20221460 Ver 1_More Info Requested_20230206

NORTH C CLI .JA
ueo.m.m orEMr nment Want -
DocuSign Envelope ID: 0F5A6645-9EBC-462E-AE51-FEFF910E3938
ROY COOPER
Governor
ELIZABETH S. BISER
Secretary
RICHARD E. ROGERS, JR.
Director
NORTH CAROLINA
Environmental Quality
February 6, 2023
DWR # 20221460
Wake County
Vision Hospitality Group, Inc.
Attn: Brian Parker, Sr.
411 Broad Street
Chattanooga, TN 37402
(Send via email to [e-mail])
Subject: REQUEST FOR ADDITIONAL INFORMATION
Moxy Hotel Raleigh
Dear Mr. Parker:
On October 20, 2022, the Division of Water Resources (Division) received an application from Vision
Hospitality Group requesting a Buffer Authorization Certificate with Exception from the Division for
the subject project owned by Turnbridge Equities. On November 30, 2022, the Division requested
additional information and received a response from your consultant on December 19, 2022.
The Neuse River Buffer Rules lay out a rigorous criteria for obtaining an Authorization Certificate with
Exception to impact protected buffers from undesignated activities. The Division must find that the
applicant has met the hardship criteria, specified in 15A NCAC 02b .0611(c)(1), prior to putting the
application and preliminary Findings of Fact, out to Public Notice [NCAC 02b .0611(c)(3)]. The
application is on -hold until all of the following information is received:
1. Per 15A NCAC 02B .0611(c)(1)(C), "If the applicant complies with the provisions of this Rule, he
or she can secure no reasonable return from, nor make reasonable use of, his or her property."
a. From the application materials, it appears that the only use being contemplated by the
prospective purchaser is construction of a hotel. The specific use and design proposed
by applicant is inconsistent with the spirit and intent of the rule and the Division's long-
standing implementation of the rule. Please address why construction of a hotel is the
only reasonable use of the property.
b. From the application materials, the hotel (including its footprint) is based on a design
that is the same or similar to other hotels that the applicant owns and is premised on
169 rooms. The applicant indicates that maintaining a 169 room capacity within a
smaller footprint would require additional floors at an estimated cost of $2.8
million/floor and that the additional two floors at a cost of $5.6 million would "kill this
deal." However, there is no explanation as to why 169 rooms is the only point at which
DEQ�i
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 11611 Mail Service Center I Raleigh, North Carolina 27699-1611
919.707.9000

DocuSign Envelope ID: 0F5A6645-9EBC-462E-AE51-FEFF910E3938
Moxy Hotel Raleigh
DWR# 2022-1460
2nd Request for Additional Information
Page 2 of 3
the applicant can secure a reasonable return from the property. The applicant's stated
goal to "maximize the number of hotel rooms," does not adequately address the
regulatory criteria, especially where the criteria explicitly states that "merely proving
that the Authorization Certificate with Exception would allow a greater profit from the
property shall not be considered adequate justification for an Authorization Certificate
with Exception." As a result, please provide information demonstrating that this size of
hotel is the "minimum possible deviation from the terms of this Rule that shall make
reasonable use of the property possible."
2. Per 15A NCAC 02B .0611(c)(1)(D), the applicant must demonstrate that they did not cause the
hardship.
a. The Division's understanding is that the applicant does not currently own the property,
but it seeking to purchase the property for a specific use and design. Under those
circumstances, please explain how the applicant can demonstrate that the applicant did
not cause the hardship.
Pursuant to 15A NCAC 02B .0611, the applicant shall furnish all of the above requested information
for the proper consideration of the application. Please respond in writing within 30 calendar days of
receipt of this letter by sending one (1) copy of all of the above requested information to the 401 &
Buffer Permitting Branch, 1617 Mail Service Center, Raleigh, NC 27699-1617 OR by submitting all of
the above requested information through this link: https://edocs.deq.nc.gov/Forms/Supplemental-
Information-Form (note the DWR# requested on the link is referenced above). Please note that as a
Major Exception request, this review will require a 30-day public notice period upon receipt of the
additional information (15a NCAC 02b .0611 (c)(3)).
If all of the requested information is not received within 30 calendar days of receipt of this letter,
the Division will be unable to approve the application and it will be denied as incomplete. The
denial of this project will necessitate reapplication to the Division for approval, including a complete
application package.
Please be aware that you have no authorization under the Buffer Rules for this activity and any
work done within waters of the state may be a violation of North Carolina General Statutes and
Administrative Code.
Please contact Sue Homewood at 336-813-1863 or [e-mail] if you have any
questions or concerns.
D_E
NORTH CAROLINA
gaparNrM of Environmental quay
Sincerely,
DocuSignedubyn: w w ;*
A43C72700BD543E...
Katie Merritt, Acting Supervisor
401 & Buffer Permitting
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 11611 Mail Service Center I Raleigh, North Carolina 27699-1611
919.707.9000

DocuSign Envelope ID: 0F5A6645-9EBC-462E-AE51-FEFF910E3938
Moxy Hotel Raleigh
DWR# 2022-1460
2nd Request for Additional Information
Page 3of3
Electronic cc: Bob Zarzecki, Soil & Environmental Consultants, PA (via [e-mail])
DWR 401 & Buffer Permitting Branch file
D_E
NORTH CARCLINA
gaparNrM of F,Mrnnmanfal quay
Filename: 20221460_Moxy Hotel Raleigh_Wake_Addlnfo2.docx
North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 11611 Mail Service Center I Raleigh, North Carolina 27699-1611
919.707.9000