n = 3a ..q8 4- 3 (.49) z x S,r.'1 = 2 = 30 i< iq +- 3 C•'7'7, L — sa -+ z .17 -al•-t 1.45 =/j r b •'7 l3 X o. aft (z Q ' 3-V .)) + 3 (.?�Zx 3•`�k 0_�� Dk- � 8q.34 3.41 t4--, 3 s Rwimer From NEM CUST{ MW printing service M100.88S-=7 NEB$ lm. Petefb0mugh. NH 03" w .nebsxam THEADAMS COMPANYINC- CONSTRUCTION AND DEVELOPMENT 708 Abner Phillips Road Warsaw. North Carolina 28398 (910) 293-2770 Fax (910) 293-2766 W JOB e'-3 'N AD - Sknioz , Ta SHEET NO. 9 OF CALCULATED BY ! r ` 6/1 DATE S % I Q C' CHECKED BY R Ah- DATE / SCALE ( C' - ?2. S7oVz_rK 0,41 L_& l (Z_b7- C7(cVJ 67:1- Ne-w, FwLJ - '7 c�. 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DMZ _nr _ z O -< v OM 40 c O �p m om � n0! m c z o do 0 O Cn D O fi x r�rt Z 0�A m V -1 2 m M-nF ' 0 0 C mDr (D n C z X Cr m D `n < Z r �� to SHORELINE at WESTGATE Residential Town Homes Leland, Brunswick County NARRATIVE A. General Information I. Project Title: Shoreline at Westgate 2. Location: Westgate Drive, Leland, NC 3. 18.7 Acres — Total Project Area 4. 18.7 Acres — Disturbed Area 5. There are no Wetlands within this project 6. Current owner — Oceangate, LLC, P.O. Box 3167, Wilmington, NC 28406 7. Deed Book/Page —1920 / 1236; Parcel Number 0470002423, Brunswick County 8. The land is currently wooded with no built -upon areas 9. Stormwater will be managed using drain inlets, concrete piping and a wet detention pond. The main pipeline and wet detention pond will be installed during Phase 1. The remaining Pipelines will be installed when the areas are developed. 10. Water will be supplied through existing lines owned by North Brunswick Utility. Wastewater treatment will also be handled by North Brunswick Utility. 11. No Historic Sites are a part of this project. 12. There are no non-compliance issues with NCDENR B. Stormwater Information 1. Located in the Cape Fear River Basin — QS W classification 2. Project will be High Density with Residential Homes 3. Proposed 53% impervious 4. There will be 1 Wet Detention pond with a Forebay. 5. Approximately 100% of all built upon area will be collected and directed to the wet detention pond. 6- There will be a 30' buffer at the outlet of the detention pond. 7. No coastal management concerns applicable. 8. There will not be any off -site runoff going into the wet detention pond. The property is surrounded on the upper two sides by curb/gutter streets and on the other side a ditch is proposed along the property line. 9. There will not be any road construction across another property to access this property. The existing access road is in the process of becoming a NCDOT public road. There will be a small area of fill on the adjacent property (2,200 sq.fL) to maintain 3:1 slope requirements. 10. No On -site soil evaluation has been done. C. Erosion Control information 1. The project will be developed in 3 stages. See plans for details. 2. The temporary sediment tLV will be in the same location as the stormwater pond. 3. During Phases I & II the retaining wails will not be built and the natural flow of sediment will be handled by the basin/pond. RECEIVED APR 1 6 2008 I 3.1 �2� ........... ...... ... .. .. I le, , 0 ;pe -0 "W� O C3 h3 Ok<z LXC --- - ji j pPED�__By ss ackw 11-Cha • y 3791 29p I il, �- Melvin Dump I' ' Radio 1--- - - 26 _ 8 , .n Tower . "f I _ - Sand- .: Arts_ WM J ckeye " '. ,�' _ !L�j 121 30,, 33 3788 26 25/ 1 I .., • � _ l Sys-1 1 , . �_ PELNE 3786 22 1.. e•• �u"j—�_.—'mow` Respone to Letter Dated 5/28/08 Subject: Respone to Letter Dated 5/28/08 From: "Bob Mitchell" <mitchells82@earth1ink.net> Date: Fri, 30 May 2008 09:52:21 -0400 To: "Christine Nelson" <Christine.Nelson@ncmail.net> Christine, Ignore the comment on Item 2 about sending another SW-1. I've been in Colorado for the last 6 days attending my son's graduation from the US Air Force Academy and had to "re -group". Therefore... The difference between the permanent pool and the temporary pool is 1.6' elevation, (10.0 vs. 11.6) The temp. pool water is released through the 3" PVC pipe. If the rain is more than the 3" pipe can handle (more than 1.5" of rain) then the water will exceed the 11.6, elevation mark. This water will be released over the weir that is detailed on the plans, which has an elevation of 11.6'. So, the sheet SW-1 that you have is the correct design. Call me if you have any questions. 1-Ifflers ----- Original Message ----- From: Bob Mitchell To: Christine Nelson Sent: Friday, May 30, 2008 9:40 AM Subject: Fw: SD West, LLC] Christine, In response to your memo dated 5/28/08 Item 1 - See the PDF file attached for the Operating Agreement. Item 2 - The Temporary Pool Elevation is noted on Sheet SW-1 as 11.6 as well as a blue iine across the profile of the pool to the top of the emergency spillway. You may be confused because I did not graphically show the outlet structure portion at the permanent pool elevation. i will send you a revised SW-1 sheet. 1 of 1 5/30/2008 4:30 PM Fw: SD West, LLC] Subject: Fw: SD West, LLC] From: 'Bob Mitchell' <mitchells82@earthlink.net:> Date: Fri, 30 May 2008 09:40:58 -0400 To: "Christine Nelson" <Christine.Nelson@ncmail.net> Christine, In response to your memo dated 5128/08 Item 1 - See the PDF file attached for the Operating Agreement. Item 2 - The Temporary Pool Elevation is noted on Sheet SW-1 as 11.6 as well as a blue line across the profile of the pool to the top of the emergency spillway. You may be confused because I did not graphically show the outlet structure portion at the permanent pool elevation. I will send you a revised SWA sheet. ----- Original Message ----- From: sharonCcD-pentondevelopment.com To: Bob Mitchell Sent: Thursday, May 29, 2008 9:21 AM Subject: [FWD: SD West, LLC] Bob, Attached is the Operating Agreement for SD West, LLC. Thanks! -------- Original Message -------- Subject: SD West, LLC From: "Danielle Williams" <dwilliams(a-),hoguehili.com> Date: Thu, May 29, 2008 8:32 am To: <sharon a�pentondevelopment.com> Sharon, Attached please find the signed Operating Agreement for SD West, LLC. This provides that both Mr. Penton and Mr. Maynard are Managers, either of which may act individually. Please let me know if you need anything further. Danielle Downing Legal Assistant Hogue, Hill, Jones, Nash & Lynch L.L.P. 101 S. Third Street Wilmington, NC 28401 (910)763-4565 Content -Type: application/pdf Operating Agreement.pd Content -Encoding. base64 1 of 2 5/30/2008 4:30 PM Re: phone tag Subject: Re: phone tag From: " M. Floyd Adams" <mfadams@intrstar.net> Date: Thu, 29 May 2008 16:58:01 -0400 To: "Christine Nelson" <Christine.Nelson@ncmail.net> No questions ... We should be getting the information. from Howard regarding the LLC and can provide to you all info. in a few days. Thanks, Floyd ----- Original Message From: "Christine Nelson" <Christine.Nelson@ncmail.net> To: "Floyd Adams" <mfadams@intrstar.net> Sent: Thursday, May 29, 2008 2:16 PM Subject: phone tag Floyd, We seem to be playing phone tag. The reason for my original phone call was to discuss the request for additional information for Shoreline at Westgate. I don't have anything else to talk about.. If you have questions about the request, please let me know. Thanks, Christine 1 of 1 5/30/2008 8:10 AM WATF9 �S May 28, 2008 Howard Penton, III, Member Manager SD West, LLC 6105 Oleander Dr., Suite 201 Wilmington, NC 28403 Subject: Request for Additional Information Stormwater Project No. SW8 080414 Shoreline at Westgate Brunswick County Dear Mr. Penton: Michael F. Easley, Governor William G. Ross Jr., Secretary North Carolina Department of Environment and Natural Resources Coleen H. Sullins Director Division of Water Quality The Wilmington Regional Office received an NPDES Phase II Post Construction Permit Application for Shoreline at Westgate on April 16, 2008 with the requested additional information received on April 30, 2008 and May 20, 2008. Please be aware that only two requests for additional information are allowed within the Express Stormwater Permitting Program. If outstanding issues are not satisfactorily addressed, the project may be returned. However, a waiver on this requirement has been granted for this project, allowing a third request for additional information. A review of the latest information has determined that the following information is needed to complete the stormwater review: According to the information provided on the latest version of page 1 of the application, the Applicant has changed from Sound Development, LLC to SD West, LLC. Please provide documentation supporting yourself as an authorized member of SD West, LLC. To ensure that you area member of the LLC, you must be either registered with the NC Secretary of State or official supporting documentation from the LLC must be provided. The documentation provided in the corporations website database maintained by the North Carolina Secretary of State only indicates that you are the registered agent. 2. Include the temporary pool elevation on the outlet structure detail. Please note that this request for additional information is in response to a preliminary review. The requested information should be received in this Office prior to June 4, 2008, or the application will be returned as incomplete. The return of a project will necessitate resubmittal of all required items, including the application fee. The construction of any impervious surfaces, other than a construction entrance under an approved Sedimentation Erosion Control Plan, is a violation of NCGS 143-215.1 and is subject to enforcement action pursuant to NCGS 143-215.6A. Please reference the State assigned project number on all correspondence. If you have any questions concerning this matter please feel free to call me at (910) 796-7323 or email me at christine.nelson@ncmail.net. Sincerely, Ap� Christine Nelson Environmental Engineer ENB/can: S:1WQSISTORMWATERIADDINF0120081080414-2.may08 CC: M. Floyd Adams, The Adams Company, Inc. Christine Nelson Wilmington Regional Office None hhCarolina Na&,rally North Carolina Division of Water Quality 127 Cardinal Drive Extension Wilmington, NC 28405 Phone (910) 796-7215 Customer Service Wilmington Regional Office Internet: www.ncwaterauality.org Fax (910) 350-2004 1-877-623-6748 An Equal Opportunity/Affirmative Action Employer— 50% Recycled/90% Post Consumer Paper d Re: request for additional information: Stormwater Project No. 0804... Subject: Re: request for additional information: Stormwater Project No. 080414 Shoreline at Westgate From: Christine Nelson <Christine.Nelson@ncmail.net> Date: Wed, 28 May 2008 10:31:23 -0400 To: Bob Mitchell <mitchells82@earthlink.net>, Sharon<sharon@pep_tondevelopment.com>, Floyd Adams <mfadams@mtrstar.net> CC: Janet Russell <Tanet.Russell@ncmail.net> Gentlemen, I have found two issues with the latest information provided for the Shoreline at Westgate project, which was enough to prevent me from writing this permit. Typically only two requests for additional information are permitted, however I was able to get a waiver on this limit for your project. I have attached a pdf version of my request for additional information for Stormwater Project SW8 080414 - Shoreline at Westgate. I will also send copies via mail. Christine Express Stormwater Permitting NC-DENR 080414 -Shoreline at Westgate 05282008.pd Content -Type: application/pdf Content -Encoding: base64 1 of 1 5/28/2008 10:32 AM .HeElDAMS COMPANYINC. CONSTRUCTION AND DEVELOPMENT 708 Abner Phillips Road Warsaw, NC 28398 Phone (910) 293-2770 Fax (910) 293-2766 May 19, 2008 Christine Nelson Environmental Engineer — NCDENR c�+ I �7 Wilmington Regional Office 127 Cardinal Dr. Extension MAY 2 0 2008 Wilmington, NC 28405 Subject: Stormwater Project No. SW8 080414 Shoreline at Westgate, Brunswick Co. Additional Information Request #2 The following is the additional requested information for the above -mentioned project. Please find enclosed: - 2 originals of sheets UTL-1, SW 1 of the plans, - Stormwater Management Application - Wet Detention Basin Supplement, - Filter Strip and Level Spreader Supplement - Wet Detention Basin Operation and Maintenance Agreement, - Check for $1,000.00 1. The drainage area has been changed to 773,700 square feet and the impervious to 56.2%. Both of these items are consistent throughout the application. The other items that are affected by the drainage area and the percent impervious change have been updated. 2. The calculation of the SA/DA ratio was done using figures rounded to the nearest hundredth decimal place. 3. The provided storage volume is consistent throughout the application. 4. The drainage area has been changed to 773,700 square feet to include the off -site portion of the graveled road. 5. Check for $1,000.00 is enclosed. Please do not hesitate to call me at 910-293-2770 if you have any questions. Sincerely, M. Floy Adams, PE The Adams Company, Inc. WA/ram Cc: Howard Penton, SD West, LLC Adams Co_61My Dom me oMordEagr Specs\Penton\Cnels=DENPL trl.doc or) PAY TO THE NQ_, ORDER OF D /DATE O 66-456/531 /Do DOLLARS -BANK_-- 'WILMINGTON, NORTH CAROLINA 2W3 i I NA FOR ImuizbA A&w o fto - - ia� _�--- - � -'------------- --- -- "" '561 owo ql-1 i 1: Michael F. Easley, Governor William G. Ross Jr., Secretary North Carolina Department of Environment and Natural Resources Coleen H. Sullins Director Division of Water Quality May 14, 2008 Howard Penton, III, Member Manager Sound Development, LLC 6105 Oleander Dr., Suite 201 Wilmington, NC 28403 Subject: Request for Additional Information Stormwater Project No. SW8 080414 Shoreline at Westgate Brunswick County Dear Mr. Penton: The Wilmington Regional Office received an NPDES Phase 11 Post Construction Permit Application for Shoreline at Westgate on April 16, 2008. A preliminary review of that information has determined that the following information is needed to continue the stormwater review: According to the plan sheet, UTL-1, the drainage area has been reduced from 812,631 to 767,200. However, Section 111.9 of the application and Section 11 of the wet detention pond supplement have not been updated to reflect the smaller drainage area. Update the drainage area and percent of impervious area in Section 111.9 of the application and Section II of the supplement. Also verify the subsequentwet detention pond calculations including, but not limited to, the required runoff volume and the SA/DA ratio. 2. When determining the SA/DA ratio, instead of rounding the interpolation results to the nearest tenth decimal place, round to the nearest hundredth decimal place. Rounding numbers off during the calculation process can result in deficiencies. 3. The provided storage volume is inconsistent between the wet detention pond supplement and the calculations shown on plan sheet UTL-11. Present all data accurately and consistently. 4. Provide contour lines or spot elevations for the proposed gravel road, including the portion in the future right of way. Since this gravel road (both offsite and onsite) is being constructed for this project to provide emergency vehicle access, the drainage from the entire gravel road should be treated. The portion of the gravel road outside the project boundary must be treated to the maximum extent practical, typically with the proposed on -site BMP. The portion. of the offsite gravel road BUA that is collected and treated by the BMP must be reflected in the application and supplements. If there is no way to collect and treat the entire gravel surface, you must demonstrate why it is not possible. 