20050661 Ver 1_Approval Letter_20050908

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Certified Mail
Return Receipt Requested
Communities of Penland, L.L.C.
Attention: Neil O'Rourke
135 Crown Ridge
Spruce Pine, North Cazolina 28777-9412
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
September 8, 2005
Re: Village of Penland Development, Communities of Penland, LLC
Mitchell County, North Carolina
DWQ Project No. OS-0661;
US Army Corps of Engineers ID No. 200431306
Dear Sirs:
Attached hereto is a copy of Water Quality Certification No. 003530 issued to Communities of
Penland, LLC dated September 8, 2005. If we can be of further assistance, do not hesitate to contact
us.
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Attachments
DWQ Project No. OS-0661
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of Water Quality
cc: U.S. Army Corps of Engineers, Asheville Regulatory Field Office
DWQ, Asheville Regional Office -Rodger Edwards
DWQ, Asheville Regional Office -Kevin Barrnett
File Copy
DLR, ARO Regional Office
NPS Assistance and Compliance Oversight -Danny Smith
Central files
Soils and Environmental Consultants, Atten: Patrick K. Smith, P.E.
11010 Raven Ridge Road, Raleigh, NC 27614
Ecosystem Enhancement Program
Mr. Neil G. O'Rourke- Peerless Real Estate Services
102 Pebble Ridge Farms Court
Cary, NC 27513
4010versighUExpress Review Permits Unit
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
2321 Crabtree Boulevard, Sufte 250, Raleigh, North Carolina 27604
Phone: [phone] /FAX [phone] /Internet: http://h2o.enr.state.nc.us/ncwetlands
Nye Carolina
tura!!y
An Equal Opportunity/Affirmative Action Employer - 50% Recycledll0% Post Consumer Paper
Sincerely,

Communities of Penland, L.L.C.
Village of Penland Development
Water Quality Certification No. 003530
DWQ No. OS-0661
Page2of9
This Certification is issued in conformity with the requirements of Section 401 Public
Laws 92-500 and 95-217 of the United States and subject to the North Carolina Division
of Water Quality (DWQ) Regulations in 15A NCAC 2H, Section .0500 to Communities
of Penland, L.L.C., resulting in the discharge of earthen fill, culverting, side casting and
the excavation to 255 linear feet of streams and 3.2 acres of jurisdictional wetlands and
waters associated with the construction and expansion of the existing development
known as Village of Penland Development in Mitchell County, North Carolina, pursuant
to the application in the form of the Corps Public Notice received on the 29th day of
March, 2005 and amendments/additions to the application that include the US Army
Corps of Engineers and North Carolina -Division of Water Quality Individual Permit
Application by Communities of Penland, L.L.C. for Village of Penland Development,
Mitchell County, North Carolina dated February 11, 2005. Additionally, this Certification
satisfies the "after-the fact" requirements for 7651inear feet of culvert and associated
impacts that occurred after 1998, but prior to purchase of the property by the
Communities of Penland, L.L.C.
The application provides adequate assurance, coupled with the below listed
conditions, that the proposed work will not result in a violation of applicable Water
Quality Standards and discharge guidelines. Therefore the State of North Carolina
certifies that this activity will not violate the applicable portions of Section 301, 302, 303,
306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the application
and conditions hereinafter set forth.
This approval is only valid for the purposes and design that you submitted (and
modified) in your application in the form of the Corps of Engineer's Public Notice
received on the 29th day of March, 2005, amendments/additions to the application that
include the US Army Corps of Engineers and North Carolina -Division of Water Quality
Individual Permit Application by Communities of Penland, LLC for Village of Penland
Development, Mitchell County, North Carolina dated February 11, 2005, and. as
conditioned below. If you change your project, you must notify the Central Office of the
Division of Water Quality in writing and may be required to send the Central Office of
the Division of Water Quality an application for a new certification. If Communities of
Penland, L.L.C. is sold or the if the name of the company is changed, or the property is
sold, you must notify the Central Office and the Ashville Regional Field Office of the
Division of Water Quality in writing, and the new owner(s) of the company and/or
property must be given a copy of the Certification, approval letter, all necessary
supplementary information detailed in the application and subsequent amendments, and
the new owner(s) is thereby responsible for complying with all conditions of this

