DSHW-2018-003741 - 0901a06880807281

201 South Main Street, Suite 1800
Salt Lake City, Utah 84111
Main 801.532.1234
Fax [phone]
VIA HAND DELIVERY
Scott T. Anderson, Director
PARSONS
BEHLE
LATIMER
A Professional
Law Corporation
April 26, 2018
Utah Department of Environmental Quality
Division of Waste Management and Radiation
Control
195 North 1950 West
P.O. Box 144840
Salt Lake City, UT 84114
Re: Request for Comfort Letter
Bridger Development Company
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APR 2. 6 2018
V~--2Dl6-00374-I
HaJJ.Pos
Attorney at Law
Direct 801.536.6725
[e-mail]
Park East Apartments, 1709 East Murray Holladay Road, Salt Lake City,
Utah (2.88 acres)
Dear Scott:
Enclosed please find a Request for Comfort Letter ("Request") for Bridger Development
Company ("Bridger"), a copy of the Phase I Environmental Site Assessment supporting the
Request, and a flash drive with password containing both. Bridger intends to purchase the Park
East Apartments, located at 1709 East Murray Holladay Road, Salt Lake City, Utah (2.88 acres)
(the "Property"). Bridger has recently entered into a purchase and sale agreement with K&H
Development, LLC ("K&H") to acquire the Property. The transaction is scheduled to close in
the next sixty to ninety days. In connection with the proposed acquisition, Bridger seeks a
comfort letter for the Property pursuant to Utah Code Ann. § 19-6-108.3 concerning the
proposed acquisition.
As explained in the Request, groundwater beneath the Property appears to have been
impacted by an up gradient former dry cleaning operation. The Division is overseeing additional
sampling and analysis of sub-slab soil vapor and 24-hour indoor air samples by K&H to evaluate
the potential risk of vapor intrusion at the Property. In a parallel process, Bridger also is
requesting an enforceable written assurance letter from the Utah Division of Environmental
Response and Remediation ("DERR") pursuant to Utah Code Ann. § 19-6-326. We understand
that the DERR will not consider or issue an enforceable written assurance letter until the
DWMRC first issues a comfort letter to Bridger.
4821-8128-1122vl
PARSONSBEHLE.COM
Scott T. Anderson
April 26, 2018
Page Two
We look forward to working with you on this matter. As always, we greatly appreciate
your time and assistance. If you have any questions concerning the Request, please feel free to
call me.
HJP:ab
Attachments
cc: Raymond Wixom, Esq. (w/o Attachment)
Bill Rees (without attachment)
4821-8128-1122vl
Very truly yours,
RSONS BEHLE & LATIMER
201 South Main Street, Suite 1800
Salt Lake City, Utah 84111
Main 801.532.1234
Fax [phone]
VIA HAND DELIVERY
Scott T. Anderson
PARSONS
BEHLE
LATIMER
A Professional
Law Corporation
April 26, 2018
Utah Department of Environmental Quality
Division of Waste Management & Radiation
Control
195 North 1950 West
P.O. Box 144880
Salt Lake City, Utah 84114
Re: Request for Comfort Letter
Div of Waste \i1anag2ment
and r.;;,,d:afr'.."ln Ccd,oi
APR 2 6 2018
D5HW-ZOf 8-003?r/
Hal J. Pos
Attorney at Law
Direct 801.536.6725
[e-mail]
2.88 Acres of Land-Park East Apartments, 1709 East Murray Holladay
Road, Salt Lake City, U tab
Dear Scott:
On behalf of Bridger Development Company, Inc. ("Bridger"), this letter is submitted to
the Utah Division of Waste Management and Radiation Control ("Division") concerning the
proposed acquisition of 2.88 acres of land located at Park East Apartments, 1709 East Murray
Holladay Road, Salt Lake City, Utah, 84117 (the "Property"). The Property is currently owned
by K&H Development, LLC ("K&H"). Bridger anticipates that it will finalize a purchase and
sale agreement with K&H to acquire the Property in the next approximately 60 to 90 days. In
connection with the proposed acquisition, Bridger seeks, pursuant to Utah Code Ann. § 19-6-
108 .3, a written assurance or comfort letter for the Property. The information provided in this
letter is based on a Phase I Environmental Site Assessment Report ("Phase I Report") prepared
by EFI Global ("EFI") on behalf of Bridger, dated April 2, 2018, a copy of which is attached
hereto as Attachment 1. Also enclosed as Attachment 2, please find a copy of correspondence
between Wasatch Environmental, K&H' s environmental consultants, and the Division
concerning additional investigation activities on the Property relating to potential vapor intrusion
issues.
