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Home My WebLink AboutResolutions - 2002.10.24 - 26987October 24, 2002 MISCELLANEOUS RESOLUTION #02267 BY: Planning and Building Committee, Charles E. Palmer, Chairperson IN RE: DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT-WASTE MANAGEMENT DIVISION - RESOLUTION APPROVING THE PROVISIONS OF A BROWNFIELD PLAN FOR THE DOWNTOWN WIXOM PROPERTY To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Oakland County Board of Commissioners, pursuant to and in accordance with the provisions of the Brownfield Redevelopment Financing Act, being Act 381 of the Public Acts of the State of Michigan of 1996, as amended (the "Act"), have established a redevelopment of Brownfields Redevelopment Authority and Board (OCBRA) to facilitate the clean up and redevelopment of Brownfields within Oakland County's communities; and, WHEREAS, the downtown Wixom development property is an essential component of a downtown development strategy for Wixom but is currently an environmental hazard and a 'facility' under state statute; WHEREAS pursuant to OCBRA by-laws, a local committee has been appointed, participated in discussions regarding the proposed plan and project, reviewed the plan, and is scheduled to recommend its approval at a meeting scheduled for Thursday October 17, 2002; and, WHEREAS it is the understanding of the Planning and Building Committee that the members of the Wixom City Council have reviewed the Plan, and have been provided a reasonable opportunity to express their views and recommendations regarding the Plan in accordance with Sections 13 (13) of the Act, and will consider for approval a resolution declaring their concurrence with the provisions of the Plan at their October 22, 2002 meeting (copy attached), but in any event, prior to any consideration of the Plan by the Oakland County Board of Commissioners; and WHEREAS the OCBRA, pursuant to and in accordance with Section 13 of the Act, has unanimously approved a resolution (attached) adopting the Plan, procedures for cost reimbursement, and recommending the adoption of the Plan by the Planning and Building Committee and the Board of Commissioners to be carried out within the City of Wixom, relating to the redevelopment of the downtown Wixom property located at 49350 Pontiac Trail (the "Property"); and, WHEREAS the Oakland County Board of Commissioners has established a public hearing on the adoption of the Brownfield Plan approved by the Oakland County Brownfield Redevelopment Authority for the downtown Wixom development in the City of Wixom to be held on October 24, 2002 at 9:30 am in the Board of Commissioners Auditorium, 1200 North Telegraph Road, Pontiac, Michigan; and NOW THEREFORE BE IT RESOLVED that, pursuant to the prior approval of a concurrent resolution of support by the Wixom City Council, the Oakland County Board of Commissioners does hereby adopt the Plan and authorizes that it be carried out within the City of Wixom, relating to the redevelopment of the downtown Wixom property located at 49350 Pontiac Trail (the "Property"); and, Chairperson, on behalf of the Planning & Building Committee, I move the adoption of the foregoing resolution. PLANNING & BUILDING COMMITTEE Planning & Building Committee Vote: Motion carried on unanimous roll call vote with Webster absent RESOLUTION TO APPROVE A BROWNFIELD REDEVELOPMENT PLAN FOR THE DOWNTOWN WIXOM BROWNFIELD SITE SEPTEMBER 18, 2002 WHEREAS, the downtown Wixom development property is an essential component of a downtown development strategy for Wixom but is currently an environmental hazard and a "facility' under state statute; and, WHEREAS, a clean up and redevelopment plan has been established to restore the environmental and economic viability of this parcel; and, WHEREAS, a local committee has been appointed, and is scheduled to review and comment on the plan and recommend its approval; and, WHEREAS, the BRA Board has reviewed and today modified the proposed plan, THEREFORE, BE IT RESOLVED, the Brownfield Plan for the Downtown Wixom Redevelopment stand approved as amended by the OCBRA on September 18, 2002, subject to concurrence with the local committee: and, BE IT FURTHER RESOLVED, to recommend the adoption of this plan by the Oakland County Board of Commissioners, and its Planning & Building and Finance Committee's Motion: Doug Smith, Second: Pete Webster Yeas: 6 Nays: 0 Absent: Keith Lerminiaux Approved: September 18, 2002 Marti Seaman Chai*rson Oakland County Brownfield Redevelopment Authority BROWNFIELD REDEVELOPMENT PLAN DOWNTOWN wpcom DEVELOPMENT COMPANY WIXOM, MICHIGAN for OAKLAND COUNTY MICHIGAN DOWNTOWN WDCOM DEVELOPMENT COMPANY AKT PEERLESS PROJECT No. 03669F2 SEPTEMBER 18, 2002 I. For Oakland County Brownfield Redevelopment Plan Downtown Wixom Development Company Wixom, Michigan Prepared With the Assistance of: The Oakland County Brownfield Redevelopment Authority and - AKT Peerless Environmental Services 22725 Orchard Lake Road Farmington, Michigan 48336 TABLE OF CONTENTS 1.0 INTRODUCTION 1 2.0 GENERAL DEFINITIONS AS USED IN THIS PLAN 2 3.0 STATUTORY ELEMENTS OF THE BROWNFIELD PLAN 3 4.0 MDEQ APPROVAL FOR CAPTURE OF SCHOOL TAX LEVIES 4 5.0 GOVERNING BODY APPROVAL OF THE BRO'VVNFIELD PLAN 4 6.0 BROWNFIELD REDEVELOPMENT PLAN 6 6.1 Description of the Project and Costs to be Paid through the Brownfield Plan (MCL • 125.2663(1)(a)).. 6 6.2 Estimate of Captured Taxable Value and Tax Increment Revenues (MCL 125.2663(1)(b)) 9 6.3 Method of Financing did Description of Advances by the Municipality MCL 125.2663(1)(c) 11 6.4 Maximum Amount of Note or Bonded Indebtedness (MCL 125.2663(1)(d)) 12 6.5 Duration of Brownfield Plan (MCL 125.2663(1)(e)) 12 6.6 Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions (MCL 125.2663(1)(f)) 12 6.7 Legal Description, Property Map and Personal Property (MCL 125.2663(1)(g)) 13 6.8 Estimates of Residents and Displacement of Families (MCL 125.2663(1)(h)) 13 6.9 Plan for Relocation of Displaced Persons (MCL 125.2663(1)(I)) 14 6.10 Provisions for Relocation Costs (MCL 125.2663(1)(j)) 14 6.11 Strategy for Compliance with Michigan's Relocation Assistance LawMCL 125.2663(1)(k) 14 6.12 Description of Proposed Use of Local Site Remediation Revolving Fund MCL 125.2663(1)(1) 14 6.13 Other Material that the Authority or Governing Body Considers Pertinent 15 7.0 LIST OF TABLES, FIGURES AND APPENDICIES 16 TABLE OF CONTENTS TABLES: TABLE 1: ANNUAL TAX INCREMENT REVENUE BREAKDOWN TABLE 2: ANNUAL TAX INCREMENT REVENUE BY TAXING JURISDICTION TABLE 3: ANNUAL MILLAGE RATES AND TAXABLE VALUE FIGURES: FIGURE 1: LOCATION MAP OF THE ELIGIBLE PROPERTY FIGURE 2: ELIGIBLE PROPERTY BOUNDARY MAP FIGURE: PROJECT CONCEPT PLAN APPENDICIES: APPENDIX A: LEGAL DESCRIPTION OF THE ELIGIBLE PROPERTY APPENDIX B: ENVIRONMENTAL DATA APPENDIX C: REIMBURSEMENT PROCEDURES Type of Eligible Property: Facility (contaminated) PROJECT SUMMARY Project Name: Downtown Wixom Development Project Location: 49350 Pontiac Trail, Wixom, Michigan Eligible Activities: Brownfield plan, baseline environmental assessment activities, due care, and additional response activities. Reimbursable Costs: $500,000.00 Years to .Complete Payback: 12 years including revolving fund capture Estimated Eligible Investment: Annual Tax Revenue Before Project: Annual Tax Revenue After Project: $2.2 million $16,500.00 $86,500.00 Project Overview: Downtown Wixom Development Company Plans purchase the Property and complete an environmental assessment and cleanup in order to construct a 17,000 square foot, multi-tenant-shopping facility consistent with the City of Wixom's master plan for creation of a downtown district in the vicinity of the Property. The total project represents an overall investment of approximately $2.2 million. This Plan has been prepared to facilitate cleanup and redevelopment of the Property, to provide Tax Increment Financing for reimbursement of eligible costs and to allow an appropriate qualified taxpayer to make application to the State of Michigan for a Brownfield Rede\-ielopment Single Business Tax Credit. BROWNFIELD REDEVELOPMENT PLAN 49350 PONTIAC TRAIL WIXOM, MICHIGAN OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY 1.0 INTRODUCTION The Oakland County Board of Commissioners established the Brownfield Redevelopment Authority (Authority) of Oakland County by adoption of a Resolution pursuant to the Brownfield Redevelopinent Financing Act, Michigan Public Act 381 of 1996, as amended (Act 381). The Michigan Department of State, Office of the Great Seal, acknowledged receipt and filing of the Resolution._ The primary purpose of Act 381 is to encourage the redevelopment of blighted, contaminated and functionally obsolete property by providing economic incentives through Single Business Tax credits and Tax Increment Financing for certain eligible activities. Tax increment revenues may be captured to pay for all activities allowed by law. The Authority is authorized by Act 381 to undertake all activities allowed by law. 1 2.0 GENERAL DEFINITIONS AS USED IN THIS PLAN All terms used in this Brownfield Plan are defined as provided in the following statutes, as appropriate: The Brownfield Redevelopment Financing Act, 1996 Mich. Pub. Acts. 381, MC.L. sC 125.2651 et seq., as amended Sections 38d and 38g of the Single Business Tax Act, 1975 Mich. Pub. Acts. 228, M.C.L. 208.1 — 208.145, as amended The Natural Resources and Environmental Protection Act, 1994 Mich. Pub. Acts 451, M.CL. 324.20101 et seq., as amended 2 3.0 STATUTORY ELEMENTS OF THE BROWNFIELD PLAN Brownfield plans developed by the Authority, after concurrence from the appropriate City, Village or Township (CVT), are to be submitted to County Board of Commissioners for approval. A brownfield plan may apply to one or more parcels of eligible property. The capture of tax increment revenues under a brownfield plan shall be determined individually for each parcel of eligible property. Section 13 of Act 381 requires that the plan contain the following information about the eligible property to the extent applicable. (a) A description of costs intended to be paid for with tax increment revenues, including a loPief summary of the eligible activities that are proposed for each eligible property. (b) An estimate of the captured taxable value and tax increment revenues for each year of the plan from each parcel of eligible property and in aggregate. (c) The method by which the costs of the plan will be fmanced, including a description of any advances made or anticipated to be made for the costs of the plan from the municipality. (d) The maximum amount of note or bonded indebtedness to be incurred, if any. (e) The duration of the plan, which shall not exceed the lesser of the period required to pay for the eligible activities from tax increment revenues plus the period of capture authorized for the local site remediation revolving fund or 30 years. (f) An estimate of the impact of tax increment financing on the revenues of all taxing jurisdictions in which the property ia located. A legal description of each parcel of eligible property to which the plan applies, a map showing the locations and dimensions of each eligible property, and a statement of whether personal property is included as part of the eligible property. (g) 3 (h) An estimate of the number of persons residing on each eligible property to which the plan applies and the number of families and individuals to be displaced, if any. (i) A plan for establishing priority for the relocation of persons displaced by implementation of the plan, if applicable. (j) Provisions for the costs of relocating persons displaced by implementation of the plan, and financial assistance and other reimbursement of expenses, if any. (k) A strategy for compliance with the Michigan Relocation Assistance Act, if applicable. (1) A description of proposed use of the site remediation revolving fund. (m) Other material that the authority or governing body considers pertinent. 4.0 STATE APPROVAL FOR CAPTURE OF SCHOOL TAX LEVIES If the brownfield plan provides for the capture of taxes levied for school operating purposes from eligible property in order to fund eligible activities, a work plan or remedial action plan must be approved by the Michigan Department of Environmental Quality (MDEQ) and/or Michigan Economic Growth Authority (MEGA) in accordance with Act 381. 5.0 GOVERNING BODY APPROVAL OF THE BROWNFIELD PLAN 5.1 NOTICE REQUIREMENTS At least 20 days prior to approving a brownfield plan, the County Board of Commissioners must give notice and a reasonable opportunity to the taxing jurisdictions levying taxes subject to capture to express their views and recommendations regarding the plan. 4 5.2 CONSIDERATIONS FOR APPROVAL The County Board of Commissioner may then approve or reject the plan, or approve it with modification based upon the following considerations: 1. Whether the plan contains the necessary information and meets the requirements of Act 381. 2. Whether the proposed method of financing the costs of eligible activities is feasible and the Authority has the ability to arrange the financing. 3. Whether the costs of eligible activities proposed are reasonable and necessary to carry out the purposes of Act 381. 