5. Please submit a $1,000 fee for the additional review required for this application. Please keep in mind that changing one number may change other numbers and require the calculations, supplements, and other supporting documentation to be updated. Verify all numbers are correct to ensure consistency in the application documents. T a Carolina Naturally North Carolina Division of Water Quality 127 Cardinal Drive Extension Wilmington, NC 28405 Phone (910) 796-7215 Customer Service Wilmington Regional Office Internet: www.ncwatermiality ore Fax (910) 350-2004 1-877-623-6748 An Equal Opportunity/Affirmative Action Employer — 50% Recycled/10% Post Consumer Paper Howard Penton, III May 14, 2008 Stormwater Application No. SW8 080414 Please note that this request for additional information is in response to a preliminary review. The requested information should be received in this Office prior to May 22, 2008, or the application will be returned as incomplete. The return of a project will necessitate resubmittal of all required items, including the application fee. The construction of any impervious surfaces, other than a construction entrance under an approved Sedimentation Erosion Control Plan, is a violation of NCGS 143-215.1 and is subject to enforcement action pursuant to NCGS 143-215.6A. Please reference the State assigned project number on all correspondence. If you have any questions concerning this matter please feel free to call me at (910) 796-7323 or email me at christine.nelson@ncmail.net. Sincerely, U4:��- I-Avvi Christine Nelson Environmental Engineer ENB/can: S:IWQSISTORMWATERIADDINF0120081080414.may08 CC: M. Floyd Adams, The Adams Company, Inc. Christine Nelson Wilmington Regional Office Page 2 of 2 2nd request for additional info: SW Project No. 080414 Shoreline a... Subject: 2nd request for additional info: SW Project No. 080414 Shoreline at Westgate From: Christine Nelson <Christine.Nelson@ncmail.net> Date: Wed, 14 May 2008 13:08:57 -0400 To: sharon@pentondevelopment.com, mfadams@intrstar.net, Bob Mitchell <mitchells82@earthlink.net> CC: Janet Russell <Tanet.Russell@ncmail.net> Gentlemen, I have attached a pdf version of my request for additional information for Stormwater Protect SW8 080414 - Shoreline at Westgate. I will also send copies via mail. Thank you, Christine Express Stormwater Permitting NC-DENR SW8080414 -Shoreline at Westgate 052008.pd Content -Type: application/pdf Content -Encoding: base64 1 of 1 5/14/2008 1:09 PM =Ha ADAMS COMPANYINC. CONSTRUCTION AND DEVELOPMENT 708 Abner Phillips Road Warsaw, NC 28398 Phone (910) 293-2770 Fax (910) 293-2766 April 30, 2008 Christine Nelson Environmental Engineer — NCDENR Wilmington Regional Office 127 Cardinal Dr. Extension Wilmington, NC 28405 Subject: Stormwater Project No. SW8 080414 Shoreline at Westgate, Brunswick Co. Mr. Penton has asked that as the Engineer in charge of the Shoreline at Westgate project, I respond to your request. The following is the additional requested information for the above - mentioned project. Please find enclosed: - 2 originals of sheets UTL-1, SW-1 of the plans, - Wet Detention Basin Supplement, - Filter Strip and Level Spreader Supplement - Wet Detention Basin Operation and Maintenance Agreement, - Filter Strip and Level Spreader Operation and Maintenance Agreement, - Retaining Wall Details - Check for $1,000.00 1. 2. 3. 4. 5. 6. ij. The wet detention pond has been redesigned. The permanent pool does not include the 1-foot sediment accumulation. The temporary storage volume was re -calculated using the Simple Method. A detail of the wet detention pond is included; Surface Areas and Volumes of the Forebay and Main Pond by Elevation. Multiple borings were conducted at approximately 10' existing elevation to determine the SHWT of 5.8'. We provided proposed elevations on plan sheet UTL-1 at the emergency gravel road exit to ensure that all of the gravel road on this property flows to the detention pond. A drain inlet was added to the main entrance area. Proposed elevations on plan sheet UTL-1 are provided to ensure that all of the impervious area at the main entrance flows to the detention pond. The drainage area is delineated and shown on plan sheet UTL-1. I1 impervious areas as well as those pervious areas that `channel' the impervious areas. 01 8. As shown by the proposed elevations and contours on plan sheet UTL-1 rooftop drainage will be directed to various drain inlets. 9. Attached on 8.5" x 11" paper is a detailed drawing of the proposed retaining wall 10. Check for $1,000.00 is enclosed. 11. A 30' filter strip is shown at the end of the Outlet Structure as you requested. In addition, calculations have been completed and are attached to verify the velocity of the flow is below the erosive rate for the filter strip. Please do not hesitate to call me at 910-293-2770 if you have any questions. Sincerely, M. Floyd dams, PE The Adams Company, Inc. WA/ram Cc: Howard Penton, SD West, LLC Adams Co 6\MyDommxn1s\Wor&EWSp=\PcnWn\CndsonDENRltl.doc J SOUND DEVELOP&NT, LLC SunTrust W-4&531 1015 .. < volp DATE 4/30/2008 RAY TA ME WOH) ORDER OF NCDENR **i,nnn nn One Thousand and 00/10 OLLARS MGSNR p A rO d Satisfaction ff ' 0 9 it 11'00 LO L 511' OPERATING AGREEMENT OF SD West, LLC THIS OPERATING AGREEMENT (this "Agreement") of SD West, LLC (the "Company"), a limited liability company organized pursuant to the North Carolina Limited Liability Company Act, is executed effective as of the date stated on the signature page hereof, by and among the Company and Howard A. Penton, III, and Mark L. Maynard, as the initial Members (as defined below). to ARTICLE I - DEFINITIONS 1.1 Definitions. The following terms used in this Agreement shall have the following meanings (unless otherwise expressly provided herein): (a) "Act" means the North Carolina Limited Liability Company Act, as the same may be amended from time to time. ('b) "Adjusted Capital Account" means, with respect to a Member, the balance in such Member's Capital Account at the end of the relevant fiscal year, as determined in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv). (c) "Articles of Or anization" means the Articles of Organization of the Company filed with the Secretary of State, as amended or restated from time to time. (d) "Capital Account" means for each Member the account established pursuant to Section 8.2 hereof and maintained in accordance with the provisions of this Agreement. (e) "Capital Contribution" means any contribution to the capital of the Company in cash or property by a Member whenever made. (f) "Code" means the Internal Revenue Code of 1986, as amended from time to time (and any corresponding provisions of succeeding law). (g) "Distributable Cash" means, with respect to the Company for a period of time, all funds of the Company on hand or in bank accounts of the Company as, in the discretion of the Managers, is available for distribution to the Members after provision has beer: made for (i) payment of all operating expenses of the Company as of such time, (ii) provision for payment of all outstanding and' unpaid current obligations of the Company as of such time, and (iii) provision for such reserves as the Managers deem necessary or appropriate for Company operations. (h) "Fiscal Year" means the calendar year. 0) "Income" means, for each Fiscal Year or other period, each item of income and gain as determined, recognized and classified for federal income tax purposes, provided that any income or gain that is exempt from federal income tax shall be included as if it were an item of taxable income. 0) "Initial Capital Contribution" means the initial contribution to the capital of the Company made by a Member pursuant to Section 8.1(a) of this Agreement. W "Loss" means, for each Fiscal Year or other period, each item of loss or deduction as determined, recognized and classified for federal income tax purposes, increased by (i) expenditures described in Section 705(a)(2)(B) of the Code, (ii) expenditures contemplated by Section 709 of the Code (except for amounts with respect to which an election is properly made under Section 709(b) of the Code); and (iii) expenditures resulting in a deduction for a loss incurred in connection with the sale or exchange of Company property that is disallowed to the Company under Section 267(axl) or Section 707(b). (1) "Maiori " means, with respect to any referenced group of Managers, a combination of any of such Managers constituting more than fifty percent (50%) of the number of Managers of such referenced group who are then elected and qualified. (m) "Majori in Interest" means, with respect to any referenced.group of Members, a combination of any of such Members who, in the aggregate, own more than fifty percent (50%) of the Membership Interests owned by all of such referenced group of Members. (n) "Manager" means each initial Member named in the Articles of Organization of the Company, and each future member of the Company, effective upon becoming a Member, and any other Person(s) who are elected as Managers after any increase in the number of Managers to a number greater than the number of Members as provided herein, or any other Person(s) who succeeds such Manager in his capacity as Manager or any other Persons who are elected to act as Managers of the Company as provided herein. In the event that any Member is not a natural person, then "Manager" shall mean the designee of the Member identified in or by notice given pursuant to Section 3.2 hereof. "Managers" refers to such Persons as a group, or if there be only one Member, "Managers" shall mean "Manager." (o) "Member" means each Person designated as a Member of the company on Schedule I hereto, or any additional Member admitted as a Member of the Company in accordance with Article X. "Members" refers to such Persons as a group. (p) "Membership Interest" means all of a Member's rights in the Company, including without limitation, the Member's share of the profits and losses of the Company, the right to receive distributions of the Company's assets, any right to vote and any right to participate in the management of the Comnanv as provided in the Act and this Agreement. As to any Member, Membership Interest shall mean the percentage set forth opposite such Member's name on Schedule I hereto. (q) "Net Income" and "Net Loss" means, for each Fiscal Year or other relevant period, (i) the excess of the Income for such period over the Loss for such,, period, or (H) the excess of the Loss for such period over the Income for such period, respectively; provided, however, that Net Income and Net Loss for a Fiscal Year or other relevant period shall be computed by excluding from such computation any Income specially allocated under Section 8.1. (r) "Person" means an individual, a trust, an estate, or a domestic corporation, a foreign corporation, a professional corporation, a partnership, a limited partnership, a limited liability company, a foreign limited liability company, an unincorporated association, or another entity, (s) "Secretary of State" means the Secretary of State of North Carolina. (t) "Treasury Regulations" means the Income Tax Regulations and Temporary Regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). ARTICLE II -FORMATION OF THE COMPANY 2.1 Formation. The Company was formed on April 4111, 2008, upon the filing with the Secretary of State of the Articles of Organization of the Company. In consideration of the mutual promises, covenants, and agreements contained herein, and other good and valuab:e consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree that the rights and obligations of the parties and the administration and termination of the Company shall be governed by this Agreement, the Articles of Organization and the Act. 2.2 Name. The business and affairs of the Company shall be conducted under the name SD West, LLC. The name of the Company may be changed from time to time by amendment of the Articles of Organization. The Company may transact business under an assumed name by filing an assumed name certificate in the manner prescribed by applicable law, 2.3 Registered Office and Registered Agent. The Company's registered office shall be 6105 Oleander Drive, Suite 201, Wilmington, NC 28403, located in New Hanover County, North Carolina, and the name of its initial registered agent at such address shall be Howard A. Penton, III. 2.4 Principal Place of Business. The principal place of business of the Company within the State of North Carolina shall be 6105 Oleander Drive, Suite 201, Wilmington, North Carolina, 28403, located in New Hanover County, North Carolina. The Company may locate its place(s) of business and registered office at any other place or places as the Manager(s) may from time to time deem necessary or advisable. 2.5 Term. The Company shall continue in existence until the close of the Company's business on the dissolution date as specified in the Company's Articles of Organization, unless the Company is earlier dissolved and its affairs wound up in accordance with the provisions of this Agreement or the Act. 2.6 Purposes and Powers. (a) The Company may engage in any lawful business for which limited liability companies may be organized under the Act unless a more limited purpose is stated in the Articles of Organization. (b) The Company shall have any and all powers which are necessary or desirable to carry out the purposes and business of the Company, to the extent the same may be legally exercised by limited liability companies under the Act. The Company shall carry out the foregoing activities pursuant to the arrangements set forth in the. Articles of Organization: and this Agreement. 2.7 Nature of Members' Interests. The interests of the Members in the Company shall be personal property for all purposes. Legal title to all Company assets shall be held in the name of the Company. Neither any Member nor a successor, represbntative or assign of such Member, shall have any right, title or interest in or to any Company property or the right to partition any real property owned by the Company. Interests may be evidenced by a certificate of Membership Interest issued by the Company, in such form as the Managers may determine. ARTICLE III -RIGHTS AND DUTIES OF MANAGERS 3.1 Management. The business and affairs of the Company shall be managed by the Manager(s). In addition to the powers and authorities expressly conferred by this Agreement upon the Manager(s), the Manager(s) shall have full and complete authority, power and discretion to manage and control the business of the Company, to make all decisions regarding those matters and to perform any and all other acts or activities customary to or incident to the management of the Company's business, except only as to those acts and things as to which approval by the Members is expressly required by the Articles of Organization, this Agreement, the Act or other applicable law. At any time when there is more t;;ar ore mailager: (i) any okke ivSanager may take any action permitted to be taken by the Managers, unless the approval of more than one of the Managers is expressly required pursuant to this Agreement or the Act, and (ii) the Managers may eiect one or more officers who may be, but need not be, Members or Managers of the Company, with such titles, duties and compensation as may be designated by the Managers, subject to any applicable restrictions specifically provided in this Agreement or contained in the Act. a 3.2 Number and Qualifications. There shall initially be a number of Managers of the Company equal to the initial number of Members of the Company, who shall be the Members named in Schedule i hereto. The number of Managers shall at all times be no less,than the number of Members, and each Member shall become a Manager, effective immediately upon becoming a Member. The names and consent of the Manager(s) to serve as such shall be evidenced by their execution of this Agreement, or on a Schedule II to be attached hereto and made a part hereof, as amended, upon any change of Manager(s). The number of Managers of the Company may be fixed at a number greater than the number of Members from time to time by the unanimous vote of all of the Members, and after any increase in the number of Managers above the number of Members, the number of Managers of the Company may be decreased, to a number not less than the number of Members, from time to time by the affirmative vote of a Majority in Interest of all of ilse Members, but in no instance shall any decrease in the number of Managers have the effect of shortening the term of any incumbent Manager. Managers need not be residents of the State of North Carolina or Members of the Company. All Members shall serve as Managers by virtue of their status as Members. For any period during which no persons are designated as Managers as provided herein, or such designations are not in effect, all Members shall be Managers. In the event that any Member shall not be a natural person, such Member shall designate a natural person who is authorized to act on behalf of such Member in its capacity as Manager, and such designation shall remain effective until such time as the Company is provided written notice of any change in such designation by such Member, made in accordance with the laws governing the internal governance of such Member. Notwithstanding that the Membership is owned by the Member and that the Member is a Manager by virtue of its status as a Member, the designee of any Member who is not a natural person shall be a Manager; and shall be authorized to act on behalf of the Company and to execute documents on behalf of the Company as a Manager, without need to identify itself as a designee of the Member, and votes cast by such designee Manager shall be to the exclusion of direct voting by the Member as Manager until such tirne as notice is given to the Company by such Member in writing that the designation is revoked, and of appointment of another natural person having legal capacity as the designee of the Member which is not a natural person. Execution of this Operating Agreement or of any Schedule to this Operating Agreement by such a Member shall be deemed a designation of the natural person signing on behalf of such Member as the natural person who is authorized to act on behalf of such Member in its capacity as Manager, unless expressly otherwise provided herein or in such Schedule hereto. 