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HomeMy WebLinkAboutDSHW-2025-000113From: Jack Funk <jfunk@highboyventures.com> Date: Mon, Dec 9, 2024 at 2:52 PM Subject: Re: Woodbine Industries LLC Environmental Covenant To: Jasin Olsen <jbolsen@utah.gov> Cc: Austin, Amy B <Amy.Austin@terracon.com>, mcoreth@highboyventures.com <mcoreth@highboyventures.com>, Paige Walton <pwalton@utah.gov>, Brenden Catt <bcatt@agutah.gov> Hi Jasin, apologies for the delay, please see attached for a few suggested edits. Thanks! Best, Jack On Mon, Nov 25, 2024 at 9:29 AM Jasin Olsen <jbolsen@utah.gov> wrote: Hi Jack, I'm just following up on this EC request for the property at 545 West 700 South in Salt Lake.  Have you had a chance to review that? Thanks, Jasin On Thu, Sep 5, 2024 at 11:41 AM Jasin Olsen <jbolsen@utah.gov> wrote: Hi Jack, I think it might be easier to just send you the marked up version and let you address it as needed.  Once you get a final version you can submit that back to us and we can move forward. Thanks, Jasin On Thu, Sep 5, 2024 at 11:26 AM Jasin Olsen <jbolsen@utah.gov> wrote: Hi Jack, I believe that we would be interested in proceeding without the subordination.  We have an EC with some markup from our AG's office that I can get to you to review.  Can you confirm the address that the recorded EC should be sent to?  Right now it is listed as: Woodbine Industries, LLC 205 Hudson Street, 7th Floor New York, New York 10013 We have a different address that is listed as 9945 E Powder Ridge Drive, Sand, Utah 84092. Can you tell me the correct address? Thanks, Jasin On Wed, Sep 4, 2024 at 4:29 PM Jack Funk <jfunk@highboyventures.com> wrote: Hi Jasin, apologies for the delay, we would certainly be interested in proceeding without subordination if possible. Is that a requirement that the DWMRC would waive? Thanks! Best, 1/7/25, 3:42 PM Fwd: Woodbine Industries LLC Environmental Covenant - kmcneill1@utah.gov - State of Utah Mail https://mail.google.com/mail/u/0/?tab=rm&ogbl#inbox/FMfcgzQZSZFVRWcBXqfsQsDbflnXPRXs 1/2 Jack On Thu, Aug 8, 2024 at 4:04 PM Jasin Olsen <jbolsen@utah.gov> wrote: Hello, We would like to see if there is interest in continuing with the environmental covenant process without the subordination process.  The site management plan has already completed a 30-day public comment period and is ready for approval.  If you would like to continue with the environmental covenant, please let us know. Thanks,  Jasin --   Jasin Olsen Environmental Scientist | Corrective Action Division of Waste Management and Radiation Control Office: (385) 499-0494| Front Desk: (801) 536-0200 wasteandradiation.utah.gov Emails to and from this email address may be considered public records and thus subject to Utah GRAMA requirements. Statements made in this email do not constitute the official position of the Director of the Division of Waste Management and Radiation Control. If you desire a statement of the Division Director’s position, please submit a written request to the Director, including copies of documents relevant to your request. 1/7/25, 3:42 PM Fwd: Woodbine Industries LLC Environmental Covenant - kmcneill1@utah.gov - State of Utah Mail https://mail.google.com/mail/u/0/?tab=rm&ogbl#inbox/FMfcgzQZSZFVRWcBXqfsQsDbflnXPRXs 2/2 Environmental Covenant Woodbine Property Page 1 When Recorded Return To: Woodbine Industries, LLC 205 Hudson Street, 7th Floor New York, New York 10013 To be recorded with County Recorder – Utah Code Ann § 57-25-108 With Copy To: Douglas J. Hansen, Director Utah Division of Waste Management and Radiation Control P.O. Box 144880 Salt Lake City, UT 84114-4880 ENVIRONMENTAL COVENANT 1.This Environmental Covenant is made pursuant to the Utah Uniform Environmental Covenants Act, Utah Code Ann. Section 57-25-101, et seq. (the Act). Woodbine Industries, LLC, as Owner and Grantor, makes and imposes this Environmental Covenant upon the Property (defined below) more particularlyas described in Exhibit A attached hereto (the Property). 2.Notice. Notice is hereby given that the Property is or may be contaminated with hazardous waste, hazardous constituents, or solid waste, and therefore, this Environmental Covenant is imposed in an effort to mitigate the risk to human health, safety, and the environment. 