4. Whether the amount of captured taxable value estimated to result from adoption of the plan is reasonable. 5 6.0 BROWNFIELD REDEVELOPMENT PLAN 49350 PONTIAC TRAIL, WIXOM, MICHIGAN 6.1 DESCRIPTION OF THE PROJECT AND COSTS TO BE PAID THROUGH THE BROVVNFIELD PLAN (MCL 125.2663(1)(A)) A.: Downtown Wixom Development Company Redevelopment Project and Site Description Public Act 381 of 1996, as amended, defines "Eligible Property" as "property for which eligible activities are defined under a brownfield plan that was used or is currently used for commercial, _ industrial- or residential purposes that is either in a qualified local unit of government and is a facility, functionally obsolete, or blighted or is not in a qualified local unit of government and is a facility, and includes parcels that are adjacent or contiguous to that property if the development of the adjacent and contiguous parcels is estimated to increase the captured taxable value of that property. Eligible property includes, to the extent included in the brownfield plan, personal property located on the property. Eligible property does not include qualified agricultural property exempt under section 7ee of the general property tax act, 1983 PA 206, MCL 211.7ee, from the tax levied by a local school district for school operating purposes to the extent provided under section 1211 of the revised school code, 1976 PA 451, MCL 324.20101." The eligible property is located at 49350 Pontiac Trail in the City of Wixom (hereinafter referred to as "the Property"). A legal description of the Property is provided in Appendix A. A Location Map is attached as Figure 1. A map showing the Property and brownfield boundary is attached as Figure 2. The Property is currently undeveloped and contains no buildings or other structures. Ten buildings formerly occupied the Property, but have since been demolished. Chesapeake and Ohio Railway (currently CSX) owned the eastern portion of the Property until March 1987. A filling station operated on this portion of the property from the 1960s until 1988. The filling station was provided with fuel from ASTs on the western portion of the property via underground piping. 6 The Wixom Co-op began operations on the western portion of the Property in 1916. However, some of the buildings associated with the Wixom Co-op were constructed in the 1800s. The _ property was utilized for the sale of agricultural products including petroleum products and pesticides. Petroleum products (i.e., heating oil, kerosene, gasoline, and diesel) were distributed from six ASTs and at least one UST to dispenser pumps via underground piping. These ASTs were also filled using underground piping. The ASTs and one UST (possibly two) were removed from the property in February 1989. According to previous reports, former buildings associated with the property included the main store (Building A), a bakery and ice cream store (Building B), a grain mill (Building C), storage sheds (Buildings D and F), and a lean-to shed (Building E). These buildings were demolished at the Property in 2002. In addition to these buildings, other structures were previously demolished at the property including a former residence, a pump house, six ASTs, and two concrete filling pads. Historical occupants of the property have included Wixom Co-operative (1916-1988), Wixom Co-op Texaco (1976-1980), Roy's Rustic Woods (1988), Wixom County Corners (1990-1998), Executive Floral (1996-1998), Wixom Donut and Coffee (1990-2002), and The Ice Cream Mill (1990-2002). The Property is zoned Village Center Area (VCA) and owned by Sami and Latifa Poota. The property currently contains no buildings. Downtown Wixom Development Company (hereinafter "the Developer") plans to purchase the Property to construct a 17,000 square foot, multi-tenant-shopping facility consistent with the City of Wixom's master plan for creation of a downtown district in the vicinity of the Property. The total project represents an overall investment of approximately $2.2 million. Under this Plan the Property will be prepared to make it suitable for development, and appropriate baseline environmental assessment, due care and additional response activities will be performed to prevent exposure of hazardous materials to human health, safety, and the environment. 7 This Plan is being prepared to provide Tax Increment Financing, including the capture of taxes levied for school operating purposes, for reimbursement of eligible costs to be incurred as part of the project. In addition, this Plan will enable the developer to apply for a State of Michigan Brownfield Redevelopment Single Business Tax Credit. A Brownfield Work Plan will be submitted by the Authority to the MDEQ for approval of the capture of school taxes for reimbursement of a portion of the eligible activity costs listed below. B. Identification of the Property as a "Facility." Under Part 201, a "facility" is defined as " any area, place, or property where a hazardous substance in excess of the concentrations which satisfy the requirements of section 20120a(1)(a) . . . has been released, deposited, disposed of, or otherwise comes to be located." M.C.L. § 324.20101(1)(o). A "release" is defined to include "spilling" or "leaking" of a hazardous substance into the environment. In addition, a "release" includes the abandonment of containers or other closed receptacles containing hazardous substances. M.C.L. § 324.20101(1)(bb). The Developer retained AKT Peerless Environmental Services (AKT Peerless) to conduct a Phase I environmental site assessment (ESA) of the Property. Results from the investigation and a copy of the text of the Phase I ESA are provided in Appendix B. Based on the Findings and Conclusions of the investigation performed for the Property, it is determined that the Property meets the definition of a facility as defined in Part 201 of the NREPA. C. Description of Costs to bePaid for With Tax Increment Revenues and Summary of Eligible Activities Eligible activities that may take place as part of this project in order to address the Recognized Environmental Conditions noted in the Phase I ESA include the preparation of this Plan by the Authority, the Baseline Environmental Assessment, due care activities, remedial investigation and additional response activities. 8 A summary and the estimated costs of the eligible activities are shown in the table below: ELIGIBLE ACTIVITY ESTIMATED COST 1. Brownfield Plan $ 5,000.00 2. Phase II Subsurface Investigation $ 56,000.00 MDEQ/EPA Work and Sampling Plan Health and Safety Plan Delineation of free product Delineation of groundwater contamination Delineation of free product in/near utilities 3. Baseline Environmental Assessment Report $ 4,000.00 Management and tiling fees 4. Due Care Plan Preparation $ 10,000.00 5:' -Due Care Response and Remediation $275,000.00 Activities Free product removal Geotechnical vapor barrier Groundwater management/cleanup during const. Soil management/removal during const. Groundwater monitoring during const. Subtotal Eligible Activities $350,000.00 OTHER REIMBURSEABLE EXPENSES 6. Interest $110,000.00 7. Administrative Costs $ 30,369.00 OTHER COSTS 8. Revolving Fund $ 40,000.00 The total estimated eligible costs to complete $530,369.00 all activities 6.2 ESTIMATE OF CAPTURED TAXABLE VALUE ANDTAX INCREMENT REVENUES (MCL 125.2663(1)(B)) The total estimated cost of the eligible activities and other expenses to be reimbursed through the capture of tax increment revenues is $530,369.00. The Developer will invest approximately $2.2 million in real property improvements on the Property. Redevelopment of the Property is expected to initially generate an estimated incremental taxable value of approximately $920,000.00 beginning in 2004. The estimated incremental taxablevalue for each year of the 9 Plan is based upon an average estimated rate of $50.00 of taxable value per square foot (including land, real and personal property) of buildings constructed on the Property (estimated at 17,000 square feet in total) and appreciation of real property at a rate of 3%. The estimated number of years of tax capture by the Authority and the total estimated tax increment revenue to be captured by the Authority is summarized in the table below and is presented in detail in Tables 1 through 3 attached to this Plan. Total Estimated Tax Increment Revenue Year Incremental Taxable Tax Increment Value Revenue 2003 $ 9,877 $ 423.00 2004 $ 920,051 $ 39,387 .00 2005 $ 957,530 $ 40,992.00 2006 $ 996,133 $ 42,644.00 2007 $1,035,894 $ 44,347.00 2008 $1,076,848 $ 46,100.00 2009 $1,119,031 $ 47,906.00 2010 $1,162,479 $ 49,766.00 2011 $1,207,231 $ 51,681.00 2012 $1,253,325 $ 53,655.00 2013 $1,300,802 - $ 55,687.00 2014 $1,349,703 $ 57,781.00 Total: $530,369.00 10 The captured incremental taxable value and associated tax increment revenue will be based on the actual increased taxable value from all taxable improvements on the Property and the actual millage rates levied by each taxing jurisdiction during each year of the Plan. During the final year of the Plan, only the amount of tax increment revenue necessary to complete reimbursement of the remaining balance of the cost eligible activities and other reimbursable costs will be captured and remaining taxes, if any, will be distributed to the taxing jurisdictions. 6.3 METHOD OF FINANCING AND DESCRIPTION OF ADVANCES BY THE MUNICIPALITY MCL 125.2663(1)(C) The Developer, has advanced, and will agree to advance in the future, the cost of eligible activities implemented on the Property. The Authority has advanced $20,000.00 from its USEPA Brownfield Demonstration Pilot Grant in order to fund the cost of preparing this Plan, the MDEQ and EPA Work Plan and a portion of the Baseline Environmental Assessment Activities. In accordance with the Cooperative Agreement with USEPA and an appropriate loan agreement, the County may agree, after approval of this Plan, to advance as a loan, an amount to be determined from its USEPA Brownfield Cleanup Revolving Loan Fund (BCRLF) in order to assist with the cost of cleanup at the Property. In accordance with this Plan the Authority will repay the amount advanced by the Developer, together with a portion of the interest expense incurred by the Developer to fmance the cost of eligible activities, solely from the tax increment revenues realized from the eligible property in accordance with the terms of the Reimbursement Procedures contained in Appendix C. Interest shall begin to accrue after completion of the Developer's expenditures for eligible activities, and upon notice of completion of expenditures for eligible activities to be provided promptly in writing by the Developer to the Authority. The Developer shall also provide the Authority with a final total of expenditures incurred for completion of eligible activities, less the amount of any reimbursement for said expenditures made to date by the Authority — this amount to be considered the principal amount for purposes of calculating interest. The amount of interest payable shall be calculated on the outstanding principal balance at an interest rate no less than the prevailing six-month Treasury Bill rate and that such rates shall be computed and compounded quarterly. Interest accrual on the outstanding principal balance shall cease on December 31, 2015. Notwithstanding the provisions for the payment of interest contained in this 11 Plan, if the County makes a loan for this project from the BCRLF, the terms of the loan and related interest payments shall be in accordance with the loan agreement. Payments to the Developer will be made to the full extent incremental property tax revenues are or become available for such purpose under Act 381. Tax increment revenues will first be used to pay or reimburse the Authority for administrative and operating expenses described in Section 6.1 including $20,000.00 for the cost to prepare this Plan, the MDEQ and EPA Work Plan and a portion of the Baseline Environmental Assessment Activities, and any amount advanced by the County as a loan to the project from the BCRLF. Costs that may be reimbursed using school tax dollars will be resolved by the MDEQ in accordance with Act 381. The amount of school tax revenues, which will be used to reimburse the costs of implementing eligible activities at the Property, will be limited to the cost of eligible activities approved by the MDEQ. Following the approval or disapproval of school tax capture by the MDEQ, to the extent necessary, the Authority will segregate the repayment of eligible activities between those that may be repaid from captured school taxes and those that may not, and apply those payment streams accordingly. 6.4 MAXIMUM AMOUNT OF NOTE OR BONDED INDEBTEDNESS (MCL 125.2663(1)(D)) There will be no note or bonded indebtedness incurred by Oakland County, City of Wixom or the Authority for the purpose of financing the cost of eligible activities as part of this Plan. The County may make a loan from its BCRLF. 