20052146 Ver 5_More Info Received_20090429

r -? CAPE FEAR
'a- Engineering, Inc.
April 27, 2009
Ms. Linda Pearsall, Director
NCDENR Natural Resources Planning & Conservation
512 N. Salisbury Street
Raleigh, NC 27604
Mr. Blane Rice, Manager
State Property Office
116 West Jones Street
Raleigh, NC 27603-8003
Ms. Ann Matthews, Assistant Attorney General
NC Attorney General
114 W Edenton Street
Raleigh, NC 27603
Re: SeaWatch at Sunset Harbor Conservation Easements
Dear Ms. Pearsall, Mr. Rice, and Ms. Matthews:
@
APR 2 ? 2009
DENR - WATER QUALITY
WETLANDS AND STORMATER BPA.NC?;
To finalize the land exchange agreement between MAS Properties and the State of North Carolina, Cape
Fear Engineering is providing the enclosed Conservation Easement Exhibit maps for your review and
approval. These maps have been prepared to clarify where the easements are proposed relative to planned
lots and remaining wetlands on the tracts known as Mercer Mill and Yellow Banks within SeaWatch at
Sunset Harbor.
It is MAS Properties' understanding that the proposed easements were previously agreed to and the only
two issues left to clarify include 1) ensuring that approximately 470 acres of wetlands are placed in the
conservation easements, and 2) for simplification purposes, no wetlands within sold or planned lots
should be included in the easements. Although the conservation easement language does state that no
cutting of vegetation will be allowed, the State Property Office verbally agreed to allow hand cutting of
vegetation on multiple occasions. In addition, the Attorney General's office communicated to MAS
Properties on January 11, 2008, that it is feasible that restrictions required under the terms of EEP may
only be applicable to a specified acreage and a less restrictive conservation easement may be placed on
the other acreage for a total of 470 acres. MAS Properties proceeded with this understanding.
Prior correspondence between MAS Properties and the State indicate that these were the only two
remaining issues as of "spring 2008". A meeting was held in July of 2008 to finalize the terms of the
transaction. NCDENR Natural Resources Planning & Conservation staff attended the meeting and stated
new concerns about the entire conservation easement. Due to their concerns, MAS Properties was asked
to explore other properties outside of SeaWatch for conservation to satisfy the land exchange agreement.
Despite the efforts and money spent finalizing the SeaWatch easements (including but not limited to the
title work, removal of mineral right concerns, legal fees, surveying and engineering fees), other
possibilities were explored and a meeting was held concerning other lands with EEP's partner, the Coastal
Land Trust. However, due to current economic conditions and outstanding issues requiring resolution on
any other tract of land, placing a conservation easement outside of SeaWatch is not feasible at this time.
151 Poole Road, Suite 100 - Belville, NC 28451 • TEL: [phone] • FAX: [phone]
www.capefearengineering.com
MAS Properties would like to finalize the original agreement as intended as soon as possible. Efforts
have been made over the last three weeks to schedule a meeting; however, to date one meeting has been
canceled by the State and a meeting has not been rescheduled. I will arrange my schedule to meet at your
earliest convenience and trust that the maps provided will enable you to approve the proposed
conservation easements, finalizing the land exchange agreement between MAS Properties and the State of
North Carolina. Once an agreement is reached, Cape Fear Engineering will immediately prepare the final
easement maps and submit with the modified language. Please call me if you have any questions at (910)
470-1940.
Sincerely,
Noelle Winstead
cc: Sheldon Tucker, MAS Properties, LLC
David Knight, Assistant Secretary for Natural Resources
Robin Smith, Assistant Secretary for Environment
Marion Patrick, State Property Office
Eric Galamb, NCDENR Resource Planning and Conservation
Doug Hugget, Division of Coastal Management
Ian McMillan, 401 Oversight and Express Unit
Page 2 of 2

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