The following is a brief history of the Property. The Property is a 2.88 area tract of land
located in an urban area ofretail businesses, multi-family apartments, a self-storage facility and a
park. The Property is developed with three, four-story apartment buildings with surface parking
lots that were constructed in 2017. According to the Salt Lake County Assessor website, there
are 70 apartment units that consist of a total of 80,776 square feet. The floor plans vary in size
4852-2929-4690vl PARSONSBEHLE.COM
Scott T. Anderson
April 26, 2018
Page Two
and include 19 1-bedroom/1 bathroom apartments and 51 2-bedroom/1 bathroom apartments.
The City of Salt Lake City supplies water and sewer services.
The Property lies in an area of quaternary Pleistocene-aged silt and clay deposit unit.
Soils on the Property are classified as Bramwell silty clay loam, hardpan variant and mixed
alluvial land. According to a nearby subsurface investigation at 4770 South Highland Drive, the
depth of groundwater ranges from 11 to 15 feet below groundwater surface. Groundwater flow
direction was determined to be to the west-northwest, towards the Jordan River, approximately
7,800 feet west-northwest of the Property. Big Cottonwood Creek is a tributary to the Jordan
River, approximately 500 feet to the south. The creek flows towards the northwest in the area.
The Property was undeveloped land from at least 1925 through 1937. Residential homes
were noted on the southern portion of the Property in 1946. In addition to the residences, a
commercial structure was constructed on the central portion of the Property in the early 1950's.
The residential homes and commercial structure remained on the Property through 2014. In
2015, the residences and the commercial structure were razed. Construction of the current
apartment buildings began in 2016 and was completed in 2017.
The Property is developed as an apartment complex. No evidence of underground
storage tanks, above storage tanks, suspected subsurface equipment, vaults, hydraulic elevators,
underground chases, suspect surface conditions, drums, other containers of chemicals and
petroleum products, sumps, pits, ponds, lagoons or noticeable odors were observed at the
Property at the time of the site visit.
Three pad-mounted transformers are located on the Property. No stains, leaks or labeling
were observed on the transformers. The transformers are the property of the local utility, Rocky
Mountain Power, which is responsible for any containment or clean-up resulting from a release
of dielectric fluid from their equipment.
The Property's apartments were constructed in 2017. It is unlikely that friable asbestos-
containing materials were utilized. Again, given the age of the Property buildings, it is unlikely
that lead paint was used.
The surrounding properties were undeveloped from at least 1925. From at least 1937
through the 1940's scattered residences were noted on the surrounding properties. In early 1950,
properties further east were commercially developed. In the early 1980's, commercial
development began to the north, east and southeast and apartments were noted to the south and
southwest, as they were observed during the Property visit. The property to the west was
undeveloped land or residential until a park was developed in early 2000. The surrounding
businesses of concern include Henrie's Cleaners at 1781 East Murray Holladay Road in the 1991
through 2010 city directories; Jason Shaul Fill Station/Birkinshaw Service Station/Al's Utoco
Service Station/Traveler's Oil Company/American Oil Self Service/Rainbow (Rainbo) Oil
Company, 5/Amoco Petroleum Products/2 Go Tesoro Gas Station at 477 South Highland Drive
4852-2929-4690v1
Scott T. Anderson
April 26, 2018
Page Three
in the 1951 through 2011 city directories; and Traveler's Oil Company at 4716 South Highway
in the 1955 through 1965 city directories.