3.Property. This Environmental Covenant concerns an approximately 5.11-acre tract of real property, tax parcel numbered 15-12-107-001, owned by Woodbine Industries, LLC, located at 545 West 700 South, in Salt Lake County, Utah, and more particularly described in Exhibit A attached hereto and hereby incorporated by reference herein (the “Property”). 4.Environmental Response Project. The Woodbine siteProperty or a portion thereof was historically previously used as an industrial facility occupied by manyvarious tenants including machine repair shops, steel forging companies, and other miscellaneous industrial-type clients from the early -1900s through the present day approximately February 2024. Multiple environmental investigations performed at the site documented on-site impacts of several volatile organic compounds (VOCs), polycyclic aromatic hydrocarbons (PAHs), and metals above United States Environmental Protection Agency (EPA) Regional Screening Levels (RSLs) in soil and groundwater at the site. In addition, several chlorinated VOCs were detected in soil vapor at concentrations exceeding the EPA Residential and/or Commercial Target Sub- Slab and Near-source Soil Gas Concentration (TSSNSGC) Vapor Intrusion Screening Levels (VISLs). A Risk Evaluation was performed to evaluate the risks associated with the contaminants of potential concern (COPCs) that exist at the site. The Risk Evaluation concluded that Environmental Covenant Woodbine Property Page 1 calculated site risks currently exceed Utah Administrative Code (UAC) R315-101 thresholds for residential use but not for commercial or industrial use. Land use at the site is currently entirely commercial and industrial. A Site Management Plan has been developed for the Property and is incorporated herein. The owner is required to comply with the Site Management Plan in all aspects. If and whenIf residential development is contemplated at the site, a Corrective Action Plan (CAP) will be prepared and submitted to DWMRC. This Environmental Covenant will remain in effect until implementation of the CAP is complete and environmental risks at the site have been reduced below UAC R315-101 thresholds for residential land use. 5.Administrative Record. The project administrative records are maintained and managed by the Utah Department of Environmental Quality, Division of Waste Management and Radiation Control. 6.Grantor. Woodbine Industries, LLC is the Grantor of this Environmental Covenant. The Grantor of this Environmental Covenant is also an Owner as defined in Paragraph 7. 7.Owner. An Owner is any person who holds any interest in the Property, including, without limitation, the owner of the fee simple estate, any assign, successor in interest, mortgagee, lender, easement holder, lessee, and any other person or entity who acquires any interest whatsoever in the Property, or any portion thereof, whether or not any reference to this Environmental Covenant or its provisions are contained in the deed or other conveyance instrument, or other agreements by which such person or entity acquires its interest in the Property or any portion thereof. A person who is a Holder (defined below) under this Environmental Covenant but who holds no other interest in the Property is not an Owner. 8.Transfer of Obligations. Except as provided in this Environmental Covenant, when the Owner of the fee simple estate transfers that estate to a Transferee, the Owner’s obligations under this Environmental Covenant transfer to the Transferee, who then becomes an Owner. When the Owner of the fee simple estate transfers a lesser interest, or when an Owner who holds a lesser interest transfers that lesser interest or any portion thereof, the Owner’s obligations under this Environmental Covenant continue, and the Transferee acquires the same obligations to the extent of the interest it acquires. Notwithstanding the foregoing, nothing herein shall relieve an Owner of an interest in the Property of its responsibilities to comply with the terms hereof and all other provisions of applicable law or of responsibility for its failure to comply during the time it held an interest in the Property. 