Communities of Penland, L.L.C.
Village of Penland Development
Water Quality Certification No. 003530
DWQ No. OS-0661
Page 3 of 9
Certification. Should wetlands or fill be requested in the future, additional compensatory
mitigation may be required as described in 15A NCAC 2H .0506 (h)(6) and (7). You
must follow the conditions listed below. In addition, you should get any other federal,
state or local permits before you go ahead with your project including (but not limited to)
an approved Erosion and Sedimentation Control permit and a USACE 404 Permit.
Conditions of Certification:
1. Impacts Approved
The following impacts aze hereby approved as long as all of the other specific and
general conditions of this Certification (or Isolated Wetland Permit) aze met. No
other impacts are approved including incidental impacts:
Amount Approved
(Units) Plan Location or Reference
Stream 255 (feet) Im act Reaches A and B
404/CAMA Wetlands 3.2 (acres) Diamond Lake Foot rint
Waters N/A (acres) N/A
Buffers N/A (s uaze ft.) N/A
2. Compensatory Mitigation Using the Ecosystem Enhancement Program (EEP)
Mitigation must be provided for the proposed impacts as specified in the table
below. We understand that you wish to make a payment to the Wetlands
Restoration Fund administered by the NC Ecosystem Enhancement Program
(EEP) to meet this mitigation requirement. This has been determined by the
DWQ to be a suitable method to meet the mitigation requirement. Until the EEP
receives and clears your check (made payable to: DENR -Ecosystem
Enhancement Program Office), no impacts specified in this Authorization
Certificate shall occur. The EEP should be contacted at [phone] if you
have any questions concerning payment into a restoration fund. You have one
month from the date of this approval to make this payment. For accounting
purposes, this Authorization Certificate authorizes payment into the
Wetlands Restoration Fund to meet the following compensatory mitigation
requirement:
Compensatory Mitigation
Re uired River and Sub-basin
Number
Stream 255 (feet) Stream Index #7-2-(27.7)
Wetlands 6.4 (acres)
Waters N/A (acres)

Communities of Penland, L.L.C.
Village of Penland Development
Water Quality Certification No. 003530
DWQ No. OS-0661
Page 4 of 9
3. An additional condition of the Certification is that you must obtain approval from
DWQ on a final, written stormwater management plan (including a signed and notarized
Operation and Maintenance Agreement). This information must be provided to DWQ
and a written approval must be secured prior to any construction beyond that of stream
restoration as detailed in Item 4.
a. The stormwater management plan must include plans and specifications for
stormwater management facilities that are appropriate for surface waters
classified as Class C Tr and designed to remove 85% TSS according to the
most recent version of the NC DENR Stormwater Best Management Practices
Manual. Further, extended detention wetlands, bio-retention areas, and ponds
followed by forested filter strips (designed according to latest version of the
NC DENR Stormwater Best Management Practices Manual) must be
constructed as part of the stormwater management plan.
b. These facilities must be designed to treat the runoff from the entire project,
unless otherwise explicitly approved by the Division of Water Quality. Also,
before any permanent building is occupied at the subject site, the facilities (as
approved by this Office) shall be constructed and operational, and the
stormwater management plan (as approved by this Office) shall be
implemented.
c. The structural stormwater practices as approved by DWQ as well as drainage
patterns must be maintained in perpetuity. No changes to the structural
stormwater practices shall be made without written authorization from the
Division of Water Quality.
d. The above condition shall apply unless it is demonstrated in writing to the
satisfaction of DWQ that the impervious .area of the entire, built-out project
shall be less than 30% and that there are no areas of concentrated
impervious area over 30% within the project such as, but not limited to,
commercial areas, parking lots, shops, multi-family, clubhouses,
maintenance areas, etc.
4. Restoration. The pattern, profile, and dimension of the stream features (Reach A
and Reach B) must be restored. Specifically, impacted reaches (3301inear feet and 400
linear feet of stream "reach A and B" respectively) are required to be restored as depicted
in the Individual Permit Application by Communities of Penland, L.L.C. for Village of
Penland Development, Mitchell County, North Carolina dated February 11, 2005 with
below listed additional requirements.

