To Whom It May Concern,€¦ · To Whom It May Concern, I am enclosing all of the required documents for approval of a Waste Water Management Plan. I have checked off all of the information

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August 17, 2014

To Whom It May Concern,

I am enclosing all of the required documents for approval of a Waste Water

Management Plan. I have checked off all of the information that I have enclosed.

I did not have the last two required elements. I did contact an ADEQ

representative to ask them what exactly the last two were and also what I need to

put into the letters to meet all of the requirements. They could not give me an

answer. They said to submit everything else and draft a short letter requesting

someone from that specific office to contact me, so that is exactly what I am

doing. I will then submit them to you as soon as possible to fulfill all of the

requirements. I am putting all of my contact information below so if someone

could contact me regarding the last two items I will finish all of the permit

requirements.

Thank You in Advance,

Joe-D Belknap

General Manager

Brady Mountain Resort and Marina

501-767-3422

[email protected]

Arkansas Department of Environmental Quality No-Discharge Section Permit Application

Subsurface Disposal System

I Permit No.: t;.i q I r L<) I AFIN: 1.4 -06 8& 11 SIC Code: I NAICS Code:

(Office Use Only) (Office Use Only)

1 p . A. ermit ctwn an dT l'ype (Please check one of the following):

Operator Type: 0Corporation (State of Incorporation: ) J3fimited Liability Company (State ofLLC:

0Partnership Osole Proprietorship/Private 0Public Entity (Type: )

~ewPermit 0 Renewal 0 Modification of Permit, Describe:

0 Carwash/Truck Wash 0 Domestic Septic System 0 Drip Irrigation System 0 Laundromat

0 Slaughter House ~her f2.Ji..-So/L. f ~ ~A

2. Permittee Le al Name and Mailin Address: (MustMatchArkansas'sSecretaryofState)

Owner Name: LLC Address: J

City:

Title:

City:

1/4 Sec.: Township: 2.. Sc>c.t-+f.--.. Range:

Latitude: .:2i,_Deg l!{_ Min~ Sec. Longitude .11_ Deg 15_ Min Y._!Jsec.

County: Nearest Town:

Distance: t:;? (ft) Stream Segment: '?.... F

Consulting Firm:

Email: Phone Number: '2.)

r:;_, v Cell Number: 2.-1 City:

ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY 5301 NORTHSHORE DRIVE I NORTH LITTLE ROCK I ARKANSAS 72118-5317 I TELEPHONE 501-682-0744 I FAX 501-682-0880

www.odeq.stote.or.us

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Please read the following carefully and sign below.

I certify under penalty of law that this document and all attachments were prepared under my direction and supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate and complete. I am aware that there are significant penalties for submitting false information, which may include fines and/or imprisonment.

SIGNATORY REQUIREMENTS:

The information contained in this form must be certified by a responsible official as defined below:

Corporation: principal officer at least the level of vice president (must be an officer or register agent with the secretary of state) Partnership: a general partner Sole Proprietorship: the proprietor/owner Municipal, state, federal, or other public facility: principal executive officer, or ranking elected official

.n \ A /) -t-C::. pI' • ~~ )( Responsible Official: ----'~=-Y_::_ \ru=a-'--_,~..,:)==----__ ~L-_tt__,__--1(_""--

Responsible Telephone: 9 2 7..,- '1 ~<t - / t.{ 6(:::)

Title: Pc<..~?Lo~+---~------'~=-=-------_::_ ______ _

Responsible Signature: ____________ _ Date:. _____________ _

Cognizant Official is an individual that is given signature authority from the Responsible Official

Cognizant Official:G"'ot:. -0 . £~ A_,. Title: (:r . M ·

Cognizant Telephone: I¥:.>[- 7 {, ? .- J'f L L Emailj b4. jL.NAf@ Su~£)Ct~-t~. c:_o"

Cognizant Signa~~ Date: '(5- C.1-2_0£ 't

PERMIT REQUIREMENT VERIFICATION (Please check the following to verify the completion of permit requirements.)

0 0

Submittal of Complete Application Does the Owner name match the Secretary of State (Corporation or Limited Liability Company)? Does the Responsible Official match the Secretary of State?

Submittal of Waste Management Plan Stamped & Signed by an Arkansas Registered PE/ ADH Designated Representative Are maps and site description included?

Submittal of Operation/Maintenance Plan (nonmunicipal wastewater treatment systems) Is the cost estimate included?

Submittal of Disclosure Statement (completed and executed) Not required for public entity

Submittal of Land use Contract/Deed/Lease Arkansas Department of Health notification letter (letter transmitting documents to ADH)

(New permits or modified permits) Provide Certificate of Good Standings with the Arkansas Secretary of State

(If foreign corporation, provide Certificate of Good Standings from the state of Origin)

ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY 5301 NORTHSHORE DRIVE I NORTH UTILE ROCK I ARKANSAS 72118-5317 I TELEPHONE 501-682-0744 I FAX 501-682-0880

www.adeq.state.ar.us

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Instructions for the Completion of this Document:

A. Individuals, firms or other legal entities with no changes to an ADEQ Disclosure Statement, complete items 1 through 5 and 18.

B. Individuals who never submitted an ADEQ Disclosure Statement, complete items 1 through 4, 6, 7, and 16 through 18.

' C. Firms or other legal entities who never submitted an ADEQ Disclosure Statement, complete 1 through 4, and 6 through 18.

Mail to: ADEQ DISCLOSURE STATEMENT [List Proper Division(s)J 5301 Northshore Drive North Little Rock, AR 72118-5317

I. APPLICANT: (Full Name) Suntex Marinas III, LLC

2. MAILING ADDRESS (Number and Street, P.O.Box Or Rural Route)'! .. 17330 Preston Road Suite 220A

. J. CITY,STATE,ANDZIPCODE: · Dallas, Texas 75252

0 Individual KJ Corporate or Other Entity

KJ Permit 0 License 0 Certification 0 Operational Authority

Hand Deliver to: ADEQ DISCLOSURE STATEMENT {List Proper Division (s)J 5301 Northshore Drive North Little Rock, AR 72118-5317

KJ New Application 0 Modification 0 Renewal Application (If no changes from previous disclosure statement, complete number 5 and 18.)

0 Air 0 Water 0 Hazardous Waste 0 Regulated Storage Tank 0 Mining !XJ Solid Waste~

0 Environmental Preservation and Technical Service

5. Declaration of No Changes: · i;: The violation history, experience and credentials, involvement in current or pending environmental lawsuits, civil and criminal, have not changed since the r·· last Disclosure Statement I filed with ADEQ on.;_;,;._....._.... ....... ___ ,-,-----,.--.,----------

Signature of Individual or Authorized Representative of Firm or Legal Entity {Also compl~te #18.) ...

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6. Describe the e~perience and credentials of the Applicant, including the receipt of any past or present permits, licenses, certifications or operational authorization relating to environmental regulation. (Attach additional pages, if necessary.)

Suntex Marinas III and it's parent company own and/or operate 22 marinas in the continental US and Caribbean. Environmental & Operational permits and licesnses include

* Underground Storage Tank Permits * Marine Fuel Terminal Facility Licenses * Septic Tank Permits * Emergency Response Plan * National Polution Discharge Elimination System Permit * Dredging Permit

' * Shoreline Stabilization Permits * USCG Facility Security Plans

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. 7: List and explain all clvil or criminallegalactionsby government agencies involving environmental protection laws orreg~lations against the Applicant* 1-'

in the last ten (10) years including:

1. Administrative enforcement actions resulting in the imposition of sanctions; 2. Permit or license revocations or denials issued by any state or federal authority; i

3. Actions that have resulted in a finding or a settlement of a violation; and 4. Pending actions.

(Attach additional pages, if necessary.)

OSHA- citation and notification of penalty issued 8/21/2014- Pending * citation alleges non-compliant stairs and platform * an informal hearing has been requested li

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• Firms or other legal entitles shall also include this information for all persons and legal entities identified in sections 8-16 of this Disclosure Statement.

···············-· .. ··- . ...... ··-···-·

8. List all officers of the Applicant. (Add additional pages, if necessary.)

NAME: John D. Powers TITLE: President 17330. Preston Road Suite 220A ·- R"""

STREET:.

CITY, STATE, ZIP: Dallas, Texas 75252 .. ·-

NAME; Bryan Redmond TITLE: Vice President STREET: ·· 17330 Preston.Road Suite 220A CITY, STATE, ZIP: .. Dallas Texas 75252

NAME:·· TITLE: -······· . .. .. . . . ..... ···~···· ..

. $'~t~T.: .. ~· .

... CITV,STATE,.ZjP.: ..... ,.,,,.