As part of the Phase I Environmental Site Assessment ("Phase I ESA"), EFI reviewed a
regulatory agency database summary report to identify listings for the Property and on ASTM-
designated databases located within search radii prescribed by ASTM. The Property is not listed
on the federal, state, or local regulatory agency databases.
The EDR Report of regulatory agency databases identifies off-site listings for its core
facilities located within the ASTM-prescribed search radii. A total of 10 properties are listed,
identified on various databases. Of particular importance, Henrie's Cleaners located at 1781
East 4800 South/1781 East Murray Holladay Road, is listed on the RCRA, FINDS, Dry Cleaner
and Historical Dry Cleaner databases. This facility is adjacent to the east and topographically
upgradient of the Property. According to the databases, this facility was a small and large
quantity RCRA generator of hazardous waste. This facility is no longer in operation and the
tenant space was observed to be vacant at the time of the Property visit. No RCRA violations
have been reported in association with the facility. The dry cleaner operated at this location from
approximately 1985 through 2010. Reportedly, the dry cleaning equipment was moved offsite in
2003 and was a drop-off facility for the remainder of its operations at this location. EFI observed
a monitoring well on the west side of the dry cleaning building, bounding the Property. Final
reviews identify chlorinated solvent contamination in 2007 in the soil and groundwater samples
collected from both inside and outside the former Henrie's Cleaner's tenant space above U.S.
EPA regional screening levels used by the Utah Division of Environmental Response and
Remediation ("DERR") who evaluates contaminants.
A Minit-Lube/Jiffy Lube International is located at 1804 East 4800 South (aka East
Murray Holladay Road) and is listed on the Leaking Underground Storage Tank ("LUST")
database. This facility is approximately 219 feet southeast and topographically upgradient of the
Property. According to the database and DERR website, this facility had a used oil release in
1993. The release was discovered during the removal of three new oil underground storage tanks
(5,000, 3,000 and 2,000 gallons) and one used oil underground storage tank (1,000 gallons). The
results of soil samples collected indicated below detectable concentrations of total recoverable
petroleum hydrocarbons in all five soil samples. However, a halogenated volatile organic
compound, tetrachloroethene (PCE), was detected in a soil sample at 130 parts per billion and 2
parts per billion. A limited subsurface investigation was conducted during November 1993,
which included the drilling and sampling of three exploratory soil borings. Groundwater was
measured in the wells at approximately 9.5 feet below the top of casing and groundwater was
determined to flow in the west-northwest direction. Results indicated below detectable HVOC
concentrations and low levels of TRPH at 8 parts per billion to 15 parts per billion. Groundwater
testing indicated groundwater contamination, in some instances in excess of the MCL. In
October 1995, DERR issued a no further action letter to address the solvent contamination at the
site. The used oil released at the site was given closure by DERR in June 1996.
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Scott T. Anderson
April 26, 2018
Page Four
Other LUST database sites include the Good Year Tire Center, located at 4712 South
Highland Drive, and Tesoro/Rainbow Oil, located at 4770 South Highland Drive. Although soil
and/or groundwater contamination were detected at these sites, each of these sites received no
further action letters from DERR.
In addition, the Phase I Report identified the 4800 South and Highland Drive Plume,
located at the intersection of East Murray Holladay Road and Highland Drive. According to
DERR files, the extent of the plume is approximately 187 feet east and topographically
upgradient of the Property. The site is listed on the SEMS database and has been issued a
CERCLIS identification number. The plume was discovered during subsurface investigations at
three separate LUST sites, located at or near the intersection of East Murray Holladay Road and
Highland Drive. Based on testing and analytical results, it appears that the solvent contamination
originates from a source up gradient to these LUST sites. The current status of these LUST sites
is no further action is needed.