9.Transferee. The A “Transferee” is a person or entity to whom an Owner transfers the Owner’s obligations under this Environmental Covenant. A Transferee is any assign, successor in interest, including without limitation a future owner of an interest in fee simple, mortgagee, lender, easement holder, lessee, and any other person or entity who acquires any interest whatsoever in the Property, or any portion thereof, whether or not any reference to this Environmental Covenant or its provisions are contained in the deed or other conveyance instrument, or other agreements by which such person or entity acquires its interest in the Property or any portion thereof. When a transfer occurs, the Transferee becomes an Owner. Environmental Covenant Woodbine Property Page 1 10.Should residential use be authorized under this Environmental Covenant, the definitions of “Owner” and “Transferee” do not include a residential tenant. 11.Holder. Woodbine Industries, LLC is the “Holder” of this Environmental Covenant. 12.Rights and Obligations of Holder. The Holder may enforce this Environmental Covenant against future Owners. The Holder’s obligations hereunder are limited to the specific provisions and the limited purposes described in this Environmental Covenant. Subject to the provisions hereof, tThe Holder’s rights and obligations survive the transfer of the Property. 13.Agency. The Utah Department of Environmental Quality (UDEQ) is the Agency (as defined in the Act) under this Environmental Covenant. The UDEQ may enforce this Environmental Covenant. TOther than as may be required by applicable governmental law or regulation, the UDEQ assumes no affirmative duties through the execution of this Environmental Covenant. The Director of the Division of Waste Management and Radiation Control is the UDEQ representative for this Environmental Covenant. 14.Activity and Use Limitations. As part of the environmental response project described above, Grantor hereby imposes the following activity and use limitations on the Property: A.Disturbance Limitations. Any disturbance of impacted subsurface soils, significant and permanent asphalt/concrete cover removal, excavation, or demolition is strictly prohibited, without UDEQ written approval. If additional construction or demolition is planned, Owner shall notify the Director in order to promptly re-evaluate and discuss mitigation and assess risks to human health with UDEQ, in , unless done in accordance with the Site Management Plan. B.Land Use Limitations. Residential uses are prohibited until a DWMRC- approved Corrective Action Plan is prepared, submitted to DWMRC, approved, and performed, and DWMRC approves a written request for a change in allowable land use, which approval shall not be unreasonably withheld, delayed, or conditioned. C.Ground Water Limitations. In order to prevent exposure to contaminated groundwater, extraction or use of ground water, except for investigation or remediation thereof, is prohibited. 15.Notice of Breach. If any event or action by or on behalf of a person or entity who holds an interest in or holds an encumbrance on the Property constitutes a breach of the activity and use limitations, the Owner shall notify the Director within 30 days of becoming aware of the event or action, and shall remedy the breach of the activity and use limitations within 60 days of becoming aware of the event or action, or such other time frame as may be agreed to by the Owner and Director in light of the circumstances and in light of the time reasonably necessary to cure said breach. 16.Running with the Land. This Environmental Covenant shall be binding upon the Owner and all assigns and successors in interest, including any Transferee, and shall 17. Environmental Covenant Woodbine Property Page 1 run with the land, pursuant to Utah Code Ann. § 57-25-105, subject to amendment or termination as set forth herein. 18.Compliance Enforcement. Compliance with this Environmental Covenant may be enforced pursuant to Utah Code Ann. § 57-25-111. Failure to timely enforce compliance with this Environmental Covenant or the activity and use limitations contained herein by any party shall not bar subsequent enforcement by such party and shall not be deemed a waiver of the party’s right to take action to enforce correction of any non-compliance. Nothing in this Environmental Covenant shall restrict the Director from exercising any authority under applicable law. 19.Rights of Access. Grantor hereby grants to the UDEQ and all Holders the right of access to the Property for necessary response actions, inspections, and implementation or enforcement of this Environmental Covenant. 20.Compliance Reporting. Upon request from the Director, Owner or any Transferee shall submit to the Director written documentation verifying that the activity and use limitations remain in place and are being complied with. If such limitations do not remain in place, are not being complied with, or both, the Owner or any Transferee shall explain the circumstances. 