9. List all direc~ors of the Applicant. (Add additional pages, if necessary.)

TITLE:"" ... ;:;;; .... ·__;;__;;,.,..... __________ ___. NAME:··-~"""""__;;;...__=-==""""---";..;;;:.,.,.

STREET:~~~~~~--~~~~--~~~~~~--~~==~~--------~~~~~---------~~~ CITY, STATE, ZIP: _____________________________________ -,-,-___ __,.~------

NAME:,.,;,;· ... ;;;;;·;;;;;;;;;;~~-----~----- TITLE:~__,.,__,.,,..,...-----------.,.,-..,.,. ~mttr:.·.,., ... ,.... _...,. _________ ....,.........,.,..-__ __,..---------"'---------......,.,..,.,...,.-,.......-ciTY, STATE, ZIP::.,· ~--~-.,.--=-".,..,.,.,..,.-...,.,,.,..... ____ -.,.-__ -,...-,...~_,-.,.-,...--,...-_,_,___,...,__ ____________ = __ .,.,.,.

NAME:.._ .. -~----""""---='------"'~· · ... · TITLE:,,._ .............. , .. , ........ "" .... "" ............ "".'''""''''"'' ................... --..;.;"'"""""-""-;;;;;;;;;;__.........;.;._

STREET:~.~ ..... ~ .... ------------------------~~----------,...-,...-----~----~-----~~-1 CITY, STATE, ZIP:.

,i,~. ' 10. List all partners of the Appiicant. (Add additional pages, if necessary.)

NAME:,-.···· ___ -._ __ ......,.;;,;,_ __ _.. TITLE:::-'--------';;;,........._=--;...;;;;;.-......;;;;;-..---..---..--..i

STREET:..: .. ···;;;;; ......... -=~--~~...;:;;;;:;;;·~··.;.;; .. -.;._-;;;,.·..;.;; .. .;.;;··--...;:;;;....._....._~ .................... ________ _,_ ___ ~..,......~--~--==-=

CITY, STATE, ZIP:·---------------""'..._----"""-""......._. ....... __._...__~'----"'--"------------------'

NAMJt!,_. __ ........._ _________ --'_

· S11lErtr;.;.;'"" .. ~~-......... ==~~=~=~~--""--:-:---~~~~__,.,.,,.....,..,..,...,..~___,,.....,..,-.,--__ ----,-.,.,.,....,.--~ CITY, STATE, ~~~i._,_-,--.,.,..,...---------,.,.-------------------~----------......-1

NAME:., _ ___,=---,,.,--.,..----"""' TITLE:.--------------

: STREE1~.,..'.' ___ .............. ~-.-.-..;;;;...---.;;.;;....;...-~~"--'"""'-...-..~......-.;.;;.;;;;;.-.-;.;;;""""".........,--~~--~;;;;...;;:."""'"""""-"-.;;;;o.;_~.......,;;;.,;,.;;"-""""""'

CITY, S!A'fE, ZiPi ....

... .., ........ ,..... .. . ............................ . .. .. ... ................. '"••

II. List all persons employed by the Applicant in a supervisory capacity or with authority over operations of the facility subject to this application;

'NAME: J<>e-DJ?elknap. . . · TITLE: GeneralManager. sTREET: · 4'120 Brady Mountain Road .. ciTY, STATE; ZIP: Royal1.Arkans·as·'11968

NAME: Bryan Walden TITLE: Regional Manager ST~I:;E'f; ... .•.. 17330 Preston Road S11ite 220.t\ CITY,STATE,ZIP: Dallas Texas75252

NAME: .CbrisJ;!etf:y.. TITLE:._,. ... ,..... . ...... .;;.P ... re;;.;:s;.:.;id:;;;,;e:.:.n;.;;;t _ __,.,.,..,..,..,_,--,---,-.......,.-.,.-;gyltit¢t: 1/330Ptestori.Rdid'Sttite~;220'A. CITY, STATE, ZIP:. i[)aJlas;'J;$as7SZ5:2 · ..

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12. List all persons or legal entities, who own or control more than five percent (S%) of the Applicant's debt or equity.

TITLE: ______ ......_~~~~;.,..,;.,..,~ NAME:'":···;;;;;;;;;;;;;;;;;;;;;;;==~;;;;;;;;;;;;;;;;;;;;;;;;.;..,-...,.,..==~

STREET:~~~~--------------=-~...,..,..~----=-------...,..,..----...,..,.....,..,..-...,..,..~~----~~=-~=---~~~~ CITY, STATE, ZIP:~--------------------~~~----------------------------------~-----------------------

NAME:~-~·...,..,.....,..,.....,.,..~~-~-----~

STREET:==~---------------..,.,,.....,.=-----------------.....;;.;.;.~~-:-=-:-":-±=;;;.;;;;.;.,.,.-~-......._=""""

CITY, STATE, ZIP:, . ......._""-_ ........ ........;.----'..;....;.-.;..;.;,;."""-'.....;;....--.....;;....----'----'------~------------------'"'"'--'---~-----

NAME:'-------------.......,"""-'----· TITLE:,_. ---------------""'-"-STREET:

...

CITY, STATE, ZIP: .. . ........... ·· .· .......... , .... .

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13, List a Illegal entities, in which the Applicant holds·a debt or equity interest of more than five percent (5%).

NAME: TITLE: ""m

.......

STREET:

CITY, STATE, ZIP:., . -

NAME: TITLE:. ..

STREET:

CITY,STATE,ZIP:- ·-··

NAME: ·: tiTLE:.

STREET:

.. (:IT:X,SIAIE.:UJ>: .. -···· ...... ... ·"

14. List any parent company of the Applicant. Describe the parent company's ongoing organizational relationship with the Applicant.

NAME:... Sunt~:x:M<lr.~.m~:~ •.. L1C: ... sTREET: ·"-·17330 PrestoriRoadSuite220A' CITY, STATE, ZIP: ,...___;7:..,:5::,:2~5,::::.2 ______ _

Organizational Relationship:

Sole Member

~..; · IS. List any subsidiary of the Applicant. Describe the subsidiary's ongoing organizational relationship with the Applicant. ~-

NAME:·------~--------......._ __________ ~

STREET:...,..,.. ______ ~----------

.:;.-. CITY, STATE, ZIP: __ .___ __ ~__..._,__.....:..-. ______ ----'

Organizational Relationship:

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16. List any person who is not now in compliance or has a history of noncompliance with the environmental laws or regulations of this state or any other jurisdiction and who through relationship by biood or marriage or through any other relationship could be reasonably expected to significantly influence the Applicant In a manner which could adversely affect the environment.

NAME:··,...-__,.~__,.,.---.....,=~------.

STREET:·.---~-__...... _________ ......,. ....... _..._ ____ ~..._-----~~"""""'"---------~,.,.,.-

CITY,STATE,ZIP: -----'""-'--...;...;;=c...;.,.,.;.,.__,.....;...;;...;...;;;,;,_=c..;.;;;;;..,___,.---~...;...;;~...;...;;-;;;;;;;;,;;o;.;;;;;.;.o...;;;:_~~.;;;.;;;.;-~~--'-..,;;;;..--...;.;

NAME:~~-~--~--=----~

STREET: --------------~---------------------~---~--~-~~------~~~~~ CITV,STAT~ZIP: ~ .... ~ .... ~ ..... ~ ..... ~ .... ~ ...... ~ ...... ~.~.=~~=~-------~~~~~----...,-...;...;;-~-=~~~~------~---------

17. List all federal environmental agencies and any other en~ironmental agencies outside this state that have or have had regldatory ~esponsibility over the Applicant.

Texas Commision of Environmental Quality United States Army Corps of Engineers Florida Department ofEnviornmental Quality New Jeresy Department of Environmental Protection United States Army Corps of Engineers Federal Communications Commission

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18. VERIFICATION AND ACKNOWLEDGEMENT

The Applicant agrees to provide any other information the director of the Arkansas Department of Environmental Quality may require at any time to comply with the provisions of the Disclosure Law and any regulations promulgated thereto. The Applicant further agrees to provide the Arkansas Department of Environmental Quality with any changes, modifications, deletions, additions or amendments to any part of this Disclosure Statement as they occur by filing an amended Disclosure Statement.

DELIBERATE FALSIFICATION OR OMISSION OF RELEVANT INFORMATION FROM DISCLOSURE STATEMENTS SHALL BE GROUNDS FOR CIVIL OR CRIMINAL ENFORCEMENT ACTION OR ADMINISTRATIVE DENIAL OF A PERMIT, LICENSE, CERTIFICATION OR OPERATIONAL AUTHORIZATION.

State of

County of

I, . - Si:~({ 1\ {[iJ~l- ... , swear and affirm thatthe information contained in this Disclosure :Statement is true and correct to the best of my knowledge, information and belief .