6.5 DURATION OF BROWNFIELD PLAN (MCL 125.2663(1)(E)) The Plan will remain in effect for as many years as is required to fully complete the project, or 30 years, whichever is less. 6.6 ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS (MCL 125.2663(1)(F)) The following table presents a summary of the estimated tax increment revenues, to be generated by the taxing jurisdictions, whose millage is subject to capture by the Authority under this Plan. 12 Estimated Captured Taxes by Taxing Jurisdiction Taxing Jurisdiction Total School Operating $223,001.00 State Education Tax $ 74,332.00 ' Combined County $ 57,533.00 Community College $ 19,762.00 Combined ISD $ 42,775.00 Combined focal $112,966.00 , Total: $530,369.00 Tables 1-3 attached to this Plan provide a detailed breakdown of the estimated impact of tax increment financing on the revenues of the taxing jurisdictions. 6.7 LEGAL DESCRIPTION, PROPERTY MAP AND PERSONAL PROPERTY (MCL 125.2663(1)(G)) A legal description of the Property is provided in Appendix A. A Location Map and a Boundary Map of the Property are attached in Figure 1 and Figure 2 respectively. Personal property is included as part of the Eligible Property and the value of the personal property is considered eligible investment for the purpose of calculating the amount of the Brownfield Redevelopment Single Business Tax Credit for this project. The estimated taxable value of the personal property is included in the $50.00 per square foot estimate of average taxable value used for the calculation of captured tax increment revenue under this Plan. 6.8 ESTIMATES OF RESIDENTS AND DISPLACEMENT OF FAMILIES (MCL 125.2663(1)(H)) There are no persons residing on the Property to which this Plan applies, and therefore there are no families to be displaced. 13 6.9 PLAN FOR RELOCATION OF DISPLACED PERSONS (MCL 125.2663(1)(1)) There are no persons residing on the Property to which this Plan applies, and therefore there is no need for a relocation plan. 6.10 PROVISIONS FOR RELOCATION COSTS (MCL 125.2663(1)(J)) There are no persons residing on the Property to which this Plan applies, and therefore there is no need for the provision of relocation costs. 6.11 STRATEGY FOR COMPLIANCE WITH MICHIGAN'S RELOCATION ASSISTANCE LAWMCL 125.2663(1)(K) There are no persons residing on the Property to which this Plan applies, and therefore there is no need for compliance with Act No. 227 of the Public Acts of 1972, being Sections 213.321 to 213.332 of the Michigan Compiled Laws. 6.12 DESCRIPTION OF PROPOSED USE OF LOCAL SITE REMEDIATION REVOLVING FUND MCL 125.2663(1)(L) Tax increment revenue will be deposited in the Local Site Remediation Revolving Fund as part of this plan. In lieu of capturing the full amount authorized by Act 381, the Authority has opted to collect a fixed amount of $40,000.00 in increments of $8,000.00 during years 2004-2008. All proceeds deposited in the Authority's Local Site Remediation Revolving Fund as part of this Plan and other brownfield plans will be used in accordance with the Act. The Authority currently anticipates using the fund to pay eligible activity costs at this and other eligible properties included in other brownfield plans approved or amended by the Authority, CVT, and County Board of Commissioners. 14 6.13 OTHER MATERIAL THAT THE AUTHORITY OR GOVERNING BODY CONSIDERS PERTINENT The total estimated cost of eligible activities incurred by the Developer and the Authority and other expenses to be reimbursed from tax increment revenue under this Plan is $500,000.00. The actual total amount of tax increment revenue utilized for the purpose of reimbursing the cost of eligible activities shall not exceed $500,000.00, including the share of said total dollar amount from each taxing jurisdiction (see the total dollar amount listed for each taxing jurisdiction in Table 2 attached to this Plan), nor shall the duration of the tax capture under this Plan surpass December 31, 2014, without this Plan being amended by the CVT, Authority and Oakland County Board of Commissioners. In no case shall the total duration of this Plan exceed 30 years. The Plan shall be revoked and have no further effect if taxes on the real property become delinquent. 7.0 LIST OF TABLES, FIGURES AND APPENDICIES TABLES: TABLE 1: TABLE 2: Annual Tax Increment Revenue Breakdown Annual Tax Increment Revenue by Taxing Jurisdiction a. TABLE 3: Annual Millage Rates and Taxable Value FIGURES: FIGURE 1: Location Map of the Eligible Property FIGURE 2: Eligible Property Boundary Map FIGURE 3: Project Concept Plan APPENDICIES: APPENDIX A: Legal Description of the Eligible Property APPENDIX B: Environmental Data APPENDIX C: Reimbursement Procedures TABLE 1 I. Annual Tax Increment Revenue Breakdown Table 1 - Annual Tax Increment Revenue, Downtown Wixom Development, Wixom, Michigan Ye . 0 0 <5: /.. la ., it 4.: :pi a V I _ 012, axi 0! 2014 tax Land, Real & Personal Property Taxable Value $329,240 $339,117 $1,249,291 $1,286,770 $1,325,373 $1,365,134 $1,406,888 $1,448,271 $1,491,719 $1,536,471 $1,582,565 $1,630,042 $1,678,943 Incremental Taxable Value $0 $9,877 $920,051 $957,530 $996,133 $1,035,894 , $1,076,848 $1,119,031 $1,162,479 $1,207,231 i $1,253,325 $1,300,802 $1,349,703 Tax rate 0.0428099 0.0428099 0.0428099 _ 0.0428099 _ 0.0428099 0.0428099 _ 0.0428099 0.0428099 0.0428099 0.0428099_ 0.0428099 0.0428099 0.0428099 - - Tax on Land, Real & Personal Property $14,095 $14,518 $53,482 $55,086 $56,739 $58,441 $60,194 $62,000 $63,860 $65,776 $67,749 $69,782 $71,875 Incr. Tax on Captured Taxable Value $0 $423 $39,387 $40,992 $42,644 $44,347 $46,100 $47,906 $49,766 $51,681 $53,655 $55,687 $57,781 Cumulative Incr. Taxes $0 $423 $39,810 $80,802 $123,446 $167,793 $213,893 $261,799 $311,565 $363,246 $416,901 $472,588 $530,369 Amount for admin. expenses $0 $423 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,446 Amount to Revolving Fund $8,000 $8,000 $8,000 $8,000 $8,000 Amdunt left to reimburse $460,000 $460,000 $431,363 $401,121 $369,227 $335,630 $300,280 $255,124 $208,108 $159,177 $108,272 $55,335 $0 . _ Cumulative Revolving Fund $8,000 $16,000 $24,000 $32,000 $40,000 1 TABLE 2 Annual Tax Increment Revenue by Taxing Jurisdiction Table 2 - Annual Tax Increment Revenue by Taxing Jurisdiction, Downtown Wixom Development, Wixom, Michigan Total From Each Year 2002 tax 2003 tax 2004 tax 2005 tax 2006 tax 2007 tax 2008 tax 2009 tax 2010 tax 2011 tax 2012 tax 2013 tax 2014 tax Jurisdiction ALLOCATED INCR. TAXES School Operating (18 mills) . $0 $178 $16,561 $17,236 $17,930 $18,646 $19,383 $20,143 $20,925 _ $21,730 $22,560 $23,414 $24,295 $223,001 State Ed. Tax (6 mills) $0 $59 $5,520 _ $5,745 $5,977 $6,215 $6,461 $6,714 $6,975 $7,243 " $7,520 $7,805 $8,098 $74,332 School Operating Subtotal $0 $237 $22,081 $22,981 $23,907 . $24,861 $25,844 $26,857 $27,900 $28,973 $30,080 $31,219 $32,393 , - Combined County (4.6438 mills) $0 $46 $4,273 $4,447 $4,626 $4,810 $5,001 $5,197 $5.398 $5,606 $5,820 $6,041 $6,268 $57,533 Community College (1.5952 mills) $0 $16 $1,468 $1,527 $1,589 $1,652 $1,718 $1,785 $1,854 $1,926 $1,999 $2,075 $2,153 $19,762 Combined ISD (3.4526 mills) $0 $34 $3,177 $3,306 $3,439 $3,577 $3,718 $3,864 $4,014 _ $4,168 $4,327 $4,491 $4,660 $42,775 Combined Local (9.1183 mills) $0 $90 $8,388 $8,731 $9,083 $9,447 $9,819 $10,203 $10,600 $11,008 $11,429 $11,861 $12,307 $112,966 Debt Millages all Jurisdictions (not captured) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Captured School Taxes $0 $237 $22,081 $22,981 • $23,907 $24,861 $25,844 $26,857 $27,900 $28,973 $30,080 $31,219 $32,393 Total Captured Non-School Taxes $0 $186 $17,306 $18,011 $18,737 $19,486 $20,256 $21,049 $21,866 $22,708 $23,575 $24,468 $25,388 _ Total Incr. Taxes $0 $423 $39,387 $40,992 $42,644 $44,347 $46,100 $47,906 $49,766 $51,681 $53,655 $55,687 $57,781 Cumulative Incr. School Taxes $0 $237 $22,318 $45,299 $69,206 $94,067 $119,911 $146,768 $174,668 _ $203,641 $233,721 $264,940 $297,333 Cumulative Incr. Non- School Taxes $0 $186 _ $17,492 $35,503 $54,240 $73,726 $93,982 $115,031 $136,897 $159,605 _ $183,180 $207,648 $233,036 Cum. TOTAL Incr. Taxes $0 _ $423 $39,810 $80,802 _ $123,446 _ $167,793 _ $213,893 $261,799 $311,565 _ $363,246 _ $416,901 $472,588 $530,369 TABLE 3 t. Annual Millage Rates and Taxable Value Table 3 - Annual Millage and Taxable Value, Downtown Wixom Development, Wixom, Michigan Year 2002 tax 2003 tax 2004 tax 2005 tax 2006 tax 2007 tax 2008 tax 2009 tax 2010 tax 2011 tax 2012 tax 2013 tax 2014 tax School non-homestead 0.018 0.018 0.018 0.018 0.018 0.018 o.oia' 0.018 0.018 0.018 0.018 0.018 _ 0.018 State Educ. Tax 0.006 0.006 0.006 0.006 0.006 0,006 0.006 0.006_ 0.006 0.006 0.006 0.006 0.006 Combined County 0.0046438 0.0046438 0.0046438 0.0046438 0.0046438 0.0046438 0.0046438 0.0046438 0.0046438 0.0046438 0.0046438 0.0046438 0.0046438 Community College 0.0015952 0.0015952, 0.0015952 0.0015952 0.0015952 0.0015952 0.0015952 0.0015952 0.0015952 0.0015952 0.0015952 0.0015952 0.0015952 Combined ISD 0.0034526 0.0034526 0.0034526 0.0034526 0.0034526 0.0034526 0.0034526 0.0034526 0.0034526 0.0034526 0.0034526 0.0034526 0.0034526 Combined Local 0.0091183 0.0091183 0.0091183 0.0091183 0.0091183 0.0091183 0.0091183 0.0091183 0.0091183 0.0091183 0.0091183 0.0091183 0.0091183 Total Millage 0.0428099 0.0428099 0.0428099 0.0428099 0.0428099 0.0428099 0.0428099_ 0.0428099 0.0428099 0.0428099 0.0428099 0.0428099 0.0428099 Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 _ _ Land, Real and Perosnal Property Taxable Value $329,240 $339,117 $1,249,291 $1,286,770 $1,325,373 $1,365,134 $1,406,088 $1,448,271 $1,491,719 $1,536,471 $1,582,565 $1,630,042 $1,678,943 2002 Base Taxable Value Land, Real and Personal Property $329,240 _ , FIGURE 1 Location Map of the 'Eligible Property o1/12:02 TIft 16:48 FAX 2486151333 AKT Peerless 1.3 1-4 CCVT.CI9517Z XVI 1-1 CD _ CD Oriaxgrt i I ! co-41 et. flu • I I ST1 !, 14 at ea 13 1%9 LIja. tra z • --mffskr ' - I ' DRAW MI OGO DATE: 417-11—DE ammalsonininolow sialatAtasatuth a attubtaatatet• LEGEND WE FIGURE 1 ••••••n•••••n•n•n••11.1 AKTPEERLESS environmental services 22725 Cxchard Lab Reed. FittmIngicm, M1 4a318 Phoni:(248)015-1X0 Fax (24a)615104 PROPERTY LOCATION MAP DOWNTOWN WIXOM DEVELOPMENT 49350 PONTIAC TRAIL WIXON, MICHIGAN PROJECT NUMBER : 3569F DRAWING NUMBER : LOCATION MAP AKT Peerless 09;12/02 THU 16:49 FAX 2486151333 e. FIGURE 2 Eligible Property Boundary Map 09.,12/02 THU 16:49 FAX 2486151333 AKT Peerless • ; * . 41 it 0 crl CD 8'41 6 4 i t.' Ha .—a 11 Lii ? ^ tt . —I cu rvi co a 2 , rillIg a Z vi-. 6:: P 31 '. Or:- is7Ei t 2 ZPIR X•V2 1! iz: .4.L1- _17-soD,„t ......zz E: rzt ,N i.. .0 . ,i,... 2 0 GYOkl YIOXIM ofL12 :112 THE 16:50 FAX 2486151333 AKT Peerless !:,;( e. FIGURE 3 Project Concept Plan OD AKT Peerless 12.02 Q THU 16:50 FAX 2486151333 i lilt ,11/11 07/17/02 WED •7;38 [TX/RI NO 8672] APPENDIX A Legal Description of the Eligible Property 04 12/15/88 FR 004 & 005 SCL4700M CITY OF NIXON LAND INQUIRY FOR 95 17-31-478-006 HOME EX: EX HONE EX: %EX: 07/03/02 09:40 A/V: 374,870 TAXABLE: 329,240 SCHOOL: 270 SCHOOL: 270 LAST ACT: 01/30/02 PROPOSED: ZONE: BI USE: BI NBPD: R4A BANK: LOCK: ESTAB: NAME 1 NAME 2 -* OWNER(S): SAMI POOTA LATIFA POOTA ADDR *--(DIR STREET SUFFIX,QUAL)--* *----(CITY STATE ZIPOODE)----* PROP: . 49350 PONTIAC TRAIL WIXOM MI 48393-2003 MAIL: 31100 WIXOM RD, WIXOM Ni 48393 DESCRIPTION: 01 T2N, R88, SEC 31 02 SUPERVISOR'S PLAT NO 10 03 LOTS 7 TO 11 INCL NEXT CVT: 96 PARCEL: 17 31 478 006 A-01/04/89 FROM 004 005 PF: 2:DESCO4 5:PRINT 6:ADDR 7:PRIOR B:NEXT 9:NOTES 10:VIENU 11:TAX INQ 14:MT10 APPENDIX B Environmental Data PHASE I ENVIRONMENTAL SITE ASSESSMENT 49350 PONTIAC TRAIL WIXOM, MICHIGAN FOR DOWNTOWN WIXOM DEVELOPMENT WIXOM, MICHIGAN AKT PEERLESS PROJECT No. 3669F-1-17 1.0INTRODUCTION Downtown Wixom Development retained AKT Peerless Environmental Services (AKT Peerless) to conduct a Phase I environmental site assessment (ESA) of the unimproved property located at 49350 Pontiac Trail in Wixom, Michigan. AKT Peerless' scope of work is based on its proposal PF-3705, dated May 22, 2002, and the terms and conditions of the agreement. AKT Peerless' scope of work is based on American Society for Testing and Materials' (ASTM's) "Standard Practice For Environmental Site Assessments: ESA E-1527," which defines good commercial and customary practice for conducting an ESA and establishing "due diligence." Further, AKT Peerless' assessment is intended to satisfy (a) the due-diligence requirements to qualify for the innocent landowner defense under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), and (b) Comerica Bank's ESA requirements and guidance documents for Phase I ESAs dated June 1997, and the 1998 addenda. AKT Peerless' ESA was performed for the benefit of Downtown Wixom Development and Comerica Bank, and both parties may rely on the contents and conclusions of this report. A subsurface investigation of the subject property was not conducted as part of this assessment. Previous subsurface investigations conducted at the subject property are discussed in Sections 3.4.3 and 3.4.7. 