20050949 Ver 2_Modifications_20121031 (2)

i�>W Q O 5- O R 4 g V O LAW OFFICES OF K6 fly
F. BRYAN BRICE, JR.
F. BRYAN BRIcE, JR.
CATHERINE CRALLE JONES
MATTHEW D. QUINN
E. WARREN KUHN
ROBERT GELBLUM, OF COUNSEL
Mr. Thomas Brown
U.S. Army Corps of Engineers
Raleigh Regulatory Field Office
3331 Heritage Trade Dr., Ste. 105
Wake Forest, NC 27587
October 30, 2012x,.,"-'' -=
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5 W. HARGETT ST., STE. 200
RALEIGH, NC 27601
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:919 -573 -4252
BRifAN RYANBRICE.COM
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Re: Modification Request, PEG Permit # SAW -2007- 04137, Johnston County
Dear Thomas:
Thanks for meeting with us last Wednesday and walking the property in Johnston
County. We greatly appreciate your time, and Jean and Craig as well.
Please let this letter serve as a further formal request to modify the mitigation
component of the above- referenced permit. In that regard, given the environmental and related
factors we discussed, as well as the shortened timeframe and certain financial constraints given
the real estate market conditions, we propose the following options in order of preference:
Option 1. Allow the 1.53 acres of wetlands impacts at the site to be mitigated by
preserving 46 acres ( "Proposed Preservation Site ") adjacent to the Rudolph
Buffer/Nutrient Offset Mitigation Site which is located in Johnston Co. in
the Upper Neuse River Basin within the USGS HUC 03020201 and the N.C.
Division of Water Quality (DWQ) sub -basin 03 -04 -02 (See, Attachment A).
The Proposed Preservation Site will be protected by a Conservation
Easement in perpetuity and currently contains approximately 40 acres of
higher quality headwater and bottomland hardwood forest jurisdictional
wetlands within the 48.3 acre functioning preservation area (Attachments).
• Rather than have this functioning hardwood wetland community at risk for
being logged, we believe preserving this acreage retains the environmental
and ecological benefits described herein and referenced in part in the
attachments. The approximately fifteen acre site to the southwest adjacent
to our Proposed Preservation Site was clear cut approximately 5 years ago.
• This also preserves the hardwood and related overstory, understory, and
vegetative community (see, attachments). This includes important habitat
on this swamp and/or riverine system that feeds directly to the Neuse River.

October 30, 2012
Page 2
• This prime Proposed Preservation Site is located in Johnston County,
approximately 12.4 miles from the location of the 1.53 acres of impact in
Smithfield beside Industrial Park Dr. and South Equity Dr., just off I -95.
• It preserves an important hardwood (and some pine) wetland community
that is directly adjacent to a fully functioning, mature Neuse 01 stream
buffer and nutrient offset mitigation site (see, Attachment B). Such
connectivity is desirable for the added protections and benefits to water
quality, timber and vegetative growth, and wildlife habitat such large scale
preservation would provide in the Neuse 01 HUC, as well as the nearby,
already protected mitigation site.
• It is a high quality/higher value type of wetland community than the one
being impacted, which is of equal or greater environmental benefit to the
overall Neuse HUC and watershed.
EBX Neuse I, LLC currently owns the Proposed Preservation Site and EBX
reserve the right to develop stream mitigation credits within the Proposed
Preservation Site area. EBX also reserves the right to maintain the existing
farm paths inside the Proposed Preservation Site area or convert the existing
farm paths to Buffer and/or Nutrient Offset Mitigation. The proposed
Conservation Easement holder /grantee will be the North Carolina Wildlife
Habitat Foundation, who currently holds many Conservation Easements for
mitigation sites.
• When EBX completes the stream restoration project within the preserved
wetlands and protected buffer mitigation area, the Proposed Preservation
Site will have an increased wetland value and function. Restoring the
stream will help to reestablish natural flood flows, vegetation communities,
and wildlife habitat adjacent and within the Proposed Preservation Site.
Option 2. Allow the permittee to satisfy its mitigation requirement by purchasing 6.5
credits from an existing, mature wetlands mitigation bank in the adjacent
(Meuse 02) HUC. We believe this would be environmentally beneficial for
the following reasons:
• Comports with State law NC Session Law 2009 -337 as amended by section
1.1 of S. L. 2011 -343, passed in 2009 and amended in 2011 by allowing the
purchase of mitigation which is already in the ground (mature) and
providing established environmental benefits and water quality
improvements to the Neuse basin.
• The Casey -King and Tull/Wooten Mitigation Sites are only 50 miles from
the approximately 1.5 acres of impacts, and drains directly into the Neuse