3.3 Election and Term of Office. Managers shall be elected at the annual meeting of the Members as provided in Section 6.7 (except as provided in Sections 3.5 and 3.6). Each Manager shall hold office until the Manager's successor shall have been elected and qualified, or until the death or dissolution of such Manager, or until his or its resignation or removal from office in the manner provided in this Agreement or in the Act. 3.4 Resignation. Any Manager not a Member of the Company may resign at any time by giving written notice to all of the Members of the Company. The resignation of any Manager shall take effect upon receipt of notice thereof or at such later time as shall be specified in such notice; and, unless -otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Members may not resign as Managers. 3.5 Removal.. At any special meeting of the Members called expressly for that purpose, all or any lesser number of Managers who are not Members may be removed at any time, either with or without cause, by the affirmative vote of a Majority in Interest of all the Members then entitled to vote at any election of Managers. In case any vacancy so created shall not be filled by the Members at such meeting, such vacancy may be filled by the Managers as provided in Section 3.6. 3.6 Vacancies. Any vacancy occurring for any reason in the Managers of the Company may be filled by the affirmative vote of a Majority of Managers, except for a vacancy occurring in the Managers by reason of an increase in the number of Managers, which shall be filled by the affirmative vote of a Majority in Interest of all the Members at an annual meeting of Members or at a special meeting of Members called for that purpose. 3.7 Inspection of Books and Records. Any Manager shall have the right to examine all books and records of the Company for a purpose reasonably related to such Manager's position as a Manager. 3.8 Compensation. The compensation of the Managers of the Company shall be fixed from time to time by an affirmative vote of a Majority in Interest of the Members or by contract approved by an affirmative vote of a Majority in Interest of the Members, and no Manager shall be prevented from receiving such salary by reason of the fact that he is also a Member of the Company. >The Managers shall initially be paid no management fee. No withholdings for taxes, social security, unemployment and the like shall be deducted, and the Manager shall be responsible for paying all income and self employment taxes. 3.9 Committees of the Managers. The Managers, by resolution, may designate from among the Managers one or more committees, each of which shall be comprised of one or more of the Managers, and may designate one or more of the Managers as alternate Members of any committee, who may, subject to any limitations imposed by the Managers, replace absent or disqualified Managers at any meeting of this committee. Any such committee, to the extent provided in such resolution or in this Agreement, shall have and may exercise all of the authority of the Managers, subject to any restrictions contained in this Agreement or the Act. ARTICLE IV -MEETINGS OF MANAGERS 4.1 Place of Meeting. The Managers of the Company may hold their meetings, both regular and special, at any place within or without the State of North Carolina. 4.2 Notice of Meetings. The first meeting of newly elected Managers shall be held immediately following the adjournment of the annual meeting of the Members. The Managers may otherwise meet at such intervals and at such time and place as they shall schedule. Special meetings of the Managers may be called at any time by no less than one-third of the then serving Managers for any purpose or purposes. Notice of such special meetings, unless waived by attendance or by written consent to the holding of the special meeting, shall be given at least five (5) days before the date of such meeting to all Managers not calling the meeting. Notice of such special meeting shall state that it shall be held at the principal place of business of the Company, the date and hour of the special meeting, and its purpose or purposes. Absent the written consent of a Majority of the Managers to take other action, the business transacted at such special meeting shall be limited to such purpose or purposes as stated in the notice. 4.3 Action by Managers; Quorum; Voting; Action Without a Meeting. (a) A Majority of the Managers shall be necessary to constitute a quorum for the transaction of business. Every act or decision done or made by a Majority of the Managers present at a meeting duly held at which a quorum is present shall be regarded as the act of the Company, unless a greater number is required by law or by the Articles of Organization or by this Operating Agreement, or unless a vote of the Members is required by law or by the Articles of Organization or by this Operating Agreement to do or make the act or decision. (b) Managers may participate in any meeting of the Managers by means of conference telephone or similar communications equipment, provided all persons participating in the meeting can hear one another, and such participation in a meeting shall constitute presence in person at the meeting. (c) All votes required of Managers hereunder may be by voice vote unless a written ballot is requested, which request may be made by any one Manager. (d) Any action which under any provision of the Act or this Agreement is to be taken at a meeting of the Managers may be taken without a meeting by written consent signed by all Managers who would be entitled to vote upon such action at a meeting. Such written consent must be kept with the records of the Company. 4.4 Adjournment. A Majority of the Managers present may adjourn any Managers' meeting to meet again at a stated day and hour or unti I the time fixed for the next regular meeting of the Managers. It shall not be necessary to conduct business to reestablish a quorum at such adjourned meeting. ARTICLES V - MEMBERS 5.1 Names and Addresses of Members. The names, addresses and Membership Interests of the Members are as reflected in Schedule 1 attached hereto and made a part hereof, which Schedule shall be as amended by the Company as of the effectiveness of any transfer or subsequent issuance of any Membership Interest, 5.2 Admission of Members. (a) In the case of a Person acquiring a Membership Interest directly from the Company, the Person shall become a Member with respect to such Membership Interest upon compliance with the requirements of Article X and making the Capital Contributions specified in Section 8.1. (b) An assignee of a Membership Interest shall become a Member on compliance with requirements of Article X. (c) Any Person may become a Member upon compliance with Article X hereof, unless such Person lacks legal capacity or is otherwise prohibited from being admitted by applicable law. ARTICLE VI - MEETINGS OF MEMBERS 6.1 Annual Meetings of Members. An annual meeting of the Members will be held at such time and date at the principal office of the Company or at such other place within or without the state of North Carolina as shall be designated by the Managers from time to time and stated in the notice of the meeting. The purposes of the annual meeting need not be enumerated in the notice of such meeting. 6.2 Special Meetings of Members. Special meetings of the Members may be called by the Managers or by the holders of not less than ten percent (10%) of all the Membership Interests. Business transacted at al I special meetings shall be confined to the purpose or purposes stated in the notice. 6.3 Notice of Meetings of Members. Written notice stating the place, day and hour of the meeting and, additionally in the case of special meetings, stating the principal place of business of the Company as the location and the purpose or purposes for which the meeting is called, shall be delivered not less than ten ( 10) nor more than sixty (60) days before the date of the meeting, to each Member of record entitled to vote at such meeting. 6.4 Record Date. For the purpose of determining Members entitled to notice of or to vote at any meeting of Members or any adjournment thereof, or of determining Members entitled to receive payment of any distribution, or to make a determination of Members for any other purpose, the date on which notice of the meeting is mailed or the date on which such distribution is declared, as the case may be, shall be the record date for such determination of Members. When a determination of Members entitled to vote at any meeting of Members has been made as provided in this Section, such determination shall apply to any adjournment thereof. 6.5 Quorum. A Majority in Interest of the Members shall constitute a quorum at all meetings of the Members, except as otherwise provided by law or this Agreement. Once a quorum is present at the meeting of the Members, the subsequent withdrawal from the meeting of any Member prior to adjournment or the refusal of any Member to vote shall not affect the presence of a quorum at the meeting. If, however, such quorum shall not be present at the opening of any meeting of the Members, the Members entitled to vote at such meeting shall have the power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a Majority in Interest of the Members shall be present or represented and a quorum thus established, and if such quorum shall be present prior to adjournment, to meet again at a stated day and hour, it shall not be necessary to conduct business to reestablish a quorum at such adjourned meeting. 6.6 Actions by Members Other than for Election of Managers. Except for a matter for which the affirmative vote of the holders of a greater portion of the Membership Interests entitled to vote is required by law, the Articles of Organization or this Agreement, the act of Members shall be the affirmative vote of a Majority in Interest of a] I the Members represented and voting at the meeting. All actions of the Members provided for herein may be taken by written consent without a meeting. Any such action which may be taken by the Members without a meeting shall be effective only if the consents are in writing, set forth the action so taken, and are signed by all Members eligible to vote on such action. Members may participate in any meeting of the Members by means of a conference telephone or similar communications equipment, provided all persons participating in the meeting can hear one another, and such participation in a meeting shall constitute presence in person at the meeting. 6.7 Action by Members to Elect Managers. In the event that the number of Managers shall be increased to a number greater than the number of Members, such that Persons other than Members serve as Mangers, then for purposes of voting on the election of non -Member Managers, such non -Member Managers shall be elected at any meeting of the Members at which a quorum is present, by a majority of the Membership Interest represented and voting at the meeting. 6.8 list of Members Entitled to Vote. The Managers shall make, at least ten (10) days before each meeting of Members, a complete list of the Members entitled to vote at such meeting.or any adjournment of such meeting, arranged in alphabetical order, with the address of and the Membership Interest held by each, which list shall be kept on file at the registered office of the Company, for a period of ten (10) days prior to such meeting, and shall be subject to inspection by any Member at any time during usual business hours. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to inspection by any Member during the continuance of the fleeting. However, failure to comply with the requirements of this Section shall not affect the validity of any action taken at such meeting. 6.9 Registered Members. The Company shall be entitled to treat the holder of record of any Membership Interest as the holder in fact of such Membership Interest for all purposes, and accordingly shall not be bound to recognize any equitable or other claim to or interest in such Membership Interest on the part of any other person, whether or not it shall have express or other notice of such claim or interest, except as expressly provided by this Agreement or the laws of North Carolina. ARTICLE VII-LIMITATION OF LIABILITY AND INDEMNIFICATION OF MANAGERS AND MEMBERS 7. I Limitation of Liability. No Manager or Member of the Company shall be liable to the Company or its Members for monetary damages for an act or omission in such person's capacity as a Manager or a Member, except as provided in the Act with regard to: (i) acts or omissions which a Manager knew at the time of the acts or omissions that the acts or omissions were clearly in conflict with the interests of the Company, (i i) any transaction from which a Manager derived an improper personal benefit, or (iii) acts or omissions occurring prior to the date this provision becomes effective. If the Act is amended to authorize action further eliminating or limiting the liability of Managers and Members, then the liability'of a Manager or Member of the Company shall be eliminated or limited to the fullest extent permitted by the Act as so amended. Any repeal or modification of this section shall not adversely affect the right or protection of a Manager or Member existing at the time of such repeal or modification. 7.2 Indemnification. The Company shall and does hereby indemnify and hold harmless the Managers and Members to the fullest extent permitted or required by the Act, as amended from time to time, including costs of defense including reasonable attorneys fees, and the Company may advance expenses incurred by the Manager or Member, including reasonable attorneys fees, upon the approval of the Managers and the receipt by the Company of an undertaking by such Manager or Member to reimburse the Company in the event it shall ultimately be determined that such Manager or Member is not entitled to be indemnified by the Company against such expenses. The Company may also indemnify its employees and other representatives or agents up to the fullest extent permitted under the Act or other applicable law, including costs of defense, including reasonable attorneys fees, provided that the indemnification in each such situation is first approved by Members owning a Majority in Interest. 7.3 Other Rights. The indemnification provided by this Agreement shall: (i) be deemed exclusive of any other rights to which a person seeking indemnification may be entitled under any statute, agreement, vote of Members or disinterested Managers, or otherwise, both as to action in official capacities and as to action in another capacity while holding such office; (ii) continue as to a person who ceases to be a Manager or Member; (iii) inure to the benefit of the estate, heirs, executors, administrators or other successors of an indemnitee; and (iv) not be deemed to create any rights for the benefit of any other person or entity. 