1.1PURPOSE The purpose of AKT's ESA is to provide an independent, professional opinion of any recognized environmental conditions associated with the subject property. According to ASTM's standard E 1527, Section 1.1.1, the term recognized environmental conditions means the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate (1) an existing release, (2) a past release, or (3) a material threat of a release of any hazardous substances or petroleum products into structures on the subject property or into the ground, groundwater, or surface water of the property. The term is not intended to include de minimis conditions that generally (1) do not present a material risk of harm to public health or the environment and (2) would not be the subject of an enforcement action if brought to the attention of appropriate governmental agencies. AKT Peerless used appropriate industry standards in maintaining innocent landowner defense options available to purchasers, sellers, and/or lenders under the Superfund Amendments and Reauthorization Act (SARA). Performance of this ESA is intended to reduce, but not eliminate, uncertainty regarding the potential for recognized environmental conditions in connection with a property. 1.2PROJECT RESOURCES AKT Peerless referred to the following resources between June 20, 2002 and August 1, 2002 to complete its ESA: • United States Environmental Protection Agency (USEPA), Region 5 • United States Geological Survey (USGS) • United States Department of Agriculture (USDA) Soil Conservation Service • Michigan Department of Environmental Quality (MDEQ) • MDEQ Environmental Response Division (ERD) • MDEQ Waste Management Division (WMD) • MDEQ Storage Tank Division (STD) • MDEQ Geological Survey Division (GSD) • Michigan State University Center for Remote Sensing • Wixom Fire Department • Wixom Tax Assessment Office • Wixom Building Department • Oakland County Environmental Health Department • Environmental Data Resources, Inc. (EDR) AKT Peerless conducted interviews with the following personnel between June 20, 2002 and August 1, 2002 to complete its ESA: • Mr. Marvin Poota; Property owner representative • Mr. Timothy Carpenter, P.E.; GeoDynamics Consultants, Inc. • Mr. George Spencer; Chief of the Wixom Fire Department • Mr. Gary Fricke; Oakland County Environmental Health Department 1.3IAMITATIONS AND EXCEPTIONS OF THE ESA AKT Peerless encountered the following limitations or exceptions in completing the ESA: • Evaluation of soil and groundwater features at and near the subject property was based only on published maps and other readily available information. AKT Peerless used this inforpiation to assess soil types and groundwater flow directions to determine if any nearby sites present an environmental risk to the subject property. • AKT Peerless does not typically review nearby sites in detail unless the site appears to present an environmental risk to the subject property. • Unless specifically noted, invasive investigation of any kind has not been performed. Observation under floors, above ceilings, behind walls, within surface and subsurface soil, within groundwater, within confined spaces, or inaccessible areas has not been performed. • Based on ASTM Standard Practice E 1527, AKT Peerless' ESA does not include investigation for wetlands, lead in drinldng water, and lead-based paint. • Nothing in this report constitutes a legal opinion or legal advice. For information regarding individual or organizational liability AKT Peerless recommends consultation with independent legal counsel. 1.4SPECIALIZED INFORMATION REPORTED BY CLIENT To assist AKT Peerless in identifying conditions of potential environmental concern at the subject property, AKT Peerless requested, in its proposal PF-3705, the following information: • Environmental liens identified during a land title records search. • Specialized knowledge or experience that is material to identifying environmental concerns in connection with the property. • Environmental records or reports regarding potential or known environmental liabilities associated with the subject property. AKT Peerless was provided with a Baseline Environmental Assessment (BEA) of the former - Wixom Co-op property prepared by GeoDynamics Consultants, Inc. (GeoDynamics) dated July 1997. The BEA included a reprinted copy of an Environmental Assessment completed by GeoDynamics in January 1995. These reports are summarized in Section 3.4.7 and are presented in. Appendix D. 2.0SITE DESCRIPTION ." 2.1LOCATION The subject property is located at 49350 Pontiac Trail (at the northwestern corner of Pontiac Trail and Wixom Road) in Wixom, Michigan. The property is generally triangular in shape and consists of a single parcel totaling approximately two acres (Parcel identification number17-31- 478-006). The property is zoned Village Center Area (VCA) and is situated in the southeastern quarter (SE 1/4) of Section 31, Township 2 North (T. 2N.), Range 8 East (R. 8E.), Oakland County, Michigan. Refer to Figure 1; Property Location Map; Figure 2, Property/Surrounding Area Map; Figure 3, Topographic Property Location Map; and Figure 4, Parcel Map. The legal description of the subject property is presented in Appendix A. Photographs taken during AK.T Peerless' site inspection are provided in Appendix B. 2.2SITE AND VICINITY CHARACTERISTICS The subject property is located in a commercial and residential area of Wixom, Michigan and consists of vacant land. However, as discussed in Section 3 :3, the subject property, formerly known as the Wixom Co-op property, contained several commercial buildings. These buildings were demolished in June 2002. The subject property is bordered by railroad tracks followed by commercial and residential development to the north and east, Pontiac Trail followed by commercial development to the south, and commercial development to the west. 2.3STRUCTURES/OTHER IMPROVEMENTS The subject property is currently undeveloped and contains no buildings or other structures. However, as discussed in Section 3.3, ten buildings formerly occupied the subject property, but have since been demolished. Refer to Appendix B for photographs of the subject property taken during AKT Peerless' site inspection. 2.4UTILITIES AND MUNICIPAL SERVICES AKT Peerless reviewed the type and supplier of utilities and municipal services for the subject property:--These services are described in the following table. , Utility/Seri Utility,' eapy or flistorical $et-vices ., . , ..,.nn-'A ..,,. t'1 ' f ' Mun Heating Natural gas Michigan Consolidated Historical use of oil-fired available Gas Company furnaces; Municipal waste None None identified None identified currently generated Potable water Municipal Wixom • Historical use of private well. available Electrical Line feed Detroit Edison Company None identified available Sewerage disposal Municipal . Wixom Private septic system prior to available sanitary sewer connection in 1971. According to building department file information, the forrrier buildings on the subject property utilized oil-fired furnaces prior to the 1970s and 1980s when natural gas furnaces were installed. A permit to repair a septic system was filed on September 5, 1963, and a sanitary sewer connection permit was filed with the Wixom Building Department March 22, 1971. An application to abandon a drinking water well was submitted to the Oakland County Health Department on March 25, 2002. The well application did not contain any information regarding the age or location of this potable well. 2.5CURRENT USES OF THE PROPERTY The subject property is zoned Village Center Area (VCA) and owned by Sami and Latifa Poota. The property currently contains no buildings. Plans to construct multi-tenant-shopping structures are pending. Previous uses of the subject property are discussed in Section 3.3. Refer to Appendix B for photographs of the property taken during AKT Peerless' site visit. e.. 2.6CURRENT USES OF ADJOINING PROPERTIES The current uses of adjoining properties are described in the following table. kdjoining Properq Use , Recognized ynyiron 6ntal f oncer ns . . North and east of the subject property, beyond railroad tracks, is a None residential house and commercial buildings occupied by National City Bank, All State, World Acoustic, Hair Studio, and Carbide Motor. South of the subject property, beyond Pontiac Trail, are commercial Former gasoline station on the buildings including Wixom Bar, Klebba Professional, Jams, southern adjoining property. Muffler, a veterinarian and dentist office, and an unoccupied filling station. Southwest of the subject property, beyond Pontiac Trail and Wixom Gasoline station on southwestern Road, is a commercial building occupied by Mobil Gasoline Station. adjoining property. West of the subject property, beyond Manistee Street, is a large None commercial building occupied by AFT Holcroft. Based on AKT Peerless' visual observations, the adjoining properties to the north, east, and west do not appear to present an environmental risk to the subject property. However, as presented in Sections 3.2, two southern adjoining properties (a former gasoline station and the Klebba Office Building) were identified as a sites of potential environmental concern during review of federal and state databases. 3.0ENVIRONMENTAL RECORDS REVIEW The objective of the record reviews is to evaluate reasonably ascertainable databases, historical records, and physical setting records to help identify recognized environmental concerns at the property and, to the extent identifiable, at surrounding properties. 3.1PHYSICAL SETTING RECORDS AKT Peerless reviewed geological survey maps for geologic, hydrologic, and topographic conditions that may affect potential contaminant migration to the subject property. 3.1.1Topo2rapirv and Area Hydrogeolou Based on a review of USGS Topographic Map titled Milford, Michigan Quadrangle, the subject property is relatively flat and rgsts at an elevation of approximately 930 feet above the National Geodetic Vertical Datum (NGVD). The Norton Creek flows north approximately 1,000 feet west of the subject property. Based on topographic counters, the regional surface water discharge _ appears to be towards the northwest. Typically, the water table aquifer flows toward a major drainage feature or in the same direction as the drainage basin. Therefore, it is likely that groundwater in the area of the property flows to the northwest. However, local manmade structures (e.g., buildings, roads, sewer systems, and utility service lines) may influence both surface water and groundwater flow. To determine the site-specific groundwater flow direction, subsurface information would be necessary. 3.1.2Area Soil According to the United States Department of Agriculture, Soil Survey of Oakland County, Michigan, the soil in the area is classified as the Oshtemo-Spinlcs-Houghton group. This soil is described as "nearly level to steep, well drained and very poorly drained sandy and mucky soil; on outwash plains, beach ridges, and moraines and in bogs." According to the Michigan Geological Survey Division's publication, Quaternary Geology of Southern Michigan, soil in the area is glacial outwash sand and gravel and postglacial alluvium. This soil is described as pale brown to pale reddish brown, fine to coarse sand alternating with layers of small gravel to heavy cobbles, well to poorly-sorted, abandoned drainage ways, flanking end moraines. Soil thickness ranges from 3 to 60 feet. Typically, glacial outwash sand and gravel are associated with moderate to high hydraulic permeability and may allow the movement of contaminants through groundwater. 3.2FEDERAL AND STATE DATABASES - AKT Peerless retained Environmental Data Resources, Inc. (EDR), to research federal and state environmental database information. The purpose of this research was to evaluate potential environmental risks associated with the subject property, adjoining sites, and nearby sites located within specified search parameters. Refer to Appendix C for the EDR report. Typically, sites at a distance greater than a 1/2-mile radius represent only a remote chance of affecting the subject property. However, the maximum search distance extends to a 1-mile radius for some databases in accordance with ASTM Approximate Minimum Search Distances. The subject property (listed under the name Rite Enterprises and Wixom Country Comers) was identified on the following databases: 1. Michigan Registered UST Facilities: This database includes facilities that have, or have had, registered UST systems. According to the EDR report, one UST of unknown capacity and unknown product is currently in use at the subject property. 2. Leaking Underground Storage Tank Site (LUST). This database includes sites at which a release from an underground storage tank has been reported. According to the EDR report, the status of the subject property is listed as "open." Further information regarding this issue is presented in Section 3.4.5. 