October 30, 2012
Page 3
River and are both part of the EBX Neu Con Umbrella Mitigation Bank.
We are proposing 1.5 credits from the Casey -King Site and 5 credits from
the Tull/Wooten H Site.
• This is four times the amount of the actual impact (1.53 acres) in mitigation;
is double what is required by EEP (3.25 credits); and is approximately 1.5
times the 4.5 credits referenced in the permit.
• These credits are mature; they are of a type that is the same or higher quality
wetland type compared to the 1.53 acres of actual impact; the credits are
providing significant water quality benefits for an area of the Neuse that is
impacted environmentally by discharges, etc. from the adjacent 01 HUC.
• For the remaining reasons as detailed in our previous correspondence, we
would incorporate that analysis into this request and given the factors
particular to this case/request (small impact, adjacent basin, mature bank,
environmental and ecological benefit in excess of actual impacts and in
excess of all current permit requirements), we believe that mitigation from
the adjacent HUC can be allowed to satisfy the current permit requirement.
Option 3. Allow the purchase of .5 credits from the EEP in lieu fee program from the
Neuse 01 HUC, combined with 4 credits from the adjacent basin (Meuse 02)
from the existing mitigation bank site as described in #2, above.
We believe Option 1 is the most environmentally beneficial option. The impacts are to
approximately 1.5 acres of wetlands that are no longer directly connected to a water body; are
fronted by local/state roads and a major federal highway, is across from the community
college; is surrounded by commercial (albeit small commercial) use, and just down from the
outlet mall development off I -95. In option 1, the approximately 1.5 acres of impacts would be
mitigated by permanently protecting the Proposed Preservation Site by a conservation
easement, with direct connectivity to the existing protected Rudolph Buffer/Nutrient Offset
Mitigation Site within the same County and within the same RUC.
Similarly, with option 2, the approximately 1.5 acres of impacts would be mitigated by
purchasing 6.5 mature wetlands credits from an existing bank whose function and
environmental benefit for water quality and the Neuse river is already well established and
meets the state law and its goals of using existing private banks and established, mature credits,
as well as stated federal law, guidance and even draft guidance as to the case by case analysis
-of use of credits in an adjacent HUCs. The 6.5 credits from the Neuse bank are located
approximately 50 miles from the impacts.
While we believe the other options are feasible, they require mitigation from an
adjacent HUC and we do not think such is as environmentally beneficial as option 1. We
reviewed and discussed with you possible enhancement of the approximately 15 acres beside
the site listed on option 1, but have determined it is not feasible from an environmental

October 30, 2012
Page 4
perspective (access, suitability, ultimate success and cost), and did not locate any feasible sites
or opportunities within the direct vicinity of the impact. Also, it was not feasible, particularly
due to cost constraints, to attempt to develop a bank site in 01 when there were only 1.53 acres
of actual, total impacts. Due to the regulatory change in the EEP in lieu fee structure and the
new, tiered system for the Neuse 01 HUC, the changed circumstances from the time of the
original permit and the real estate market crash have made purchase from that program of
anything more than half a credit not feasible. Similarly, it is not feasible to purchase a half
credit from EEP and some smaller portion of preservation from the proposal in Option 1, as the
property owner is not willing to sell only a portion of the preservation property.
For these reasons, we respectfully request approval of option 1 as our permit
modification request. The parties would be able to close on the land sale contract for the
recombined lots 18 and 19 as soon as we obtain your approval for the modification. We
believe these options, particularly option 1, are of significant environmental benefit when
viewed in total and in comparison to the impact, and comport with federal and state law,
regulations and guidance in allowing said modification request. Also, as stated in prior
discussions and correspondence, all 401 conditions will be met in short order as well.
Lastly, we seek to preserve the onsite wetland area with a minor modification to
establish smaller species plantings within the preserved acre, within a year of the permit
modification, with the ability to maintain appearance and structural integrity of the building(s).
We will be discussing the exact language with Mr. McCorcle and will accept our negotiated
language in that regard.
Thomas, I express again our thanks for your review and assistance. Please do not
hesitate to call if you have any questions or concerns, or if you or any of your colleagues in this
process need any further information.
Sincerely,
c
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F. Bry rice, Jr.
cc: Jean Gibby
Justin McCorcle
Chuck Wakild
Eric Kulz