7.4 Report to Members. The details concerning any action taken by the Company to limit the liability, indemnify or advance expense(s) to a Manager, Member, or other, shall be reported in writing to the Members with or before the notice or waiver of notice of the next Members' meeting or with or before the next submission to Members of a consent to action without a meeting or, if sooner, separately within ninety (90) days immediately following the date of the action. ARTICLE VIII-CONTRIBUTIONS TO CAPITAL AND CAPITAL ACCOUNTS; LOANS 8.1 Capital Contribution; Loans. (a) Upon execution of this Agreement, each Member agrees to contribute cash to the Company in the amount set forth as the Initial Capital Contribution of such Member on Schedule I, attached hereto. The Members shall execute Amendments to Schedule I each time additional capital contributions are made, except that in the event that any loan results from additional capital contributions as provided in Section 8.1 (b), the Amendment to Schedule I shall not be made until the loan is repaid in full, or default in repayment of the loan shall occur. (b) If the Managers determine that the Initial Capital Contributions are insufficient to carry out the purposes of the Company, the Managers may request that the Members make additional contributions to the capital of the Company. If a Majority in interest of the Members approve such request, then each of the Members shall be obligated to make such additional contributions (each an "Additional Capital Contribution") to the Company ratably in accordance with such Members' then existing Membership Interest within the time period approved by the Majority in Interest of the Members. In the event any Member fails to fulfill any commitment to contribute additional capital (the "Defaulting Member"), the Managers may elect to allow the remaining Members (the "Lending Members") to contribute to the Company, pro rata by Membership Interest, the portion of such Additional Capital Contribution not made by the Defaulting Member. All amounts so contributed by the Lending Members on behalf of a Defaulting Member shal I be considered a loan to the Defaulting Member bearing interest at the prime rate, as set out in the Wall Street Journal on the date of the Ioan, plus one percent (1.0%) simple interest, until repaid, due in full twelve (12) months from the date thereof, and no adjustment of Membership Interests shall result if said loan is paid within said twelve (12) months. In addition, until all of such loans are repaid by the Defaulting Member all distributions payable to the Defaulting Member shall be paid to the Lending Members in proportion to their relative Membership Interests, to the extent of the then outstanding interest and principal of such loans, and such distributions shall be credited towards such loans, as if payments had been made by the Defaulting Member in the amount of such distributions. In the event such loans are not repaid within said twelve (12) months, the principal amount not repaid shall be deemed an additional capital contribution by the Lending Member(s), and the principal amount not repaid shall be subtracted from the additional capital contribution of the Defaulting Member which was considered a loan from the Lending Members, and the Membership Interests of all Members adjusted accordingly, such that the Membership Interest of the Defaulting Member is reduced and the Membership Interest of the Lending Members not receiving repayment in full is increased, each to the resulting percentage Membership Interest which is equal to the aggregate capital contributions of each Member divided by the total of all Members' aggregate capital contributions. (c) No Member shall be paid interest on any Capital Contribution to the Company. (d) In addition to the loans to the Defaulting Member provided for in Section 8.I(b) above, upon approval of the terms thereof by the Managers, any Member may make a loan to the Company upon commercially reasonable terms. Loans by a Member to the Company shall not be considered Capital Contributions. 8.2 Capital Accounts, (a) The Company shall maintain a separate capital account (each a "Capital Account") for each Member pursuant to the principles of this Section 8.2 and Treasury Regulation Section 1.704-1(b)(2)(iv). The Initial Capital Account of each Member shall be the Initial Capital Contribution of such Member. Such Capital Account shall be increased by (i) the amount of the subsequent Capital Contributions of such Member to the Company under Section 8.1 and (ii) such Members's allocable share of Company Income and Net Income pursuant to Section 9. 1. Such Capital Account shall be decreased by (i) the amount of cash distributed to the Member by the Company pursuant to Section 9.2, (ii) such Member's allocable share of Loss and Net Loss pursuant to Section 9.1, and (iii) and any adjustment of the capital account of a Member resulting from default by a Defaulting Member on a loan made by Lending Member(s) pursuant to Section 8.1. (b) The provisions of this Section 8.2 and other portions of this Agreement relating to the proper maintenance of Capital Accounts are designed to comply with the requirements of Treasury Regulation Section 1.704-1(b). The Members intend that such provisions be interpreted and applied in a manner consistent with such Treasury Regulations. The Managers are authorized to modify the manner in which the Capital Accounts are maintained if the Managers determine that such modification (i) is required or prudent to comply with the Treasury Regulations and (ii) is not likely to have a material effect on the amounts distributable to any Member upon the dissolution of the Company. 8.3 Withdrawal or Reduction of Members' Contributions to Capital. (a) No Member shall have the right to withdraw all or any part of its Capital Contribution or to receive any return on any portion of its Capital Contribution, except as may be otherwise specifically provided in this Agreement. Under circumstances involving a return of any Capital Contribution, no Member shall have the right to receive property other than cash, (b) .No Member shall have priority over any other Member, either as to the return of Capital Contributions or as to Net Income, Net Losses, or distributions; provided that this subsection shall not apply to loans (as distinguished from Capital Contributions) which a Member has made to the Company. 8.4 Liability of Members. No Member shall be liable for the debts, liabilities or obligations of the Company.beyond his or its respective Initial Capital Contribution and any Additional Capital Contribution required of such Member pursuant to Section 8.1(b) above. Except as otherwise expressly provided herein, no Member shall be required to contribute to the capital of, or to loan any funds to, the Company. ARTICLE IX -ALLOCATIONS, DISTRIBUTIONS, ELECTIONS AND REPORTS 9.1 Allocations. Subject to the provisos below, for purposes of maintaining Capital Accounts and in determining the rights of the Members among themselves, Net Income, or Net Loss, if any, for a Fiscal Year or other period, steal I be allocated to the Members in proportion to their respective Membership Interests after giving effect to all Capital Account adjustments attributable to contributions and distributions of cash and property made during such Fiscal Year; provided, however, notwithstanding the provisions of the preceding clause of this Section 9.1, in the event any Member unexpectedly receives any adjustments, allocations, or distributions described in Treasury Regulation Sections 1.704- 1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(S), or 1.704-1(b)(2)(ii)(d)(6) items of Income shall be specially allocated to such Member (consisting of a pro rata portion of each item of Company Income, including gross income, for such year) in an amount and manner sufficient to eliminate such deficit, if any, in such Membees Adjusted Capital Account, as quickly as possible. The foregoing proviso is intended to constitute a "qualified income offset" within the meaning of Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations and this proviso shall be interpreted consistently with such Treasury Regulation. 9.2 Distributions. The Managers shall distribute Distributable Cash and other property at such times and in such amounts as they may determine, in their sole discretion. All distributions of Distributable Cash or other property shall be made to the Members in proportion to their respective Membership Interests. Except as provided in Section 9.3, all distributions of Distributable Cash and property shall be made at such time as determined by the Managers. 9.3 Limitation Upon Distributions. No distribution shall be declared and paid if payment of such distribution would cause the Company to violate any limitation on distributions provided in the Act. 9.4 Allocations for Tax Purposes. Except as otherwise provided herein, each item of Income, Net Income or Net Loss of the Company shall be allocated to the Members in the same manner as such allocations are made for book purposes pursuant to Section 9.1. In the event of a transfer of, or other change in, an interest in the Company during a Fiscal Year, each item of taxable income and loss shall be prorated in accordance with Section 706 of the Code, using any convention permitted by law and selected by the Managers. 9.5 Tax Status, Elections and Modifications to Allocations. The Company shall initially accept the default classification that the Company be taxed as a partnership. The Company shall only elect to be taxed as a corporation with the unanimous written consent of all Members, and if the Company shall in the future elect to be taxed as a corporation, it shall then file the appropriate form with the Internal Revenue Service. (a) Notwithstanding any provision contained in this Agreement to the contrary, solely for federal income tax purposes, each of the Members hereby recognizes that the Company will be subject to all provisions of Subchapter K of the Code; provided, however, that the filing of all required returns thereunder shall not be construed to extend the purposes of the Company or expand the obligations or liabilities of the Members. (b) The Managers, in their sole discretion, may cause the Company to elect pursuant to Section 754 of tl:e Code and the Treasury Regulations to adjust the basis of the Company assets as provided by Section 743 or 734 of the Code and the Treasury Regulations thereunder. The Company shall make such elections for Federal income tax purposes as may be determined by the Managers, acting in their sole and absolute discretion. (c) The Managers shall prepare and execute any amendments to this Agreement necessary for the Company to comply with the provisions of Treasury Regulations Sections 1.704-1(b), 1.704-1(c) and 1.704-2 upon the happening of any of the following events: (i) incurring any liability which constitutes a "nonrecourse liability" as defined in treasury Regulation Section 1.704-2(b)(4); (ii) a constructive termination of the Company pursuant to Code Section 708(b)(1)(B); or (iii) the contribution or distribution of any property, other than cash, to or by the Company. 9.6 Tax Matters Partner. The Managers shall designate a Member serving as a Manager, or if there is none or if none are eligible to act, any Member, as the "tax matters partner" for federal income tax purposes. The tax matters partner is authorized and required to represent the Company in connection with all examinations of the Company's affairs by flax authorities, including resulting administrative and judicial proceedings, and to expend Company funds for professional services and costs associated therewith. The tax matters partner shall have the final decision making authority with respect to all Federal income tax matters involving the Company. The Members agree to cooperate with the tax matters partner and to do or refrain from doing any or all things reasonably required by the tax matters partner to conduct such proceedings. Any direct out-of-pocket expense incurred by the tax matters partner in carrying out his obligations hereunder shall be allocated to and charged to the Company as an expense of the Company for which the tax matters partners shall be reimbursed. 9.7 Records and Reports. At the expense of the Company, the Managers shall maintain records and accounts of all operations and expenditures of the Company. The Company shall keep at its principal place of business the records required by the Act to be maintained there. 9.8 Books of Account. (a) The Company shall maintain the Company's books and records and shall determine all items of Income, Loss, Net Income and Net Loss in accordance with the method of accounting selected by the Managers, consistently applied. All of the records and books of account of the Company, in whatever form maintained, shall at all times be maintained at the principal office of the Company and shall be open to the inspection and examination of the Members or their representatives during reasonable business hours. Such right may be exercised through any agent or employee of a Member designated by it or by an attorney or independent certified public -accountant designated by such Member. Such Member shall bear all expenses incurred in any examination made on behalf of such Member. (b) All expenses in connection with the keeping of the books and records of the Company and the preparation of audited or unaudited financial statements required to implement the provisions of this Agreement or otherwise needed for the conduct of the Company's business shall be borne by the Company as an ordinary expense of its business, provided that day to day bookkeeping, preparation of financial statements, and of profit and loss statements shall be performed by the Manager as a part of his duties as Manager for no additional fee to the Company. 9.9 Company Tax Return and Annual Statement. The Managers shall cause the Company to file a Federal income tax return and all other tax returns required to be filed by the Company for each Fiscal Year or part thereof, and shall provide to each person who at any time during the Fiscal Year was a Member with an annual statement (including a copy of Schedule K- I to Internal Revenue Service Form 106�) indicating such I�le;nber's share of the Company's income, ions, gain, expense and other items relevant for federal income tax purposes. Such annual statement may be audited or unaudited as required by the -Managers. 9.10 Bank Accounts. The bank account or accounts of the Company shall be maintained in the bank approved by the Managers. The terms governing such accounts shall be determined by the Managers and withdrawals from such bank accounts shall only be made by such parties as may be approved by the Managers. ARTICLE X-TRANSFERABILITY OF MEMBERSHIP INTEREST; ADMISSION OF MEMBERS 10.1 Transferability of Membership Interest. The term "Transfer" when used in this Agreement with respect to a Membership Interest includes an initial and any subsequent sale, assignment, gift, pledge, hypothecation, grant of security interest, exchange, any Involuntary Transfer, whether by foreclosure, sale under power of sale, execution on judgment, forfeiture, or otherwise, or any other disposition, but shall not include the devise, bequest or inheritance of a Membership Interest on the death of a Member. A Member shall not at any time Transfer its Membership Interest except in accordance with the considerations and limitations set out in Section 10.2. Any Transferee of a Membership Interest by any means shall have only the rights, powers and privileges set out in Section 10.3 or otherwise provided by law and shall not become a Member of the Company except as provided in Section 10.4. If the Member is an entity which is not a natural person, then any change in the beneficial ownership of the Membership Interest, including the sale, conveyance or disposition of a majority interest in the Member, whether by sale of stock in a corporation, sale of partnership interest in a partner, sale of Membership Interest in a limited liability company, or the like, whether or not of record and whether or not for consideration, shall be deemed to be the transfer of a Membership Interest. 10.2 Restrictions on Transfers of Membership Interest. All or part of a Membership Interest may be transferred only with the prior written approval of a Majority of the Members, which approval may be granted or denied in the sole discretion of the Members. The Members shall not so consent unless the Proposed Transferee shall have furnished the Company with an opinion of counsel, satisfactory in form and substance to a majority of the Members and of the Managers, that neither the offering nor the proposed Transfer will violate any Federal or applicable state securities law and that neither the offering nor the proposed Transfer will adversely affect the Company being taxed as a partnership for Federal income tax purposes. A Proposed Transfer shall be deemed approved if the Proposed Transferor shall first Offer to Transfer the Membership Interest as provided in Section 10.6, and the Membership Interest is not purchased pursuant to options to purchase described in Section 10.6. 