Asset #102020063 Bank of Hiawassee 159.01 Acres ...johndixon.com/auctions/110612Downloads/313Environmental.pdfBank of Hiawassee 159.01 Acres Boardtown Road Ellijay, Georgia Shaw Project

PPHHAASSEE II EENNVVIIRROONNMMEENNTTAALL SSIITTEE AASSSSEESSSSMMEENNTT AAsssseett ##110022002200006633 Bank of Hiawassee 159.01 Acres Boardtown Road Ellijay, Georgia SShhaaww PPrroojjeecctt NNoo..::113399113388 MMaayy 55,, 22001100 Prepared for: Adam Hensley Asset Manager Waterstone Capital Advisors 8720 Red Oak Boulevard Charlotte, NC 28217 T 704.926.6501 F 866.848.5604 Submitted by:

3347 Michelson Drive, Ste 200 Irvine, CA 92612-0687

Form Revised April 2009 i

PPHHAASSEE II EENNVVIIRROONNMMEENNTTAALL SSIITTEE AASSSSEESSSSMMEENNTT AAsssseett ##110022002200006633 Bank of Hiawassee 159.01 Acres Boardtown Road Ellijay, Georgia SShhaaww PPrroojjeecctt NNoo..:: 113399113388 MMaayy 55,, 22001100 I declare that, to the best of my professional knowledge and belief, I meet the definition of environmental professional, or have worked under the supervision or responsible charge of a person meeting the definition of environmental professional, as defined in Section 312.10 of 40 CFR.

Prepared by: _ Date: May 5, 2010 Shannon Parker Environmental Scientist

I declare that to the best of my professional knowledge and belief, I meet the definition of environmental professional as defined in Section 312.10 of 40 CFR, and I have the specific qualifications based on education, training, and experience to assess a property of the nature, history, and setting of the subject property. I have developed and performed the all appropriate inquiries in conformance with the standards and practices set forth in 40 CFR Section 312.

Reviewed by: Date: May 5, 2010 H. Marc Hawes, PE Client Program Manager

Form Revised April 2009 ii

Table of Contents ________________________________________________ Signature page ............................................................................................................................................... i List of Appendices ......................................................................................................................................... iii 1.0 Executive Summary ........................................................................................................................ 1-1 2.0 Introduction ..................................................................................................................................... 2-1 3.0 Property Description ....................................................................................................................... 3-1

3.1 Property Location ................................................................................................................. 3-1 3.2 Property Description ............................................................................................................. 3-1 3.3 Physical Setting of Property ................................................................................................. 3-1

4.0 User-Provided Information .............................................................................................................. 4-1 5.0 Records Review .............................................................................................................................. 5-1

5.1 Standard Environmental Records Sources ........................................................................... 5-1 5.1.1 Local Fire Department Records ............................................................................... 5-1 5.1.2 Local Health Department/ State Environmental Agency Records ............................ 5-1

5.2 History .................................................................................................................................. 5-2 5.2.1 Aerial Photographs .................................................................................................. 5-2 5.2.2 City Directories ........................................................................................................ 5-3 5.2.3 Property Ownership Files ........................................................................................ 5-4 5.2.4 Building Department Records .................................................................................. 5-4 5.2.5 Zoning/Land Use Records ....................................................................................... 5-4 5.2.6 Historical Fire Insurance Maps ................................................................................ 5-4 5.2.7 Historical Topographic Maps ................................................................................... 5-4 5.2.8 Other Historical Sources .......................................................................................... 5-5

6.0 Site Reconnaissance ...................................................................................................................... 6-1 6.1 Methodology ......................................................................................................................... 6-1 6.2 Site Reconnaissance Observations ...................................................................................... 6-1

6.2.1 Property Representative Escorting Site Assessor ................................................... 6-1 6.2.2 Interior Observations ............................................................................................... 6-1 6.2.3 Exterior Observations .............................................................................................. 6-1 6.2.4 Underground Storage Tanks/Structures .................................................................. 6-2 6.2.5 Aboveground Storage Tanks ................................................................................... 6-2 6.2.6 De minimis Conditions ............................................................................................. 6-2

7.0 Interviews with Owners/Operators, and State/Local Representatives ............................................. 7-1 7.1 Current Owner / Operator Interviews .................................................................................... 7-1 7.2 Past Property Owner / Operators Interviews ........................................................................ 7-1 7.3 Local Government Officials .................................................................................................. 7-1 7.4 State Government Officials ................................................................................................... 7-1 7.5 Others ................................................................................................................................... 7-1

8.0 Other Environmental Considerations .............................................................................................. 8-1 8.1 Asbestos-Containing Material (ACM) ................................................................................... 8-1 8.2 Radon ................................................................................................................................... 8-1 8.3 Potable Water Quality ........................................................................................................... 8-1 8.4 Lead-Based Paint (LBP) ....................................................................................................... 8-1 8.5 Hazardous Substances ........................................................................................................ 8-1 8.6 Landfills ................................................................................................................................ 8-1 8.7 Pits, Sumps, Drywells, or Catch Basins ................................................................................ 8-1 8.8 On-Site Aboveground and Underground Storage Tanks ...................................................... 8-2

Form Revised April 2009 iii

8.9 Off-Site Storage Tanks ......................................................................................................... 8-2 8.10 Storm Water Drainage/Waste Water Discharge ................................................................... 8-2 8.11 Endangered Species ............................................................................................................ 8-2 8.12 Wetlands .............................................................................................................................. 8-3 8.13 Covered Property (under the Coastal Barrier Improvement Act of 1990) ............................. 8-3 8.14 Undeveloped Floodplains/Wild and Scenic Rivers ............................................................... 8-3 8.15 Areas of Scientific Significance............................................................................................. 8-3 8.16 Wilderness Areas ................................................................................................................. 8-3 8.17 National Natural Landmarks ................................................................................................. 8-4 8.18 Undeveloped Sole Source Aquifers ...................................................................................... 8-4 8.19 Archaeological Resources/Historic Sites and Structures ...................................................... 8-4 8.20 Recreational Areas ............................................................................................................... 8-4 8.21 Undeveloped Coastal Zones/Coastal Barrier Units .............................................................. 8-4

9.0 Historical Recognized Environmental Conditions and de Minimis Conditions ................................. 9-1 10.0 Conclusions and Recommendations ............................................................................................. 10-1

10.1 Conclusions ........................................................................................................................ 10-1 10.2 Recommendations for Additional Investigation ................................................................... 10-1

List of Appendices _______________________________________________

Appendix A Qualifications of Environmental Professionals Appendix B Database Assessment Criteria and Statement of Limitations Appendix C Figures Appendix D Photographs Appendix E Photocopies of Additional Supporting Materials Appendix F Environmental Regulatory Agency Database Report

Form Revised October 2006 1-1

1.0 Executive Summary

Shaw Environmental, Inc. (Shaw) is pleased to present this Phase I Environmental Site Assessment (Phase I ESA) report. Below is an overview of the project, including a summary of our significant findings:

Property name: Asset Number: 102020063

Property address (or other legal or physical Property location description):

159.01 Acres Boardtown Road, Ellijay, Gilmer County, Georgia

Parcel Identification Number: 3090 009

User of this report: FDIC as a Receiver for the Bank of Hiawassee, Realogy, and CB Richard Ellis and their affiliates Reason for requesting the Phase I ESA:

Due Diligence Assessment

Date of site reconnaissance:

April 21, 2010

Site Assessor: Drew Kleinhans

Elements included in Phase I ESA:

This Phase I ESA was prepared in accordance with the American Society for Testing and Materials (ASTM) Standard for Phase I ESAs (1527-05). Elements of the Phase I ESA include the following:

Site Location Map and Property Plot Plan A historical review of the Property and adjoining areas designed to identify past

land uses that may have impacted the Property. This includes a review of: Environmental liens, chain of title, aerial photographs, city directories, historical fire insurance maps, and topographic maps.

A search report of environmental regulatory databases provided by Environmental Data Resources, Inc. (EDR).