.. :··'·z·· :··-: ...... · '::"·-·· :.:···· .·_ ..... -. APPLICANT . /· : _ .· .··· ~--·--_,......,--· SIGNATURE: .._. _;.;,;.;._____;_::.....,_ .·.,-,t.: ~~.·:'·;.._· -4,;':::;.. :::::. -;;.,..-. ._;·"-· --"'-~;.;..;....;;;.~=~--;;_;;;_--~ ............ ~~....;.;....;;---'==-=~~ ........... _____.,

COMPANY TITLE:

Vice President

8/25/2014

suBSCRIBED AND swoRN To BEFORE ME THIS ._?-.?. -e: DA v oF. A...,o.,t . . zo=J"'--"4--"-'

SoLEDAD DE LOSSANTOS .. : Notary Public. State of Texas

My Commission Expires September 11, 20J.Z

MY COMMISSION EXPIRES:

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OPERATION AND MAINTENANCE PLAN

• Pump out all of the tanks as necessary

• During high flow times pump outs would be more frequent than in

offseason

• Annually would plan to pump out the facility no less than an average of

once a month and during high times as needed

• Cost of maintenance will run around $30,000 per year

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DEPARTMENT OF TI-lE ARMY \n9:t<$BYRi:U5J~T~lCj, ¢0RPS QF ENOI~EE~~ . . . .· . 4l55>CLAY STREET

VICKSBURG; MiSSiSSIPPI 39183~343'5

RE}~LYT(j ATTENTION OF: . - ' :,

Real ':Estate Division ,~e.aJty $ervic~s Bti=mch,

~larph q, 20()8

sth3uECT: Brady Mount(:).in Re·Sort, i\s.signment of Cornmer'Cial ~ci¢,h¢~fssH~n :r.,e·a.s:e, ·tP q~u; ·rhc6me 'sr.aqy· MP"J.lhtairi M?;tfiri§, ·LLQ

.ol\!:r.. JnCome ~fO.dy Moi.:lnta:Lrt M:arina; ttc clo ·CN·L Income Properties; inc. F.:tth: M$. 'I',<:rtnmie .Quinlan., (;hi~l F:Lnancia1 AroysJn~lli;' mkq._, Scii118r Vioe'. Pr~sideltt

and .Corporate Couns·el ... d~~a:~_do;r~i~·:i~~enj;~lro i2 to f l.oqr

o.ffice:r . . .

;cpn¢!:~;hl·~·~tl~~~~~:B¢;·b.$-:.~ea~·~~:~,~~~-~f 6·~etK~J".td~~~:lc~·::i 9~d~d~·~2i.Q.rt. ieas.e from ·sas.·s Management, Inc., to dNL Income Brady Mountain Marina; LLC:. "<,- '",,. ····>"·',\ "• •" •r"•

''l'h:e Depa-rd:ment of the Army lease £or commercial concession purpo~.~:s. a,:t:. a;:~_i;iY f;i.ot!ptaif} ~E:!s:¢rt,t . Lage~ 9';tac~it1a, ~.~rl_~p;d C'ouhty, Arkansas·, wa.s made! on l:>e.half Of .the United States, hetween the Secr,etary -of the ,l\rmy, a:s '~L(;)s,sor 1r, and Bass Man~g~·m,~rit,~: ire._., ~ii · ~rK~ri$/:iS. ·c.qrpgra.ttdil, · ~:s ~'Le·::ns:i9~i:J·il: (Assignor) •· the United States of A!ner.ica has fe·e title. to the re:f·erenoed le·a'sed P+etni$¢'S ~

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Th.e. c:ornmeroial conoessio.n le.ase wili be assigned or t.ransfe:r:re¢1 .t~ CND Ipc;:g!ne F3:rady Mountain .Mari•h_a, · L;LC,_ ;a Delaware· 1:iM£t:ec;J. t-i'a.bir'ify 66mp<inY (1\:S~igne~>. ,· with diit c'Ons~nt,. b¥ preparing a supplemental .ag·.reement to the origln~l le:ase ('t.he Ass.:i,·gh!hen~t) • The a$s,.igl\ee w.ill st1:blea~fe ··it~- 'irfteie.:S.t.s~ in the. lease to the ·subl~s.$e~, Mabin.as r~;tern,;t tionai c<m~toiidated ri~ouaqhita, LP; a DelawAr~ .limited partner$hip, with. our G(lQS~p"t, by a. s~bl.eq(~e, ag,r~e!Ae'ht. 'Th'~ $1jl,)i:~ase ·~gJ;:e$m~Bt ·sn$.11, be forwarded to this offic~ for revie.w and approvai befo,re final execution. '!'his qffic,e wii1 prepare the assignment of the co.mmer<:;ial .coric~-ssi'~h · r¢~s.e · ft9m t.he diigi~al ·lei~~e, ~is:i

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M~fl:aserneht; rnd,f to th.e hew les'$ee, dt-Jr~ rh<ic)rhe Brady Mountain Marina, LLC; The assignment or supplemen-tal ·agreement wiLi. }?e ihB~;f~~:e· :b~;;i.~e ·.~Ad$.tf~·~.a.~~;.:e~·y·a·!~l·a:i!~?~~·~·~·~ed~;:·r·~1:.:.;¢:~~tit. •shaLL be returned te this office for. filial execution~

. the term .of 'the. Department ·of the A:rmy oo!)'lmercial. ¢oncession lease is for a 25ye·ar'period and it. will·ia .. xP.l.•.: ..... re .:t .. ·.·.·.n .. ·. ~0 .. ··3.3., u ... ·.n.le.·s .. s.: i>thetwi se ~>rt:e}1ci~~.~ " · ~ · ' · · ·· · · ·

}\:1~ rei)taJ ·~!TlO;t;Jr:ltS 'and bthet Ch'?itge$· du.e· :artd pa:yable, ur1ctef· ie~$e ~.o ... · ti~ew3a-l.:.9~-.46 friust be' paid i't1 full throucJti February 2'9, ~Lo6:a (monthly) , :pefore i-ssuance· .of t'he assignment

~!~!!!:~:s~~!t!!~~eiiitB~~~~=m~~~~cin~~; ~~~ t:~ ~;~;~=e~t l'nis .. office wili heed a c.opy of your 5-year dev.ei.opmen't plan

0utlining the ~levelopme.nt of the. ieas~'d P.:ternises over a s~y~'i?,;t p;etH)_d, t.q -b~~ ili6iud{fg. a$ q;.n :~xh±8.±.t 'tq th~ iea$e. . . , .

'!'h,l.s ,Qf.tiiC~ . i:s ·~avor.able. t·q g~anr.j_r~g :?,h. opt:j_on t.t> _reqew. ~li~ ·¢Ommei¢iai. :c9no:ess'i'on H~as:.e· tor an6th$.r· .25~y~:i;ir ·.Pt=;riqd:,. subje·ct to the lessee complying satisfactorily wi.th.the lease terms,

·~~~i·!·~·;·n·~·u;~r.~.~-1~·~¢·!ctciY.~i.S:h~~ii~:!i·ii•f•·i·!·:af~at~ei~I2±~en·~·~~eq :d.ur::i.ng, the renewal peri'Qd; and' co'l.lcurrence of the Di~trict· Ef!9i'P~&~·:r:. ~11i~. t;)ptiqrl w~ :q_ b~ in,clqqec! a$. p~art ,9f tqe , . $li_PP1~It\en.tal agreet:n~tit to the 1e.as€,

Opo.n tp.e fint4:l ¢}{~putj_{)h al)'d. (ieliVE!f:Y .6f :'the ae;_sigh,ment, t;ie h~ssor agrees that it shai1 ·be boUnd 'to the assignee as the new lessee under• tl:l$ le·aSei :'c3.hd t!lat the assignor shaJl n¢;t h¢ l:i.able: £Bf · ~pi.i(Jafiorii oi' J.iabiitti~s ·a$ the. ;r:6rmt$# t.k$'s~~ 11fi@er the 'lease upon the effeetive date of SUCh aS·Signment •

A 'oop.y of' this letter is beihcj fl)rnisheq to Mr. :B:enton "N. Ba.s·s·7 President, Bass Management; Inc.; 4120 Brady Moun,ta·in R?·a;g." B,.q<ya.L, 1\.~~.§:t~s~s 7:19:6?. :cn;d to M.a.rina::$ I:f'!±.ta'rri?ltionq.l ·.Canso.i:Ldated rr-oua811±£a, LJ?, Attn: Mes.si:s, j. Stan Johns.ori; Marshali Funk; and Gregg Kinney; it2.26 indian Trail} $uite 200; .D.al~?s, :Texas. 7E?22'9. · · · · ·

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If this office may be of any assistance, you may contact Mrs. Sheiia Franco of my staff at 601-631-7~60.