10.3 Rights of Transferee. Unless and until admitted as a Member of the Company in accordance with Section 10.4, the Transferee of a Membership Interest shall not be entitled to any of the rights, powers, or privileges of a Member, except that the Transferee shall be entitled to receive the distributions and allocations to which the Member would be entitled but for the Transfer of his Membership Interests, 10.4 Admission of Transferees as Members. A Transferee of a Membership Interest may be admitted as a Member of the Company upon furnishing to the Company all of the following: (a) The written consent of all the Members; (b) The written acceptance by the Transferee, in a form satisfactory to a Majority of the Members and Managers, of all the terms and conditions of this Agreement and the written agreement of the Transferee to be bound by this Agreement. (c) Payment of such reasonable expenses as the Company may incur in connection with his admission as a Member. (d) An opinion of legal counsel, satisfactory in form and substance to a majority of the Members and of the Managers, that neither the offering, the Transfer, nor the admission as a Member of the Company violate any Federal or applicable state securities law and that neither the offering, the Proposed Transfer, nor the admission as a Member of the Company will adversely affect the Company being taxed as a partnership for Federal income tax purposes. 10.5 Admission of New. Members. New Members to the Company may only be admitted with the consent of the majority of the Members, upon compliance with all terms specified by the Managers and upon receipt by the Company of an opinion of counsel, satisfactory in form and substance to a Majority of the Members and Managers, that neither the offering nor the proposed sale of the Membership Interest will violate any Federal or applicable state securities law and that neither the offering nor the proposed sale will adversely affect the Company being taxed as a partnership for Federal income tax purposes. 10.6 Optional Purchase of Interest Subsection A - Rights of First Refusal. If any Transferee or Member proposes to transfer all or any portion of his Membership Interest other than by pledge, hypothecation, chattel mortgage, or grant of a security interest, then the Company, followed by all of the Members, shall have successive options to purchase such portion of the Membership Interest of such Proposed Transferor. In the event that a Transferee or a Member shall propose to transfer all or a part of a Membership Interest, other than by pledge, hypothecation, chattel mortgage, or grant of a security interest, the Proposed Transferor shall offer (and upon failure to offer shall be deemed to have offered) such part of his Membership Interest first to the Company, and if the Company shall decline to purchase, then to the other Members, at the Iesser of. (a) the price and terms upon which the Proposed Transferor has received a bona fide Offer to Transfer, as defined herein, all or part of his Membership Interest, or (b) the Fair Market Value of such Membership Interest, as defined herein, as of the date of the last day of the calendar month prior to receipt of the bona fide Offer to Transfer of such Membership Interest. The Fair Market Value of such Membership Interest shall be determined by unanimous agreement as provided in this subsection of Section 10.6, or in the absence of unanimous agreement, then as provided in Section 10.7. The lesser of said (a) and (b) is herein called the Purchaser Price, provided that in the event the proposed transfer is a gift or a public sale at auction, the Purchase Price shall be the Fair Market Value of such Membership Interest determined as provided in Section 10.7, and further provided that in the event the proposed transfer is an Involuntary Transfer, the Purchase Price shall be the Fair Market Value of such Membership Interest determined as provided in Section 10.7, less a fifteen percent (15.0%) discount. Interest shall be paid on the Purchase Price, from the date of notice from the Proposed Transferor to the Company to the date of closing cry any exercise of such option(s), at the rate stated in Section 8.1, compounded monthly. The Proposed Transferor shall give written notice of the proposed transfer to the Company and to each Member and Manager upon receipt of the bona fide Offer to Transfer. The Proposed Transferor and the other Members shall attempt to reach unanimous written agreement regarding the Fair Market Value of the Membership Interest which the Proposed Transferor proposes to Transfer, within fifteen (15) days of the date on which such written notice of the proposed transfer is mailed. If the Proposed Transferor and the Members reach unanimous written agreement regarding the Fair Market Value of the Membership Interest which the Proposed Transferor proposes to Transfer within said fifteen (15) day period, then the Company shall provide written notice to the Proposed Transferor, and to all Members and Managers, specifying whether or not the Company is exercising its option to purchase such Membership Interest pursuant to this Section, within thirty (30) days of the date on which such written notice of the proposed Transfer is mailed by the Proposed Transferor. If unanimous written agreement of the Proposed Transferor and the Members is not reached regarding the Fair Market Value within said fifteen (15) days, the Proposed Transferor and the other Members shall have the right to request appraisal as provided in Section 10.7, and the time within which the Company may exercise its option to purchase such Membership Interest shall be extended through the date ten (10) days after the establishment of the Fair Market Value by appraisal pursuant to Section 10.7. In the event that the Company does not exercise its option or fails to give the written notice of exercise within the time provided, then all of the Members, in proportion to their Membership Interests, shall have the option to purchase such Membership Interest. The Member(s) electing to exercise the option to purchase shall provide written notice to the Proposed Transferor, the Members, and the Managers specifying whether or not they are exercising their option to purchase a full proportionate share of such Membership Interest pursuant to this Section, within fifteen (15) days of the earlier of the expiration of the Company's Option or receipt of written notice (after Fair Market Value is established) that the Company does not exercise its option. If any Member fails to exercise his option to purchase within the time provided, then those Members who exercised their option (the Purchasers) shall have the option to purchase the unacquired portion of the Membership Interest of the Proposed Transferor in proportion to the Membership Interests held by the Purchasers, under the same notice requirements. Such Option of Purchasers to purchase the unacquired portion of the Membership Interest of the Proposed Transferor shall repeat as necessary to result in the purchase of all of such Membership Interest. Closing on purchases pursuant to options shall occur on the third Tuesday following the expiration date of the last option. In the event that options to purchase less than all of such Membership Interest shall be exercised by Purchasers pursuant to said options, all exercises of options shall be void, and the Proposed Transferor may transfer such Membership Interest to the Proposed Transferee on the terms of the Offer to Transfer, provided that such Proposed Transferee shall hold such Membership Interest subject to the provisions of this Operating Agreement, including this Article X. Subsection B - Options to purchase upon Death or Dissolution of a Member. This Subsection B of Section 10.6 shall not apply in the event that Subsection C of this Section 10.6 is applicable. If any Transferee or Member shall die while holding a Membership Interest, or if any Transferee or Member which is an entity other than a natural person shall dissolve while holding a Membership Interest, then the Company, followed by all of the Members, shall have successive options to purchase such portion of the Membership Interest of such Deceased or Dissolved Transferee or Member. In the event that a Transferee or a Member shall die or dissolve while holding a Membership Interest, the estate of the deceased Transferee or Member or the party responsible for winding up the affairs of the dissolved Transferee or Member shall, by written notice of the offer to the Company and to each Member and Manager within thirty (30) days of the date of death of the deceased Transferee or Member or date of dissolution of the dissolved Transferee or Member, offer (and upon failure to offer shall be deemed to have offered) all of the Membership Interest of the deceased or dissolved Transferee or Member first to the Company, and if the Company shall decline to purchase, then to the other Members, at the Fair Market Value of such Membership Interest. The Fair Market Value of such Membership Interest shall be determined by unanimous agreement as provided in Subsection A of Section 10.6, or in the absence of unanimous agreement, then as provided in Section 10.7, and shall be the Purchase Price. Interest shall be paid on the Purchase Price, from the date of notice from the estate of the deceased Transferee or Member or the date of notice from the party responsible for winding up the affairs of the dissolved Transferee or Member to the Company, to the date of closing on any exercise of such option(s), at the rate stated in Section 8.1 plus two percent (2%) per annum, compounded monthly. - Procedure for exercise of options to purchase pursuant to this Subsection B of Section 10.6 shall be the same as provided in Subsection A of Section 10.6. Closing on purchases pursuant to options shall occur on the third Tuesday following the expiration date of the last option. In the event that options to purchase less than all of such Membership Interest offered by the estate of the deceased Transferee or Member or the party responsible for winding up the affairs of the dissolved Tranferee or Member shall be exercised by Purchasers pursuant to said options, all exercises of options shall be void, and the estate of the deceased Transferee or Member or the party responsible for the winding up of the affairs of the dissolved Tranferee or Member (and those persons entitled to distribution upon completion of liquidation and dissolution of the dissolved Transferee or Member) may hold the Membership Interest subject to the provisions of this Operating Agreement, including this Article X. Subsection C - Definitions The following terms shall have the following definitions: (a) "Offer to Transfer" shall mean any contract or agreement for the purchase and sale of a Membership Interest, for cash or otherwise, or for exchange of Membership Interest for other property, or other agreement for "Transfer", as defined herein, and shall include any threatened or scheduled Involuntary Transfer and any proposed gift inter vivos, but shall exclude any devise, bequest or legacy by Last Will and Testament, any transfer by inheritance, and any pledge, hypothecation, chattel mortgage, or grant of a security interest under which the Membership Interest is collateral for any obligation. If the Member is an entity not a natural person, then any change in the beneficial ownership of the Membership Interest, including the sale, conveyance or disposition of a majority interest in the Member, whether by sale of stock in a corporation, sale of partnership interest in a partner, sale of Membership Interest in a limited liability company, or the like, whether or not of record and whether or not for consideration, shall be deemed to be the Transfer of a Membership Interest, and an offer to make such a Transfer shall be deemed an Offer to Transfer. (b) "proposed Transferor" shall mean the party to a bona fide OrTer to Transfer who will cease to hold all or part of a Membership Interest upon the conclusion of the transaction contemplated by the bona fide Offer to Transfer, and shall also include the secured party, grantee, mortgagee, pledgee, or hypothecatee of any security agreement, chattel mortgage, pledge, or hypothecation pursuant to which the Membership Interest is the subject of foreclosure, sale pursuant to power of sale, forfeiture, or other involuntary sale, and shall also include any judgment creditor, trustee in bankruptcy, receiver, or other person who conducts a judicial sale, and the Estate of any deceased Transferee or Member. (c) "Proposed Transferee" shall mean the party to a bona fide Offer to Transfer who will acquire all or a part of a Membership Interest upon the conclusion of the transaction contemplated by the bona fide Offer to Transfer, and shall also include a purchaser at a proposed private sale from the secured party, grantee, mortgagee, pledgee, or hypothecatee of any security agreement, chattel mortgage, pledge, or hypothecation pursuant to which the Membership Interest is the subject of foreclosure sale, sale pursuant to power of sale, forfeiture, or other involuntary sale, and shall also include a purchaser at a proposed private sale from any judgment creditor, trustee in bankruptcy, receiver, or other person who conducts a judicial sale. (d) "Transferee" shal I mean the party to a bona NO Offer to Transfer who acquires all or a part of a Membership Interest, and shall also include a purchaser at a proposed private sale from the secured party, grantee, mortgagee, pledgee, or hypothecatee of any security agreement, chattel mortgage, pledge, or hypothecation pursuant to which the Membership Interest is the subject of foreclosure sale, sale . pursuant to power of sale, Forfeiture, or other involuntary sale, and shall also include a purchaser at a private sale from any judgment creditor, trustee in bankruptcy, receiver, or other person who conducts a judicial sale, or any party acquiring or claiming a Membershlrp Interest by any other disposition of a Membership Interest who has not been admitted as a Member of the Company. (e) "Involuntary Transfer" shall mean any involuntary transfer and shall include any foreclosure, sale pursuant to power of sale, forfeiture, or other involuntary sale by the secured party, grantee, mortgagee, pledgee, or hypothecatee of any security agreement, chattel mortgage, pledge, or hypothecation, and any sale conducted by any judgment creditor, trustee in bankruptcy, receiver, or other person who conducts a judicial sale, and any distribution in dissolution, reorganization, or merger of any partnership, limited partnership, joint venture, corporation, limited liability company, or other entity which may hold a Membership Interest, whether as a Member or as a Transferee. (f) "Applicable Valuation Date" shall mean the date of notice of a Proposed Transfer, or the date of death of a Member, as the context may require. 