Communities of Penland, L.L.C.
Village of Penland Development
Water Quality Certification No. 003530
DWQ No. 05-0661
Page 5 of 9
a. That within 90 days of the signature date of this Certification, Communities of
Penland, L.L.C. mush provide two (2) copies of a 5 year stream, riparian zone,
and benthic monitoring plan to DWQ to the North Carolina Division of Water
Quality, Asheville Regional Office at 2090 US Highway 70, Swannanoa, NC
28778 and North Carolina Division of Water Quality Central Office at 1650
Mail Service Center, Raleigh, NC, 27699-1650. Said plan must detail the
monitoring requirement, which will begin upon the full implementation of the
stream and riparian zone .buffer restoration. The physical monitoring plan must
include quarterly (January, April, July, October) inspections/review of the
restored stream and the riparian areas. The benthic monitoring plan must be
conducted annually, for a period of 5 years.
b. Repairs and/or corrections to restoration efforts must be accomplished within
30 days of the inspection observation or notification by DWQ in the following
situations:
i. if the stream banks become unstable;
ii. if measures constructed as a part of the stream restoration
efforts have failed or are failing; and/or
iii. if riparian restoration efforts, including plantings, are failing or
are not surviving.
c. An annual written report must be provided to the Asheville Regional Office
and Central Office of the DWQ by June 1 of each year. The report must
describe each quarterly inspection result and it must include the date of the
inspection, and describe when repairs or corrections were completed.
Additionally, it must also include the benthic monitoring results, for each
stream segment restored.
d. Stream restoration is required and must be completed as a condition of this
Certification. Restoration must be implemented for all stream reaches (A and
B) within one year of issuance of this Certification.
5. Riparian Buffers. Communities of Penland, L.L.C., must establish a 50-foot
riparian buffer (on each side of the stream) for intermittent streams and a 100-foot
riparian buffer (on each side of the stream) for perennial streams such that building,
grading, and the removal of woody plants within the riparian zone is prohibited.
Conservation easements or deed restriction must be maintained in perpetuity where
protection is provided to all streams and riparian areas (approximately 69,000 linear feet),
as depicted in the map labeled: "Overall Development Plan Alternative "B"" Attachment