3. Michigan Registered AST Facilities: This database includes facilities that have, or have had, registered AST systems. According to the EDR report and registration information obtained from the MDEQ —STD, the following ASTs are registered to the subject property. Tank 1 Flammable liquid Capacity (gallons) 10,000 Unknown Piping Material Unknown Removed , Age :(years Unknown 3 4 5 6 2 10,000 Flammable liquid Unknown Unknown Unknown Removed Flammable liquid Flammable 15,000 12,000 Unknown Unknown Unknown Unknown Unknown Unknown Removed Removed Flammable liquid Flammable liquid 20,000 20,000 Unknown Unknown Unknown Unknown Unknown Unknown Removed Removed Further information regarding these former ASTs is presented in Section 3.4.7. AKT Peerless' review of the databases (including the orphan list) also considered the potential or likelihood of contamination from adjoining and nearby sites. To evaluate which of the adjoining and nearby sites identified in the EDR report present an environmental risk to the subject property, AKT Peerless considered the following criteria: 1. Type of database on which the site was identified; 2. Location, direction, and distance of the site relative to the subject property; 3. Anticipated groundwater flow direction in the area of the subject property; 4. Local soil conditions in the area of the subject property; 5. Surface and subsurface obstructions and diversions (e.g., buildings, roads, sewer systems, utility service lines, rivers, lakes, and ditches) present near the subject property. Based on AKT Peerless' evaluation of the above criteria, those sites, which may pose an environmental risk to the subject property, are further evaluated by reviewing MDEQ file information. The federal and state databases reviewed and the number of adjoining and nearby sites identified are described in the following table. nvironinental Database Approx. N in Search Sites . Distance nil le National Priority List (NPL) 1.0 mile 0 Resource ennservation and Recovery Information System-Treatment, 0.5 mile 0 Storage or Disposal Facility (RCRIS-TSD) State Hazardous Waste Sites (SHWS) 1.0 mile 0 Comprehensive Environmental Response, Compensation, and 0.5 mile 0 Liability Information System (CERCLIS) CERCLIS No Further Remedial Action Planned (NFRAP) 0.50 mile 0 Environmental Response and Notification System (ERNS) Target Property 0 Solid Waste Facilities/Landfill Sites (SWLF) 0.5 mile 0 Leaking underground storage tank (LUST) 0.5 mile 4 Registered underground storage tank (UST) 0.25 mile 4 Registered above ground storage tank (AST) 0.125 mile 1 RCRIS-Small-Quantity Generator (SQG) 0.25 mile 10 RCRIS-Large-Quantity Generator (LQG) 0.25 mile 0 Based on an evaluation of the above criteria and a review of readily available information, AKT Peerless did not identify any adjoining sites (i.e., bordering) or near-by sites (within a 2 mile radius) in the EDR report which appear to present an environmental risk to the subject property. Joe's Towin2 (Don and Stan's Shell Station); 49395 Pontiac Trail: This southern adjoining site is located on the southern side of Pontiac Trail, and was identified on the registered UST and "open," LUST site databases. According to the EDR report, the following USTs are registered to the site. 't ank ' !intents ( :ipacity Tank, Piping Age Status gallon's NIaterial Material years 1 Gasoline 10,000 _ Not reported Not reported 27 Removed 2 Gasoline 8,000 Not reported Not reported 27 Removed 3 Gasoline 4,000 Not reported Not reported 27 Removed 4 Used oil 550 Not reported _ Not reported 27 Removed 5 Diesel 4,060 Not reported Not reported 27 Removed According to MDEQ file information, a confirmed release was reported to the MDNR on January 11, 1990, after a 4,000-gallon diesel UST failed a tank tightness test. On June 15, 1990, a 4,000-gallon gasoline UST was removed from the site. A second confirmed release was reported to the MDNR after odors and petroleum products were observed during the UST removal. A second 4,000-gallon UST was removed on June 28, 1990. Approximately 50 gallons of free product and water were reportedly removed from the two excavations. Stockpiled soil from the excavations was reportedly returned to the cavity. Marine Pollution Control (MPC) completed a subsurface investigation report on August 4, 1992. According to MPC, soil at the site consists of sandy fill to a depth of 2 feet below ground surface (bgs) above silty sand and gravel — with a sand and clay seam between 5 and 7 feet bgs - to at least 17 feet bgs, the maximum depth explored. Groundwater was encountered in the north-central portion of the site at approximately 10 feet bgs. On March 20 and 21, 1995, one 8,000-gallon gasoline UST, one 10,000-gallon gasoline UST, and one 550-gallon waste oil UST were removed from the site. A third confirmed release was reported to the MDEQ based on field detection equipment. On August 7, 2000, the MDEQ approved the use of public funds to remediate free product contamination at the site. A note within the MDEQ file indicates a heating oil UST was removed from the site on March 16, 2000. The MDEQ file did not contain any additional information regarding this UST. In 2000, free product was discovered in two monitoring wells. A free product recovery • system with monthly monitoring was implemented at that time. According to a summary report dated September 2001, free product had not been encountered at the site since March 2001. f, In AKT Peerless' opinion, this southern adjoining property presents an environmental concern to the subject property. AKT Peerless' opinion is based on (1) the former presence of free product at the site, (2) the proximity to the subject property, and (3) groundwater flow direction at the site is likely north (toward the subject property). Mobil Gasoline Station; Wixom Road: A gasoline station was constructed on this southwestern adjoining property(beyond Pontiac Trail and Wixom Road) in 2001. Because the site is relatively new, it was not identified as a site of potential environmental concern during EDR's federal and state database research. Based on this information, this site does not appear to present an environmental concern to the subject property. Lots 4 and 5 (currently the Klebba Office Building); 49357 Pontiac Trail: This southern adjoining property is located beyond Pontiac Trail and was identified on the baseline environmental assessment (BEA) database. According to the BEA, three LUST sites (including the subject property) are present within a 1/3 mile of the site. Petroleum contamination was detected in soil and groundwater at the site in 1994. According to the BEA, this source of this contamination was likely LUST sites in the area (including the subject property). Based on this information, this site was not the source of contamination and therefore does not appear to present an environmental concern to the subject property. No other adjoining or nearby sites, including orphan sites, of potential environmental concern were identified in connection with the subject property. 3.3HISTORICAL USE INFORMATION The objective of reviewing historical sources is to (a) develop a history of previous uses or specific occupancies of the subject property, (b) identify those uses or specific occupancies which are likely to have led to recognizable environmental conditions at the subject property, and to the extent identifiable, at adjoining properties, and (c) identify obvious uses of the subject property from the present, back to the subject property's obvious first developed use, or back to 1940, whichever is earlier. Chesapeake and Ohio Railway (currently CSX) owned the eastern portion of the subject property until March 1987. A filling station operated on this portion of the property from the 1960s until 1988. The filling station was provided with fuel from ASTs on the western portion of the property via underground piping. The Wixom Co-op began operations on western portion of the subject property in 1916. However, some of the buildings associated with the Wixom Co-op were constructed in the 1800s. The property was utilized for the sale of agricultural products including petroleum products and pesticides. Petroleum products (i.e., heating oil, kerosene, gasoline, and diesel) were distributed from six ASTs and at least one UST to dispenser pumps via underground piping. These ASTs were also filled using underground piping. The ASTs and one UST (possibly two) were removed from the property in February 1989. According to previous reports, former buildings associated with the property included the main store (Building A), a bakery and ice cream store (Building B), a grain mill (Building C), storage sheds (Buildings D and F), and a lean-to shed (Building E). These buildings were demolished at the subject property in 2002. In addition to these buildings, other structures were previously demolished at the property including a former residence, a pump house, six ASTs, and two concrete filling pads. Historical occupants of the property have included Wixom Co-operative (1916-1988), Wixom Co-op Texaco (1976-1980), Roy's Rustic Woods (1988), Wixom Country Corners (1990-1998), Executive Floral (1996-1998), Wixom Donut and Coffee (1990-2002), and The Ice Cream Mill (1990-2002). The northern and eastern adjoiping properties, beyond the railroad tracks, have contained commercial and residential development since at least 1940. The southern adjoining property, beyond Pontiac Trail, has contained commercial development since at least 1940. The western _ adjoining property, beyond Manistee Street, consisted of residential and undeveloped land until the existing commercial building was constructed in the mid-1970s. 3.3.1Aerial Photographs AKT Peerless reviewed aerial photographs obtained from Michigan State University Center for Remote Sensing. AKT Peerless' review of historical aerial photographs of the subject property is summarized in the following table. Photo , Observations Potential , , . Dates Subject Property Environmental Concerns 1940 The subject property contains four commercial buildings and ASTs present on between four and seven ASTs. property. 1957, 1964 A fifth commercial building has been constructed along the ASTs present on southern portion of the property. property. 1969 A filling station is present on the eastern portion of the subject ASTs and filling . property. The northern and western portions of the property station present on contain six commercial buildings. Five ASTs are present on the property. central portion of the property and one AST is present north of the filling station. . 1973 A sixth AST has been placed on the central portion of the ASTs and filling property. station present on property. - — 1978, 1986, A fenced enclosure and small building have been constructed ASTs and filling 1985 around the six ASTs in the central portion of the property. station present on property. 1990, 1995, The six ASTs have been removed from the central portion of the Filling station present 2000 property. on property. As indicated above, the potential environmental concerns noted on the subject property during AKT Peerless' aerial photograph review appeared limited to (1) the presence of a filling station in the 1969 through 2000 aerial photographs and (2) the presence of ASTs in the 1940 through 1985 aerial photographs. AKT Peerless' review of historical aerial photographs of the adjoining properties is summarized in the following table. Observations (/kiljoinin:Proiierties 1940, 1957, 1964, 1969, 1973 1978, 1980, 1985, 1990, 1995, 2000 The northern and eastern adjoining properties, beyond the railroad tracks, contain residential and commercial buildings. The southern adjoining property, beyond Pontiac Trail, contains a filling station and other commercial buildings. The western adjoining property, beyond Manistee Street, consists of residential and undeveloped land. A large commercial building has been constructed on the western adjoining property, beyond Manistee Street. Filling station present on southern adjoining property. Filling station present on southern adjoining property. I. As presented above, potential environmental concerns noted on the adjoining properties appeared limited tosthe presence of a filling station on the southern adjoining property in the 1940 through 2000 aerial photographs. 3.3.2Tax Assessment Records AKT Peerless reviewed tax assessment records on the subject property at the Wixom Tax Assessment Office. The potential environmental concerns considered are summarized in the following table. nvitop nie-ntitiss tie I 0 ni m e I f.:, ' I'ti : • • • -. - Storage Tanks Former presence of filling station on property. Asbestos-Containing Materials None PCB Materials None Onsite Well/Septic System. None Other None According to assessment records, the Wixom Co-op was established at the subject property on April 10, 1916. Among other operations, the Co-op stored and sold fuels including kerosene, heating oil, diesel, and gasoline. The Co-op ceased operations on March 1, 1987. However, photographs within the tax assessment file depict a filling station on the eastern portion of the subject property in 1988. 