10.7 Appraisal. If the Proposed Transferor (including the Estate of a deceased Transferee or Member) and the other Members(s) cannot agree in writing to the Fair Market Value within fifteen (15) days following the date of notice of the offer, then either the Proposed Transferor, the Company, or any Member(s) may commence the appraisal process by designating an appraiser and sending notice of the designation to the others. All appraisers shall be unrelated third parties qualified to determine the Fair Market Value of the Membership Interest, which shall be appraised as the share of the Fair Market Value of the Company as a going concern, without discount for minority interest, which is proportionate to the Membership Interest of the Proposed Transferor. The appraiser named in such notice is herein called the First Appraiser. The other parties shall have ten (10) days from receipt of notice of designation of the First Appraiser to designate a Second Appraiser by sending to the party who commenced the appraisal process notice of the designation of the Second Appraiser. If the notice designating the Second Appraiser is not given within the ten (10) day period, the First Appraiser shall prepare an appraisal report and submit it to the Purchaser(s) and to the Proposed Transferor within forty (40) days following the expiration of the ter. (10) day period, and the hair Market Value shall be the amount set forth in the First Appraiser's report. If a Second Appraiser has been designated, both appraisers shall prepare their appraisal reports and submit them to the Purchasers) and to the Proposed Transferor, and if the difference between the amounts set forth in the two appraisals varies by ten percent (10.0%) or less of the amount of the higher appraisal, the amounts set forth in the two appraisals shall be added to one another and the sum divided by two, and the quotient (average) shal I be the Fair Market Value. If the two appraisals vary by more than ten percent (10.0%), either the Proposed Transferor or any Purchaser may request a third appraisal. If a third appraisal is requested, the two appraisers shall designate a Third Appraiser, who shall prepare an appraisal report within forty (40) days of his designation as Third Appraiser. The average of the two appraisals closest in amount of the three appraisals shall be the Fair Market Value. If no request for a third appraisal is made, the average of the First Appraisal and the Second Appraisal shall be the Fair Market Value. The cost of all appraisals shall be borne equally by the Proposed Transferor and the Purchaser(s). The half of such cost borne by the Purchasers shall be paid by them based upon their relative shares of the Membership Interest being purchased. Notwithstanding the foregoing, however, in the event that any party requests a third appraisal as provided above and the Fair Market Value as determined pursuant to the appraisal process is less favorable to the party requesting the third appraisal than is the average of the first two appraisals, then the entire cost of all appraisals shall be borne by the party requesting the third appraisal. ARTICLE XI -DISSOLUTION AND TERMINATION 11, I Withdrawal. Except as otherwise provided in this Agreemeni,_no Member shall qt any time retire or withdraw from the Company or withdraw any amount out of his Capital Account. Any Member retiring or withdrawing in contravention of this Section 1 l .l shall indemnify, defend and hold harmless the Company and al other Members (other than a Member who is, at the time of such withdrawal, in default under this agreement) from and against any losses, expenses, judgments, fines, settlements or damages suffered or incurred by the Company or any such other Member arising out of or resulting from such retirement or withdrawal. 11.2 Dissolution. (a) The Company shall be dissolved upon the first of the following to occur: (i) When the period fixed for the duration of the Company in the Articles of Organization shall expire; Gi) Upon the election to dissolve the Company by all of the Members; (iii) Upon the happening of any event of withdrawal (as defined in the Act) with respect to any Member, unless there is at least one remaining Member and the business of the Company is continued by the written consent of the remaining Members holding a Majority in Interest within ninety (90) days of the action by or affecting the withdrawing Member; or (iv) The entry of a decree of judicial dissolution or the issuance of a certificate for administrative dissolution under the Act. (b) Upon dissolution of the Company, the business and affairs of the Company shall terminate and be wound up, and the assets of the Company shall be liquidated under this Article XI. (c) Dissolution of the Company shall be effective as of the day on which the event occurs giving rise to the dissolution, but the Company shall not terminate until there has been a winding up of the Company's business and affairs, and the assets of the Company have been distributed as provided in Section 11.3. (d) Upon dissolution of the Company, the Managers may cause any part or all of the assets of the Company to be sold in such manner as the Managers shall determine in an effort to obtain the best prices for such assets; provided, however, that the Managers may distribute assets of the Company in kind to the Members to the extent practicable. 1 I.3 Articles of Dissolution. Upon the dissolution and commencement of the winding up of the Company, the Managers shall cause Articles of Dissolution to be executed on behalf of the Company and filed with the Secretary of State, and a Manager or authorized Member shall execute, acknowledge and file any and all other instruments necessary or appropriate to reflect the dissolution of the Company. 11.4 Distribution of Assets Upon Dissolution. In settling accounts after dissolution, the assets of the Company shall be paid in the following order: (a) First, to creditors, in the order of priority as provided by law, except those to Members on account of their. Capital Contributions; (b) Second, an amount equal to the then remaining credit balances in the Capital Accounts of the Members shall be distributed to the Members in proportion to the amount of such balances; and (c) Third, any remainder shall be distributed to the Members of the Company, pro rata, to their respective Membership Interests. 11.5 Distributions in Kind. If any assets of the Company are distributed in kind, such assets shall be distributed to the Members entitled thereto as tenants -in -common in the same proportions as the Members would- have been entitled to cash distributions if such property has been sold for cash and the net proceeds thereof distributed to -the Members. In the event that distributions in kind are made to the Members upon dissolution and liquidation of the Company, the Capital Account balances of such Members shall be adjusted to reflect the Members' allocable share of gain or loss which would have resulted if the distributed property had been sold at its Fair Market Value. ARTICLE XII- MISCELLANEOUS PROVISIONS 12.1 Competing Business. Except as otherwise expressly provided in this Agreement or the Act, neither the Managers nor the Members, nor any of their shareholders, directors, officers, employees, partners, agents, family Members or affiliates, shall be prohibited or restricted in any way from investing in or conducting, either directly or indirectly, and may invest in and/or conduct, either directly or indirectly, businesses of any nature whatsoever, including the ownership and operation of a business or properties similar to or in the same geographical area as those held by the Company. Except as otherwise provided in this agreement or the Act, any investment in or conduct of any such businesses by any such person or entity shall not give rise to any claim for an accounting by any Member or the Company or any right to clairn any interest therein or the profits therefrom. 12.2 Member Representations and Agreements. Notwithstanding anything contained in this agreement to the contrary, each Member hereby represents and warrants to the company, the Managers and to each other that: (a) the Membership Interest of such Member is acquired for investment purposes only, for the Member's own account, and not with a view to or in connection with any distribution, reoffer, resale or other disposition not in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder (the "1933 Act") and applicable state securities laws; (b) such Member, alone or together with the Member's representatives, possesses such expertise, knowledge and sophistication in financial and business matters generally, and in the type of transactions in which the Company proposes to engage in particular, that the Member is capable of evaluating the merits and economic risks of acquiring and holding the Membership Interest and the Member is able to bear all such economic risks now and in the future; (c) such Member has had access to all of the information with respect to the Membership Interest acquired by the Member under this agreement that the Member deems necessary to make a complete evaluation thereof and has had the opportunity to question the other Members and the Managers (if any) concerning such Membership Interest; (d) such Member's decision to acquire the Membership Interest for investment has been based solely upon the evaluation made by the Member; (e) such Member is aware that the Member must bear the economic risk of an investment in the Company for an indefinite period of time because Membership Interests have not been registered under the 1933 Act or under the securities iaws of various states and, therefore, cannot be resold unless such Membership Interests are subsequently registered under the 1933 Act and any applicable state securities laws or an exemption from registration is available (f) such Member is aware that only the Company can take action to register Membership Interests and the Company is under no such obligation and does not propose to attempt to do so;(g) such Member is aware that this Agreement provides restrictions on the ability of a Member to sell, transfer, assign, mortgage, hypothecate or otherwise encumber the Member's to Membership Interest; (h) such Member agrees that the Member will truthfully and completely answer all questions, and make and perform all covenants, that the Company or the Managers may, contemporaneously or hereafter, ask or demand for the purpose of establishing compliance with the 1993 Act and applicable state securities laws; and (i) if the Member is an organization, that it is duly organized, validly existing, and in good standing under the laws of its state of organization and that it has full organizational power and authority to execute and agree to this agreement and to perform its obligations hereunder. 12.3 Notice. (a) All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. (b) All notices, demands and requests to be sent to any Manager or Member pursuant to this Agreement shall be deemed to have been properly given or served if addressed to such person at the address as it appears on the Company records and (i) personally delivered, (ii) deposited for next day delivery by Federal Express, or other similar overnight courier services, (iii) deposited in the United States mail, prepaid and registered or certified with return receipt requested or (iv) transmitted via telecopier or other similar devise to the attention of such person with receipt acknowledged. (c) All notices, demands and requests so given shall be deemed received; (I) when actually received, if personally delivered, deposited for next day delivery with an overnight courier or teleeonied_ or (ii) as indicated upon the return receipt if deposited in the United States mail. (d) The Managers and Members shall have the right from time to time, and at any time during the term of this agreement, to change their respective addresses by delivering to the other parties written notice of such change it the manner prescribed in Section 12.3(b). (e) All distributions to any Member shall be made at the address at which notices are sent unless otherwise specified in writing by any such Member. 12.4 No Action. No Member shall have any right to maintain any action for partition with respect to the property of the Company. 12.5 Amendments. This Agreement as well as the Articles of Organization may only be amended or modified by a writing executed and delivered by each of the Members. 12.6 Governing Law; Arbitration. This Agreement is made in New Hanover County, North Carolina, and the rights and obligations of the Members hereunder shall be interpreted, construed and enforced in accordance with the laws of the State of North Carolina. Any dispute arising out of or in connection with this agreement or the breach thereof shall be decided by arbitration to be conducted in Wilmington, North Carolina in accordance with the then prevailing commercial arbitration rules of the American Arbitration Association, and judgment thereof may be entered in any court having jurisdiction thereof. 12.7 Entire Agreement. This Agreement, including all schedules to this Agreement, as amended from time to time in accordance with the terms of this Agreement, contains the entire agreement among the parties relative to the subject matters hereof, and all prior negotiations, agreements or understandings, whether oral or written, are merged herein and superseded hereby. 12.8 Waiver. No consent or waiver, express or implied, by any Member to or for any breach or default by any other Member in the performance by such other Member of his or its obligations under this Agreement shall be deemed or construed to be a consent or waiver to any other breach or default in the performance by such other Member of the same or of any other obligations of such other Member under this agreement. Failure on the part of any Member to complain of any act or failure to act of any of the other Members or to declare any of the other Members in default, regardless of how long such failure continues, shall not constitute a waiver by such Member of his or its rights hereunder. 12.9 Severability. If any provision of this Agreemen;�-dr the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this agreement and the application of such provisions to other persons or circumstances shall not be affected thereby, and the intent of this Agreement shall be enforced to the greatest extent permitted by law. 12.10 Binding Agreement. Subject to the restriction on transferability set forth in this Agreement, this Agreement shall inure to the benefit of and be binding upon the undersigned Members and their respective legal representatives, successors and assigns. 12.11 Tense and Gender. Unless.the context clearly indicates otherwise, the singular shall include the plural and vice versa. When the masculine, feminine or neuter gender is used inappropriately in this Agreement, this agreement shall be read as if the appropriate gender were used. 12.12 Captions. Captions are included solely for convenience of reference and if there is any conflict between captions and the text of this Agreement, the text shall control. 12.13 Benefits of Agreement. Nothing in this Agreement expressed or implied, is intended or shall be construed to give to any creditor of the Company or any creditor of any Member or any other person or enti*�,� whatsoever, other than the Members and the Company, any legal or equitable right, remedy or claim under or in respect of this Agreement or any covenant, condition or provisions herein contained, and such provisions are and shal I be held to be for the sole and exclusive benefit of the Members and the Company. 12.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original for all purposes and all of which when taken together shall constitute a single counterpart instrument. Executed signature pages to any counterpart instrument may be detached and affixed to a single counterpart, which single counterpart with multiple executed signature pages affixed thereto constitutes the original counterpart instrument. All of these counterpart pages shall be read as though one and they shall have the same force and effect as if all of the parties had executed a single signature page. IN WITNESS WHEREOF, the undersigned, being the initial Managers and all of the Members of the Company, have caused this Agreement to be duly adopted by the Company effective as of the day of ,2008, and do he'ebyl cntragt nd agree among themselves and with the Company to be bound by and to perform all of the e s an ovisions set forth in this Agreement, Ho a �+P�lrli�n,-III, Member Mark L. Maynard, m er•:% SD We; SCHEDULE I For SD West, LLC April 4`h, 2008 Names and Initial Capital Membership Address of Members Contributions Interest Howard A. Penton, II1 $5,000.00 50 % 6105 Oleander Drive, Suite 201 Wilmington, North Carolina 28403 Mark L. Maynard $5,000.00 50 % 1510-A S. Third Street Wilmington, North Carolina 28401 TOTALS $10,1000.00 100 % Amendment Number 0 (original), effective date of original Operating Agreement. Re: request for additional information: Stonnwater Project No. 0804... Subject: Re: request for additional information: Stormwater Project No. 080414 Shoreline at Westgate From: Christine Nelson <Christine.Nelson@ncmail.net> Date: Mon, 28 Apr 2008 08:18:46 -0400 To: Bob Mitchell <mitchells82@earthlink.net> If its pervious surfaces only, than that is fine. The goal is to capture all impervious surfaces. Bob Mitchell wrote: One more question about Shoreline at Westgate... There area areas at the far south end (near the wet detention pond) that is considered recreational areas. There will not be any built -upon items in these areas, all pervious. Can these areas sheet flow to the pond and/or property line? :.. Original Message ----- iraft.Christine Nelson To: E-G 'Mitchell Cc: Shave-, . Flovd Adams Sent: Friday, April 25, 2008 9:31 AM Subject: Re: request for additional information: Stormwater Project No. 080414 Shoreline at Westgate Bob, My responses are below in Aue. Bob Mitchell wrote: Christine, Please help clarify some statcmerts on i=1ae. letter (dated 4/24) you sent us... Item 1. We understood that the sediment area lbatw. elev. 51-61) was to be included in the total volume. Were we mistaken? Unfortunately, you were mistaken. Figure 10-2b shows that the permanent pool is considered to only be the volume above the sediment storage. 