Site Photographs

Basis for Phase I ESA This Phase I ESA was prepared to current ASTM 1527-05 standards and to meet the “FDIC Statement of Work: FDIC Phase I ESA for the Identification of Environmental Hazards and Special Resources”. A site reconnaissance was conducted to visually evaluate the Property for the presence of environmental conditions. Interviews of selected individuals associated with the Property, adjoining properties, and regulatory officials were conducted to identify potential environmental conditions. A historical review was performed to identify past uses of the Property and adjoining properties that could have impacted the Property. Lastly, a review of federal, state, and county agency records was performed to identify regulatory listed sites within the prescribed ASTM minimum search distances.


Property description: The Property consists of one 159.01 acre irregularly shaped lot. The Property has several small gravel roads running throughout. The lot is located on the north side of Chapman Drive in Ellijay, Gilmer County, Georgia. The lot is wooded, undeveloped land.

Ingress and egress for the Property is via the north side of Chapman Drive

The general area of the Property is predominantly characterized by woodlands and vacant, undeveloped land.

Property operations: At the time of the reconnaissance, the Property was observed to be vacant, undeveloped land.

Notable Site Conditions: No evidence of former or current USTs, ASTs, large chemical storage areas, or other notable environmental site conditions were observed on the Property.

Special Resources Review:

Special resource review revealed no evidence of environmental concerns in connection with the Property.

Regulatory Database Findings:

A regulatory agency database was obtained from Environmental Data Resources, Inc. (EDR), The Property was not identified in any of the environmental databases accessed. No surrounding sites were identified in the databases searched within ASTM 1527-05 standard search radii.

Asbestos-Containing Materials Findings:

As this assessment was carried out on the Property land only, a comprehensive asbestos inspection was not conducted.

Lead-Based Paint Findings:

As this assessment was carried out on the Property land only, no lead-based paint inspection was conducted.

Uses – Adjoining Properties

North Undeveloped wooded land.

South Developed residential lot and undeveloped wooded land.

East Developed residential lot and undeveloped wooded land.

West Undeveloped wooded land.

Summary of Property History

Year Property Use 1963-Present Vacant undeveloped land.


Conclusions and Recommendations

Conclusions Shaw has performed a Phase I ESA in conformance with the scope and limitations of ASTM E1527 of the leased property located at 159.01 Acres Boardtown Road in Ellijay, Gilmer County, Georgia (the Property). Any exceptions to, or deletions from, this practice are described in Section 2.0 of this report. This assessment has revealed no evidence of recognized environmental conditions (RECs) in connection with the Property at this time. In addition to the evaluation of recognized environmental conditions, Shaw was asked to conduct an assessment of selected non-scope considerations, the findings of which are presented in Section 8.0 of this report. This assessment has revealed no evidence of environmental concerns/special resource issues in connection with the Property at this time. Recommendations for Additional Investigation Based on the findings of this Phase I ESA, Shaw does not recommend additional environmental investigation with respect to the Property at this time.

This Executive Summary is subject to the same standard limitations as contained in the report and must be read in conjunction with the entire report.


2.0 Introduction

Project Environmental Professionals Environmental Professional: H. Marc Hawes, PE

Person(s) conducting site reconnaissance and interviews (if different from the Environmental Professional)

Drew Kleinhans

Senior Report Reviewer: H. Marc Hawes, PE

Résumés or other biographical sketch of the Environmental Professional(s) involved in the preparation of this report are included in Appendix A.

Scope of Services Shaw conducted the work in accordance with the following specifications (hereinafter collectively referred to as the “Scope”:

ASTM International (ASTM) Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process, ASTM Designation E 1527-05 (ASTM E1527).

At the request of FDIC, this assessment included the evaluation of selected non-scope considerations, as defined by ASTM E1527, the findings of which are presented in Section 8.0 of this report.

Limitations to this assessment are presented in Appendix B of this report.

Objective of this Phase I ESA: The objective of this Phase I ESA was to identify, to the extent feasible, recognized environmental conditions (REC) as defined by ASTM E1527, and to evaluate selected non-scope considerations beyond ASTM E1527.

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 an existing release, a past release, or a material threat of a release of any hazardous substances or petroleum products into structures on the property or into the ground, ground water, or surface water of the property.” ASTM 1527-05.

Exceptions to, or deletions from, the above referenced Scope of Work, including significant data gaps:

None

Weather-related property restrictions: None

Facility access restrictions: None


3.0 Property Description

3.1 Property Location Property name: Asset Number: 102020063 Property address (or other legal or physical Property location description):

159.01 Acres Boardtown Road, Ellijay, Gilmer County, Georgia

Parcel Identification Number(s): 3090 009

Figure 1 in Appendix C presents a Property Location Map, (USGS 7.5-minute Quadrangle or similar) showing the location of the Property.

3.2 Property Description Property description (acreage, structures, roads, and other improvements):

The Property consists of one 159.01 acre irregularly shaped lot. The Property has several small gravel roads running throughout. The lot is located on the north side of Chapman Drive in Ellijay, Gilmer County, Georgia. The lot is wooded, undeveloped land.

Ingress and egress for the Property is via the north side of Chapman Drive

The general area of the Property is predominantly characterized by woodlands and vacant, undeveloped land.

Estimated percentage of property covered by buildings and/or pavement:

None currently

Property operations: None currently Type of sewage disposal system (and age): None observed Potable water source: None observed Electric utility: None observed Natural gas: None observed Energy source(s) for heating: N/A (no structures on property) Current uses of adjoining properties,

North: Undeveloped wooded land.

South: Developed residential lot and undeveloped wooded land. East: Developed residential lot and undeveloped wooded land. West: Undeveloped wooded land.


Figure 2 in Appendix C presents a not-to-scale site plan of the Property depicting important Property features and relevant observations. Site photographs are provided in Appendix D.

3.3 Physical Setting of Property

Topography: The Subject Property’s elevation is approximately 1720 to 2400-feet above mean sea level according to the United States Geological Survey’s (USGS) 7.5-Minute Topographic Map, which provides coverage of the Property. The Subject Property and surrounding area exhibits a slope to the east-southeast. Additionally, the referenced topographic map also indicates topography in the regional area slopes towards the general south direction.

Geology The geologic rock stratigraphic unit for the area of the Property is listed as being located in an area developed during the Paleozoic era, of the Ordovician system and Lower Paleozoic series categorized by stratified sequence. According to the EDR Geocheck report, which provides information from the U.S. Department of Agriculture’s (USDA) Soil Conservation Service (SCS), the soil in the area of the Property has a soil surface texture of fine sandy loam from 0 inches to 5 inches, sandy loam from 5 inches to 16 inches, and weathered bedrock from 16 to 65 inches. The soil component name is listed as “SALUDA”.

Hydrogeology: There is one creek on the Property named Key Creek. Surface water bodies such as rivers, lakes, and streams can locally influence groundwater flow direction in the area. The hydrologic group for the soil composition in the area of the Property is identified as “Class C”, which indicates that the soils have slow infiltration rates. Soils are well drained and have intermediate water holding capacity, and well drained soils with moderately fine or fine textures. The soil drainage class is listed as “well drained”. Additionally, the soil does not meet the requirements for a “hydric soil” and the corrosion potential is listed as “moderate”.

Flood plain: A floodplain determination provided by FIRM Flood Insurance Map (Panel No. 0075C) indicates that the southern portion of the Property along Key Creek lies within Zone A. Zone A is defined as “areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage.”

Depth to groundwater:/ gradient:

Groundwater flow direction is towards the east-southeast. Regional data presented in the EDR report suggests groundwater flow direction is often consistent with topographical conditions. Since review of the Radius Map Report indicates the topographic gradient of the Property to be generally towards the east-southeast, and Key Creek was observed to flow to the south east, groundwater is also believed to flow in that direction.

Unless otherwise stated, groundwater gradient was estimated based on Property and regional topography and surface features such as streams, lakes, and wetlands.

Sources of the above information include:

EDR Radius Map Report with GeoCheck, Inquiry #2755681.2s dated April 27, 2010


4.0 User-Provided Information

Before initiating the Phase I ESA, Shaw discussed the project with representatives of the User of this report as described in Section 1.0. The table below presents a summary of the information provided by the User that was considered by the User as material to RECs in connection with the Property.