In connection with the funding of a mortgage loan by the current owner, an earlier Phase
I Environmental Site Assessment, dated November 6, 2017, prepared by EFI recommended
further testing due to contamination detected in a nearby municipal well and potential for vapor
intrusion on the Property. The owner engaged Wasatch Environmental to conduct a Limited Site
Investigation ("LSI") to obtain a regulatory assessment of the environmental conditions of the
Property. The LSI involved groundwater sampling, which resulted in detections of TCE
concentrations slightly above MCLs. The Division reviewed the LSI report and recommended
pursuant to a letter dated December 20, 2017, that Wasatch Environmental prepare and submit to
the Division a work plan for review and approval that details efforts to evaluate potential vapor
intrusion issues on the Property. The additional testing contemplates the installation, sampling
and analysis of sub-slab soil vapor and 24-hour indoor air samples, an evaluation of the pressure
differential between the building sub-slab and indoor air to characterize if the building is under
positive pressure conditions, and the engagement of a qualified environmental risk assessment to
review the existing groundwater data and the existing and additional sub-slab and indoor air data
to evaluate the vapor intrusion potential at the Property and/or identify additional sampling data
needed to evaluate the vapor intrusion potential. This investigation is currently underway.
Based on the Phase I ESA conducted in conformance with the scope and limitations of
ASTM Practice E1527 of the Park East Apartments, the assessment revealed no evidence of
recognized environmental conditions concerning the Property, with the exception of the
following:
1. The solvent plume associated with the 4800 South and Highland Drive Plume is
undefined and is currently undergoing additional investigation. The contamination source and
responsible party have not been determined. Groundwater flow direction has been documented
to be to the northwest, towards the Property. The Phase I Report concludes that the undefined
4852-2929-4690v1
Scott T. Anderson
April 26, 2018
Page Five
solvent groundwater plume, the lack of a soil gas investigation, and a northwest groundwater
flow direction is evidence of a recognized environmental condition to the Property.
2. Chlorinated solvents above DERR regulatory levels have been identified in the
soil and groundwater immediately adjacent to the east and upgradient of the Property. This
upgradient property was formerly operated by Henrie's Cleaners from at least 1985 through
2010. Groundwater flow direction has been documented to be to the northwest, towards the
Property. The Phase I Report concludes that the undefined solvent groundwater plume, the lack
of a soil gas investigation and northwest groundwater flow direction is evidence of a recognized
environmental condition to the Property.
Additional Application Information.
1. Description and Location of the Property. The Property Bridger plans to acquire
consists of 2.88 acres, located at 1709 East Murray Holladay Road, Salt Lake City, Utah, 84117.
The Parcel Identification Number is 22-09-201-014-0000. A copy of the Legal Description is
attached hereto as Attachment 3.
2. Current Ownership of the Property. The Property is currently owned by K&H
Development, LLC.
3. Contact Information of New Property Owner. The contact for Bridger is as
follows:
Craig Robinson
Bridger Development Company
1253 Parkside Drive East
Seattle, Washington 98112
Mobile: [phone]
Email: [e-mail]
Greg Pavich
Coldwell Banker Commercial
Executive Vice-President
6550 South Millrock Drive, Suite 200
Salt Lake City, Utah 84121
Telephone: [phone]
Facsimile: 801.947.8301
Email: [e-mail]
4. Coverage by an Operation Plan. The Property is not subject to any operation
plan.
4852-2929-4690v1
Scott T. Anderson
April 26, 2018
Page Six
5. Permittee Status. Bridger is not a "permittee" under any "operation plan" within
the meaning of Utah Code Ann. § 19-6-108.3(1)(a)(i).
6. Certification Regarding Compliance. Bridger certifies that it has not violated any
provision of the Solid and Hazardous Waste Act, Utah Code Ann. § 1 9-6- 10 1 et seq., or any
other environmental statute concerning the Property.