Communities of Penland, L.L.C.
Village of Penland Development
Water Quality Certification No. 003530
DWQ No. OS-0661
Page 6 of 9
6 and the buffer mitigation proposal in the February 11, 2005 Individual Permit
Application by Communities of Penland, L.L.C. This requirement excludes wetlands,
streams and riparian areas authorized for impacts in accordance with this 401 Water
Quality Certification.
Communities of Penland, L.L.C. must establish the deed restrictions or conservation
easements, and a copies must be provided to the North Carolina Division of Water
Quality, Ashville Regional Office within 180 days of issuance of this Certification. These
riparian (stream-side) areas must remain in conservation easements or under a protective
deed restrictions. Communities of Penland, L.L.C must maintain the conservation
easements or deed restrictions as long as it owns Village of Penland Development and
transfer the conservation easements or deed restrictions and their requirements to any
future owners, trustees executors or other agents including any Home Owners
Association within the subject subdivision.
For areas that have been sold prior to the issuance of this Certification establishing
riparian buffer setbacks that prevents building, grading, and the removal of woody plants
within the riparian zone, this riparian buffer setback must prohibit impacts beyond what
may have already occurred in and along the riparian zone as of the date of this
Certification. As proposed in the February 11, 2005 Individual Permit Application by
Communities of Penland, L.L.C. for Village of Penland Development, the use of a
restrictive covenants is satisfactory. For all remaining lots owned by the Communities of
Penland, L.L.C., riparian buffer requirements must be minimally addressed through
conservation easements or deed restrictions.
6. Culvert Installation. The culverts required for this project including "after-the
fact" 7651inear feet of culvert and associated impacts that occurred after 1998, but prior
to Communities of Penland, L.L.C. purchase of the property, shall be installed in such a
manner that the original stream profiles are not altered. Existing stream dimensions
(including the cross section dimensions, pattern, and longitudinal profile) are to be
maintained above and below locations of each culvert. The culverts shall be designed
and installed to allow for aquatic life movement as well as to prevent head cutting of the
streams. If any of the existing pipes are or become perched, the appropriate stream grade
shall be re-established or, if the pipes are installed in a perched manner, the pipes shall be
removed and re-installed correctly.
The culvert(s) shall not be installed in such a manner that will cause aggradation or
erosion of the stream up or down stream of the culverts. Existing stream dimensions
(including the cross section dimensions, pattern and longitudinal profile) are to be
maintained above and below locations of each culvert. As such, within 180 days of
receipt of this Certification, it is required that you address in writing to the North
Carolina Division of Water Quality, Asheville Regional Office (Attention: Kevin
Barnett) at 2090 US Highway 70, Swannanoa, NC 28778 and the North Carolina
Division of Water Central Office at 1650 Mail Service Center, Raleigh, NC, 27699-1650

Communities of Penland, L.L.C.
Village of Penland Development
Water Quality Certification No. 003530
DWQ No. 05-0661
Page 7 of 9
that for each respective stream crossing that crossing has been properly installed and that
stream stability has been maintained or enhanced. If culverts representing the 7651inear
feet of culvert and associated impacts that occurred after 1998, but prior to Communities
of Penland, L.L.C. purchase of the property, are determined to have been improperly
installed DWQ will consider after review of your written account which crossing may
need to appropriately retrofitted.
The establishment of native, woody vegetation and other soft stream bank stabilization
techniques must be used where practicable instead of rip rap or other bank hardening
methods; if rip-rap is necessary, it shall not be placed in the stream bed, unless
specifically approved by the Division of Water Quality.
7. If the US Army Corps of Engineers (USAGE) permitting requirements inhibits
full compliance with the 401 Water Quality Certification, you must request a
modification of the 401 Water Quality Certification. If the USAGE requirements are less
stringent than those depicted in this 401 Water Quality Certification, the conditions of
this 401 Certification are binding.
8. During restoration efforts as described in Item 4 and during any future additional
site development efforts, the Communities of Penland, L.L.C. must use erosion and
sediment control practices in full compliance with all specifications governing the proper
design, installation, and operations and maintenance of such best management practices.
9. During restoration efforts as described in Item 4 and during any future additional
site development efforts the Communities of Penland, L.L.C. must fully comply with the
requirements included in the National Pollution Discharge Elimination Systems (NPDES)
stormwater permit (NCGO10000) for construction sites.
10. Erosion and Sedimentation Control. Communities of Penland, LLC agrees that
during restoration and any future site development activities, they will take the following
actions:
a Within 60 days of signature date of this Certification, Communities of
Penland, L.L.C. will request modification of any current or existing
erosion and sedimentation control plans in order to meet current NC
Division of Land Resources (hereinafter "DLR") minimum design
standards and to accommodate/properly address any changes necessary to
the approved Erosion and Sedimentation Control Plan such that stream
restoration and site stabilization may proceed.
b. Communities of Penland, L.L.C. must use erosion and sedimentation
control best management practices in full compliance with all