3.3.3Building Department Records AKT Peerless reviewed building department files for the subject property at the Wixom Building Department. Relevant building department file information is summarized in the following table. Date Permit Issued' April 9, 1963 Certificate of Occupancy — Handling Equipment Manufacturing Company September 5, 1963 Permit to repair septic field October 9, 1968 Permit to install fuel pumps 1970 Sump and sewer connection inspection March 22, 1971 Sewer connection permit October 7;1971 Permit to install 20,000 gallon gasoline tank June 5, 1973 Permit to install natural gas-fired furnace March 1, 1974 Permit to install five oil-fired furnaces April 21, 1980 Permit to install "pumps" October 27, 1981 Permit to install electrical for two gasoline pumps and one island January 26, 1982 Permit to install gasoline pumps May 28, 1985 Permit to construct addition to building April 2, 1986 Permit to install fence around storage yard December 19, 1986 Inspection notes — repair oil line to furnace, fertilizer building, mercury fixtures in elevator building June 31, 1987 Certificate of Occupancy — Wixom Country Corners (photographs of filling station)• March 24, 1988 Permit to install natural gas-fired furnace May 3, 1988 Certificate of Occupancy — Ice Cream Mill February 23, 1989 Permit to remove six ASTs and two USTs (backfilled without inspection) May 17, 1989 Permit to remodel gasoline station June 11, 1990 Violation — Refuse containers in disarray _ May 11, 1992 Photographs—Landscaping company (adjoining filling station) 1985-1997 Application for special use permit (gasoline station, restaurant, oil change facility) 3.3.4City Directories To evaluate information regarding potential environmental concern associated with historical uses of the subject property, AKT Peerless referred to City Directories at the Bresser's Cross- Reference Directory archival library. AKT Peerless researched all the addresses historically associated with the subject property. Information obtained from the reviewed directories is summarized in the following tables: Dates Occupant; Names or Businesses (49350 Pontiac Trail , 1962-1972 Address Not Listed 1976-1980 -Wixom Co-op Texaco 1988 Roy's Rustic Woods (Roy Rucker) 1974-1988 Wixom Co-Operative 1990-1998 Wixom Country Corners 1996-1998 Executive Floral 1990-20011 Wixom Donut and Coffee Shop and The Ice Cream Mill An address which is not listed typically indicates that (1) the property was vacant at that time, (2) a potential building was unoccupied at that time, (3) a previously existing address was different than the current address, (4) the building was not represented in the directory because of a "lag time" between building the structure and compiling the list, or (5) occupant information was not available for inclusion into the directory. 3.3.5Fire Insurance Maps AKT Peerless retained EDR to search for historical Sanborn fire insurance maps. No fire insurance maps were found on the subject property for the years 1867 to 1990. 3.3.650-Year Chain of Title AKT Peerless' scope of work did not include conducting a review of property title documentation. It has been AKT Peerless' experience that reviewing title search information generally does not yield information beneficial in completing an ESA. 3.4ADDITIONAL INFORMATION 3.4.1Interviews AKT Peerless interviewed Mr. Marvin Poota, the property owner, to obtain current and historical information regarding the subject property. According to Mr. Poota, he purchased the subject property in 1997. Mr. Poota was aware that the subject property historically contained a fuel ' storage and sales company. Mr. Poota stated that the buildings on the property have been demolished, and that USTs are not present at the property. 3.4.2Local Fire Department AKT Peerless contacted Mr. George Spencer, Chief of the Wixom Fire Department, regarding storage tanks or incident reports pertaining to the subject property. According to Chief Spencer, the subject property contained a bulk station for petroleum (i.e., diesel, gasoline, and heating oil). This fuel was stored in ASTs and a UST. At one time there was a leak at one of the ASTs, but all of the storage tanks have since been removed. Monitoring wells were installed to investigate the potential for contamination. A gasoline station across the street also developed leaking tanks and additional monitoring well's were installed. Chief Spencer stated that, historically, the subject property utilized a private well and septic system. The City of Wixom currently provides the area With municipal water services. However, Chief Spencer was unsure if the former wells were ever properly abandoned at the property. 3.4.3MDEO Environmental Response Division AKT Peerless contacted MDEQ Environmental Response Division (EDR), Cost Recovery Unit, in Lansing, Michigan, to evaluate whether any environmental cleanup liens had been filed against the subject property. MDEQ did not have any record of environmental cleanup liens pending against the property. AKT Peerless contacted the MDEQ ERD district office regarding the subject property. According to MDEQ file information, six former ASTs were utilized for the distribution of petroleum products. From the mid-1980s until 1988, these ASTs serviced the dispensing pumps of the filling station on the eastern portion of the subject property. Subsurface investigations of the property were first initiated in December 1986 with the installation of four monitoring wells (MW-1 through MW-4). Samples collected from MW-1, MW-2, and MW-4 were submitted for laboratory analysis for benzene, toluene, ethylbenzene, and -xylenes (BTEX). MW-3 was not analyzed due to the presence of free product. BTEX was detected in each of the other samples submitted. Between January and April 1988, the EPA, DNR, and Wixom Fire Department responded to several surface spills at the site including a 9,000-gallon kerosene release from the northwestern AST. During investigation of this spill, a drain tile was observed extending from the secondary containment around the ASTs to a nearby storm sewer. After reviewing the results of the 1986 subsurface investigation, the MDNR determined that extensive contamination was present at the site. In May 1988, the property owner was ordered to terminate the distribution of gasoline from the ASTs. A study plan of the site dated May 31, 1988 recommended installing additional monitoring wells and initiating immediate free product removal. Four additional monitoring wells (MW-5, MW-7, MW-8, And MW-9) were installed in June 1988. During this investigation, free product was observed again in MW-3. . _ In February 1989, six ASTs and one UST were removed from the subject property. In August 1992, a road construction contractor discovered gasoline in the storm sewer along Pontiac Trail. In 1994, petroleum contamination was detected on the southern adjoining property (beyond Pontiac Trail). The source of this contamination was assumed to be the subject property. An interoffice memorandum dated December 21, 1994 indicated contamination from this site may have commingled with releases from a LUST site (known as Joe's Towing and Don and Stan's) on the southern adjoining property (refer to Section 3.2). A fund to conduct free product removal was established in 1995, and the MDEQ initiated free product removal in October 1995. In January 1996, the MDEQ drilled 30 soil borings and used a photoionization detector (PID) to determine the extent of contamination at the property. During that investigation, an interview with a former employee of the Wixom Co-op informed the MDEQ that (1) spills were common at the site, (2) a drain in the AST containment area was connected to the street sewer, (3) AST containment area was not paved, (4) two USTs were removed in 1989, (5) a small used oil UST was inside containment berm, (6) the dispenser for kerosene in front of building was near a small UST, and (7) a potable water well was located inside the ice cream shop. Free product was regularly observed in MW-3. Therefore, in 1997, the MDEQ installed a free product recovery system and four additional monitoring wells at the property. Free Product Recovery reports indicate that approximately 101-gallons of free product were recovered from the property between 1998 and 1999. The MDEQ file did not contain any information regarding free product recovery after April 1999. A notice of offsite migration was submitted to the MDEQ on August 6, 1999. A letter from the MDEQ to the property owner dated February 2, 2001 indicated that free product was observed in monitoring wells MW-3 and MW-9, odors and sheen were observed in the storm sewer, and a combustible gas indicator detected dangerous conditions in the storm sewer. Based on this information, the MDEQ determined the site is a facility. Because of the volume of the MDEQ file data summarized above this information is not attached. This environmental information is maintained on file at AKT Peerless' Farmington office. 3.4.4MDEO Waste Management Division AKT Peerless contacted MDEQ Waste Management Division to review available records regarding waste management activities, permits, inspections, or violations associated with the subject property. According to correspondence received from MDEQ, no files were found. 3.4.5MDEQ Storage Tank Division AKT Peerless contacted the MDEQ STD in Lansing, Michigan to review available records regarding storage tanks associated with the subject property. According to correspondence received from MDEQ, a UST of unknown size and contents was registered with the Michigan State Police — Fire Marshal Division on June 29, 1994. The registration form indicates the UST had been recently discovered. A letter to the MDNR dated June 30, 1995 from the property owner (Peggy Clarke) states that contractors were unable to locate the previously reported UST during excavation. An interoffice communication was prepared by the ERD and sent to the STD on January 5, 1996. The correspondence was prepared to determine the liability of the property owner under Part 201 and 213 of NREPA. According to a briefing report within the correspondence s the subject property consisted of the Wixom Co-Op from 1916 until 1986. The Wixom Co-op utilized the property for the sale and storage of fuel oil and gasoline from ASTs. In addition, farm goods and pesticides were sold at the property. During assessments in 1986, free product was discovered in groundwater monitoring wells at the property. The source of this free product was not determined since both AST and UST systems were present at the site. Based on the information presented above, the subject property is not in compliance with MDEQ closure requirements under Michigan regulations Part 213 of 1994 PA 451 as amended. The MDEQ STD correspondence did not contain any additional information regarding releases or response activities at the subject property. - - 3.4.6 MDEO Geological Survey Division AKT Peerless contacted the MDEQ Geological Survey Division regarding geological activities, permits, inspections or violations associated with the subject property. According to correspondence received from MDEQ, no records of oil or natural gas wells are maintained for sites in Section 31, Township 2 North, Range 8 East of Oakland County, Michigan. I. 3.4.7Baseline Environmental Assessments AKT Peerless reviewed MDEQ's November 1, 2001, "Report of Statewide Baseline Environmental Assessment (BEA) Activity." As discussed in Section 1.4, GeoDynamics conducted a BEA of the subject property on behalf of Mr. Sami Poota in July 1997. The BEA was prepared with the assumption that the property would be used as an oil change facility, gasoline station, and restaurant. According to the BEA, a former owner of the property (Wixom Co-op) utilized the property for the storage and sale of agricultural products, automotive fuels, and home-heating fuels. The bulk petroleum was stored in six ASTs, which totaled approximately 92,000-gallons. In addition, at least two USTs were present at the property and additional USTs were reported but never confirmed.- Releases in 1986 and 1988 resulting from the mishandling of fuel have been documented at the property. Subsequent subsurface investigations conducted at the property have revealed the presence of free product in soil and groundwater. In 1997, the MDEQ prepared plans to install a free product recovery system at the property. According to a summary of laboratory analytical data presented in the BEA, soil samples collected from the property in 1986 indicate the presence of petroleum hydrocarbon contamination to a depth of 15 feet below ground surface. The BEA contained a reprinted environmental assessment of the subject property conducted by GeoDynamics on January 6, 1995. According to this assessment, the Co-op was engaged in the sales of agricultural-related products to and from local farmers from 1918 until the late 1980s. Initially, the Co-op sold coal, but later expanded sales to include petroleum products and the retail sale of gasoline began prior to 1963. The assessment indicates that deliveries were made using tanker trucks, but the potential exists for deliveries via rail cars. The assessment report indicates six ASTs and an undetermined number of USTs were present at the property. GeoDynamics suspected that a minimum of six USTs was present at the property. Two gasoline USTs were located "in front" of the store (Building A) and were reportedly removed when Pontiac Trail was widened (before to 1973). The following USTs may also remain at the property. 