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Home My WebLink About20070168 Ver 2_More Info Letter_20100422?? NCDENR North Carolina Department of Environment and Natural Resources Division of Water Quality Beverly Eaves Perdue Coleen H. Sullins Dee Freeman Governor Director Secretary April 22, 2010 CERTIFIED MAIL: RETURN RECEIPT REQUESTED Mr. Todd Black Fall Creek Land Company P.O. Box 638 Hickory, NC 28603 Subject Property: Grandview Peaks Recreational Lakes Shoal Creek [030802, 9-41-12-1, WSV] Kelly Branch [030802, 9-41-12-2, WSV] Weaver Branch [030802, 9-41-12-1-1, WSIV] REQUEST FOR MORE INFORMATION Dear Mr. Black: DWQ Project # 07-0168, Ver. 2 McDowell County On December 17, 2009, the Division of Water Quality (DWQ) received your application dated December 10, 2009, with Public Notice issued by the USACE on January 12, 2010, and received by the DWQ January 12, 2010, to fill or otherwise impact 0.73 acres of 404/wetland (0.04 acres dam fill, and 0.69 acres flooding), and 695 linear feet of stream (dam fill), and flood 5,970 linear feet of stream, to construct two aesthetic lakes within the Grandview Lakes residential development. On March 12, 2010, the DWQ received additional information from you, however, the DWQ has determined that your application remains incomplete and/or provided inaccurate information as discussed below. The DWQ will require additional information in order to process your application to impact protected wetlands and/or streams on the subject property. Therefore, unless we receive three copies of the additional information requested below, we will place this project on hold as incomplete until we receive this additional information. If we do not receive the requested information, your project will be formally returned as incomplete. Please provide the following information so that we may continue to review your project. Additional Information Requested: To address your response to the following DWQ request from our February 15, 2010 correspondence to you, "Also on page 17, the applicant states that if at some point during their proposed 5-year monitoring program that if water quality parameters measurements are found to be unsatisfactory by the DWQ, the applicant will submit a contingency plan to return water quality parameters to satisfactory levels." How do you propose to do this and what will this contingency plan consist of?", the DWQ requests the following: The key water quality parameters the DWQ are concerned with in regards to future water quality violations are - dissolved oxygen, chlorophyll a, totaled dissolved gases, temperature, fecal coliforms, and pH. Again, we request to review the Lake Management Plans your Certified Lake Manager has for these proposed impoundments. Finally, we understand you do not want to provide the DWQ your complete and comprehensive dam design and details due to cost, however, we do need to 401 Oversight/Express Review Permitting Unit 1650 Mail Service Center, Raleigh, North Carolina 27699-1650 Location: 2321 Crabtree Blvd„ Raleigh, North Carolina 27604 Phone: 919-733-17861 FAX: 919-733-6893 Internet: http:l/h2o.enr.state.nc.us/ncwetlands/ NorthCarolina Naturally An Equal opportunity 1 Affirmative Action Employer Mr. Todd Black and Fall Creek Land Company Page 2 of 3 April 22, 2010 review your proposed minimum release structure at this time, and may condition your 401 Water Quality Certification such that your proposed impacts may not be conducted until the DWQ has reviewed and approved your complete and comprehensive dam design and details. 2. You did not respond to the bolded and underlined segment from our February 15, 2010, correspondence to you. So, please provide plans at a 1'=100' scale clearly showing which lots are sold and please place building envelopes on all lots that contain wetlands or streams. Your general response to the following request from our February 15, 2010, correspondence to you, indicates the sole purpose for the lakes is to secure greater profit for the development. This is not a valid rationale for the discharge of fill material into Waters of the State. Page 34 of the application narrative states, "...when the lake is the primary amenity, lot values become heavily dependent on its presence, and the value of lots on or in close proximity of the lake see a substantial increase in value." How did you determine this? This position runs contrary to a. recent study conducted by the University of Wisconsin-Madison - Department of Agricultural & Applied Economics, dated July 2007, regarding the effects of dam removal on small lake communities which found the following: The general conclusions of this research are: Shoreline frontage along small impoundments (ponds) does not notably increase residential property value compared to frontage along free-flowing rivers. Residential property located near a free-flowing river is more valuable than identical property located near an impoundment (pond). Our research estimated that property along a free-flowing river would be worth, on average, $14,000 more than a similar property at the site of a recently removed dam or current impoundment (pond). The results also indicate that removing a dam does little harm to property values in the short run (2 