Environmental liens: None provided. However a Lien Search Report obtained from EDR indicates no environmental liens were found for the Property. This report is included in Appendix E.

Activity and use limitations (deed restrictions, etc.): None provided. However, a Lien Search Report obtained from EDR indicates no AULs were found for the Property. This report is included in Appendix E.

Chain of Title None provided. However, a Chain of Title report obtained from EDR indicates title is vested in Bank of Hiawassee. This report is included in Appendix E.

Knowledge of Property price reductions (devaluation) below fair market value due to environmental considerations:

None provided

Are you aware of any pending, threatened or past litigation relevant to hazardous substances or petroleum products in, on, or from the Property; administrative proceedings relevant to hazardous substances or petroleum products in, on, or from the Property; or notices from any governmental entity regarding any possible violation of environmental laws or possible liability relating to hazardous substances or petroleum products?

None provided

Property plans and/or descriptions: None provided

Previous environmental reports: None provided

Actual, commonly known, or reasonably ascertainable information or other knowledge that may be material to RECs (describe):

None provided


5.0 Records Review

5.1 Standard Environmental Records Sources The regulatory agency database was obtained from Environmental Data Resources, Inc. (EDR), Report ID No. 2755684.2s. A complete copy of the database report as provided by EDR, including the date the report was prepared, the date the information was last updated, and the definition of databases searched, is provided in Appendix F.

The Property was not identified in the environmental databases reviewed.

No additional properties were identified within the ASTM search radii.

Photocopies of relevant supporting materials documenting the status of RECs, where readily ascertainable, are included in Appendix E.

5.1.1 Local Fire Department Records

Agency Contacted (Name, Address, Phone

Number)

Description of records

Gilmer County Fire Department Larry James Fire Marshal 197 North Main Street Ellijay, Georgia 30540 706.632.2203

The Gilmer County Fire Department was contacted to determine if they have records of spills or fires for the Property. Shaw submitted a request for information for the Property. No response had been communicated to Shaw from the fire department at the time of report preparation. If the fire department provides any documentation of any environmental related violations, they will be forwarded and discussed as a letter addendum separate from this report.

5.1.2 Local Health Department/ State Environmental Agency Records


Number)


Gilmer County Environmental Health Department Andrea Wheel, EH Manager 1 Broad Street Ellijay, Georgia 30540 706.632.3023

The Gilmer County Environmental Health Department was contacted to determine if any they have any records for the Property. Shaw submitted a request for information for the Property. Andrea Wheel, Environmental Health Manager replied stating that no information was on file for the property listed.



Number)


Georgia Environmental Protection Division [email protected]

A FOIA request was submitted; however no response has been received at time of submission of this report. Should significant information be received, it will be forwarded in an addendum to this report.

Photocopies of relevant supporting materials documenting the status of RECs, where readily ascertainable, are included in Appendix E.

5.2 History The table below presents a summary of the operational history of the Property. The summary is an integration of the findings of the individual historical record sources presented in subsequent sections.

Summary of Property History

Year Property Use 1963-Present Vacant undeveloped land.

Summary of History of Properties in Surrounding Area

Year Past Surrounding Property Use(s) 1963-present Undeveloped, vacant land is located on the immediately adjacent properties to the north, south, east

and west. Chapman Drive is located directly to the south.

Facilities of potential environmental concern on the subject Property or in the vicinity are further discussed in Sections 5.2.1 through 5.2.8, below.

5.2.1 Aerial Photographs

Year Scale Observations 1963 1” = 777’ Property: The Property appears as undeveloped land with native vegetation.

Surrounding Properties: Improved road located to the south of the Property followed by undeveloped land with native vegetation. Undeveloped land with native vegetation surrounds the Property to the north, east, and west.


Year Scale Observations 1971 1” = 777’ Property: The Subject Property is relatively unchanged.

Surrounding Properties: No significant changes in land use or development of immediately adjacent properties were identified, relative to conditions depicted on the 1963 aerial photograph.

1980 1” = 1553’ Property: The Subject Property is relatively unchanged.




1993 1” =1553’ Property: The Subject Property is relatively unchanged.






Historical aerial photographs were obtained from, or viewed at, the following sources:

The EDR Aerial Photo Decade Package, Inquiry # 2755681.5s dated April 27, 2010.

5.2.2 City Directories

City directories were searched and neither the Property nor adjoining properties were identified.

Name of city directories and source:

The EDR-City Directory Abstract, Inquiry Number 2755681.6s, April 27, 2010.


5.2.3 Property Ownership Files

Property Ownership History

Year 1940 Grantor:Herbert Stanfill. Grantee: Maybel Elaine Booker

1972 Grantor: Maybel Elaine Booker. Grantee: Cherokee Realty Company

1992 Grantor: Cherokee Realty Company. Grantee: Norman Edwards & Charles malone

2006 Grantor:Norman Edwards & Charles Malone. Grantee: JPF Enterprises, Inc.

2009 Grantor: JPF Enterprises, Inc. Grantee: Bank of Hiawassee Source of Property Ownership information:

Chain of Title Search Report, dated May 4, 2010.

5.2.4 Building Department Records As there are no structures currently located on the Property, the Building Department was not contacted.

5.2.5 Zoning/Land Use Records According to the Gilmer County Georgia Planning and Zoning Department the property is zoned as R1 residential.

5.2.6 Historical Fire Insurance Maps Shaw attempted to obtain a Certified Sanborn Map Report from Environmental Data Resources Inc. (EDR) who advised that the complete holdings of the Sanborn Library collection were searched and fire insurance maps covering the target Property were not found.

5.2.7 Historical Topographic Maps

Year Scale Observations 1911 1:125000 Property and Surrounding Properties: This topographic map is a 1:125,000 scale map.

Only gross features are discernable at this scale.

1946 1:24000 Property: The Property appears to have 2 small structures along Key Creek. Key Creek is located in the middle of the Property and runs north west to south east. Unpaved Chapman Road is located in the middle of the Property and runs along Key Creek. Vacant land is located in the surrounding properties.

Surrounding Properties: Vacant land is located to the north, south, and west. Two small structures along Chapman drive are to the east.


Year Scale Observations 1973 1:24000 Property: The Property appears to have 2 small structures along Key Creek. Key Creek is

located in the middle of the Property and runs north west to south east. Unpaved Chapman Road is located in the middle of the Property and runs along Key Creek. Vacant land is located in the surrounding properties.

Surrounding Properties: Vacant land is located to the north, south, and west. Two small structures along Chapman drive are to the east.

1988 1:24000 Property: Property appears to be vacant.

Surrounding Properties: Vacant land is located to the north, south, and west. Two small structures along Chapman drive, and Chapman Cemetary lies to the east.

Historical Topographic Maps were obtained from, or viewed at the following source:

The EDR Historical Topographic Map Report, Inquiry # 2755681.4s dated April 27, 2010.

5.2.8 Other Historical Sources No additional historical sources were reviewed.


6.0 Site Reconnaissance

Shaw’s representative, Mr. Drew Kleinhans, conducted a site reconnaissance of the Property and surrounding area. The objective of the site reconnaissance was to obtain information indicating the presence of RECs in connection with the Property.

6.1 Methodology Shaw used the following methodology to observe the Property:

Confirmed the definition of the Property boundaries with the Property owner’s representative,

Traverse the outer Property boundary;

Traverse transects across the Property;

Photographs of the Property and adjacent properties are included in Appendix D of this report.

6.2 Site Reconnaissance Observations 6.2.1 Property Representative Escorting Site Assessor No escort was provided.

6.2.2 Interior Observations As there are no structures located on the Property, there are no interior observations to report.

6.2.3 Exterior Observations Shaw made the following exterior observations during our site reconnaissance:

Issue Comments Hazardous materials or petroleum products

No hazardous materials or petroleum products were reported or observed.

Hazardous waste No hazardous waste was reported or observed.

Solid waste A small pile of debris consisting of scrap tires and metal piping was observed in the west area of the Property.

Wells No wells were reported or observed.

Process wastewater None observed.

Storm water Storm water likely follows the topography of the site draining towards the southeast

Drains, sumps, and drywells No drains, sumps, or drywells were observed.

Odors No odors were detected.