94 6 Location. Status . Kerosene "In front" of Building A Unknown Gasoline Near northeast corner of Building A Unknown (may have been removed in February 1989) Unknown "Rear" of Building A Floated out of ground between 1939 and - - - 1947 and was reburied _Size: Approximately 8-10' by 20-25' Waste oil Somewhere "behind" Building A Maybe same as above UST Delivery of petroleum products to the subject property may have occurred using both tanker truck and rail car. Petroleum product sales ceased and six ASTs and one UST were removed from the property. AKT Peerless has not been provided with documentation regarding the removal of these storage tanks. Wixom Country Corners operated the property as a home lawn and garden supplies store and restaurant from 1989 until approximately 2001. 3.4.8Local Health Department Mr. Gary Fricke of the Oakland County Environmental Health Department was contacted and indicated that he is not aware of any environmental concerns associated with the subject property or within the immediate vicinity of the subject property. - 4.0SITE INSPECTION The objective of the site inspection was to identify recognized environmental conditions, such as evidence of hazardous materials, oil spills or surface staining, storage tank systems, potential polychlorinated biphenyls (PCBs) and asbestos sources, as well as other obvious environmental concerns associated with the subject property. On July 1, 2002, Mr. Timothy J. McGahey of AKT Peerless conducted an inspection of the subject property. Refer to Appendix E for AKT Peerless' completed Site Inspection Checklist. The following sections discuss the major environmental concerns considered during the site inspection. AKT Peerless did not encountgr any limitations imposed by physical obstructions (e.g., snow cover, dense vegetation) during the site inspection. 4.1HAZARDOUS SUBSTANCES AND PETROLEUM PRODUCTS AKT Peerless did not observe any evidence of potentially hazardous substance or petroleum product use, storage, or releases at the subject property. 4.2HAZARDOUS AND NONHAZARDOUS WASTE AKT did not observe any evidence of hazardous or non-hazardous waste generation, storage, or releases during the site inspection of the subject property. 4.3UNIDENTIFIED SUBSTANCES AKT Peerless did not observe any unidentified . substances at the subject property. 4.4STORAGE TANK SYSTEMS AKT Peerless did not observe evidence (i.e., vent pipes, fill ports, dispensing pumps) of any UST or aboveground storage tank (AST) systems at the subject property. 4.5SUSPECT PCB SOURCES AKT Peerless inspected the subject property for the presence of liquid-cooled electrical units such as transformers and large capacitors. Such units are notable as they may be potential PCB sources. AKT did not observe evidence of any potential PCB sources on or bordering the subject property. 4.6SUSPECT ASBESTOS SOURCES AKT Peerless inspected the subject property for the presence of potentially asbestos-containing building materials (ACBMs). There are no buildings on the subject property; therefore, ACBMs (such as ceiling and floor tile, pipe or boiler insulation, and blown-in and sprayed-on insulation) were not an issue. 4.7SUSPECT WETLAND HABITAT AKT Peerless did not observe any obvious evidence of potential wetland habitat on the subject property. 4.80THER POTENTIAL EI41VIRONMENTAL CONDITIONS Approximately 10 to 12 two-inch pipes and one four-inch pipe were observed protruding from the ground surface on the subject property (refer to Photograph 6 in Appendix B. The two-inch pipes are likely monitoring wells associated with previous environmental investigations conducted at the property. The four-inch pipe is likely a former potable water well. AKT Peerless observed demolition debris (concrete, wood, piping, and metal) protruding from the ground surface throughout the property. This material is likely related to the recent demolition buildings on the property, and does not appear to present an environmental concern to the property. As discussed previously in this report, free product has been encountered in groundwater monitoring wells at the property. Therefore, the potential exists for the release of hazardous substances to wastewater and storm water at the property. Otherwise, AKT Peerless did not observe any other conditions of potential environmental concern, such as air pollution emissions, during inspection of the property. As discussed in Sections 3.4.5 and 3.4.7, the subject property is not in compliance with MDEQ closure requirements under Michigan regulations Part 213 of 1994 PA 451 as amended. In addition, the property is not in compliance with obligations under Part 20107a. Otherwise, AKT Peerless did not identify obvious evidence of any material non-compliance issues associated with site operations. - 5.000NCLUSIONS AND RECOMMENDATIONS The purpose of AKT Peerless' Phase I ESA was to provide a professional opinion of the potential and recognized environmental conditions and liabilities, if any, associated with the subject property. AKT Peerless' scope of work is based on and exceeds ASTM's "Standard Practice for Environmental Site Assessments: ESA E-1527". Further, AKT Peerless' assessment is intended to satisfy due-diligence requirements to qualify for the innocent landowner defense under CERCLA. In the prcifessional opinion of AKT Peerless, an appropriate level of inquiry has been made into the previous ownership and uses of the property consistent with good commercial and customary practice in an effort to minimize liability, and no evidence or indication of recognized environmental conditions has been revealed, except for the following: 1. As discussed throughout this report, the Wixom Co-op began operations on the western portion of the subject property in at least 1916. The property was utilized for the sale of agricultural products including petroleum products and pesticides. Initially, the Co-op sold coal, but later expanded sales to include petroleum products and the retail sale of gasoline began before 1963. Petroleum products (i.e., heating oil, kerosene, gasoline, and diesel) were distributed from six ASTs (which totaled approximately 92,000-gallons) and at least one UST to dispenser pumps via underground piping. These ASTs were also filled using underground piping. Between January and April 1988, the EPA, MDNR, and Wixom Fire Department responded to several surface spills at the site including a 9,000-gallon kerosene release from the northwestern AST. During investigation of this spill, a drain tile was observed extending from the secondary containment around the ASTs to a nearby storm sewer. The ASTs and one UST (possibly two) were removed from the property in February 1989. The results of subsequent subsurface investigations indicate the presence of free product and contamination extending across the southern property boundary. Free product has been detected at the site since 1986. Previous environmental assessments of the property indicate that USTs may remain at the property. Based on the information presented above, the subject property meets the definition of a "facility," as provided in Part 201 of NREPA, PA 451 of 1994, as amended. Further, a plan for response activities is necessary to prevent unacceptable exposure to hazardous substances identified at the property. As discussed in Sections 3.4.5 and 3.4.7, free product has been detected in monitoring wells at the property since 1986. In addition, one UST of unknown size and capacity has not been registered as removed from the subject property. However, according to previous environmental reports, this UST was removed in February 1989. The subject property is currently listed on the "open," LUST site database under the name of a previous occupant, Rite Enterprises. Based on this information, the subject property is not in compliance with MDEQ storage tank requirements under Michigan regulations Part 213 of 1994 PA 451 as amended. To address these concerns, AKT Peerless recommends conducting a subsurface investigation to evaluate soil and groundwater conditions at the subject property. Further, AKT Peerless recommends conducting a geo-physical survey at the property to evaluate the potential existence of USTs and associated piping. If encountered, AKT Peerless recommends these structures be properly removed in accordance with local, state, and federal regulations. 2. As discussed in Section 3.4.7, coal was sold from the subject property prior to the sale of petroleum products. This material was likely stored on the subject property; however, the location of this storage area was never verified. The Chesapeake Railroad line extends along the northeastern property boundary of the subject property. Information presented in previous environmental reports indicates that a railroad spur may have been utilized to make coal deliveries. To address these concerns, AKT Peerless recommends conducting a subsurface investigation to evaluate soil and groundwater conditions at the subject property. 3. As discussed in Section 3.2, the southern adjoining property has contained a filling station since 1940. Although this business is not currently in operation, free product from leaking USTs was identified during subsurface. investigations in the 1990s. Evidence from these investigations suggests that contamination from this adjoining site may have commingled with contamination from previous activities conducted on the subject property. Groundwater at the site is expected to flow north (toward the subject property). Based on this information and the proximity to the subject property, this site presents a potential environmental concern to the subject property. To address these concerns, AKT Peerless recommends conducting a subsurface investigation to evaluate soil and groundwater conditions at the subject property. AKT Peerless also recommends petitioning the MDEQ for approval of a Baseline Environmental Assessment (BEA) and Section 20107a Compliance Analysis ("Due-care Plan"). Although not considered a recognized environmental condition, the following potential environmental issues were identified: 1. As discussed in Section 2.4, a permit to repair a septic system was filed on September 5, 1963, and a sanitary sewer connection permit was filed with the Wixom Building Department March 22, 1971. An application to abandon a drinking water well was submitted to the Oakland County Health Department on March 25, 2002. The well application did not contain any information regarding the age or location of this potable well. If any of these structures are encountered during future development of the property, their removal should be managed in accordance with applicable federal, state, and local regulations and in accordance with appropriate industry standards. 2. The former buildings on the subject property utilized oil-fired furnaces prior to the 1970s and 1980s when natural gas furnaces were installed. Therefore, the potential exists for the presence of heating oil USTs at the property. If any of these structures are encountered during future development of the property, their removal should be managed in accordance with applicable federal, state, and local regulations and in accordance with appropriate industry standards. Because Recognized Environmental Conditions were identified during the performance of the Phase I ESA, further investigation and/or assessment is warranted in order to determine the nature, extent, magnitude, and materiality of recognized environmental conditions at the subject property. The estimated cost of the additional investigation, which we believe to be necessary, is between $65,000 and $80,000. However, based on the results of that investigation, additional investigation may be necessary to complete a closure for the release at the property, or a BEA and Section 20107a Compliance Analysis. 