Division

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CONTRACT NO. DACW38-1-08-82

SUPPLEMENTAL AGREEMENT NO. 2

THIS SUPPLEMENTAL AGREEMENT NO. 2, made and entered into, by, and between the UNITED STATES OF AMERICA, hereinafter referred to as the "Government", and CLP Brady Mountain Marina, LLC, for.merly known as CNL Income Brady Mountain Marina, LLC, hereinafter referred to as the "Lessee 11

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WITNESSETH THAT:

WHEREAS, a lease agreement dated 08 April 2008 and designated as Contract No. DACW38-l-08-82, hereinafter referred to as the "Lease", was entered into, by, and between Bass Management, Inc., referred to as the "Original Lessee", for a term of twenty-five (25} years, beginning 01 April 2008 and ending 31 March 2033, for commercial concession purposes at Brady Mountain Resort and Marina, Lake Ouachita, Garland County, Arkansas; and,

WHEREAS, on 08 April 2008-, by Supplemental Agreement No. 1 the Original Lessee, Bass Management, Inc~, assigned all rights, title, interest, and equity in and transferred the lease to the Lessee, CNL Income Brady Mountain Marina, LLC, a Delaware limited liability company, of Orlando, Florida; and,

WHEREAS, on 31 January 2012, the Lessee, CNL Income Brady Mountain Marina, LLC, a Delaware limited liability company, changed its name to CLP Brady Mountain Marina, LLC;

NOW THEREFORE, in consideration of the premises, the parties hereto do hereby amend the Lease in the following respects and in these respects only:

THAT the Lessee's name be changed from CNL Income Brady Mountain Marina, LLC, to CLP Brady Mountain Marina, LLC;

THAT all other terms and conditions of said Lease and Supplemental Agreement No. 1 shall remain in full force and effect.

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THAT this Supplemental Agreement No. 2 is effective as of 31 January 2012;

IN WITNESS WHEREOF, I have hereu~set my hand by authority · of the Secretary of the Army this /' day of ~vC... , 2012.

LESSOR: THE UNITED STATES OF AMERICA

ROBERT S. WOOD Chief, Real Estate Division

THI.S SUPPLEMENTAL AGREEMENT NO. 2 is agreed to and executed by the Lessee this ~I<;+ day of. f,Ac-1 , 2012.

WITNESSES: CLP CNL

450 South Orange Avenue (Address of New Lessee)

Orlando, Florida 32801

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LEASE AGREEMENT

THIS LEASE AGREEMENT ("Lease''), dated as of April 9, 2008, by and between BASS MANAGEMENT, INC., an Arkansas corporation ("Lessor"), and CNL INCOME BRADY MOUNTAIN MARINA, LLC, a Delaware limited liability company ("Lessee"), and consented and agreed to by BJRM HOLDINGS, LLC, an Arkansas limited liability company ("Contract Vendee").

WITNESSETH:

WHEREAS, Lessor owns legal title to that certain real property described on Exhibit A attached hereto (the "Real Property"); and

WHEREAS, the Real Property is currently under contract to be sold to Contract Vendee pursuant to an installment contract between Lessor, as seller, and Contract Vendee, as purchaser (the "Sale Contract"); and

WHEREAS, Lessee desires to lease the Real Property from Lessor for purposes of locating and maintaining a sign/billboard advertising the marina and resort property known as "Brady Mountain Resort & Marina" located on Lake Ouachita, Garland County, Arkansas (the "Sign/Billboard"), and Lessor desires to lease the Real Property to Lessee for said purposes; and

WHEREAS, Lessor and Lessee desire to obtain Contract Vendee's agreement with respect to the assignment and assumption of all rights and obligations of Lessor hereunder, with such assignment and assumption to be effective upon the transfer of legal title to the Real Property pursuant to the terms of the Sale Contract.

NOW THEREFORE, with respect to this Lease, Lessor, Lessee and Contract Vendee hereby acknowledge and agree as follows:

1. Lease. Lessor has agreed to lease and does hereby lease, let and demise unto Lessee, and Lessee has agreed and does hereby lease from Lessor, the Real Property for the purposes of locating and maintaining the Sign/Billboard. Upon transfer of legal title from Lessor to Contract Vendee pursuant to the Sale Contract, Contract Vendee shall be deemed the "Lessor" hereunder for all purposes of this Lease.

2. Term: The term of this Lease is for fifty (50) years beginning on the 9th day of April, 2008 and expiring on the 8th day of April, 2058 subject to the right of prior cancellation set forth herein.

3. Rental: The Lessee covenants to pay to the Lessor a fixed rent of one dollar ($1.00) per month, payable in cash/check, on or before the 1st day of each month of the Lease term. Lessee shall have the right to prepay monthly rent.

4. Repairs: Lessee agrees to keep and maintain the Sign/Billboard in good condition at all times during the term of this Lease.

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5. Assignment: This Lease may be assigned with the approval, in writing, of the Lessor given in advance.·

6. Subordination of Lease: The. Lessee hereby subordinates this Lease to any mortgage. deed of trust or encumbrance which the Lessor may have placed, or may hereafter place, on the premises. Lessee agrees to execute on demand any instrument which may reasonably be deemed necessary or desirable to render such . mortgage, deed of trust, or encumbrance, whenever made, superior and prior to this Leas~.

7. Default: Each of the following shall be deemed a default by the Lessee and a breach ofthis Lease:

a)

b)

A default in the payment of any of the rentals herein reserved, or any part thereof, for a period of thirty (30) days .

A defauh in tbc performance of any other covenant or condition of this Lease on the party ofthe Lessee to be performed for a period of thirty (30) days atter service of notice hereof by the Lessor to the Lessee.

8. Return of Leased Propertv: At the end of the term of this Lease, or upon any other earlier termination, the Lessee agrees promptly and peaceably to restore possession of the Real Property to the Lessor in as good condition as they were when delivered to Lessee, ordinary wear and tear and casualties beyond Lessee's control excepted. To accommodate this covenant, the Lessee hereby waives any and all notice to which Lessee may be entitled under the laws of the State of Arkansas as a prerequisite to a suit against Lessee for the unlawful detention of the property.

9. Waiver of Subordination: Lessor and Lessee and all parties claiming under them hereby mutually release and discharge each other from all claims and liabilities arising from or caused by any hazard covered by insurance on the Real Property, or covered by insurance in connection with the property or activities conducted on the Real Property, regardless of the cause of the damage or loss, except as to the part not covered by insurance.

10. Binding Effect: This agreement shall inure to the benefit of and be binding upon the parties hereto, their respective successors, legal representatives, heirs and assigns, except as expressly limited otherwise herein.

I 1. Time of Essence: The time of the making of the payments and ofthe keeping of the covenants herein are ofthe essence of this Lease and the parties hereto so agree.

12. Notices: Any notice called for or permitted under the terms hereof shall be given in vvriting and sent by certified mail to the Lessee at the address of the Real Property, and to the

Lessor at---------------------I 3. Non-Waiver Provision: The failure of the Lessor or Lessee to insist upon the

strict and literal performance of any agreement or condition herein or to exercise any option retained or granted by reason of a default by tile Lessee shall not constitute a waive of the

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Lessor's right thereafter to insist upon and enforce full performance of such conditions and agreements.

IN WITNESS WHEREOF, the parties have hereunto set their hands and seals and have caused their names to be hereunto affixed by the undersigned officers who are duly authorized so to act, on this CJ/4-day of April, 2008.

LESSOR: LESSEE:

CNL INCOME BRADY MOUNTAIN MARINA, LLC, a Delaware limited liability company

;~ _ _ By: Amy Sinelli, Senior Vice President

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AGREED CONSENTED J:.O BY CONTRACT VENDEE THISC(_'bAY OF APRIL, 2008:

BJRM

By:

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Lessor's right thereafter to insist upon and enforce full petformance of such conditions and agreements.

IN WITNESS WHEREOF, the parties have hereunto set their hands and seals and have caused their names to be hereunto affixed by the undersigned officers who are duly authorized so to act, on this _day of April, 2008.