1 of 3 4/28/2008 9:32 AM Re: request for additional information: Stormwater Project No. 0804... Subject: Re: request for additional information: Stormwater Project No. 080414 Shoreline at Westgate From: Christine Nelson <Christine.Nelson@ncmail.net> Date: Fri, 25 Apr 2008 09:31:37 -0400 To: Bob Mitchell <mitchells82@earthlink.net> CC: Sharon <sharon@pentondevelopment.com>, Floyd Adams <mfadams@intrstar.net> Bob, My responses are below in blue. Bob Mitchell wrote: Christine, Please help clarify some statements on the letter (dated 4/24) you sent us... Item 1. We understood that the sediment area (betw. elev. 5'-61) was to be included in the total volume. Were we mistaken? Unfortunately, you were mistaken. Figure 10-2b shows that the permanent pool is considered to only be the volume above the sediment storage. Item 3. Does the statement of 11... the required storage volume has not been provided.,, come from the fact we have included the sediment storage in the permanent pool volume? No, the problem is that I tried to re-create the volume of the temporary pool based on the elevations and surface areas of the permanent pool and temporary pool from the supplement, but I came up with a lower volume than what was required. Without the surface areas on the table in the plans, I couldn't look further into why my calculated storage volume was coming up low. The volume attributed with the sediment storage would only affect the permanent pool - the volume, average depth, SA/DA ratio & such. Item 6. & 7. There is a difference in the property boundary and the amount of area that is 'actually' being treated by the pond. The high point at the Main Entrance is 90' from the property line. The area in the front of the project drains toward the existing street is approximately 12,000 sq.ft. What is the allowance for this? All other areas drain to the wet pond. You must treat that BUA - only a small portion of the driveway (such as the apron within the right-of-way) can get away with out being treated. Please help us with these questions. I Bob 1 of 2 4/25/2008 9:31 AM Re: recfuest for additional information: Stormwater Project No. 0804... ----- Original Message ----- From: "Christine Nelson" <Christine.Nelson@ncmail.net> To: <sharon@pentondevelopment.com>; <mfadams@intrstar.net>; "Bob Mitchell" <mitchells82@earthlink.net> Cc: "Janet Russell" <Janet. Russell @ncmail. net> Sent: Thursday, April 24, 2008 8:49 AM Subject: request for additional information: Stormwater Project No. 080414 Shoreline at Westgate Gentlemen, I have attached a pdf version of my request for additional information for Stormwater Project SW8 080414 - Shoreline at Westgate. I will also send copies via mail. Thank you, Christine Express Stormwater Permitting NC-DENR 4/25/2008 9:3 i AM Michael F. Easley, Governor William G. Ross Jr., Secretary North Carolina Department of Environment and Natural Resources Coleen H. Sullins Director Division of Water Quality Apri124, 2008 Howard Fenton, III, Member Manager Sound Development, LLC 6105 Oleander Dr., Suite 201 Wilmington, NC 28403 Subject: Request for Additional Information Stormwater Project No. SW8 080414 Shoreline at Westgate Brunswick County Dear Mr. Penton: The Wilmington Regional Office received an NPDES Phase II Post Construction Permit Application for Shoreline at Westgate on April 16, 2008. A preliminary review of that information has determined that the following information is needed to continue the stormwater review: 1. It appears that the permanent pool volume, average depth, and associated calculations include the 1-foot sediment accumulation depth. The depth of the permanent pool is considered to be difference between the permanent pool elevation and the top elevation of the sediment storage and does not include the minimum 1-foot sediment accumulation depth (refer to Figure 10-2b and Section 10.3.4 of the 2007 BMP manual). Please revise the calculations and supplement to consider just the permanent pool in the pond calculations. 2. Please use the simple method to determine the required storage volume (refer to Section 3.3.1 of the 2007 BMP Manual). 3. In addition to the elevations and volumes presented in the Wet Detention Pond Volume table on plan sheet UTL-1, include the surface areas of the pond at the various elevations in order to help to verify that the required storage volume has been provided. Based on the elevations and areas that are presented in the wet pond supplement, the required storage volume has not been provided. 4. What was the elevation of the ground surface at the location of the soil boring used to determine the SHWT? 5. Provide contour lines/spot elevations for the proposed gravel road, including the portion in the future right of way. Since the gravel road is being constructed for access to this project, treat as much of the drainage from this road as possible. 6. Demonstrate how road entrance for the property will drain to the pond. From the spot elevations provided, it appears that the entrance up to the pool area will be draining toward the street, away from the collection system. 7. If the drainage area for the pond is different from the property boundary, delineate the drainage area of the pond. None Carolina 'Tatumily North Carolina Division of Water Quality 127 Cardinal Drive Extension Wilmington, NC 28405 Phone (910) 796-7215 Customer Service Wilmington Regional Office Internet: www ncwaterauality ore Fax (910) 350-2004 1-877-623-6748 An Equal Opportunity/Affirmative Action Employer— 50% Recycled110% Post Consumer Paper Howard Penton, III April 24, 2008 Stormwater Application No. SW8 080414 8. How will the roof drainage from the houses bordering the property be directed to the pond? 9. Please provide a detail for the proposed retaining wall. 10. Please submit a $1,000 fee for the additional review required for this application. The following comment was not considered in the assignment of the Additional Information Fee, as it is to correct/ clarify a discussion held in the submittal/scoping meeting regarding the use of filter strips with the wet pond designed to meet the 85% TSS removal rate. 11. In addition to the level spreader and 30 foot filter strip for the discharge from the orifice, a 30 foot filter strip, designed for non -erosive flow during the 10 year storm, is also required for the high flow outlet. Please provide a 30 foot filter strip for the 36" outlet pipe and calculations demonstrating that non -erosive flow will be achieved during the 10-year flow storm. Please keep in mind that changing one number may change other numbers and require the calculations, supplements, and other supporting documentation to be updated. Verify all numbers are correct to ensure consistency in the application documents. Please note that this request for additional information is in response to a preliminary review. The requested information should be received in this Office prior to May 2, 2008, or the application will be returned as incomplete. The return of a project will necessitate resubmittal of all required items, including the application fee. The construction of any impervious surfaces, other than a construction entrance under an approved Sedimentation Erosion Control Plan, is a violation of NCGS 143-215.1 and is subject to enforcement action pursuant to NCGS 143-215.6A. Please reference the State assigned project number on all correspondence. If you have any questions concerning this matter please feel free to call me at (910) 796-7323 or email me at christine.nelson@ncmail.net. Sincerely, Christine Nelson Environmental Engineer ENB/can: S:1WQSISTORMWATERIADDINFO120081080414.apr08 CC: M. Floyd Adams, The Adams Company, Inc. Christine Nelson Wilmington Regional Office Page 2 of 2 requesi for additional information: Stormwater Project No. 080414 ... Subject: request for additional information: Stormwater Project No. 080414 Shoreline at Westgate From: Christine Nelson <Christine.Nelson@ncmail.net> Date: Thu, 24 Apr 2008 08:49:54 -0400 To: sharon@pentondevelopment.com, mfadams@intrstar.net, Bob Mitchell <mitchells82@earthlink.net> CC: Janet Russell <Janet.Russell@ncmail.net> Gentlemen, I have attached a pdf version of my request for additional information for Stormwater Project SW8 080414 Shoreline at Westgate. I will also send copies via mail. Thank you, Christine Express Stormwater Permitting NC-DENR SW8080414 -Shoreline at Westgate.pd Content -Type: application/pdf Content -Encoding: base64 1 of 1 4/24/2008 8:50 AM i ECS CAROLINAS, LLP Geotechnical • Construction Materials • Environmental • Facilities March 27, 2008 Mr. Howard Penton Penton Development 6105 Oleander Drive, Suite 101 Wilmington, North Carolina 28403 Re: Seasonal High Water Level Estimation Shoreline at Westgate Leland, North Carolina ECS Project No. 22.13896 Dear Mr. Penton, , ECS Carolinas;' LLP (ECS) recently conducted an estimation of the Seasonal High Water Level (SHWL) for the proposed wet pond area at the proposed Shoreline at Westgate development in Leland, North Carolina. This letter, with attachments, is the report of our estimation. Field Testing On March 21, 2008, 2007 ECS met with Mr. Howard Penton with Penton Development on site where the requested test was located. ECS then conducted an exploration of the subsurface soil and ground water conditions at one requested location shown on the attached Site Diagram that was provided by Penton Development. The purpose of -this exploration was to obtain subsurface information of the suitability of the in -place soils for the proposed wet pond areas. We explored the subsurface soil and ground water conditions by advancing one- hand auger boring into the existing ground surface at the requested boring location. We visually classified.the subsurface soils and obtained representative samples of each soil type encountered. We also recorded the ground water level observed at the time of the hand auger boring. The attached SHWL sheet. provides a surnrnary of the subsurface conditions encountered at the hand auger boring location. The ground water level and the seasonal high ground water level (SHWL) were estimated at each boring location below the existing grade- elevation. Below is a summary of each boring location. Location . Water Level. SHWL 1 65 inches 50 inches The SHWL may vary within the proposed site due to changes in subsurface conditions and elevation. If you have any questions regarding this report, please contact us at (910) 686-9114. Respectfully, ECS .CAROLINAS,.L-LP Y vim/" K. Brooks Wall Staff Geologist WalidM. Sobh,,P. E. Principal Engineer 7211 Ogden Business Park • Suite 20.1 •Wilrriington, NC 28411 • (910) 686-9114 • Fax (910) 686-9666 •www.ec :Asheville, NC •. Charlotte, NC-.GReensboro, NC..Greenvilie; SC •.Raleigh, NC • Swansboro, NC Wilmington, NC * testing services:only IS L54 28 L41 l40 L39 t11 ORION STORMWATER - MANAGEMENT POND 89,950 CUBIC IFEF1 "FORE BAY I 7RA"--- _Ar,'NIF OCEA NGA-1 Et (9 BORING LOCATION Shoreline at Westgate Leland, North Carolina Boring location provided by Penton Development ECS Project No. 22-13896 March 21, 2008 1KBW Season High Water Level Estimation Shoreline at Westgate Leland, North Carolina ECS Project No. 22.13896 March 21, 2008 Location DDth Soil Description 1 0-12" Tan fine SAND 12"-36" Orange sandy CLAY 36"-65" Tan/orange fine SAND w/little clay Seasonal High Water Table was estimated to be at 50 inches below the existing grade elevation. Ground water was encountered at 65 inches below the existing grade elevation. v U.S. -ARMY CORPS OF ENGINEERS WILMINGTON DISTRICT Action Id. 2006� 9 �'' Coup Brunswick U.S.G.S. Quad: Winnabow NOTIFICATION OF JURISDICTIONAL DETERMINATION � Property Owner/Agent: Q�seangate, L•LC /J, `L a'.� Address: Attn: Mr. Nathan Sanders D PO Box 3167 /`(�Jj Wilmington, NC 28406 Telephone No.: 910-791-1196 Property description: 408.66 Nearest Town Leland Size (acres) Nearest Waterway Jackevs Creek River Basin Cape Fear USGS RUC 03030005 Coordinates N 34.2095 W 78.0137 Location description The Proiect area is comprised of three parcels located southeast of US Highway 17, south of Ploof Road in wetlands adiacent to Jackevs Creek, in Leland North Carolina. Indicate Which of the Following Apply: A. Preliminary Determination _ Based on preliminary information, there may be wetlands on the above described property. We strongly suggest you have this property inspected to determine the extent of Department of the Army (DA) jurisdiction. To be considered final, a jurisdictional determination must be verified by the Corps. This preliminary determination is not an appealable action under the Regulatory Program Administrative Appeal Process ( Reference 33 CPR Part 331). B. Approved Determination _ There are Navigable Waters of the United States within the above described property subject to the permit requirements of Section 10 of the Rivers and Harbors Act and Section 404 of the Clean Water Act. Unless there is a change in the law or our published regulations, this determination may be relied upon for a period not to exceed five years from the date of this notification. X_ There are wetlands on the above described property subject to the permit requirements of Section 404 of the Clean Water Act (CWA)(33 USC § 1344). Unless there is a change in the law or our published regulations, this determination may be relied upon for a period not to exceed five years from the date of this notification. _ We strongly suggest you have the wetlands on your property delineated. Due to the size of your property and/or our present workload, the Corps may not be able to accomplish this wetland delineation in a timely manner. For a more timely delineation, you may wish to obtain a consultant. To be considered final, any -delineation must be verified by the Corps. _ The wetland on your property have been delineated and the delineation has been verified by the Corps. We strongly suggest you have this delineation surveyed. Upon completion, this survey should be reviewed and verified by the Corps. Once verified, this survey will provide an accurate depiction of all areas subject to CWA jurisdiction on your property which, provided there is no change in the law or our published regulations, may be relied upon for a period not to exceed five years. X The wetlands have been delineated and surveyed and are accurately depicted on the plat signed by the Corps Regulatory Official identified below on 3/16/2006. Unless there is a change in the law or our published regulations, this determination may be relied upon for a period not to exceed five years from the date of this notification. _ There are no waters of the U.S., to include wetlands, present on the above described property which are subject to the permit requirements of Section 404 of the Clean Water Act (33 USC 1344). Unless there is a change in the law or our published regulations, this determination may be relied upon for a period not to exceed five years from the date of this notification. X The property is located in one of the 20 Coastal Counties subject to regulation under the Coastal Area Management Act (CAMA). You should contact the Division of Coastal Management in Wilmington, NC, at (910) 395-3900 to determine their requirements. Page 1 of 2 Action ID: c?0 U 4 06 % G 5 Placement of dredged or fill material within waters of the US and/or wetlands without a Department of the Army permit may constitute a violation of Section 301 of the Clean Water Act (33 USC § 1311). If you have any questions regarding this determination and/or the Corps regulatory program, please contact Jennifer Frye at 910-2514923. C. Basis For Determin This site exhibits wetland -criteria as aescrinen in the 15ptsi uorps wettana iietmeatlon Manual and is adjacent to Jar -keys Creek, a iributary to the Cape Fear River, a na,igable Water of the US. This determination is based on information submitted by SEG Inc. and a site visit by Jennifer Frye on 3/212006. D. Remarks E. Appeals Information (This information applies only to approved jurisdictional determinations as indicated in B. above) This correspondence constitutes an approved jurisdictional determination for the above described site. If you object to this determination, you may request an administrative appeal under Corps regulations at 33 CFR part 331. Enclosed you will find a Notification of Appeal Process (NAP) fact sheet and request for appeal (RFA) form. If you request to appeal this determination you must submit a completed RFA form to the --South Atlantic Division, Division Office at the Following address: Mr. Michael F. Bell, Administrative Appeal Review Officer CESAD-ET-CO-R U.S. Army Corps of Engineers, South Atlantic Division 60 Forsyth Street, Room 9M15 Atlanta, Georgia 30303-8801 - In order for an RFA to be accepted by the Corps, the Corps must determine that it is complete, that it meets the criteria for appeal under 33 CFR part 331.5, and that it has been received by the Division Office within 60 days of the date of the NAP. Should you decide to submit an RFA form, it must be received at the above address by 5/16/2006. **It is not necessary to submit an RFA form to the Division Office if you do not object to the determination in this correspondence.