Issue Comments PCB-containing equipment No PCB-containing equipment was observed.

Transformers & other electrical equipment

No transformers or other electrical equipment was observed.

Pits, ponds, or lagoons; Property

No pits, ponds, or lagoons were observed.

Pits ponds, lagoons - adjoining properties

No pits, ponds, or lagoons were observed on adjoining properties.

Stained soil or pavement No stained pavement was observed.

Stressed vegetation No evidence of stressed vegetation was observed.

General exterior yard keeping

Good

6.2.4 Underground Storage Tanks/Structures

Existing underground storage tanks (UST):

There were no existing on-site USTs reported or observed.

Former USTs: There were no former on-site USTs reported or observed. NOTE: Shaw’s assessment of USTs included interviews with the Property Owner/Operator and visually apparent observations including repairs to pavement, vent pipes, ancillary equipment, and fill ports; as well as a review of readily ascertainable records relating to current and historical heating fuel sources and local and state records.

6.2.5 Aboveground Storage Tanks

Existing aboveground storage tanks (AST):

There were no existing on-site ASTs reported or observed.

Former ASTs: There were no former on-site ASTs reported or observed. NOTE: Shaw’s assessment of ASTs included interviews with the Property Owner/Operator and visually apparent observations including repairs to pavement, tank pads and ancillary equipment, and spill containment berms; as well as a review of readily ascertainable records relating to current and historical heating fuel sources and local and state records.

6.2.6 De minimis Conditions ASTM defines de minimis conditions as those that “generally would not be the subject of an enforcement action if brought to the attention of appropriate governmental agencies,” i.e., minor soil staining.

There were no de minimus conditions identified in the course of this Phase I ESA.


7.0 Interviews with Owners/Operators, and State/Local Representatives

During the course of this assessment, Shaw interviewed or attempted to interview the following individuals.

7.1 Current Owner / Operator Interviews No current owner / operator were interviewed.

7.2 Past Property Owner / Operators Interviews No past property owners / operators were interviewed.

7.3 Local Government Officials Local government officials interviewed during the course of this investigation are discussed in relevant sections of the report and cited accordingly.

7.4 State Government Officials State government officials interviewed during the course of this investigation are discussed in relevant sections of the report and cited accordingly.

7.5 Others No additional interviews were conducted in the course of this assessment.


8.0 Other Environmental Considerations

Shaw investigated the following additional scope items as part of this Phase I ESA.

8.1 Asbestos-Containing Material (ACM) As there are currently no permanent structures located on the Property, no ACM inspection was conducted.

8.2 Radon Shaw’s assessment of radon was limited to research of published information specific to the general area of the Property location. According to regional radon information obtained from the EDR Radius Map Report, the Property is located within EPA-designated Zone 2 for radon gas. Average radon concentrations within Zone 2 are reported to be between 2 and 4 pCi/L. Based on Shaw’s review of available information, elevated radon levels do not appear to represent a potential environmental risk.

8.3 Potable Water Quality There are no municipal sources for potable water in the immediate Property area due to the rural environmental setting. Residences and businesses in the area have potable water supplied by wells.

8.4 Lead-Based Paint (LBP) As there are currently no permanent structures located on the Property, no lead-based paint inspection was conducted.

8.5 Hazardous Substances The Property was evaluated to determine if there is evidence of on-site disposal or treatment of hazardous materials. No on-site disposal or treatment of hazardous materials was reported or observed during the site reconnaissance.

8.6 Landfills There are no known abandoned and/or licensed landfills, or state-permitted hazardous waste disposal sites located on-site or within EDR search distances for the Property.

8.7 Pits, Sumps, Drywells, or Catch Basins No pits, sumps, drywells, or catch basins were observed on the Property.


8.8 On-Site Aboveground and Underground Storage Tanks There was no evidence of aboveground storage tanks (ASTs) or underground storage tanks (USTs) located on the Property.

8.9 Off-Site Storage Tanks No off-site storage tanks were identified within the Approximate Search Distance for the Property.

8.10 Storm Water Drainage/Waste Water Discharge Storm water likely follows the topography of the site draining towards the southeast. There is no waste water generated at or discharged from the Property.

8.11 Endangered Species Shaw determined that there Natural Areas of one (1) acre or more in size present on the Property and contacted the State Natural Heritage Program for Georgia for information pertaining to endangered species on the Property.

As of the issuance of this report, Shaw has yet to receive a formal response to our inquiry.

Shaw reviewed the United States Fish and Wildlife Services, Georgia Ecological Services Field Offices website (http://www.fws.gov/athens/endangered/counties_endangered.html) for information of endangered species located in Union County, Georgia. According to this website, the following Federal and/or State endangered and/or threatened species are located in Union County, Georgia:

Blue Shiner Goldline Darter Holiday Darter Golden seal Green pitcher plant Manhart Sedge Northern Star Flower Small whorled pogonia

No Property specific information relative to endangered or threatened species located on the Subject Property was readily available for Shaw’s review during the course of this assessment.


8.12 Wetlands Shaw’s assessment of wetlands and floodplains was conducted by reviewing available sources of published information, interviews, and visual observations. Wetlands cannot be definitively identified through visual observation and agency interviews. Defensible wetland delineations require taxonomic classification of site vegetation, an investigation into the surface and subsurface hydrology of the site, and identification of hydric soils. Sources of information include National Wetland Inventory (NWI) maps and/or Natural Resource Conservation Service [NRCS] wetland determination maps compiled from federal, state, or local agencies, aerial photographs, and site reconnaissance. Based on this information, Shaw has determined that there are no mapped Wetlands or restorable Wetlands, as defined in the Clean Water Act, on or in close proximity to the Property.

8.13 Covered Property (under the Coastal Barrier Improvement Act of 1990) Since no portion of the Property is located within a unit of the Coastal Barrier Resources System and encompasses less than fifty (50) acres of land, it is not a Covered Property under the Coastal Barrier Improvement Act of 1990.

8.14 Undeveloped Floodplains/Wild and Scenic Rivers Shaw conducted an inspection of the Property to determine if there are any Natural Areas on the Property that would qualify as undeveloped 100-year Floodplain and / or Wild and Scenic Rivers. The determination was based on available information; (Flood Insurance Rate Maps, a list of Wild and Scenic Rivers, aerial photographs, etc.)

Based on this review, Shaw has determined that there are no areas that would qualify as undeveloped 100-year Floodplain and / or Wild and Scenic Rivers.

8.15 Areas of Scientific Significance The Property is larger than 50 acres however based on review of maps, aerial photographs, and site reconnaissance observations, no readily apparent Areas of Scientific Significance were deemed to be present on the Property.

8.16 Wilderness Areas Based upon available lists of Wilderness Areas, maps, aerial photographs, and site reconnaissance, Shaw determined if there are Natural Areas on the Property (without regard to the size of any such Natural Area), and if the Property is an inholding in, contiguous with, or adjacent to federally-owned lands, or lands legally designated for acquisition by a federal agency, that are designated or proposed for designation as a part of the National Wilderness Preservation System. Based upon available lists of Wilderness Areas, maps, aerial photographs,


site reconnaissance and other sources of information, Shaw determined that there are no readily apparent Wilderness Areas present on the Property.

8.17 National Natural Landmarks Based on a review of available information, the National Registry of Natural Landmarks published by the National Park Service maps, aerial photographs, and site reconnaissance, Shaw did not identify readily apparent National Natural Landmark Areas on the Property (without regard to the size of any such Natural Area).

8.18 Undeveloped Sole Source Aquifers Natural Areas are on the Property, however undeveloped sole source aquifers is not an issue with this Property.

8.19 Archaeological Resources/Historic Sites and Structures Based upon maps, aerial photographs, site reconnaissance and other information on the Property, Shaw determined if:

(1) there are any Natural Areas on the Property one acre or more;

(2) there are any buildings and/or structures on the Property fifty years of age or older; and

(3) there are any building and/or structures that are less than fifty years of age but exhibit features, or are associated with an event or pattern of events, that are exceptionally significant in American history, architecture, archaeology, engineering, or culture (such as the work of a renowned architect or a structure associated with a very significant individual).