21.Notice upon Conveyance. Owner shall notify the Agency and Holder within 20 days after each transfer of ownership of all or any portion of the Property. Owner’s notice to the Agency and Holder shall include the name, address, and telephone number of the Transferee;, a copy of the deed or other documentation evidencing the conveyance;, and an un-surveyed plat that shows the boundaries of the property being transferred. Instruments that convey any interest in the Property (fee, leasehold, easement, encumbrance, etc.) shall include a notification to the person or entity who acquires the interest that the Property is subject to this Environmental Covenant and shall identify the date, entry no., book, and page number at which this document is recorded in the records of the Salt Lake County Recorder, in the State of Utah. Failure to provide notification shall have no effect upon the enforceability and duty to comply with this Environmental Covenant. 22.Representations and Warranties. Grantor hereby represents and warrants to the other signatories hereto: A.that the Grantor is the sole current fee simple owner of the Property; B.that the Grantor holds fee simple title to the Property which is free, clear and unencumbered, subject however to all matters of record including that certain; Alternative language: that there is a Deed of Trust between the Grantor and First Utah Bank and the Grantor’s interest is subject to First Utah Bank’s interest OR that the Grantor holds fee simple title to the Property which is free, clear, and unencumbered, except as identified in Exhibit __, attached hereto. C.that the Grantor has the power and authority to enter into this Environmental Covenant, to grant the rights and interests herein provided, and to carry out all obligations hereunder; Environmental Covenant Woodbine Property Page 1 D.that the Grantor has identified all other persons who own an interest in or hold an encumbrance on the Property and notified such persons of the Owner’s intention to enter into this Environmental Covenant; E.that this Environmental Covenant will not materially violate or contravene or constitute a material default under any other agreement, document, or instrument to which Grantor is a party or by which Grantor may be bound or affected. 23.Amendment or Termination. This Environmental Covenant may be amended or terminated pursuant to the Act. Except as set forth herein, Grantor and Holder waive any and all rights to consent or notice of amendment concerning any parcel of the Property to which Grantor or Holder has no fee simple interest at the time of amendment or termination. Nothing in this Environmental Covenant shall be interpreted to mean that the Director waives the right to consent to or notice of amendment or termination of this Environmental Covenant. 24.Effective Date, Severability, and Governing Law. The effective date of this Environmental Covenant shall be the date upon which the fully executed Environmental Covenant has been recorded as a document of record for the Property with the Salt Lake County Recorder. If any provision of this Environmental Covenant is found to be unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired. This Environmental Covenant shall be governed by and interpreted in accordance with the laws of the State of Utah. 25.Recordation and Distribution of Environmental Covenant. Within 30 days after the date of the final required signature upon this Environmental Covenant, Owner shall file this Environmental Covenant for recording, in the same manner as a deed to the Property, with the Salt Lake County Recorder’s Office. The Owner shall distribute a file- and date-stamped copy of the recorded Environmental Covenant to: the Director and the City of Salt Lake. 26.Notice. Unless otherwise notified in writing by or on behalf of the current owner or the Director, any document or communication required by this Environmental Covenant shall be submitted to: If to the Director: Douglas J. Hansen, Director Utah Division of Waste Management and Radiation Control P.O. Box 144880 Salt Lake City, Utah 84114-4880 If to Woodbine Industries, LLC: Woodbine Industries, LLC 205 Hudson Street, 7th Floor New York, New York 10013 Environmental Covenant Woodbine Property Page 1 27.Governmental Immunity. In approving this