LESSOR:

BASS MANAGEl\fi:NT, INC. an Arkansas corporation

By: Benton Ned Bass, President

AGREED AND CONSENTED TO BY CONTRACT VENDEE TIDS _DAY OF APRIL, 2008:

B.JRM HOLDINGS, LLC

By: Robert W. Moore, Sole Member

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LESSEE:

(,'NL INCOME BRADY MOUNTAIN MARINA, LLC, a Delaw

EXHIBIT A

REAL PROPERTY

A part of the NW 'l4 NE 'l4 Section 4, Township 3 South, Range 21 West, Garland County, Arkansas, more particubirly described as follows: Commence at the NE corner of Lot 1 Hunter's Ouachita Subdivision being a 1" pipe and the Point of Beginning; Thence North 17°27'48" East along the East line of Lot 16 Hunter's Ouachita Subdivision, 80.00 feet to a point; Thence South 76"43'39" East along a line of said lot 16, 39.69 feet to a point on the Westerly r-o-w of Brady Mountain Road; Thence South 04°05'54" East along said r-o-w 258.49 feet to a 1 W' rebar w/cap and the intersection of U.S. Highway No. 270; Thence North 73°22'43" West along said Northerly r-o-w 134.60 feet to theSE corner of said Lot 1; Thence North 17"27'48" East along the East line of said Lot 1 159.47 feet to the Point of Beginning. (According the survey by William M. Napier, PLS, dated 2/20/1992.)

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EXIDBIT J

GROUND LEASE (LEASE NO. DACW38·1-08-82)

See attached

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CONTRACT NO. DACW38-1~08-82

DEPARTMENT OF THE ARMY

LEASE

FOR COMMERCIAL CONCESSION PURPOSES

BASS MANAGEMENT, INC.

LAKE OUACHITA, ARKANSAS

GARLAND COUNTY I ARKANSAS

THIS LEASE is made on behalf of the United States, between the SECRETARY OF THE ARMY, hereinafter referred to as the Secretary, and Bass Management, Inc., hereinafter referred to as the Lessee,

WITNESSETH:

That the Secretary, by authority of Title 16, United States Code, Section 460d, and for the consideration hereinafter set forth, hereby leases to the Lessee, the property identified and described in Exhibit "A" and shown outlined in red on the map entitled Exhibit "B", attached hereto and made a part hereof, hereinafter referred to as the premises, for commercial concession purposes.

THIS LEASE is granted subject to the following conditions:

1. TERM

Said premises are hereby leased for a term of twenty-five (25) years, beginning April 1, 2008 and ending March 31, 2033.

2. CONSIDERATION

a. The rent due to the United States in consideration of this lease shall be calculated using the Revised Graduated Rental System (RGRS) . The total gross receipts for each rental payment period will be multiplied by the applicable percentage rate and the resulting total due payable within ten days to "FAO, USAED" and submitted to USACE, Vicksburg District, 4155 Clay Street, Vicksburg, Mississippi 39183-3435.

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The percentage rate for the upcoming rental year will be selected from the following RGRS rental rate chart, using the line for the total gross receipts of the ending rental year:

GROSS RECEIPTS (GR) % RENT

Under $50,000 2.0% $50,000-$200,000 2.1%

$200,000-$400,000 2.2% $400,000-$600,000 2.3% $600,000-$800,000 2.4% $800,000-$1,000,000 2.5%

$1,000,000-$1,200,000 2.6% $1,200,000-$1,400,000 2.7% $1,400,000-$1,600,000 2.8% $1,600,000-$1,800,000 2.9% $1,800,000-$2,000,000 3.0% $2,000,000-$2,200,000 3.1% $2,200,000-$2,400,000 3.2% $2,400,000-$2,600,000 3.3% $2,600,000-$2,800,000 3.4% $2,800,000-$3,000,000 3.5% $3,000,000-$3,200,000 3.6% $3,200,000-$3,400,000 3.7% $3;400,000-$3,600,000 3.8% $3,600,000-$3,800,000 3.9% $3,800,000-$4,000,000 4.0% $4,000,000-$4,200,000 4.1% $4,200,000-$4,400,000 4.2% $4,400,000-$4,600,000 4.3% $4,600,000-$4,800,000 4.4% $4,800,000-$5,000,000 4.5% $5,000,001 and above 4.6%

(1) Gross receipts are defined as the total of the concessionaire's receipts from business operations conducted on the. premises, including receipts of sub-lessees and licensees. No reductions are permitted except the costs of hunting and fishing licenses, and license fees and taxes collected for direct remittance to a taxing authority, and the exact amount collected from customers for electrical service which is metered to the customer and collected by the Lessee as the servicing agent and paid to the power company. Sale receipts from boats and motors are excluded and assessed a straight one-percent rent.

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CONTRACT NO. DACW38-l-08-82

(2) The rental payment shall be monthly with the first payment due May 10, .2008. For each rental year thereafter, the rental year will begin on 1 January and end on 31 December.

(3) RENT PAYMENT CALCULATION FORM Reporting period a) Gross receipts for this period: $ b) Rent rate: X

c) Amount due (a x b) $ IF OPTIONAL BOAT RATE SELECTED: d) Boat and motor sales: $ e) Rate: X 0.01 f) Amount due (d x e) $

TOTAL DUE (c + f) $

b. All rent and other payments due under the terms of this lease must be paid on or before the date they are due in order to avoid the mandatory sanctions imposed by the Debt Collection Act of 1982, 31 U.S.C. § 3717. This statute requires the imposition of an interest charge for the late payment of debts owed to the United States; an administrative charge to cover the costs of processing and handling delinquent debts; and the assessment of an additional penalty charge on any portion of a debt that is more than 90 days past due. The provisions of the statute will be implemented as follows:

(1) The United States will impose an interest charge, the amount to be determined by law or regulation, on late payment of rent. Interest will accrue from the due date. An administrative charge to cover the cost of processing and handling each late payment will also be imposed.

(2) In addition to the charges set forth above, the United States will impose a penalty charge of six percent (6%) per annum on any payment, or portion thereof, more than ninety (90) days past due. The penalty shall accrue from the date of the delinquency and will continue to accrue until the debt is paid in full.

(3) All payments received will be applied first to any accumulated interest, administrative and penalty charges and then to any unpaid rental or other paymerit balance. Interest will not accrue on any administrative or late payment penalty charges.

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3. NOTICES

All correspondence and notices to be given pursuant to this lease shall be addressed, if to the Lessee, to Bass Management, Inc., 4120 Brady Mountain Road; Royal, Arkansas 71968, and if to the United States, to the District Engineer, USACE, Vicksburg District, Attention: Chief, Real Estate Division, 4155 Clay Street, Vicksburg, Mississippi 39183-3435, or as may from time to time otherwise be directed by the parties. Notice shall be deemed to have been duly given if and when enclosed in a properly sealed envelope, or wrapper, addressed as aforesaid, and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

4. AUTHORIZED REPRESENTATIVES

Except as otherwise specifically provided, any reference herein to "Secretary of the Army", "District Engineer," "said officer" or "Lessorn shall include their duly authorized representatives. Any reference to "Lessee" shall include sub-lessees, assignees, transferees, concessionaires, and its duly authorized representatives.

5. USE AND DEVELOPMENT OF THE PREMISES

a. The premises may be occupied and used by the Lessee or duly authorized agents, sublessees, assignees, or transferees solely for the conduct of business in connection with the recreational development of the premises for the general use of the public. Lessee shall provide facilities and activities in accordance with the Use and Development Plan and its architectural theme and sign plan, as supplemented or amended.

b. No structure may be erected or altered upon the premises unless and until said Development Plan has been approved in writing by the District Engineer. The District Engineer may require the Lessee, upon completion of each of the proposed developments, to furnish a complete "as built" site plan and "as built" construction plans for all facilities with certification by a Professional Engineer that the construction meets all codes and standards.

c. There shall be no construction of new waste water treatment facilities, septic field lines, or septic tanks below the maximum high water elevation of 592 feet NGVD. The lessee shall provide documentation, such as a permit or inspection

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report, to the Lessor that all new or replacement waste water treatment systems comply with regulations of the Arkansas Department of Health and/or the Arkansas Department of Environmental Quality (ADEQ). All waste water treatment facilities, such as package plants, lagoons, septic tanks and septic field lines, including existing systems, should be managed in a manner consistent with the regulations of the Arkansas Department of Health and/or the Arkansas Department of Environmental Quality (ADEQ).

d. The use and occupation of the premises shall be subject to the general supervision and approval of the District Engineer. Modifications to said Development Plan must be approved in writing by the District Engineer prior to implementation of the change.

e. All structures and equipment furnished by the Lessee shall be and remain the property of the Lessee, except as otherwise provided in the Condition on RESTORATION.

6. CONDITION OF PREMISES

The Lessee acknowledges that it has inspected the premises, knows its condition, and understands that the same is leased without any representations or warranties whatsoever and without obligation on the part of the United States to make any alterations, repairs, or additions thereto.

7 . RATES AND PRICES

a. The rates and prices charged by the Lessee or its sublessees shall be reasonable and comparable to rates charged for similar goods and services by others in the area. The District Engineer shall have the right to review such rates and prices and require an increase or reduction when it is determined that the objective of this paragraph has been violated. The Lessee shall keep such rates and prices posted at all times in an appropriate and conspicuous place on the premises. The District Engineer may require submission of a schedule of the rates and prices at any time.

b. However, no user fe~s may be charged by the Lessee or its sublessees for use of facilities developed in whole or part with federal funds· if a user charge by the Corps of Engineers for the facility would be prohibited under law.