Since none of the conditions referenced above exist, the potential presence for archaeological resources/historic sites and structures is not an issue in regard to this Property.

8.20 Recreational Areas Based upon maps, aerial photographs, and site reconnaissance, Shaw ascertained whether there are any Recreational Areas, on the Property (without regard to the size of any such Natural Area), primarily in terms of existing or potential public outdoor recreational value, including areas that are appropriate for, or in use as, a park or other outdoor recreational activity.

Shaw did not identify Recreational Areas on the Property.

8.21 Undeveloped Coastal Zones/Coastal Barrier Units There are no undeveloped coastal zones or coastal barrier units within the geographic location of this Property.


9.0 Historical Recognized Environmental Conditions and de Minimis Conditions

This assessment has not revealed evidence of historical RECs in connection with the Property at this time.

[A Historical Recognized Condition is an environmental condition which in the past would have been considered a recognized environmental condition, but which may or may not be considered a recognized environmental condition currently. If a past release of any hazardous substances or petroleum products has occurred in connection with the property and has been remediated, with such remediation accepted by the responsible regulatory agency (for example, as evidenced by the issuance of a no further action letter or equivalent), this condition shall be considered an historical recognized environmental condition and included in the findings section of the Phase I Environmental Site Assessment report. ASTM 1527-05]

[“de Minimis” conditions generally do not present a threat to human health or the environment and that generally would not be the subject of an enforcement action if brought to the attention of appropriate governmental agencies. ASTM 1527-05.]


10.0 Conclusions and Recommendations

10.1 Conclusions Shaw has performed a Phase I ESA in conformance with the scope and limitations of ASTM E1527 of 159.01 Acres Boardtown Road in Ellijay, Gilmer County, Georgia (the Property). Any exceptions to, or deletions from, this practice are described in Section 2.0 of this report. This assessment has revealed no evidence of recognized environmental conditions in connection with the Property at this time.

In addition to the evaluation of recognized environmental conditions, Shaw was asked to conduct an assessment of selected non-scope considerations, the findings of which are presented in Section 8.0 of this report. This assessment has revealed no readily apparent evidence of potential environmental concerns/special resource issues in connection with the Property at this time.

10.2 Recommendations for Additional Investigation Based on the findings of this Phase I ESA, Shaw does not recommend additional investigation with respect to the Property.

Appendix A:

Qualifications of Environmental Professionals

H. Marc Hawes, P.E.

Professional Qualifications Mr. Hawes has over 14 years of environmental engineering and consulting experience, providing engineering design, technical oversight, and project management for a vast array of public and private clients. Most recently, Mr. Hawes was the manager of environmental services for a state-wide consulting firm in Florida, managing large, multitask contracts and providing technical direction for personnel across six offices.

He has experience managing cost-reimbursable, fixed price, lump sum, and performance-based contracts for state and federal clients, including the two largest water management districts in Florida, Army Corp of Engineers (ACOE), Air Force Center for Environmental Excellence (AFCEE), Navy, and the National Aeronautics and Space Administration (NASA). Single task orders under these contracts have exceeded $1 million. On these contracts, Mr. Hawes served as the single point of responsibility, authority, and accountability with clients, holding scheduled status meetings, participating in partnering sessions, implementing all contractual commitments and policies, and taking immediate corrective actions when necessary.

Mr. Hawes has been responsible for performing and directing remedial investigations, focused source removals, tanks closures, contaminant assessment reports, Resource Conservation and Recovery Act (RCRA) Facility Investigations, Corrective Measures Studies, and design and implementation of groundwater remediation systems. He has dealt with a broad spectrum of contaminants on these and other projects, including chlorinated solvents, metals, pesticides, petroleum/ oil/lubricants (POL), and polychlorinated biphenyls (PCBs).

Additionally, Mr. Hawes is an expert in due diligence assessments, having performed hundreds of Phase I and II Environmental Site Assessments (ESAs) in the last 3 years on properties ranging from large-acre conservation properties to small parcel fueling stations, to heavily contaminated Brownfield sites. Mr. Hawes is frequently a speaker at environmental conferences discussing the challenges of the due diligence process and providing techniques for quantifying risk to assist with moving the transaction forward.

Education Bachelor of Science, Civil Engineering, Florida State University, Tallahassee, Florida, 1994

Additional Training/Continuing Education OSHA 8-hour Supervisor Training Course for Hazardous Waste Operations 29 CFR 1910.120, Orlando, FL, 2008 Florida Engineering Leadership Institute Graduate, Orlando, FL, 2008 PSMJ Project Management Boot Camp, Fort Lauderdale, FL, 2007 OSHA 40-hour Training Course for Hazardous Waste Operations 29 CFR 1910.120, Jacksonville, FL, 1995

Registrations/Certifications Professional Engineer, Environmental, 2002, 58057, Active, Florida, 02/2011

Security Clearance Department of Defense Badge, US Air Force, 2000, Inactive, 12/2005

Experience and Background 02/2009 - Present Client Program Manager, Shaw Environmental, Inc., Winter Garden, FL Responsibilities include assisting in the coordination and project management for different phases of a Department of Transportation compliance auditing project for a nationwide retail client.

H. Marc Hawes, P.E. Page 2

08/2005 - 02/2009 Senior Engineer, Miller Legg, Environmental Engineering, Winter Park, FL Grew and developed the firm's environmental risk management services into a full service environmental engineering department. Was responsible for client management, business development, project management, engineering design and oversight, and staff supervision. Managed the following types of services: environmental risk and liability management; Phase I and Phase II environmental site assessments, contamination assessments and remediation action plans, groundwater and contaminant flow modeling, regulatory compliance evaluations, corporate health and safety programs, risk characterization and exposure assessments, Brownfield designation studies, and environmental permit processing.

Became an Associate in the firm in 2008. Clients primarily included land developers, attorneys, and municipalities.

Accomplishments

• Won 5 new continuing service contracts with municipalities, despite limited resources • During challenging times, increased department revenue 3 consecutive years • Maintained a 20% department profitability • Secured the company's first Brownfield site • Voted to a leadership position in the firm's Associate Council • Able to effectively market internal departments across the company for environmental business • Invited to participate in several corporate initiatives, including corporate scenario planning,

establishment of a Houston office, water resources business development and federal business development.

The following is a summary of key projects:

Project Manager, Cuyahoga Wrecking Brownfield Assessment, Confidential, Opa-Locka, Florida, 11/2007 - 01/2009

Mr. Hawes provided environmental consulting services for a designated Florida Brownfield Site in Opa-Locka, Florida in order to restore a blighted area into a useable community resource. A Phase I Environmental Site Assessment was conducted on a 52-acre borrow pit which approximately 20% was planned to be filled in and developed as low-income housing. An 8-acre adjacent parcel located to the south was a former illegal dumping site with known asbestos and petroleum impacts in the soil and groundwater. Mr. Hawes created a work plan for review by the Miami-Dade Environmental Resources Management to conduct a full Site Assessment Report. Environmental challenges included the clearing of heavy vegetation without disturbing potentially friable asbestos particulates in the surface soil in order to adequately perform a proper due diligence study. Soil, sediment, surface water, and groundwater samples, as well as test pits were conducted as part of the investigation. Mr. Hawes worked with 2 prominent environmental and Brownfield attorneys in South Florida to assist with expediting the regulatory process. Funding issues have temporarily halted the project, but the ultimate goal is to close this site through engineering controls and develop the 8-acre parcel as a retail shopping center.

Project Manager, Due Diligence Investigations, , School Board of Broward County, Broward County, $150,000.00, 09/2005 - 12/2008

Over a period of 3 years, Mr. Hawes acted as the Environmental Professional (EP) as defined under the Environmental Protection Agency's All Appropriate Inquiry (AAI) rule for nearly 75 Phase I Environmental Site Assessments. These due diligence investigations were conducted to determine suitable sites for new schools, determine environmental issues on or surrounding existing school sites, and as a requirement for the Certificates of Participation (COPS) and bond programs the SBBC


participated in. The Phase I ESAs complied with the processes prescribed by the American Society for Testing and Materials, Standard Practice for ESA process.