years in the study), and helps increase property values in the long run, as the stream and the area along it return to a "natural" free-flowing state, or are managed as a desirable open space such as a park. While this research focused on a single housing market in a relatively small area, the basic messages of these results apply to other locations as well. The study focused on communities that had relatively small ponds, and the results may not apply to large impoundments where recreational activities like fishing, boating and swimming are well established. Based on what our research found, we would expc.ot that properties that lose their frontage ou impoundments would not decrease in value, and may in fact increase in value as their frontage converts to frontage on a river. The value of properties that no longer have water frontage after a dam removal depends on what replaces the area of the former impoundment. Often, such a riverside public "greenbelt" replaces the.impoundment. Studies indicate open space increases the housing values of adjacent properties, particularly if the open space is dedicated to nature preservation and passive experiences, such as hiking and birdwatching. Link: http://www.wisconsinrivers.org/index.php?page=content&mode=view&id=6 4. According to the North Carolina State Dam Safety program, the greatest number of dams they permit each year are for subdivisions and most are high hazard. In addition to impacts on water quality and the aquatic community, this is presenting a huge issue for homeowners who don't realize what they're getting into. Ownership of these dams transfers from the developer to the HOA, leaving them the liability and responsibility for maintenance. Mr. Todd Black and Fall Creek Land Company Page 3 of 3 April 22, 2010 This Office learned from personnel with the American Rivers organization of two examples of HOA's who have gotten into trouble with this scenario. In both cases, the dams owned by the HOA were determined by the state to be unsafe and require repair or removal. In one case, the HOA paid over $20K to repair the dam (were unable to pay cost of removal), and that was split only between 10 homeowners (who didn't realize they owned a dam until the inspection letter came). In the second case, the HOA has just contacted American Rivers to see if they can get any grants to help with removal. Unfortunately, according to American Rivers, they are #1 in a series of 5 on a small stream, so it's unlikely American Rivers will be able to help. Since, it is our understanding based on the November 30, 2009, pre-application meeting, that the maintenance and liability for the proposed amenity ponds will be the Grandview Peaks HOA, is the HOA aware of this arrangement and the legal ramifications, and if so what operations and maintenance agreement has been presented to the HOA? This Office requests a copy of the operations and maintenance agreement. Please submit this information or otherwise address this request within 30 calendar days of the date of this letter. If we do not receive this requested information within 30 calendar days of the date of this letter, your project will be withdrawn and you will need to reapply with a new application and a new fee. This letter only addresses the application review and does not authorize any impacts to wetlands, waters or protected buffers. Please be aware that any impacts requested within your application are not authorized (at this time) by the DWQ. Please call Mr. Ian McMillan or Ms. Amy Chapman at 919-733-1786 if you have any questions regarding or would like to set up a meeting to discuss this matter. Sin erely, Ian McMillan, Acting Supervisor 401 Oversight/Express Review Permitting Unit IJM cc: Kevin Barnett, DWQ Asheville Regional Office Amanda Jones, USACE Asheville Regulatory Field Office File Copy Jennifer Derby, Wetlands, Coastal, and Oceans Branch, Water Protection Division, U.S. Environmental Protection Agency, 61 Forsyth Street, SW, 15th Floor, Atlanta, GA 30303 Becky Fox, 1307 Firefly Road, Whittier, NC 28789 Lynnette Batt, Associate Director for River Restoration, NC, American Rivers, 331 West Main Street, Suite 504, Durham, NC 27701 D.J. Gerken, SELL, 29 N. Market St., Suite 604, Asheville, NC 28801 Clement Riddle, CEC, 718 Oakland Street, Hendersonville, NC 28791 Filename: 070168Ver2GrandviewPeaksRecreationalLa kes(McDowell)On_Hold ■ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Fall Creek Land Co 4/22/10 Todd Black PID Box 638 Hickory NC 28603 DWQ 07-0168 Ver 2 McDowell Co A. Signature --�� ❑ Agent X �% ❑ Addressee B. Received by (ri ame Y Date of Delivery D. Is delivery ade ❑ Yes If YES, enter7,pr4oOremwl*b ❑ No �pq 3. Service Type tqCertified Mail ❑ lExpress Mail ❑ Registered ❑ Return Receipt for Merchandise ❑ Insured Mail ❑ C.O.D. 4. Restricted Delivery? ()tra Fee) ❑ Yes 2. Article Number (Transfer from service labeo 7009 2820 0004 413 7 2063 PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1540 UNITED STATES.PQsT'A $E 1[1G 4 w r :`1.irs#=Ci6§S Affil..,`"," pogttl a &Fee's"t dfd • Sender: Please print your name, address, and ZIP+4 in this box • NC DENR DIVISION OP WATLR QUALITY 401 OVERSIGHT/EXPRESS UNIT 2321 CRABTREE BOULEVARD, SUITE 250 RALEIGH, NC 27604 ::liiiid i....I..