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8. PROTECTION OF PROPERTY

The Lessee shall be responsible for any damage that may be caused to property of the United States by the activities of the Lessee under this lease and shall exercise due diligence in the protection of all property located on the premises against fire or damage from any and all other causes. Any property of the United States damaged or destroyed by the Lessee incident to the exercise of the privileges herein granted shall be promptly repaired or replaced by the Lessee to the satisfaction of the District Engineer, or, at the election of the District Engineer, reimbursement may be made therefor by the grantee in an amount necessary to restore or replace the property to a condition satisfactory to the District Engineer.

9. RIGHT TO ENTER AND FLOOD

The right is reserved to the United States, its officers, agents, and employees to enter upon the premises at any time and for any purpose necessary or convenient in connection with Government purposes, to make inspections, to remove timber or other material, except property 6f the Lessee; to flood the premises, to manipulate the level of the lake or pool in any manner whatsoever; and/or to make any other use of the lands as may be necessary in connection with project purposes, and the Lessee shall have no claim for damages on account thereof against the United States or any officer, agent, or employee thereof.

10. INDEMNITY

The United States shall not be responsible for damages to property or injuries to persons which may arise from or be incident to the exercise of the privileges herein granted, or for damages to the property of the Lessee, or for damages to the property or injuries to the person of the Lessee's officers, agents or employees or others who may be on the premises at their invitation or the invitation of any one of them, and the Lessee shall hold the United Stats harmless from any and all such claims not including damages due to the fault or negligence of the United States or its contractors.

11. INSURANCE

a. At the commencement of this, the Lessee will obtain from a reputable insurance company or companies, liability insurance. The insurance shall provide an amount not less than that which is prudent, reasonable and consistent with sound

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business practices or a minimum Combined Single Limit of $1,000,000.00, whichever is greater, for any number of persons or claims arising from any one incident with respect to bodily injuries or death resulting therefrom, property damage, or both, suffered or alleged to have been suffered by any person or persons, resulting from the operations of the Lessee under the terms and conditions of this lease, and the Lessee shall require its insurance company to furnish to the District Engineer a copy of the policy or policies, or, if acceptable to the District Engineer, a certificate of insurance evidencing the purchase of such insurance. The District Engineer shall have the right to review and revise the amount of minimum liability insurance coverage required. The policy shall provide that. ~he insurance company give the District Engineer thirty (30) days written notice of any cancellation, non~renewal, or change in such insurance.

b. The Lessee's sublessees and licensees, at the commencement of operating under the terms of this lease, shall obtain from a reputable insurance company or companies liability insurance. The insurance shall provide an amount not less than that which is prudent, reasonable, and consistent with sound business practices, for any number of persons or claims arising from any one incident with respect to bodily injuries or death resulting therefrom, property damage, or both, suffered or alleged to have been suffered by any person or persons, resulting from the operations of the sublessees and licensees under the terms of this lease. The Lessee shall require any insurance carrier or carriers to furnish to the District Engineer a copy of the policy or policies, or, if acceptable to the District Engineer, certificates of insurance evidencing the purchase of such insurance.

c. The insurance policy or policies shall be of comprehensive form of contract and shall specifically provide protection appropriate for the types of facilities, services, and activities involved. The Lessee shall require that the insurance company give the District Engineer thirty (30) days written notice of any cancellation or change in such insurance. The District Engineer may require closure of any or all of the premises during any period for which the Lessee does not have the required insurance coverage.

12. RESTORATION

On or before the expiration of this lease or its termination by the Lessee, the Lessee shall vacate the premises, remove the property of the Lessee therefrom, and restore the premises to a

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condition satisfactory to the District Engineer. If, however, this lease is revoked, the Lessee shall vacate the premises, remove said property, and restore the premises to the aforesaid condition within such time as the District Engineer may designate. In either event, if the Lessee shall fail or neglect to remove said property and restore the premises, then, at the option of the District Engineer, said property shall either become the property of the United States without compensation therefor, or the District Engineer may cause the property to be removed and no claim for damages against the United States or its officers or agents shall be created by or made on account of such removal and restoration work. The Lessee shall also pay the United States on demand any sum which may be expended by the United States after the expiration, revocation, or termination of this lease in restoring the premises.

13. NON-DISCRIMINATION

The Lessee shall not discriminate against any person or persons because of race, color, age, sex, handicap, national origin, or religion in the conduct of operations on the leased premises. The Lessee will comply with the Americans With Disabilities Act and the attendant Americans With Disabilities Act Accessibility Guidelines (ADAAG) published by the Architectural and Transportation Barriers Compliance Board.

14 . APPLICABLE LAWS AND .REGULATIONS

a. The Lessee shall comply with all applicable Federal laws and regulations and with all applicable laws, ordinances, and regulations of the state, county, and municipality wherein the premises are located, including, but not limited to, those regarding construction, health, safety, food service, water supply, sanitation, use of pesticides, and licenses or permits to do business.

b. The Lessee will provide an annual certification that all water and sanitary systems on the premises have been inspected and comply with'Federal, state, and local standards. The Lessee will also provide a statement of compliance with the Americans with Disabilities Act, noting any deficiencies and providing a schedule for correction.

c. In addition to other applicable codes, the Lessee shall comply with the current editions of the National Fire Protection Association (NFPA) Code 70, National Electric Code, ANSI/NFPA Standard 303, Marinas and Boatyards, and other applicable codes and standards covering the type of facilities. Upon request by

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the District Engineer, the Lessee will provide a certification that all electrical installations on the premises have been inspected by a qualified individual and comply with the applicable codes.

15. TAXES

Payment of any and all taxes imposed by the state or its political subdivisions upon the property or business of the Lessee on the premises is the responsibility of the Lessee.

16. SUBJECT TO EASEMENTS

This lease is subject to all existing easements, easements subsequently granted, and established access routes for roadways and utilities located, or to be located, on the premises, provided that the proposed grant of any new easement or route will be coordinated with the Lessee, and easements will not be granted which will, in the opinion of the District Engineer, interfere with developments, present or proposed, by the Lessee. The Lessee will not close any established access routes without written permission of the District Engineer.

17. SUBJECT TO MINERAL INTERESTS

This lease is subject to all outstanding mineral interests. As to Federally owned mineral interests, it is understood that they may be included in present or future mineral leases issued by the Bureau of Land Management (BLM), which has responsibility for mineral development on Federal Lands. The Secretary will provide lease stipulations to BLM for inclusion in said mineral leases that are designed to protect the premises from activities that would interfere with the Lessee's operations or would be contrary to local laws.

18. TRANS.FERS, ASSIGNMENTS, SUBLEASES

a. Without prior written approval of the District Engineer, the Lessee shall neither transfer nor assign this lease or a controlling interest therein (including, without limitation, mergers, consolidations, reorganizations, or other business combinations), nor sublet the premises or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this lease, nor shall this lease be assignable or transferable by process or operation of law including, but not limited to, insolvency proceedings, bankruptcy, or intestacy, or in any other manner whatsoever.

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(1) Failure to comply with this condition or the procedures described herein shall constitute a material breach of this lease for which this lease my be revoked immediately by the District Engineer, and, the Secretary shall not be obligated to recognize any right of any person or entity to an interest in this lease or to own or operate the facilities authorized hereunder acquired in violation hereof.

(2) The Lessee shall advise the person(s) or entity proposing to enter into a transaction described in Subsection a. above that the District Engineer shall be notified and that the proposed transaction is subject to review and approval by the District Engineer; The Lessee shall request in writing the District Engineer's approval of the proposed transaction and shall promptly provide the District Engineer all relevant documents related to the transaction, and the name(s) and qualifications of the person(s) or entity involved in the proposed transaction.

b. The District Engineer, in exercising discretion to approve or disapprove transfer, assignments, or subleases, shall among other matters, take into consideration the management qualifications of the individuals or entities that would thereby obtain a controlling interest in the facilities or services authorized hereunder, the experience of such individuals or entities with similar operations, and the ability of such individuals or entities to operate the operations authorized hereunder in the public interest.

c. The term "controlling interest" in a Lessee's ownership shall mean, in the instance of a corporate Lessee, an interest beneficial or otherwise, of sufficient outstanding voting securities or capital of the Lessee so as to permit exercise of substantial managerial influence over the operations of the Lessee, and, in the instance of a partnership, joint venture, or individual Lessee, any beneficial ownership of the capital assets of the Lessee sufficient to permit substantial managerial influence over the operations of the Lessee. The District Engineer will determine at the request of interested parties whether or not an interest in a lease constitutes a controlling interest within the meaning hereof.

d. The Lessee may not enter into any agreement with any entity or person, except employees of the Lessee, to exercise substantial management responsibilities for the operation authorized hereunder or any part thereof without the prior written approval of the District Engineer.