7. Certification Regarding Affiliation. Bridger certifies that (a) none of its affiliates
or agents have violated any provision of the Solid and Hazardous Waste Act, Utah Code Ann.
§ 1 9-6- 10 1 et seq., or any other environmental statute concerning the Property; (b) it is not
potentially liable or affiliated with any other person that is potentially liable for response costs at
the Property through: (i) any direct or indirect familial relationship; or (ii) any contractual,
corporate, or financial relationship (other than a contractual, corporate or financial relationship
that is created by the instruments by which title to the Property is conveyed or financed or by a
contract for the sale of goods or services); or (iii) the result of a reorganization of a business
entity that was potentially liable.
8. Certification Regarding Contamination. Bridger certifies that it did not cause any
environmental contamination on the Property. Bridger further certifies that none of its affiliates
or agents caused any environmental contamination on the Property.
9. Use of the Property. The Property was undeveloped land from at least 1925
through 1937. Residential homes were noted on the southern portion of the Property in 1946. In
addition to the residences, a commercial structure constructed on the central portion of the
Property existed in the early 1950s. The residential homes and commercial structure remained
on the Property through 2014. In 2015, the residence and the commercial structure were razed.
Construction of the current apartment buildings began in 2016 and was completed in 2017.
10. Compliance with Existing and Future Access Requirements and Activity and
Land Use Restrictions. Bridger agrees to comply with all applicable access requirements and/or
activity and land use restrictions or institutional controls required for the Property. Currently,
Bridger is not aware of any access requirements or activity and land use restrictions.
11. Appropriate Care. Bridger agrees to exercise appropriate care with respect to
hazardous substances and hazardous materials found or suspected at the Property and to take
reasonable steps Bridger determines are necessary and consistent with the any institutional
controls, and any other related, applicable documentation for the Property to: (a) stop any
continuing release; (b) prevent any threatened future release; and (c) prevent or limit human,
environmental or natural resource exposure to any previously released hazardous substance or
hazardous material.
4852-2929-4690v1
Scott T. Anderson
April 26, 2018
Page Seven
12. Legally Required Notices. Bridger agrees to provide all legally required notices
concerning the discovery or release of any hazardous substances or hazardous materials at the
Property.
13. Bona Fide Prospective Purchaser. Bridger has made "all appropriate inquiries"
into the previous ownership and uses of the Property pursuant to 40 C.F.R. Part 312 and qualifies
as a bona fide prospective purchaser under 42 U.S.C. § 9601(40).
Based on the foregoing, Bridger requests a written assurance that (a) the Executive
Secretary will not commence an enforcement action or cost recovery or contribution action
against Bridger or otherwise require corrective action relating to contamination that existed, or
for violations of the Utah Solid and Hazardous Waste Act, Utah Code Ann. §§ 19-6-101 to -123,
as amended, that occurred before Bridger acquired an ownership interest in the Property; and (b)
Bridger is not and will not become a permittee or responsible party under Utah Solid and
Hazardous Waste Act, Utah Code Ann. §§ 19-6-101 to -123, as amended.
We greatly appreciate your attention to this matter at your earliest convenience as the
transaction is scheduled to close in approximately 60 days. Thank you for your time and
attention. If you have any questions concerning this request, please feel free to call me. Thank
you in advance for your assistance on this matter.
ry truly yours,
PA SONS BEHLE & LATIMER
J. •os
ttorney at Law
HJP:cw
Attachments
cc: Jon K. Butler (w/o Attachments)
Greg Pavich (w/o Attachments)
Craig Robinson (w/o Attachments)
Raymond Wixom, Esq. (w/o Attachments)
4852-2929-4690v1
See attached binders containing Phase I Environmental Site Assessment submitted
by EFI Global
1 of 3
2 of 3
3 of 3