Project Manager, Sunland Park Elementary Sampling, School Board of Broward County, Broward County, 06/2007 - 08/2007

Mr. Hawes provided consulting services regarding groundwater impacts associated with a former dry cleaner located adjacent to Sunland Park Elementary School. A concerned resident contacted the SBBC and the local newspaper to expose a potential human health hazard to the children of the school. The school was pulling groundwater for irrigation purposes and was not aware of the contaminated groundwater plume nearby. The SBBC began preparations to move the school, unaware of other options. Mr. Hawes conducted soil sampling at the school and found no contaminates in the soil and recommended that the school switch to potable water for irrigation purposes to prevent future exposures. Mr. Hawes met with a SBBC Board Member, the Principal of the school, and the concerned resident to explain the results. Once the resident understood the results, the issue was alleviated. The school was packed and the SBBC had arranged for the relocation of the school, but based on these efforts, the elementary school location was unaffected which saved the SBBC a tremendous amount of resources.

Environmental Professional, HBOI Phase I ESA, , Florida Atlantic University, Fort Pierce, Florida, $9,800.00, 02/2007 - 06/2007

The Harbor Branch Oceanographic Institution Phase I ESA was conducted to a level of due diligence to inform FAU of any prior uses of the land that may have environmentally impacted it prior to their planned acquisition. Through the use of historical aerial photographs, interviews with knowledgeable people, environmental data reports, and on-site inspections of the property, Twelve RECs were identified that needed further investigation. The HBOI property was approximately 400 acres. Improvements to the property include numerous buildings including a visitor’s center, laboratories, aquaculture facilities, administrative offices, dormitories, a library, two (2) wastewater treatment plants, a hazardous waste storage building, and a dry dock. Paved roads, landscaped areas, stormwater ponds, and parking lots surround the facilities. Numerous active above ground diesel generators were located within the Property, as well as propane tanks used for heating, and fuel dispensers used for fueling boats and vehicles.

Environmental Professional, Pike Utility Property Due Diligence, Palm Beach County, Palm Beach County, 02/2007 - 04/2007

Mr. Hawes conducted a Phase I Environmental Site Assessment (ESA) for a ± 10-acre parcel located in Palm Beach County, Florida. The Property formerly housed a wastewater treatment plant that had since been decommissioned. The Phase I ESA recommended a Phase II ESA be conducted to further assess the past uses of the site and possible impacts associated with an adjacent golf course maintenance area.

Project Manager, SBBC Water Use Permitting, , School Board of Broward County, Broward County, $45,000.00, 02/2006 - 04/2007

Mr. Hawes assisted the SBBC with permitting their existing irrigation wells. He conducted research into each facility to locate potential environmental concerns. Furthermore, where schools were located within a saltwater intrusion area, the irrigation wells were sampled for chloride levels. Based on comments from the South Florida Water Management District (SFWMD), 16 schools were sampled for petroleum and/or chloride levels to evaluate groundwater impacts. Permit addendums were completed and submitted them to the SFWMD to complete the permitting process.

01/2000 - 08/2005 Senior Engineer, BEM Systems, Inc., Engineering, Orlando, FL Served as an environmental engineer performing and directing remedial investigations, focused source investigations, tank closures, contaminant assessment reports, RCRA facility investigation, and Phase I and II environmental site assessments. Became an expert in site investigation, and sampling protocol,


having successfully completed a number of such investigations under RCRA, CERCLA, and State of Florida Dry Cleaning and UST programs. Project experience included the design and implementation of in-situ groundwater remediation systems.

Served as a project manager, managing projects for federal, state and commercial clientele, including such clients as National Aeronautics and Space Administration (NASA), Air Force Center for Environmental Excellence (AFCEE), South Florida Water Management District (SFWMD), Army Corps of Engineers (ACOE) and St. Johns River Water Management District (SJRWMD).

The following is a summary of key projects:

Project Manager, Assessment of District Lands, , St. Johns River Water Management District, District Wide (Florida), $1,200,000.00, 01/2000 - 08/2005

Mr. Hawes successfully managed over 70 work orders with a gross project total of over $1.2 million. Projects included Phase I and II environmental site assessments, tank closure assessment reports, ecological risk assessments and remedial actions. Tasks included: preparation of order-specific scopes of work and cost proposals, project set-up and initiation, establishment and tracking of critical path management project schedules, vendor and contractor procurement and management, project status monitoring and cost tracking/control, oversight and supervision of technical issues, report preparation and review, and project close-out.

Environmental Professional, SFWMD Due Diligence Investigations, South Florida Water Management District, South Florida, 01/2000 - 08/2005

Managed and worked on several due diligence projects for the SFWMD in support of their land acquisition program. Work included Phase I and II environmental site assessments (ESAs) and remedial actions which often involved several stakeholders including US Fish and Wildlife Service, Florida Department of Agriculture, SFWMD and various property owners. Also pulled together and managed a team to evaluate and implement best management practices on a former dairy, including the construction of a retention area to minimize phosphorus surface water discharges to comply with the Surface Water Improvement Management (SWIM) plan.

Environmental Professional, Sunbelle Groves Phase I and II ESA, Natural Resource Conservation Service, South Florida, 01/2003 - 05/2003

Assessment on behalf of the Natural Resource Conservation Service (NRCS) on a parcel that the NRCS intended to purchase and utilize as a water storage and water treatment basin. The Sunbelle Groves site was historically a citrus grove that became infected with citrus canker. A chemical storage barn containing various fertilizers, pesticides and herbicides located on the property burned down and the extent of chemical-impacted soil areas had to be determined. Special difficulties encountered during this assessment included coordination with various agriculture agencies to provide spray vehicles for field equipment utilized on-site during the assessment. Due to the presence of the citrus canker, all vehicles and equipment entering and leaving the site were required to be sprayed with the disinfectant to prevent the spread of the disease to other citrus groves. Following assessment activities, an ecological risk screening was conducted to determine if constituents present at the site posed unacceptable ecological risks.

08/1998 - 12/1999 Business Consultant, Keane, Inc., Tampa, FL Traveled the country testing corporate in-house software programs for y2k compliance. Identified and troubleshot software issues and coordinated software patches with the computer programmers. Programmed in visual basic, Cobol, Oracle 8, and SQL Server.


01/1995 - 08/1998 Environmental Engineer, ABB Environmental Services, Inc., Orlando, FL Performed assessment and remediation tasks, primarily at the Naval Training Center, Orlando as part of the base closure under a Comprehensive Long-Term Environmental Action Navy (CLEAN) contract. Work included tank closures, assessment of the Navy golf course, assessment and remediation of soil and groundwater at the Navy dry-cleaning facility, and various assessments at study areas across each of the Navy's annexes.

Professional Affiliations Florida Department of Health's Research, Review & Advisory Committee, Committee Member, 2006 Florida Engineering Society, Member, 2005 Florida Institute of Consulting Engineers, Member, 2005 Florida Brownfields Association, Member, Conference Committee, 2004

Publications/Presentations Hawes, H. Marc, Phase I and II Environmental Site Assessment Process - Speaker, South Florida Association of Environmental Professionals Annual Conference, Fort Lauderdale, FL, 2008

Hawes, H. Marc, Environmental Due Diligence in Land Transactions - Speaker, Florida Chamber of Commerce Environmental Permitting Summer School, Marco Island, FL, 2008

Hawes, H. Marc, Environmental Due Diligence in Land Transactions - Speaker, Florida Chamber of Commerce Environmental Growth Management Short Course, Daytona Beach, FL, 2008


Hawes, H. Marc, Environmental Due Diligence in Land Transactions - Speaker, Florida Chamber of Commerce Environmental Growth Management Short Course, Daytona Beach, FL, 2007

Hawes, H. Marc, Environmental Due Diligence on Potential Brownfield Transactions - Speaker, Florida Brownfields Conference, Orlando, FL, 2007


Hawes, H. Marc, Environmental Due Diligence in Land Transactions - Speaker, Florida Chamber of Commerce Environmental Growth Management Short Course, Orlando, FL, 2006