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e. No mortgage shall be executed, and no bonds, shares of stock, or other evidence of interest in, or indebtedness upon the assets of the Lessee located on the premises, including this lease, shall be issued, except for the purposes of installing, enlarging, refinancing, or improving concession plant, equipment and facilities, provided that, such. assets, in addition, may be encumbered for the purposes of purchasing existing concession plant, equipment, and facilities. In the event of default on such a mortgage, encumbrance, or such other indebtedness, or of other assignment! transfer, or encumbrance, the creditor or any assignee thereof shall succeed to the interest of_the Lessee in such assets but shall not thereby acquire operating rights or privileges. Such rights or privileges shall be subject to disposition by the District Engineer.

f. The Lessee may allow independent private service companies to enter and conduct business on the premises for the benefit of the Lessee's customers on an as-called basis without a formal sublease or license agreement, provided that the service is occasional and incidental to the Lessee's operation and that any compensation paid to the Lessee is included in gross receipts.

g. The Lessee will not sponsor or participate in timeshare ownership of any structures, facilities, accommodations, or personal property on the premises. The Lessee will not subdivide nor develop the premises into private residential development.

19 . COMPLIANCE I CLOSURE I REVOCATION I AND RELINQUISHMENT

a. The Lessee and/or any sublessees or licensees are charged at all times with full knowledge of all the limitations and requirements of this lease, and the necessity for correction of deficiencies, and with compliance with reasonable requests by the District Engineer. This lease may be revoked in the event the Lessee violates any of its terms and conditions and continues and persists in such non-compliance or fails to obtain correction of deficiencies by sublessees or licensees. The Lessee will be notified of any non-compliance, which notice shall be in writing or shall be confirmed in writing, giving a period of time in which to correct the non-compliance. Failure to satisfactorily correct any substantial or persistent non-compliance within the specified time is grounds for closure of all or part of the premises, temporary suspension of operation, or revocation of the lease, after notice in writing o~ such intent. Decisions by the District Engineer concerning future requests by the Lessee to extend the lease, expand the

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premises, modify authorized activities, or assign the lease shall reflect the Lessee's past performance and compliance with the lease terms.

b. This lease may be relinquished by the Lessee by giving six (6) months prior written notice to the District Engineer in the manner prescribed in the Condition on NOTICES.

c. In addition to the above right of revocation, if the rent or other payments provided to be paid by the Lessee or any part thereof shall be in arrears and unpaid for thirty (30) days after the same shall become due, then, and in such case, the District Engineer my elect to revoke this lease by notification in writing to the Lessee.

20. HEALTH AND SAFETY

a. The Lessee shall keep the premises in good order and in a clean, sanitary, and safe condition and shall have the primary responsibility for ensuring that any sublessees and concessionaires operate and maintain the premises in such a manner.

b. In addition to the rights of revocation for non-compliance previously stated, the District Engineer, upon discovery of any hazardous condition on the premises that presents an immediate threat to health and/or danger to life or property, will so notify the Lessee and will require that the affected part or all of the premises be closed to the public until such condition is corrected and the danger to the public eliminated. If the condition is not corrected within the time specified, the District Engineer will have the option to: (1) correct the hazardous conditions and collect the cost of repairs from the Lessee; or (2) revoke the lease. The Lessee will be obligated to pay rental, notwithstanding any interruption or suspension of activities. The Lessee and its assignees or sub-lessees shall have no claim for damages against the United States, or any officer, agent, or employee thereof on account of action taken pursuant to this condition.

21. PUBLIC USE

No attempt shall be made by the Lessee, nor any of its sub-lessees or concessionaires, to forbid the full use by the public of the premises and of the water areas of the project, subject, however, to the authority and responsibility of the Lessee to manage the premises and provide safety and security to the visiting public.

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22. PROHIBITED USES

a. The Lessee shall not permit gambling on the premises or install or operate, or permit to be installed or operated thereon, any device which is illegal, or use the premises or permit them to be used for any illegal business or purpose. There shall not be conducted on or permitted on the premises any activity which would constitute a nuisance.

b. As an exception, some games of chance, such as raffles, games and sporting events, may be conducted by nonprofit organizations under special use permits issued in conjunction with special events, if permissible by state and local law. Any request to conduct a game of chance must be submitted in writing to the District Engineer.

c~ In accordance with state and local laws and regulations, the Lessee may sell, store, or dispense, or permit the sale, storage, or dispensing of beer, malt beverages, light wines or other intoxicating beverages on the premises in those facilities where such service is customarily found. Bar facilities will only be permitted if offered in connection with other approved activities. Advertising of such beverages outside of buildings is not permitted. Carry out package sales of hard liquor is prohibited.

23. NATURAL RESOURCES

The Lessee shall cut no timber, conduct no mining operations, remove no sand, gravel, or kindred substances from the ground, commit no waste of any kind, nor in any manner substantially change the contour or condition of the premises, except as may be authorized under and pursuant to the Condition on USE AND DEVELOPMENT OF THE PREMISES herein. The Lessee may salvage fallen or dead timber; however, no commercial use shall be made of such timber.

24. ACCOUNTS AND RECORDS

a. The Lessee shall maintain complete and accurate records and no later than 120 days following the end of the Lessee's fiscal year shall submit to the District Engineer reports and data for the preceding year to include a financial statement for the activity covered by the lease and compiled by an independent certified public accountant or by an independent licensed public accountant certified or licensed by a regulatory authority of a state.

13

v,

.a. ' ...


b. The District Engineer shall have the right at any time (1) to verify all financial reports and copy the books, correspondence, memoranda, income tax returns, and other records of the Lessee and sublessees, if any, and of the records of proprietary or affiliated companies, if any, related to this lease during the period of the lease (This right shall extend for such time thereafter as may be necessary to accomplish such verification, but in no event more than five (5) years after the close of the business year of the Lessee); (2) to require the Lessee to furnish an audited financial statement; or (3) to require the Lessee to furnish an audited statement of gross receipts for the concession operation, including the gross income of any sublease operation, and certification of the accuracy of the reported income.

c. Statements will be prepared by an independent certified public accountant or by a licensed public accountant certified or licensed by a regulatory authority of a state. Audits will be in accordance with the auditing standards and procedures promulgated by the American Institute of Certified Public Accountants. Financial statements requiring audits and accompanied by remarks such as "prepared from client records without audit" are unacceptable. Audited and reviewed financial statements shall contain appropriate footnotes. The independent licensed or certified public accountant shall include a statement to the effect that the amounts included in the financial report are consistent with those included in the Federal tax returns. If the amounts are not consistent, then a statement showing differences shall be included. An audit of Lessee's tax returns is not required.

25. ENVIRONMENTAL PROTECTION

a. Within the limits of their respective legal powers, the parties to this lease shall protect the project against pollution of its air, ground, and water. The Lessee shall comply promptly with any laws, regulations, conditions, or instructions affecting the activity hereby authorized if and when issued by the Environmental Protection Agency, or any Federal, state, interstate, or local governmental agency having jurisdiction to abate or prevent pollution. The disposal of any toxic or hazardous materials within the leased area is specifically prohibited. Such regulations, conditions, or instructions in effect or prescribed by the Environmental Protection Agency, or any Federal, state, interstate, or local governmental agency, are hereby made a condition of this lease. The Lessee shall require all sanitation facilities on boats moored at the Lessee's facilities, including rental boats, to be

14

I> I I I.

.,.,

';--.-


sealed against any discharge into the lake. Services for waste disposal, including sewage pump-out of watercraft, shall be provided by the Lessee as appropriate. The Lessee shall not discharge waste or effluent from the premises in such a manner that the discharge will contaminate streams or other bodies of water or otherwise become a public nuisance.

b. The Lessee will use all reasonable means available to protect the environment and natural resources, and where damage nonetheless occurs arising from the Lessee's activities, the Lessee shall be liable.to restore the damaged resources.

c. The Lessee must obtain approval in writing from the District Engineer before any pesticides or herbicides are applied to the premises.

26. ENVIRONMENTAL BASELINE STUDY

An Environmental Baseline Study (EBS) documenting the known history of the property with regard to the storage, release, or disposal of hazardous substances thereon, is attached hereto and made a part hereof as Exhibit "C". Upon expiration, revocation, or termination of this lease, another EBS shall be prepared which will document the environmental condition of the property at that time. A comparison of the two assessments will assist the District Engineer in determining any environmental restoration requirements. Any such requirements will be completed by the Lessee in accordance with the Condition on RESTORATION.