O�QF W h f FLOG Michael F. Easley, Governor
y 7 William G. Ross Jr., Secretary
j r North Carolina Department of Environment and Natural Resources
—1
'r Coleen H. Sullins, Director
Division of Water Quality
October 13, 2008
Mr. John Shallcross, Jr.
Partner's Equity Group
Post Office Box 1524
Smithfield, NC, 27577
Re: Lots 18 and 19 of Partners Equity Group Commercial Subdivision,
Johnston County
DWQ #2005 -0949 Version 2; USACE Action ID. No. SAW- 2007 -04137
APPROVAL of 401 Water Quality Certification
Dear W. Shallcross:
Attached hereto is a copy of Certification No. 3761 issued to Mr. John Shallcross, Jr. of Partner's Equity
Group, dated October 13, 2008. In addition, you should get any other federal, state or local permits before
you go ahead with your project including (but not limited to) Solid Waste, Sediment and Erosion Control,
Stormwater, Non - discharge and Water Supply Watershed regulations.
If we can be of further assistance, do not hesitate to contact us.
Sincerely,
Co een H. Sullins
CHS1cbk
Attachments: Certificate of Completion
cc: U.S. Army Corps of Engineers, Raleigh Regulatory Field Office
Wilmington District, USACOE
Danny Smith, DWQ, Raleigh Regional Office
DLR Raleigh Regional Office
File Copy
Matt Matthews, DWQ Wetlands and Stormwater Branch
Scott Frederick, 1001 Capability Drive, Suite 312, Raleigh, NC, 27606
Jonathan Smith, McKim & Creed, 1730 Varsity Drive, Suite 500, Raleigh, NC, 27606
Bryan Brice, 19 W. Hargett St., Suite 600, Raleigh, NC, 27601
Filename: 20050949 V2Partners(Johnston)401
401 Oversight/Express Review Permitting Unit
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1650 Mail Service Center, Raleigh, North Carolina 27699 -1650
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27604
Phone: [phone] / FAX 919 - 733 -6893 / Internet• http:// h2o.enr.state.nc.ustncwetian,�c
An Equal Opportunity /Affirmative Action Employer — $00/9 Recycled/l ovo Post Consumer Paper,

Partners Equity Group
Page 2 of 4
October 13, 2008
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
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 15 NCAC 2H, Section .0500 to Mr. John Shallcross, Jr. of Partner's Equity Group to fill
1.53 acres of jurisdictional wetlands in the Neuse River Basin, associated with the construction of Lots 18
and 19 of Partners Equity Group Commercial Subdivision in Johnston County, North Carolina, pursuant to
an application filed on the 21" day of December of 2007, and in additional correspondence received
December 7, 2007, and May 6, May 29, July 16, August 20, September 12, and October 9, 2008.
The application and supporting documentation provides adequate assurance 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 Sections 301,
302, 303, 306, 307 of PL 92 -500 and PL 95 -217 if conducted in accordance with the application, the
supporting documentation, and conditions hereinafter set forth.
This approval is only valid for the purpose and design submitted in the application materials and as
described in the Public Notice. If the project is changed, prior to notification a new application for a new
Certification is required. If the property is sold, the new owner must be given a copy of the Certification
and approval letter and is thereby responsible for complying with all conditions of this Certification. Any
new owner must notify the Division and request the Certification be issued in their name. Should wetland
or stream rill be requested in the future, additional compensatory mitigation may be required as described
in 15A NCAC 2H .0506 (h) (6) and (7). If any plan revisions from the approved site plan result in a
change in stream or wetland impact or an increase in impervious surfaces, the DWQ shall be notified in
writing and a new application for 401 Certification may be required. For this approval to be valid,
compliance with the conditions listed below is required.
Conditions of Certification:
1. Impacts Approved
The following impacts are hereby approved as long as all of the other specific and general
conditions of this Certification (or Isolated Wetland Permit) are met. No other impacts are
approved including incidental impacts:
Sediment and Erosion Control:
2. Erosion and sediment control practices must be in full compliance with all specifications
governing the proper design, installation and operation and maintenance of such Best
Management Practices in order to protect surface waters standards:
Amount Approved Units
Plan Location or Reference
Stream
n/a feet
n/a
404 Wetlands
1.53 (acres)
Corps of Engineers' Public
Notice dated December 21,
2007
Waters
n/a acres
n/a
Buffers
n/a uare ft.
n/a
Sediment and Erosion Control:
2. Erosion and sediment control practices must be in full compliance with all specifications
governing the proper design, installation and operation and maintenance of such Best
Management Practices in order to protect surface waters standards:

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Page 3 of 4
October 13, 2008
a. The erosion and sediment control measures for the project must be designed, installed,
operated, and maintained in accordance with the most recent version of the North Carolina
Sediment and Erosion Control Planning and Design Manual.
b. The design, installation, operation, and maintenance of the sediment and erosion control
measures must be such that they equal, or exceed, the requirements specified in the most
recent version of the North Carolina Sediment and Erosion Control Manual. The devices
shall be maintained on all construction sites, borrow sites, and waste pile (spoil) projects,
including contractor -owned or leased borrow pits associated with the project.
c. For borrow pit sites, the erosion and sediment control measures must be designed, installed,
operated, and maintained in accordance with the most recent version of the North Carolina
Surface Arming Manual.
d. The reclamation measures and implementation must comply with the reclamation in
accordance with the requirements of the Sedimentation Pollution Control Act.
3. No waste, spoil, solids, or fill of any kind shall occur in wetlands, waters, or riparian areas beyond
the footprint of the impacts depicted in the 404/401 Permit Application. All construction activities,
including the design, installation, operation, and maintenance of sediment and erosion control Best
Management Practices, shall be performed so that no violations of state water quality standards,
statutes, or rules occur;
4. Sediment and erosion control measures should not be placed in wetlands or waters without approval
by the Division. If placement of sediment and erosion control devices in wetlands and waters is
unavoidable, design and placement of temporary erosion control measures shall not be conducted in
a manner that may result in dis- equilibrium of wetlands or stream beds or banks, adjacent to or
upstream and down stream of the above structures. All sediment and erosion control devices shall
be removed and the natural grade restored within two (2) months of the date that the Division of
Land Resources or locally delegated program has released the project.
Continuing Compliance:
S. Mr. John Shallcross, Jr. and/or Partner's Equity Group shall conduct construction 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. If the Division determines that such 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 further conditions are necessary to assure compliance, the Division 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, the Division shall notify Mr. John Shallcross, Jr. of Partner's Equity
Group and the US Army Corps of Engineers, provide public notice in accordance with 15A
NCAC 21-1.0503 and provide opportunity for public hearing in accordance with 15A NCAC
2H.0504. Any new or revised conditions shall be provided to Mr. John Shallcross, Jr. of
Partner's Equity Group 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;
Mi i a 'o
6. Compensatory Mitigation Using the Ecosystem Enhancement Program (EEP)