6.0LIMITATIONS The information and opinions obtained in this report are for the exclusive use of Downtown Wixom Development and Comerica Bank. No distribution to or reliance by other parties may occur without the express written permission of AKT Peerless. AKT Peerless will not distribute this report without your written consent or as required by law or by a Court order. The information and opinions contained in the report are given in light of that assignment. The report must be reviewed and relied upon only in conjunction with the terms and conditions expressly agreed-upon by the parties ande.as limited therein. Any third parties who have been extended the right to rely on the contents of this report by AKT Peerless (which is expressly required prior to any third-party release), expressly agrees to be bound by the original terms and conditions _ entered into by AKT Peerless and Downtown Wixom Development. Subject to the above and the terms and conditions, AKT Peerless accepts responsibility for the competent performance of its duties in executing the assignment and preparing reports in accordance with the normal standards of the profession, but disclaims any responsibility for consequential damages. Although AKT Peerless believes that results contained herein are reliable, AKT Peerless cannot warrant or guarantee that the information provided is exhaustive or that the information provided by Downtown Wixom Development, or third parties is complete or accurate. AKT Peerless warrants that the services, findings, and/or recommendations provided to Comerica Incorporated, its affiliates and subsidiaries, and their respective successors and assigns Comerica, have been prepared, performed and rendered in accordance with procedures, practices, and standards generally accepted and customary in the consultant's profession for use in similar assignments. AKT Peerless shall indemnify, save and hold harmless Comerica from and against any and all losses, costs, expenses and liabilities, including without limit reasonable attorneys fees, which are attributable to the breach of the above warranty, up to an aggregate amount of $1,000,000 (One Million Dollars), notwithstanding any limitation (expressed or implied) contained in any other agreement or document relating to the services, findings and/or recommendations provided by AKT Peerless. Report submitted by: Timothy McGahey, CHMM, Environmental Consultant, Environmental Compliance and Assessment Services AKT PEERLESS ENVIRONMENTAL SERVICES Report reviewed by: Sandra E. Muszynski, CHMM, Senior Environmental Consultant, Environmental Compliance and Assessment Services AKT PEERLESS ENVIRONMENTAL SERVICES APPENDIX C Reimbursement Procedure OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY ELIGIBLE ACTIVITY COST REIMBURSEMENT PROCEDURES ADOPTED FOR REIMBURSEMENT OF DOWNTOWN WIXOM DEVELOPMENT COMPANY ELIGIBLE ACTIVITY COST REIMBURSEMENT Upon approval of a Brownfield Plan for eligible property or the inclusion of additional parcels of eligible property in a Brownfield Plan where the owner/operator proposes to seek reimbursement of costs for eligible activities it eligible property, the OCBRA shall require the owner/operator to comply with the terms and conditions specified herein including the schedules governing the capture of the taxes, requests for reimbursement, required documentation, determination of eligible activities and reimbursement process as more fully defined below. DOCUMENTATION OF ELIGIBLE COSTS Parties seeking reimbursement of costs of eligible activities attributable to eligible property should submit to the OCBRA requests for reimbursement on a monthly basis. These requests should include the following: 1. Reference to the Approved Brownfield Plan and parcel. 2. The total amount of the current monthly reimbursement request. 3. The total amount of the reimbursement requests sought to date pursuant to the Approved Brownfield Plan. 4. Identification of each eligible activity as a line item, the associated costs, with copies of detailed invoices for the eligible activities and proof of payment. (Parties seeking reimbursement should request detailed billings from contractors splitting out fees and costs of eligible activities from other services.) 5. Other information and documentation that may assist the OCBRA in determining whether the costs are for eligible activities attributable to an eligible property and that the costs are reasonable. This documentation may include evidence of a competitive bidding process and/or evidence that the costs are for eligible activities. 6. Certification by an authorized representative of the party seeking reimbursement that a) he or she has reviewed the request for reimbursement, b) the costs are for eligible activities attributable to eligible property, c) the request is for costs incurred and paid and d) he/she is authorized to seek reimbursement and to make the certification on behalf of the party seeking reimbursement. The OCBRA will make the final determination of eligibility for all requests for reimbursement. Reimbursements will take place as tax capture allows. Reimbursement payment is expected to occur biannually: in early spring and late fall of each year. No payments will be made if property taxes on any of the eligible properties are delinquent. The OCBRA will make every effort to follow the reimbursement schedules as specified in OCBRA Brownfield Plans. For a specific Brownfield Plan, the OCBRA will not reimburse prior to or in excess of the amount of taxes captured from the eligible property. Shortfalls in capture will result in proportionate reductions in allocations made for eligible activity reimbursements. OCBRA administrative and legal costs for establishment and administration of the Brownfield Plan governing the eligible property take priority for reimbursement over all other eligible costs. The OCBRA reserves the right to deny or make partial reimbursement of requests for reimbursement, which it deeiris not in accordance with the Brownfield Plan, the Act and procedures, established by OCBRA for reimbursement. Calendar Wixom project consideration Project consideration by: Oakland County BRA/ Oakland County Planning & Building/ Oakland County Finance Committee/ Oakland County Board of Commissioners/ Local Municipal Board September 9- Receive brownfield plans from AKT regarding Wixom project. September 11- Send out information packet regarding Wixom project to BRA board members. September 13- Submit Public Notice to County Clerk, regarding the BRA meeting. September 18- BRA meeting, Wixom project funding. September 23- Mail out information to the Planning and Building board. October 1- P&B Committee meeting. Recommending a public hearing by the BoC and Recommend funding for Wixom project. October 1- Submit Public Notice to publishers, regarding the BoC meeting. Public Notice will include the following: Time and Place of the hearing. Description of the property in relation to existing or proposed highways, streets, streams or otherwise. A statement that maps, plats, and a description of the brownfield plan are available for public inspection at a place designated in the notice. A statement that all aspects of the brownfield plan are open for discussion at the public hearing. Any other information the governing body considers appropriates. October 3- Publish first notice of public hearing (required not less than 20 nor more than 40 days before public hearing date.) October 4- Publish second notice of public hearing. October 4- Provide notice of hearing to the taxing jurisdictions (required not less than 20 days before the hearing.) Notice of hearing shall contain the following: Inform taxing jurisdictions about the fiscal and economic implications of the proposed brownfield plan. October 8- City of Wixom Council meeting. October 10- BoC meeting: establish a public hearing for the BoC meeting on October 24 and refer Brownfield plan to the finance committee October 17- Finance committee referral of Brownfield Plan. Conduct public hearing regarding Wixom property redevelopment funding by the BoC, The BoC will also vote to approve the Brownfield plan for the Wixom project October 24- ESTABLISHMENT OF A CONEVIITTEE FOR THE DOWNTOWN WIXOM REDEVLOPMENT BROWNFIELD SITE September 18, 2002 WHEREAS, per the Oakland County Brownfield Redevelopment Authority (BRA) Bylaws, Article II Section 9 there is a requirement that not less than sixty days prior to the submittal of any proposed Brownfield redevelopment plan to the BOC pursuant to Section 14(a) of the Act, by resolution the Board shall appoint a committee for any such proposed plan to allow for input of the city, village or township involved. The committee shall consist of a minimum of one or more of the Directors of the Board, as well as one elected official, or his/her designee from the affected city, village, or township. The committee so appointed shall make recommendations to the Board, which shall include or address any changes to the Brownfield redevelopment plan sought by the city, village or township, as well as any other significant concerns or issues raised by the city, village or township; and, WHEREAS, representatives and staff of all parties involved with this project and of the persons/entities appointed to this committee have been meeting regularly since June of 2002 regarding this project: and, WHEREAS, today is the first scheduled meeting of the Oakland County BRA since this project has been formally proposed; now, THEREFORE, be it resolved, to approve and ratify the appointment of Martin J Seaman (Oakland County BRA), Mayor Michael McDonald, (local elected official) and the members of the Downtown Development Authority of Wixom to serve as the local committee. Motion: Doug Smith, Second: Doug Williams Yeas: 5 Nays: 0 Absent: Keith Lerminiaux, Dan Hunter Approved: September 18, 2002 Martin Seaman Chairperson Oakland County Brownfield Redevelopment Authority CITY OF WIXOM 248 624 0863 P.02 4 OCT-22-2002 22:28 At a regular meeting of the City Council of the City of Wixom, Oakland County, Michigan, held on Tuesday, October 22, 2002, with all members present, the following motion was passed by unanimous vote. CM-10-31542: Moved and seconded by Ziegler and Cutright to concur with the recommendation to concur with the recommendation to adopt the following Resolution concurring with the provisions of a Brownfield Plan approved by the Oakland County Brownfield Redevelopment Authority for the Downtown Wixom Development Company: CITY OF WIXOM COUNTY OF OAKLAND STATE OF MICHIGAN RESOLUTION CONCURRING WITH THE PROVISIONS OF A BROWNFIELD PLAN ADOPTED BY THE OAKLAND COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY FOR THE DOWNTOWN VVIXOM DEVELOPMENT WHEREAS, the Oakland County Board of Commissioners, pursuant to and in accordance with the provisions of the Brownfield Redevelopment Financing Act, being Act 381 of the Public Acts of the State of Michigan of 1996, as amended (the "Act"), have established a Brownfield Redevelopment Authority and Board (OCBRA) to facilitate the clean up and redevelopment of Brownfields within Oakland County's communities; and WHEREAS, the downtown Wixom development property has been a long-standing environmental hazard, a "facility" under state statute, and a tax-reverted, non-producing parcel for many years; and WHEREAS, a Brownfield clean up and redevelopment plan (the "Plan") has been prepared to restore the environmental and economic viability of this parcel which the OCBRA has reviewed and modified; and WHEREAS, pursuant to OCBRA by-laws, a local committee has been appointed, participated in discussions regarding the proposed plan and project, reviewed the plan, and recommends its approval; and WHEREAS, the OCBRA, pursuant to and in accordance with Section 13 of the Act, shall consider recommending that the Oakland County Board of Commissioners approve the Brownfield Plan to be carried out within the City of Wixom, relating to the redevelopment of the downtown Wixom property located at 49350 Pontiac Trail (the "Property"); and WHEREAS, the members of the City Board have reviewed the Plan, and have been provided a reasonable opportunity to express their views and recommendations regarding the Plan in accordance with Section 13(13) of the Act; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Wixom hereby concurs with the provisions of the Plan including approval of the Plan by the Oakland County Board of Commissioners and implementation of the Plan by the Oakland County Brownfield Redevelopment Authority; and 248 624 0863 P.05 4 OCT-23-2002 10:11 CITY OF WIXOM WIXOM BROWNFIELD REDEVELOPMENT COMMITTEE MEETING Thursday, October 172002 MEMBERS PRESENT: Mayor Michael McDonald Eugene Boilore Martin Seaman OTHERS PRESENT: Marvin Poota, Vice President-Downtown Wixom Development Co. Anthony Nowicki, Assistant City Manager Pat Greve, AKT Peerless Environmental Services PUBLIC COMMENTS'. None MATTERS FOR COMMITTEE ACTION: 1. Consideration of a Brownfield Redevelopment Plan for the Downtown Wixom Development Company Project on the former Wixom Country Corners site. Member Seaman reviewed the jurisdictional authority of the Committee, the creation of such as well as summarizing the Oakland County Brownfield Redevelopment Program. Pat Greve reviewed more specifically the history of the site and technical aspects of the dean-up project and the components of the Plan including costs and funding. Moved by Mayor McDonald, seconded by Eugene Boilore to approve the Brownfield Redevelopment Plan for the Downtown Wixom Development Company Project and recommend to the City Council adoption of a Resolution concurring with the Plan. Motion carried unanimously. ADJOURNMENT: There being no further business to come before the Committee, the meeting was adjourned at 9:40 A. M. L. Brooks Pa "Y tA 1P HF fl fir - ounty Executive son. FOREC.1 Resolution #02267 October 24, 2002 Moved by Palmer supported by Crawford the resolution be adopted. AYES: Crawford, Dingeldey, Douglas, Garfield, Gregory, Law, McPherson, Melton, Middleton, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos, Appel, Brian, Buckley, Causey-Mitchell, Coleman. (24) NAYS: None. (0) A sufficient majority having voted therefore, the resolution was adopted. 2ç 2- Date STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on October 24, 2002, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 24th day of October, 2002. G. William Caddell, County Clerk WU n11;,m,