** Corps Regulatory Official: Date 03/16/2006 Expiration Date 03/16/2011 Copy finished: : SEG,=bt: "= 115 College Road Suite E, Wilmington, NC 28412 Noelle Lutheran, DENR-DWQ WiRO, 127 Cardinal Drive Ext., Wilmington, NC 28405 Page 2 of 2 sw8o�o �� h1 N h187 to h188 A hiss �! r, h190 h195 r `moo �h191 'h19'4 ^o h179 ��J�M93. j v �. J h195 h178 h177 !O� 77! h197 h198 h176 ��� h199 0 w h173 h172 �aj v� h171 �D h170 r co hi6s 4a. Ma v h167 ygZ h166 . J 4 r-h185 ,.. M64 h210 h217 h204 '!?J LIP P. i R A h220 h221 L135 QI h222 h219 ('�,, h223 +' h224 .h218 r �.• . ^. h117 . hall h228 h241 h210 r h127 h240 a h239 r J h213j h226 h238 v h235 _j h237 h214 p� h230 h2 5 `,� h243 �ry h213 v 1h� N h212 4 v h244 h211 r� 16,E �. h245 h246 h247 ..°p h249 . h249 f R, h250 h262 h251 h253 ��6h187 L168 L 169 h2 Tl% REC ELP HANOVER DESIGN'SERVICES, P.A. APR 1 6 2008 RECEIVED 7 1 6 2008 LAND SURWM4 Ef4Q&LWS; LAND PLANNERS 319 WALNUT STREET WMINGTON. N.C. -28401 PHONE (910) 343-8002 J* SHEET 5 r13 <- 429 L-34 0 'ERVICES, P.A. Z LAND PLANNERS NC DENR - DIVISON OF WATER QUALITY .0311 CAPE FEAR RIVER BASIN 2B .0300 Class Name of Stream Description Class Date Index No. Mineral Springs Branch From source to Burnt Mill C;Sw 08/01/85 18-74-63-2-1 Creek Alligator Creek From source to Cape Fear SC;Sw 04/01/59 18-75 River Greenfield Creek From Greenfield Lake to SC;Sw 04/01/59 18-76 Cape Fear River Greenfield Lake Entire Lake C;Sw 04/01/59 18-76-1 Silver Stream Branch From source to Greenfield C;Sw 04/01/59 18-76-1-1 Lake, Greenfield Creek Clay Bottom Branch From source to Greenfield C;Sw 04/01/59 18-76-1-2 Lake, Greenfield Creek Jumping Run Branch From source to Greenfield C;Sw 04/01/59 18-76-1-3 Lake, Greenfield Creek Squash Branch From source to Greenfield C;Sw 04/01/59 18-76-1-4 Lake, Greenfield Creek Brunswick River From source to Cape Fear SC 08/09/81 18-77 River Sturgeon Creek From source to Burnswick C;Sw 04/01/59 18-77-1 River Mill Creek From source to Sturgeon C;Sw 04/01/59 18-77-1-1 Creek Rowell Branch From source to Mill Creek C;Sw 04/01/59 18-77-1-1-1 Banton Branch From source to Mill Creek C;Sw 04/01/59 18-77-1-1-2 Redmond Creek From source to Brunswick SC;Sw 04/01/59 18-77-2 River Jackeys Creek From source to Brunswick C;Sw 04/01/59 18-77-3 River Piney Branch From source to Jackeys Creek C;Sw 04/01/59 18-77-3-1 Mallory Creek From source to Cape Fear C;Sw 04/01/59 18-78 River Little Mallory Creek From source to Mallory Creek C;Sw 04/01/59 18-78-1 (Beaverdam Branch) Barnards Creek From source to Cape Fear C;Sw 04/01/59 18-80 River Town Creek (Rattlesnake From source to Cape Fear C;Sw 09/01/74 18-81 Branch) River Turkey Branch From source to Town Creek C;Sw 04/01/59 18-81-1 Lewis Swamp From source to Town Creek C;Sw 09/01/74 18-81-2 Tompkins Branch (Tomolin From source to Lewis Swamp C;Sw 09/01/74 18-81-2-1 Branch) Lewis Branch From source to Lewis Swamp C;Sw 09/01/74 18-81-2-2 Beaverdam Swamp From source to Town Creek C;Sw 09/01/74 18-81-3 Rock Creek From source to Town Creek C;Sw 04/01/59 18-81-4 Russells Creek From source to Town Creek C;Sw 09/01/74 18-81-5 Rice Creek From source to Town Creek C;Sw 09/01/74 18-81-6 Mill Creek From source to Rice Creek C;Sw 09/01/74 18-81-6-1 W State Stormwater Permit A lication Tracking Cover Sheet Wilminzton Regional Office Project Name: SHORELINE AT WESTGATE Project Category: NEW Project Type: HD - DETENTION POND App Accept Date: 4116/2008 Application Fee Amt. $ kl. o o O ` L) Fee Check Number: 10 COT Reviewer Name: NELSON, CHRISTINE Record the following information from BIMS after proiect has been entered! Permit Number (BIMS): Please update the SW Access System by entering the Permit Number for the proiectf Date Entered in Access: , 11_ o 0 Entered in Access By: Date Printed: 41161200812: 29:31 PM North Carolina Department of Environment and A`MA Natural Resources ---�— Request for Express Permit Review NCDENR For DENR Use ONLY Reviewer: C+1 Submit �— Time: 9 30 Confirm 3 - in _- FILL-IN all the information beiow and CHECK the Permit(s) you are requesting for express review. FAX or Email the completed form to Express Coordinator alrriy with a completed DETAILED narrative, she pian (PDF tile) and vicinity map (same items expected in the application Package of the project location. Include this form in the application package. • Asheville Region Alison Davidson 828-296-4698;alison.davidsonC�ncmailnet • Fayetteville or Raleigh Region -David Lee 919-791-4203; david./seamcmail.net 'A • Mooresville & -Patrick Grogan 704-663-3772 or Patrick grogan0mcmail.net • Washington Region -Lyn Hardison 252-946-9215 or lyn.hardisonft cmall net • Wilmington Region -Janet Russell 910-350-2004 orjanet.russellOncma)l net NOTE: Project application received after 12 noon will be stamped in the following work day. Project Name: SHORELINE AT WESTGATE County: BRUNSWICK Applicant: HOWARD PENTON Company: SOUND DEVELOPMENT Address: 6105 OLEANDER DR City: WILMINGTON, State: NC Zip: 28403 r. Phone:910-452-1410 Fax:910-452-7768 Email: Jennifer(capentondeveloament.com E C E I V. Project is Drains into C: S'd'J wafters Project Located in CAPE FEAR River Basin Engineer/Consultant: M. Floyd Adams Company: The Adams Company, Inc BAR i 12008�` Address: 708 ABNER PHILLIPS RD. City: WARSAW, State: NC Zip: 28398 Phone: 910-293-2770 Fax::910-293-2766 Email: mfadams0intrstar.net DWQ PROD # (Check all that apply) ❑ Scoping Meeting ONLY ❑ DWQ, ❑ DCM, ❑ DLR, ❑ OTHER: ❑ Stream Origin Determination: # of stream calls — Please attach TOPO map marking the areas in questions ® State Stormwater ® General ❑ SFR, ❑Bkhd & Bt Rmp, ❑ Clear & Grub, ❑ Utility ❑ Low Density ❑ Low Density -Curb & Gutter _ # Curb Outlet Swales ElOff-site[SW (Provide permit #)] ® High Density -Detention Pond 1 # Treatment Systems ❑ High Density -Infiltration _ #Treatment Systems ❑ High Density -Bio-Retention _ # Treatment Systems ❑ High Density —Constructive Wetlands _ # Treatment Systems El High Density -Other _ # Treatment Systems ❑ MODIFICATION SW (Provide permit #) ❑ Coastal Management ❑ Excavation & Fill ❑ Bridges & Culverts ❑ Structures Information ❑ Upland Development ❑ Marina Development ❑ Urban Waterfront ❑ Land Quality ❑ Erosion and Sedimentation Control Plan with 19 acres to be disturbed.(CK #— (for DENR use)) WETLANDS QUESTIONS MUST BE ADDRESSED BELOW ❑ Wetlands (401): Check all that apply Wetlands on Site ❑ Yes ® No Wetlands Delineation has been completed: ❑ Yes ❑ No US ACOE Approval of Delineation completed: ❑ Yes ❑ No 404 Application in Process w/ US ACOE: ❑ Yes ❑ No Permit Received from US ACOE ❑ Yes ❑ No Isolated wetland on Property ❑ Yes ® No Buffer Impacts: ❑ No ❑ YES: acre(s) Minor Variance : ❑ No ❑ YES Major General Variance ❑ No ❑ YES 401 Application required: ❑Yes ❑ No If YES, ❑ Regular Perennial, Blue line stream, etc on site ❑ yes ❑ No Fee Split for multiple permits: (Check # 1 For DEAR use only Tnfal Faa Amnunf SUBMITTAL DATES Fee SUBMITTAL DATES Fee CAMA $ Variance Ma'; Lj Min $ SIN ❑ HD, ❑ LID, ❑ Gen $ 1 401: $ LQS $ Stream Deter,_ $ Gofleti 4D Cw d� 3,1-4-06 m 0 0 F m m K m M 0 m z n C) n z m 0 m 0 F m REVISIONS SHORELINE at WESTGATE N%OYD J&DAMM. 3P.M. DESCR�� I DATE Iar p -n m Tract 8, Westgate, Leland, NC rn .. BTRUCTION AND DEVELOPMENT > rp 708 Abner !111111ps Rd. Wen ow, North Csrofine 28398 OVERALL ME PLAN Phone (910) 293-2770 Fax (910) 293-2768 SHORELINE at WESTGATE Residential Town Homes Leland, Brunswick County NARRATIVE A. Generallnformation 1. Project Title: Shoreline at Westgate 2. Location: Westgate Drive, Leland, NC 3. 18.7 Acres — Total Project Area 4. 18.7 Acres — Disturbed Area 5. There are no Wetlands within this project 6. Current owner — Oceangate, LLC, P.O. Box 3167, Wilmington, NC 28406 7. Deed Book/Page —1920 / 1236; Parcel Number 0470002423, Brunswick County 8. The land is currently wooded with no built -upon areas 9. Stormwater will be managed using drain inlets, concrete piping and a wet detention pond. The main pipeline and wet detention pond will be installed during Phase 1. The remaining pipelines will be installed when the areas are developed. 10. Water will be supplied through existing lines owned by North Brunswick Utility. Wastewater treatment will also be handled by North Brunswick Utility. 11. No historic Sites are a part of this project. 12. There are no non-compliance issues with NCDENR. B. Stormwater Information 1. Located in the Cape Fear River Basin — C;SW classification 2. Project will be High Density with Residential Homes 3. Proposed 53% impervious 4. There will be 1 Wet Detention pond with a Forebay. 5. Approximately 99% of all built upon area will be collected and directed to the wet detention pond. 6. There will be a 30' buffer at the outlet of the detention pond. 7. No coastal management concerns applicable. 8. There will not be any off -site runoff going into the wet detention pond. The property is surrounded on the upper two sides by curb/gutter streets and on the other side a ditch is proposed along the property line. 9. There will not be any road construction across another property to access this property. The existing road is in the process of becoming a NCDOT public road. There will be a small area of fill on the adjacent property (2,20.0 sq.ft.) to maintain 3:1 slope requirements. 10. No on -site soil evaluation has been done. C. Erosion Control Information 1. The project will be developed in 3 stages. See plans for details. 2. The temporary sediment trap will be in the same location as the stormwater pond. 3. During Phases I & II the retaining walls will not be built and the natural flow of sediment will be handled by the basin/pond. D E C E 1 11 E D MAR 12 2008 DWO Express Stvrmwater Subject: Express Stormwater From: "Earthlink" <mitche1ls82@earthlink.net> Date: Wed, 12 Mar 2008 17:09:47 -0500 To: "Janet Russell' <Janet.Russell@ncmail.net> Janet, I would like to set up an Express Stormwater submittal meeting for the project: Shoreline at Westgate. Attached please find: - Request for Express Review Form - Site Plan (PDF) with vicinity map - Narrative Please advise of a date or if any more information is needed. Bob Mitchell The Adams Company, Inc. 708 Abner Phillips Rd. Warsaw, NC 28398 mitchells82(cD-earthlink. net 910-293-2770 - office 910-293-2766 - fax 910-296-3349 - cell SWNarrative.doc Content -Type: application/msword Content -Encoding: base64 Content -Type: application/nisword REQUEST FOR EXPRESS form.doc Content -Encoding: base64 WestgateSitel.pd df Content -Type: application/p Content-Encoding: base64 1 of 1 3/13/2008 8:43 AM about:blank Shoreline At Westgate March 18, 2008 The Express Stormwater Submittal Meeting has been scheduled with Christine Nelson on April 1, 2008 at 9:30 AM here in the Wilmington Regional office. Mr. Penton or his assistant are required to attend the meeting. Please review the submittal requirements which are attached. All the current stormwater application forms are on the BMP web site and the link is included on the attachment. Please be sure that you have documentation of the seasonal high water table elevation in the area where the proposed detention pond will be located. You may want to review the pond cross-section example on the BMP web site which includes the seasonal high water table location. Please respond within 2 business days to confirm and reserve the submittal meeting date. Thanks, Janet Russell Express Permitting M. Floyd Adams wrote: Can't make tomorrow or Thursday. How about one day next week? Floyd ----- Original Message From: "Janet Russell" <Janet.Russell@ncmail.net> To: <mfadams@intrstar.net> Sent: Monday, March 17, 2008 4:39 PM Subject: [Fwd: Shoreline At Westgate] of 1 3/18/2008 2:58 PILL Shoreline At Westgate Subject: Shoreline At Westgate From: "Bob Mitchell" <mitche1ls82@earth1ink.net> Date: Wed, 19 Mar 2008 08:32:26 -0500 To: "Janet Russell" <Janet.Russell@ncmail.net> CC: "Floyd Adams" <mfadams@intrstar.net> Janet, Please schedule us with Ms. Nelson on April 1st at 9:30am. Mr. Adams, Mr. Penton and myself will be there. Thanks, Bob Mitchell The Adams Company, Inc. 708 Abner Phillips Rd. Warsaw, NC 28398 mitchells82@earthlink.net 910-293-2770 - office 910-293-2766 - fax 910-296-3349 - cell *Shoreline At Westgate* March 18, 2006 The Express Stormwater Submittal Meeting has been scheduled with* Christine Nelson on April 1, 2008 at 9:30 A*M here in the Wilmington Regional office. Mr. Penton or his assistant are required to attend the meeting. Please review the submittal requirements which are attached, All the current stormwater application forms are on the BMP web site and the link is included on the attachment. Please be sure that you have documentation of the seasonal high water table elevation in the area where the proposed detention pond will be located. You may want to review the pond cross-section example on the BMP web site which includes i j the seasonal high water table location. Please respond within 2 business days to confirm and reserve the submittal meeting date. Thanks, Janet Russell Express Permitting M. Floyd Adams wrote: Can't make tomorrow or Thursday. How about one day next week? Floyd ----- Original Message ----- From: "Janet Russell" <Janet.Russell @ncmail.net> 1 of 2 3/19/2008 9:53 AM about:blank April 4, 2008 Shoreline @ Westgate This is written to confirm that we have maintained your stormwater submittal meeting date with Christine Nelson on April 16th as you requested. However, we need to change the meeting time to 11:00 instead of 10:00. Hope this is O.K. Thanks, Janet Russell Express Coordinator 1 of 1 4/4/2008 4:15 PM Re: Stormwater - Shoreline at Westgate Subject: Re: Stormwater - Shoreline at Westgate From: Christine Nelson <Christine.Nelson@ncmail.net> Date: Fri, 04 Apr 2008 12:00:56 -0400 To: Bob Mitchell <mitchells82@earthhnk.net> CC: Janet Russell <Janet.Russell@ncmail.net> Bob, In this instance a bypass channel is not needed. You are effectively creating a bypass by using a second pipe and energy dissipater. I agree that the supplement can be misleading. Christine Bob Mitchell wrote: Christine, The level spreader / filter strip worksheet requests information about a "Bypass Channel Design". The spreadsheet is inconsistent as to when a bypass channel is necessary. The note states "no bypass needed if using the drawdown rate of the BMP for the level spreader" (see cell A58), however the formula at D60 requires a bypass channel if you answer N to the 10 yr storm basis (1357). We intend to use the basis of the Drawdown from the BMP to design the level spreader. Q1 - Is there a need for a "Bypass Channel" or not? We realize that there is a need for the flow above the first 1.5" up to the 10-yr storm to be handled outside of the level spreader. We have designed this flow to exit from a second pipe out to a rip rap dissipator with fabric liner. Q2 - If Yes to Q1; is our design (as stated in Q1) acceptable as the "Bypass Channel"? Look forward to hearing from you... Bob Mitchell The Adams Company, Inc. 708 Abner Phillips Rd. Warsaw, NC 28398 mitchells82(cD-earth link. net 910-293-2770 - office 910-293-2766 - fax 910-296-3349 - cell 1 of 1 4/4/2008 4:17 PM Re: Shoreline @ Westgate Subject: Re: Shoreline @ Westgate From: "Bob Mitchell" <mitchells82@earthlink.net> Date: Fri, 4 Apr 2008 17:51:26 -0500 To: "Janet Russell" <Tanet.Russell@ncmail.net> Janet, If Christine has an openinc, befcre 4/16 we will take it! Bob ----- Original Message ----- From: "Janet Russell" <Janet.Russell@ncmail.net> To: "Bob Mitchell" <mitchells62@earthlink.net>; "M. Floyd Adams" <mfadams@intrstar.net>; "Christine Nelson" <Christine.Nelson@ncmail.net> Sent: Friday, April 04, 2008 3:16 PM Subject: Shoreline @ Westgate April 4, 2008 *Shoreline @ Westgate* This is written to confirm that we have maintained your stormwater submittal meeting date with *Christine Nielson on April 16th* as you requested. However, we need to change the meeting time to *11:00* instead of 10:00. Hope this is O.K. Thanks, Janet Russell Express Coordinator 1 of 1 4/7/2008 9:20 AM