M. Shannon Parker

Professional Qualifications As a Project Scientist with more than 9 years of consulting experience in the environmental field, Shannon Denney has conducted Phase I environmental site assessments (ESAs) and Phase II ESAs for various commercial and industrial properties in the southeast. Responsibilities included schedule coordination, site visits and interviews, file reviews, documentation, and report preparation. Her technical experience includes preparation of proposals and cost estimates; management of on-site monitoring activities and project budgets; review of all laboratory test data; report writing; and interfacing with contractors and regulatory agencies. Education Bachelor of Science, University of Tennessee, Knoxville, Tennessee, 1996 Additional Training/Continuing Education AHERA Asbestos Certified Inspector, No. 10972, Atlanta, GA, 2009 10-Hour OSHA Construction Safety, Alpharetta, GA, 2008 8-Hour OSHA Health and Safety Refresher, Atlanta, GA, 2009 40-Hour OSHA Health and Safety Training , Knoxville, TN, 1996 Experience and Background

08/1999-05/2005; 06/2006 - Present Project Scientist, Shaw Environmental & Infrastructure, Inc., Alpharetta, Georgia Primary responsibilities involve environmental projects within the commercial-environmental division. The following is a summary of key projects: Regional Lead, Permit Review, Confidential Client, Southeast, 10/2007 - present Perform permit review of several large retail facilities in the Southeast. Project Scientist, Fort Gillem and Fort McPherson, U.S. Army Corps of Engineers, Atlanta, GA, 06/2006 - 09/2007 Conducted Environmental Condition of Property assessments for the Fort Gillem and Fort McPherson Army bases in Atlanta, Georgia. This work was conducted under the Army’s Base Realignment and Closure program. Work included research, site visits, conducting interviews, review of files, survey methodology, review of Installation Restoration Program status, and report preparation. Project Scientist, Asbestos Surveys, Confidential Client, Atlanta, GA, 09/2006 - present Conducted asbestos containing material surveys for buildings associated with an abandoned railroad yard.

Environmental Scientist, Landfill Monitoring, Allied Waste, Southeast, 05/2002 - 05/2005 Primary responsibilities involved management of landfill monitoring activities at various solid waste landfills in the southeast region. Duties included preparing monthly monitoring reports, managing field staff, reviewing field data, and maintaining project budget. Site Manager, Automotive Facilities, Confidential Client, Southeast, 08/1999 - 05/2002 Served as a site manager responsible for preparing quarterly reports for various petroleum sites in the southeast. Duties included proposal writing, coordinating subcontractor bids, quarterly sampling, and report writing. 05/2005 - 06/2006 Environmental Scientist, ECS Southeast, Marietta, Georgia Primary responsibilities involved conducting Phase I environmental site assessments for properties located throughout the southeast. Work included site reconnaissance of the subject and adjoining properties; limited visual off-site inspection of near-by properties; conducting personal interviews; review of local property records; database records review; historical review of topographic, aerial, and Sanborn maps; evaluation of database sites for potential recognized environmental condition and other environmental conditions.

Appendix B:

Database Assessment Criteria and Statement of Limitations

Form Revised April 2009

Regulatory Database Assessment Criteria

The purpose of the regulatory agency environmental database review was to identify reported environmental issues for the Property and other properties in the vicinity. The database search criteria included the approximate minimum search distances specified in the Scope of Work described in Section 2.0. The descriptions of the databases searched and the associated search distances from the Property are identified in the regulatory agency database search report presented in Appendix F.

The database search report lists a number of sites identified as “unmappable.” The database search firm was unable to confirm the physical locations of these sites relative to the Property or to assess whether they were located within the designated search radii. Shaw Environmental, Inc. (Shaw) independently reviewed the locations of these “unmappable” sites, to the extent possible, using various maps and our knowledge of the Property area.

Shaw evaluated each reported site identified in the regulatory agency database search report with respect to the nature and extent of the release, the distance of the site from the Property, the stratigraphy of soils, the expected soil permeability, and the topographic position of a reported release site with respect to known or expected local and/or regional groundwater flow direction. Reported release sites located within ¼-mile upgradient or ⅛-mile cross-gradient or adjacent downgradient are considered to have a potential to have impacted the Property.

Form Revised April 2009

Statement of Limitations

The conclusions presented in this report are professional opinions based on data described in this report. These opinions have been arrived at in accordance with currently accepted environmental industry standards and practices applicable to the work described in this report. The opinions presented are subject to the following inherent limitations:

1. This report was prepared for the exclusive use of the entity referenced in Section 1.0, the User. No other entity may rely on the information presented in the report without the expressed written consent of Shaw. Any use of the Phase I ESA report constitutes acceptance of the limits of Shaw’s liability. Shaw’s liability extends only to its client and not to any other parties who may obtain the Phase I ESA report.

2. Shaw derived the data in this report primarily from visual inspections, examination of records in the public domain, and interviews with individuals having information about the Property. The passage of time, manifestation of latent conditions, or occurrence of future events may require further study at the Property; analysis of the data; and reevaluation of the findings, observations, and conclusions in the report.

3. The data reported and the findings, observations, and conclusions expressed in the report are limited by the scope of work that was performed within the approved time and budgetary requirements. The scope of work is presented in Section 2.0 and was agreed to by the client.

4. Shaw’s Phase I ESA report presents professional opinions and findings of a scientific and technical nature. The report shall not be construed to offer legal opinion or representations as to the requirements of, or compliance with, environmental laws, rules, regulations, or policies of federal, state, or local governmental agencies.

5. This report is not a definitive study of contamination at the Property and should not be interpreted as such. Unless indicated to the contrary in Section 2.0, an intrusive assessment of subsurface soil, groundwater, or other environmental media was not performed as part of this investigation,

6. This report is based, in part, on unverified information supplied to Shaw by third-party sources. While efforts have been made to substantiate this third-party information, Shaw cannot guarantee its completeness or accuracy.

Appendix C:

Figures

Image Provided by Environmental Data Resources, Inc.Source: USGS Scale: 1" = 909'

Approximate Site Location

Boundaries of the Property are Approximate.

SITE LOCATION MAP2750322 - 19 Sites

159.01 ACRES BOARDTOWN ROADELLIJAY, GA 30522

PREPARED FOR: PROJ. MGR: DATE: 05/05/2010DRAWN BY: Andrew Kleinhans PROJ. #: NA

LEGEND:

APPROXIMATE PROPERTY BOUNDARY

STREAM FIGURE 2SITE PLAN

FDIC AS RECEIVER FOR BANK OF HIAWASSEE159.01 ACRES BOARDTOWN ROAD

ELLIJAY, GEORGIA 30536

11560 Great Oaks Way, Suite 500Alpharetta, Georgia 30022-2424Phone (770) 475-8994Fax. (770) 777-9545

NOT TO SCALE

OF

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100

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0A

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04/2

010

DR

oyba

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CHAPMAN DRIVE

(UNPAVED GRAVEL ROAD)

UNDEVELOPED

WOODSWOODS

WOODSDEBRIS

PILE RESIDENCE

RESIDENCE

UNDEVELOPED

Appendix D:

Photographs

Photographic Documentation

Client: FDIC as Receiver for Bank of Hiawassee Prepared by: Shaw Environmental, Inc. Location: 160 Acres Boardtown Road Ellijay, Georgia Photographer: Drew Kleinhans Photograph Date: 4/21/2010 Project No: 138138

Photo # 1 Direction: N Photo No: 2 Direction: E

Description: Gravel drive leading onto Property. Description: Pile of debris on the Property consisting of tires and drain pipe scrap.

Photo No: 3 Direction: NE Photo No: 4 Direction: N

Description: Key Creek running through the Property.

Description: Unpaved road through the Property.



Photo # 5 Direction: W Photo No: 6 Direction:

Description: Gated entry to one access road through the Property.

Description: Gravel road running through the Property.

Photo No: 7 Direction: S Photo No: 8 Direction N

Description: Property directly to the South of 160 acre site.

Description: Property directly to the east of the 160 acres site.

Appendix E:

Photocopies of Additional Supporting Materials

159.01 ACRES BOARDTOWN ROAD

159.01 ACRES BOARDTOWN ROADELLIJAY, GA 30522

Inquiry Number: 2750322.125April 21, 2010

The EDR Environmental LienSearch™ Report

440 Wheelers Farms RoadMilford, CT 06461800.352.0050www.edrnet.comEnvironmental Data Resources IncEnvironmental Data Resources IncEnvironmental Data Resources IncEnvironmental Data Resources Inc

txtTitle

The EDR Environmental LienSearch Report provides results from a search of available current land title records for environmental cleanup liens and other activity and use limitations, such as engineering controls and institutional controls.