Partners Equity Group
Page 4 of 4
October 13, 2008
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 Wetland 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 (919) 715 -0476 if you have any questions concerning payment into a
restoration fund. You have 60 days from the date of this approval to make this payment. For
accounting purposes, this Authorization Certificate authorizes payment into the Wetland
Restoration Fund to meet the following compensatory mitigation requirement:
Other conditions:
7. Written Stormwater Management Plan (No Further Approval Needed)
The final, written stormwater management plans (including a signed and notarized Operation and
Maintenance Agreement), final version received October 9, 2008, must be implemented and the
stormwater management facilities shall be constructed and operational before any permanent
building is occupied at the subject site. The structural stormwater practices as approved by this
Office 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.
Also, this approval to proceed with your proposed impacts or to conduct impacts to waters as
depicted in your application shall expire upon expiration of the 404 Permit.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing upon written
request within sixty (60) days following receipt of this Certification. This request must be in the form of a
written petition conforming to Chapter 150B of the North Carolina General Statutes and filed with the
Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, N.C. 27699 -6714. If
modifications are made to an original Certification, you have the right to an adjudicatory hearing on the
modifications upon written request within sixty (60) days following receipt of the Certification. Unless
such demands are made, this Certification shall be final and binding.
This the 13th day of October, 2008
DIVISION OF WATER QUALITY
Coleen H. Sullins
CHS /cbk
Compensatory Mitigation
Required
River and Sub - basin Number
Stream
n/a feet
n/a
Wetlands
3.06 acres
03020201
Waters
A acres
n/a
Other conditions:
7. Written Stormwater Management Plan (No Further Approval Needed)
The final, written stormwater management plans (including a signed and notarized Operation and
Maintenance Agreement), final version received October 9, 2008, must be implemented and the
stormwater management facilities shall be constructed and operational before any permanent
building is occupied at the subject site. The structural stormwater practices as approved by this
Office 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.
Also, this approval to proceed with your proposed impacts or to conduct impacts to waters as
depicted in your application shall expire upon expiration of the 404 Permit.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing upon written
request within sixty (60) days following receipt of this Certification. This request must be in the form of a
written petition conforming to Chapter 150B of the North Carolina General Statutes and filed with the
Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, N.C. 27699 -6714. If
modifications are made to an original Certification, you have the right to an adjudicatory hearing on the
modifications upon written request within sixty (60) days following receipt of the Certification. Unless
such demands are made, this Certification shall be final and binding.
This the 13th day of October, 2008
DIVISION OF WATER QUALITY
Coleen H. Sullins
CHS /cbk

AT�9
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014
Mhawo M.- IV
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
North Carolina Division of Water Quality
401 Water Quality Cerdflcation
Summary of Permitted Impacts and Mitigation Requirements
Coleco H. Sullins, Director
Division of Water Quality
In accordance with 15A NCAC 2H.0500, Mr. John Shallcross, Jr. of Partner's Equity Group has permission as
outlined below to impact 1.53 acres of jurisdictional non- riparian wetlands associated with the development of
Lots 18 and 19 of Partners Equity Group Commercial Subdivision in Johnston County. All activities
associated with these authorized impacts must be conducted with the conditions listed in the attached Permit
transmittal letter. THIS CERTIFICATION IS NOT VALID WITHOUT THE ATTACHMENTS.
COMPENSATORY MITIGATION REQUIREMENTS, ECOSYSTEM ENHANCEMENT PROGRAM
DWQ PROJECT #; 2005-0949 Version 2
LOCATION: Lots 18 and 19 of Partners Equity Group Commercial Subdivision
COUNTY Johnston
BASIN/ SUB BASIN Neuse, 03020201
As required by 15A NCAC 2H.0500, and the conditions of this Certification, you are required to compensate for
the above mitigable impacts through the restoration, creation, enhancement or preservation of wetlands and surface
waters as outlined below prior to conducting any activities that impact or degrade the waters of the state.
Note: Acreage requirements proposed to be mitigated through the Ecosystem Enhancement Program must be
rounded to one - quarter acre increments and linear foot requirements must be rounded up to the nearest
foot according to 15 2R.0503(b).
Impacts
Mitigation
1.53 Acres of jurisdictional non - riparian
wetland
306 Acres of jurisdictional non - riparian wetland
One of the options you have available to satisfy the compensatory mitigation requirement is through the payment of
a fee to the Wetlands Restoration Fund per NCAC 28.0503. If you choose this option, please sign this form and
mail the form along with a copy of your 401 Certification or Buffer Approval to the Ecosystem Enhancement
Program at the address below. An invoice for the appropriate amount of payment will be sent to you upon receipt
of this form. PLEASE NOTE, THE ABOVE IMPACTS ARE NOT AUTHORIZED UNTIL YOU RECEIVE
NOTIFICATION THAT YOUR PAYMENT HAS BEEN PROCESSED BY THE ECOSYTEM ENHANCMENT
PROGRAM.
Signature
Date
ECOSYSTEM ENHANCEMENT PROGRAM
1652 Mail Service Center
RALEIGH, N.C. 27699 -1652
(919)715 -0476
Filename: 20050949V2Partrrers(Johnston)EEP
Out UverstghvExpress Review Permitting Unit
1650 Mail Service Center. Raleigh, North Carolina 276WI650
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27I04
Phone [phone] / Fax [phone]
Internet: http: /Avww.ncwaterquality.org
An Equal OPPortunity /Affirmative Action Employer — 501A Remled/109A Post Consumer Parer
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