Communities of Penland, L.L.C.
Village of Penland Development
Water Quality Certification No. 003530
DWQ No. 05-0661
Page 8 of 9
specifications governing the proper design, installation, operation and
maintenance of such practices.
c. Communities of Penland, L.L.C. must comply with the requirements of
the Sedimentation Pollution Control Act (SPCA), including designing,
installing, operating, and maintaining erosion and sedimentation control
measures in accordance with the most recent version of the North Carolina
Erosion and Sedimentation Control Manual.
d. Communities of Penland, L.L.C. must fully comply with the requirements
included in the National Pollution Discharge Elimination Systems
(NPDES) stormwater permit (NCGO10000) for construction sites.
e. No unauthorized waste, spoil, solids, or fill of any kind may occur in
wetlands, waters, streams or riparian areas.
f. Communities of Penland, L.L.C. will conduct all construction activities,
including the design, installation, operation, and maintenance of erosion
and sedimentation control best management practices, such that no
violations of state water quality standards, statutes, or rules will occur.
11. During restoration efforts as described in Item 4 and during any future additional
site development efforts, the Communities of Penland, L.L.C. must make available a
copy of this Certification to all current owners, trustees, and executors of the affect tracts.
12. Upon completion of all work approved within the 401 Water Quality Certification
and any subsequent modifications, the applicant is required to return the attached
certificate of completion to the North Carolina Division of Water Quality, Asheville
Regional Office (Attention: Kevin Barnett) at 2090 US Highway 70, Swannanoa, NC
28778 and North Carolina Division of Water Central Office at 1650 Mail Service Center,
Raleigh, NC, 27699-1650.
13. Communities of Penland, L.L.C. and its authorized agents shall conduct its
activities in a manner consistent with State water quality standards (including any
requirements resulting from compliance with section 303(d) of the Clean Water Act) and
any other appropriate requirements of State law and federal law. Communities of
Penland, L.L.C. shall require its contractors (and/or agents) to comply with all of the
terms of this Certification, and shall provide each of its contractors (and/or agents) a copy
of this Certification. A copy of this Certification shall be included in the construction
contract and available on the job site at all times.
If DWQ determines that standards or laws are not being met (including the failure to
sustain a designated or achieved use) or that State or federal law is being violated, or that

Communities of Penland, L.L.C.
Village of Penland Development
Water Quality Certification No. 003530
DWQ No. OS-0661
Page 9 of 9
further conditions are necessary to assure compliance, DWQ may reevaluate and modify
this certification to include conditions appropriate to assure compliance with such
standards and requirements in accordance with 15A NCAC 2H.0507(d). Before
modifying the certification, DWQ shall notify Communities of Penland, L.L.C. and the
US Army Corps of Engineers, provide public notice in accordance with 15A NCAC
2H.0503 and provide opportunity for public hearing in accordance with 15A NCAC
2H.0504. Any new or revised conditions shall be provided to Communities of Penland,
L.L.C. in writing, shall be provided to the United States Army Corps of Engineers for
reference in any permit issued pursuant to Section 404 of the Clean Water Act, and shall
also become conditions of the 404 Permit for the project.
Violations of any conditions herein set forth may result in revocation of this
Certification and may result in criminal andlor civil penalties.
If this Certification is unacceptable to you, you have the right to an adjudicatory
hearing upon written request within the sixty (60) days following the receipt of this
Certification. This request must be in the form of a written petition conforming to
Chapter 150B of the North Carolina General Statures and filed with the Office of
Administrative Hearings, 6714 Mail Service Center, Raleigh, N.C. 27699-6714. If
modifications upon are made to an original Certification, you have right to adjudicatory
on the modifications upon written request within sixty days following receipt of the
Certification. Unless such demands are made, this Certification shall be final and
binding.
This the 8th day of September 2005
DIVISION OF WATER QUALITY
DWQ Project No. OS-0661
imek, P.
050661 Penland(Mitchell)individualcert.