A network of professional, trained researchers, following established procedures, uses client supplied address information to: • search for parcel information and/or legal description; • search for ownership information; • research official land title documents recorded at jurisdictional agencies such as recorders' offices, registries of deeds, county clerks' offices, etc.; • access a copy of the deed; • search for environmental encumbering instrument(s) associated with the deed; • provide a copy of any environmental encumbrance(s) based upon a review of key words in the instrument(s) (title, parties involved, and description); and • provide a copy of the deed or cite documents reviewed.

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This Report contains certain information obtained from a variety of public and other sources reasonably available to Environmental Data Resources, Inc. It cannot be concluded from this Report that coverage information for the target and surrounding properties does not exist from other sources. NO WARRANTY EXPRESSED OR IMPLIED, IS MADE WHATSOEVER IN CONNECTION WITH THIS REPORT. ENVIRONMENTAL DATA RESOURCES, INC. SPECIFICALLY DISCLAIMS THE MAKING OF ANY SUCH WARRANTIES, INCLUDING WITHOUT LIMITATION, MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE. ALL RISK IS ASSUMED BY THE USER. IN NO EVENT SHALL ENVIRONMENTAL DATA RESOURCES, INC. BE LIABLE TO ANYONE, WHETHER ARISING OUT OF ERRORS OR OMISSIONS, NEGLIGENCE, ACCIDENT OR ANY OTHER CAUSE, FOR ANY LOSS OR DAMAGE, INCLUDING, WITHOUT LIMITATION, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES. ANY LIABILITY ON THE PART OF ENVIRONMENTAL DATA RESOURCES, INC. IS STRICTLY LIMITED TO A REFUND OF THE AMOUNT PAID FOR THIS REPORT. Purchaser accepts this Report "AS IS". Any analyses, estimates, ratings, environmental risk levels or risk codes provided in this Report are provided for illustrative purposes only, and are not intended to provide, nor should they be interpreted as providing any facts regarding, or prediction orforecast of, any environmental risk for any property. Only a Phase I Environmental Site Assessment performed by an environmental professional can provide information regarding the environmental risk for any property. Additionally, the information provided in this Report is not to be construed as legal advice.

Copyright 2010 by Environmental Data Resources, Inc. All rights reserved. Reproduction in any media or format, in whole or in part, of any report or map of Environmental Data Resources, Inc. or its affiliates is prohibited without prior written permission.

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TARGET PROPERTY INFORMATION_______________________________

ADDRESS

159.01 ACRES BOARDTOWN ROAD159.01 ACRES BOARDTOWN ROAD

ELLIJAY, GA 30522

RESEARCH SOURCE

Source 1:

Gilmer Clerk of CourtGilmer, GA

PROPERTY INFORMATION

Deed 1:

Type of Deed: Deed Under Power of Sale

Title is vested in: Bank of Hiawassee

Title received from: JPF Enterprises, Inc

Deed Dated 8/4/2009

Deed Recorded: 8/24/2009

Book: 1568

Page: 347

Volume: NA

Instrument: NA

Docket: NA

Land Record Comments:

Miscellaneous Comments:

Legal Description: see exhibit

Legal Current Owner: Bank of Hiawassee

Property Identifiers: 3090-009

Comments: see exhibit

ENVIRONMENTAL LIEN

¨ ýEnvironmental Lien: Found Not Found

OTHER ACTIVITY AND USE LIMITATIONS (AULs)

¨ ýAULs: Found Not Found

2750322.125 Page 1

Deed Exhibit 1

159.01 Ac. Boardtown Rd. 159.01 Ac. Boardtown Rd. Ellijay, GA 30522 Inquiry Number: 2750322.129

May 4, 2010

The EDR Chain of Title Report tracks a line of successive owners from the present back to 1940 of a particular parcel of property, linked together by recorded transactions which pass title. Available nationwide, this report provides a summary of a property’s ownership history and is a valuable source for determining the prior uses of a property A network of professional abstractors following established procedures, uses client supplied address Information to locate:

Historical Chain of Title research Leases and Miscellaneous

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with any questions or comments.

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This report was prepared for the use of Environmental Data Resources, Inc., and Data Information Abstract Services, Inc. exclusively. This report is neither a guarantee of title, a commitment to insure, nor a policy of title insurance. NO WARRANTY, EXPRESSED OR IMPLIED, IS MADE WHATSOEVER IN CONNECTION WITH THIS REPORT. Environmental Data Resources, Inc. (EDR) and Data Information Abstract Services, Inc.specifically disclaim the making of any such warranties, including without limitation, merchantability or fitness for a particular use or purpose. The information contained in this report is retrieved as it is recorded from the various agencies that make it available. The total liability is limited to the fee paid for this report.

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TARGET PROPERTY INFORMATION

ADDRESS

159.01 Acres Boardtown Road

159.01 Acres Boardtown Road

Ellijay, GA 30522

Research Source

Source 1: Gilmer County Clerk of Superior Court

Examiner’s Note: Public records of Gilmer County, Georgia were searched from January 1, 1940 to April 25, 2010, and no other deeds vesting title in the subject property were found of record during the period searched.

PROPERTY DESCRIPTION

Current Owner: Bank of Hiawassee Legal Description: See Deed Property Identifiers: APN 3090-009 General Comments: HISTORICAL CHAIN OF TITLE

See Exhibit “A” LEASES AND MISCELLANEOUS

See Exhibit “B”

Chain of Title

Exhibit “A”

HISTORICAL CHAIN OF TITLE

Type of Deed: Deed under Power of Sale

Title is vested in: Bank of Hiawassee

Title received from: JPF Enterprises, Inc.

Date Executed: August 4, 2009

Date Recorded: August 24, 2009

Book: 1568

Page: 347

Type of Deed: Deed

Title is vested in: JPF Enterprises, Inc.

Title received from: Norman Edwards & Charles Malone

Date Executed: August 28, 2006

Date Recorded: August 28, 2006

Book: 1299

Page: 485

Type of Deed: Deed

Title is vested in: Norman Edwards & Charles Malone

Title received from: Cherokee Realty Company

Date Executed: November 16, 1992

Date Recorded: November 16, 1992

Book: 871

Page: 21

Type of Deed: Deed

Title is vested in: Cherokee Realty Company

Title received from: Maybel Elaine Booker

Date Executed: January 21, 1972

Date Recorded: January 21, 1972

Book: 770

Page: 11

Type of Deed: Deed

Title is vested in: Maybel Elaine Booker

Title received from: Hurbert Stanfill

Date Executed: November 10, 1940

Date Recorded: November 10, 1940

Book: 701

Page: 1128

LEASES and MISCELLANEOUS

Exhibit “B”

LEASES and MISCELLANEOUS No leases or miscellaneous records located for search.


1963 Aerial Photo

2750322 - 19 Sites


ELLIJAY, GA

PREPARED FOR:

PROJ. MGR: DATE: 05/04/2010

DRAWN BY: Andrew Kleinhans PROJ. #: NA


1971 Aerial Photo

2750322 - 19 Sites


ELLIJAY, GA

PREPARED FOR:




1980 Aerial Photo

2750322 - 19 Sites


ELLIJAY, GA

PREPARED FOR:




1988 Aerial Photo

2750322 - 19 Sites


ELLIJAY, GA

PREPARED FOR:




1993 Aerial Photo

2750322 - 19 Sites


ELLIJAY, GA

PREPARED FOR:




2005 Aerial Photo

2750322 - 19 Sites


ELLIJAY, GA

PREPARED FOR:




2006 Aerial Photo

2750322 - 19 Sites


ELLIJAY, GA

PREPARED FOR:



Documents

Asset #102020063 Bank of Hiawassee 159.01 Acres ...johndixon.com/auctions/110612Downloads/313Environmental.pdfBank of Hiawassee 159.01 Acres Boardtown Road Ellijay, Georgia Shaw Project