covenant, the Agency does not waive governmental immunity afforded by law. The Grantor, Owner, and Holder, for themselves and their successors, assigns, and Transferees, hereby fully and irrevocably release and covenant not to sue the State of Utah, its agencies, successors, departments, agents, and employees (State) from any and all claims, damages, or causes of action arising from, or on account of, the activities carried out pursuant to this Environmental Covenant except for an action to amend or terminate the Environmental Covenant pursuant to Sections 57-25-109 and 57-25-110 of the Utah Code Ann. or for a claim against the State arising directly or indirectly from or out of actions of employees of the State that would result in (i) liability to the State of Utah under Section 63G-7-301 of the Governmental Immunity Act of Utah, Utah Code Ann. Section 63G-7-101, et seq. or (ii) individual liability for actions not covered by the Governmental Immunity Act as indicated in Sections 63G-7-202 and 63G-7-902 of the Governmental Immunity Act, as determined in a court of law. 28.Payment of Agency’s Costs. Consistent with the Act and other applicable law, the Owner, if invoiced, shall reimburse the UDEQUDEQ for the UDEQ’s commercially reasonable costs related to this Environmental Covenant. The invoice may be based on actual costs incurred by the Agency, or on the fee schedule approved by the legislature, or both as applicable. 29.The undersigned representative of Grantor represents and certifies that the signatory signing on its behalf is duly they arehe is authorized to execute this Environmental Covenant on its behalf. Woodbine Industries LLC, a Utah Llimited Lliability CCcompany as Grantor, Owner, and Holder Maximilian Coreth, Presidentits Manager Date State of ) )ss: County of ) Before me, a notary public, in and for said county and state, personally appeared Maximilian Coreth, athe duly authorized representativeManager of Woodbine Industries LLC, who acknowledged to me that he did execute the foregoing instrument on behalf of Woodbine Industries, LLC. IN TESTIMONY WHEREOF, I have subscribed my name and affixed my official seal this day of 20 . Notary Public Environmental Covenant Woodbine Property Page 1 Utah Department of Environmental Quality Division of Waste Management and Radiation Control _____________________________________ ______________________ Douglas J. Hansen, Director Date State of ) )ss: County of ) Before me, a notary public, in and for said county and state, personally appeared Douglas J. Hansen, a duly authorized representative Of the Utah Department of Environmental Quality, who acknowledged to me that they he did execute the foregoing instrument on behalf of the Utah Department of Environmental Quality.IN TESTIMONY WHEREOF, I have subscribed my name and affixed my official seal this day of 20 . Notary Public Environmental Covenant Woodbine Property Page 1 UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY On behalf of the Utah Department of Environmental Quality, the Director of the Division of Waste Management and Radiation Control approves the foregoing Environmental Covenant pursuant to Utah Code Ann. Sections 57-25-102(2) and 57-25- 104(1)(e). Douglas J. Hansen, Director Division of Waste Management and Radiation Control Date State of Utah ) )ss: County of Salt Lake ) Before me, a notary public, in and for said county and state, personally appeared Ty L. Howard, Director of the Utah Division of Waste Management and Radiation Control, who acknowledged to me that he did execute the foregoing instrument. IN TESTIMONY WHEREOF, I have subscribed my name and affixed my official seal this day of , 20 . Notary Public Environmental Covenant Woodbine Property Page 1 EXHIBIT A W 1/2 OF BLK 10 PLAT A SLC SUR & COM 1 RD E FR NE COR LOT 6 SD BLK 10 S 0^01' E 231.4 FT N 89^57'26" E 20 FT N 0^01' W 231.4 FT S 89^57'26" W 20 FT M OR L TO BEG 5505-2429 6008-2935 6051-2956 6350-0527 07435-0192 THE WEST 1/2 OF BLOCK 10, PLAT "A", SALT LAKE CITY SURVEY, ACCORDING TO THE OFFICIAL PLAT THEREOF ON FILE AND OF RECORD IN THE SALT LAKE COUNTY RECORDER'S OFFICE. ALSO: BEGINNING AT A POINT 16.5 FEET EAST OF THE NORTHEAST CORNER OF LOT 6, SAID BLOCK 10; PLAT "A", SALT LAKE CITY SURVEY; AND RUNNING THENCE SOUTH 0°01' EAST 231.4 FEET; THENCE NORTH 89°57'26" EAST 20 FEET; THENCE NORTH 0°01' WEST 231.4 FEET; THENCE SOUTH 89°57'26" WEST 20 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.