27. HISTORIC PRESERVATION

The Lessee shall not remove or disturb, or cause or permit to be removed or disturbed, any historical, archaeological, architectural, or other cultural artifacts, relics, remains, or objects of antiquity. In the event such items are discovered on the premises, the Lessee shall immediately notify the District Engineer and protect the site and the material from further disturbance until the District Engineer gives clearance to proceed.

28. SOIL AND WATER CONSERVATION

The Lessee shall maintain, in a manner satisfactory to the District Engineer, all soil and water conservation structures that may be in existence upon said premises at the beginning of, or that may be constructed by the Lessee during the term of this lease, and the Lessee shall take appropriate measures to prevent

15.

' ~-

--------------------- ----~---· ·-·

. ' ...


or control soil erosion within the premises. Any soil erosion occurring outside the premises resulting from the activities of the Lessee shall be corrected by the Lessee as directed by the District Engineer.

2 9. LIGHTS, SIGNALS AND NAVIGATION

There shall be no unreasonable interference with navigation by the exercise of the privileges granted by this lease. If the display of lights and signals on any work hereby authorized is not otherwise provided for by law, such lights and signals as may be prescribed by the Coast Guard or by the District Engineer shall be installed and maintained by and at the expense of the Lessee.

30. HUNTING AND TRAPPING

The Lessee shall not hunt or trap or allow hunting or trapping on the premises.

31. TRANSIENT USE

a. Camping, including transient trailers or recreational vehicles, at one or more campsites for a period longer than thirty (30) days during any sixty (60) consecutive day period is prohibited. The Lessee will maintain a ledger and reservation system for the use of any such campsites, said system to be acceptable to the District Engineer.

b. Occupying any lands, buildings, vessels, or other facilities within the premises for the purpose of maintaining a full- or part-time residence is prohibited, except for employees, residing on the premises for security purposes, if authorized by the District Engineer.

32. DISPUTES CLAUSE

a. Except as provided in the Contract Disputes Act of 1978 ( 41 U.S. C. § 601-6113) (the Act) , all disputes arising under or relating to this lease shall be resolved under this clause and the provisions of the Act.

b. "Claim", as used in this clause, means a written demand or written assertion by the Lessee seeking, as a matter of right, the payment of money in a sum certain, the adjustment of interpretation of lease terms, or other relief arising under or relating to this lease. A claim arising under this lease, unlike a claim relating to that lease, is a claim that can be

16

,,, ,,

f~ ,, ,,

II 1

, 4


resolved under a lease clause that provides for the relief sought by the Lessee. However, a written demand or written assertion by the Lessee seeking the payment of money exceeding $100,000 is not a claim under the Act until certified as required by subparagraph c. (2) below. The routine request for rental payment that is not in dispute is not a claim under the Act. The request may be converted to a claim under the Act, by this clause, if it is disputed eiiher as to liability or amount or is not acted upon in a reasonable time.

c. (1) A claim by the Lessee shall be made in writing and submitted to the District Engineer for a written decision. A claim by the Government against the Lessee shall be subject to written decisiori by the District Engineer.

(2) For Lessee claims exceeding $100,000, the Lessee shall submit with the claim a certification that:

(i) The claim is made in good faith;

(ii) Supporting data are accurate and complete to the best of the Lessee's knowledge and belief; and

(iii) The amount requested accurately reflects the lease adjustment for which the Lessee believes the Government is liable.

(3) If the Lessee is an individual, the certificate shall be executed by that individual. If the Lessee is not an individual, the certification shall be executed by:

(i) A senior company official in charge at the Lessee's location involved; or

(ii) An officer or general partner of the Lessee having overall responsibility of the conduct of the Lessee's affairs.

d. For Lessee claims of $100,000 or less, the District Engineer must, if requested in writing by the Lessee, render a decision within 60 days of the request. For Lessee-certified claims over $100,000, the District Engineer must, within 60 days, decide the claim or notify the Lessee of the date by which the decision will be made.

e. The District Engineer's decision shall be final unless the Lessee appeals or files a suit as provided in the Act.

17

.. • ' 4


f. At the time a claim by the Lessee is submitted to the District Engineer or a claim by the Government is presented to the Lessee, the parties, by mutual consent, may agree to use alternative means of dispute resolution. When using alternate dispute resolution procedures, any claim, regardless of amount, shall be accompanied by the certification described in paragraph c. (2) of this clause, and executed in accordance with paragraph c. (3) of this clause.

g. The Government shall pay interest on the amount found due and unpaid by the Government from (1) the date the District Engineer received the claim (properly certified if required), or (2) the date payment otherwise would be due, if that date is later, until the date of payment. Simple interest on claims shall be paid at the rate, fixed by the Secretary of the Treasury, as provided in the Act, which is applicable to the period during which the District Engineer receives the claim and then at the rate applicable for each 6-month period as fixed by the Treasury Secretary during the pendency of the claim. Rental amounts due to the Government by the Lessee will have interest and penalties as set out in the Condition on CONSIDERATION.

h. The Lessee shall proceed diligently with the performance of the lease, pending final resolution of any request for relief, claim, appeal, or action arising under the lease, and comply with any decision of the District Engineer.

33. COVENANT AGAINST CONTINGENT FEES

The Lessee warrants that no person or selling agency has been employed or retained to solicit or secure this lease upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Lessee for the purpose of securing business. For breach or violation of this warranty, the United States shall have the righ~ to annul this lease without liability or, in its discretion, to require the Lessee to pay, in addition to the lease rental or consideration, the full amount of such commission, percentage, brokerage, or contingent fee.

34. OFFICIALS NOT TO BENEFIT

No Member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this lease or to any benefits to arise therefrom. However, nothing

18


herein contained shall be construed to extend to any incorporated company if the lease is for the general benefit of such corporation or company.

~5. SEVERAL LESSEES

If more than one Lessee is named in this lease, the obligatiofis of said Lessees herein contained shall be joint and several obligations.

36. MODIFICATIONS

This lease contains the ~nti~e a~reement between the parties hereto, and no m0dification of this agreement, or waiver, or consent hereunder shall be valid unless the same is in writing, signed by the parties to be bound or by a duly authorized representative; and this provision shall apply to this condition as well as all other conditions of this lease.

37. DISCLAIMER

This lease is effective only insofar as the rights of the United States in the premises are concerned; and the grantee shall obtain any permit or license which may be required by Federal, state, or local statute in connection with the use of the premises. It is understood that the grantinq of this lease does not preclude the necessity of obtaining any Department of the Army permit which involves the discharge of dredge or fill material or the placement of fixed structures in the waters of the United States, pursuant to the provisions of Section 10 of the Rivers and Harbors Act of 3 March 1899 (30 Stat. 1151; 33 U.S.C. § 403), and Section 404 of the Clean Water Act (33 u.s.c. § 1344).

IN WITNESS WHEREOF, I have hereunto set my hand by aUXh-o:ity of the Secretary of the Army, this ~ day of :itp~tl 1 2008 •

~JOHN C. SEGREST 6 'Chief, Real Estate Division

19


THIS JitY!iE.jls . also executed by the Lessee this y__ day of Titv, 2ooa.

Mr12~,f~ BENTON N:BASS «

President .Bass Management, Inc.

20


CORPORATE CERTIFICATE

I am the

who signed the foregoing instrument on

corporation was then of the

corporation. I further certify that ~as acting

within the scope of powers delegated to this officer by the

~overning body of the grantee in

Date

Corpora e Sec tary or Appropriate Officer (AFFIX CORPORATE SEAL)

21


ACKNOWLEDGMENT

STATE OF ARKANSAS )

COUNTY OF~ ss

)

On this ~day of ------~~--·-~ __ \ _____ , 2008, before

me the undersigned Notary Public, personally appeared

~ N-~./{;,,L.. &s, known to me to be the person described \

in the foregoing instrument, who acknowledged that he executed

the same in the capacity therein stated and for the purposes

therein contained.

IN WITNESS WHEREOF, I have hereunto set my hand and official

seal.

22


ACKNOWLEDGMENT

STATE OF MISSISSIPPI ) ss

COUNTY OF WARREN )

On this ~ day of -~~~~~r:~,·~~~-------' 2008, before

me the undersigned Notary Public, personally appeared

Marion K. White, Acting Chief, Real Estate Division, U.S. Army

Engineer District, Vicksburg, known to me to be the person

described in the foregoing instrument, who acknowledged that he

executed the same in the capacity therein stated and for the

purposes therein contained.

IN WITNESS WHEREOF, I have hereunto set my hand and official

seal.

(SEAL)

········ ··f Ml$8 "• ·~·. 0 .•...... 'lB.';.•. ~· o•vp,,•.u;~•

-·~ ···~~., va··.~· •~t...'f'..··o~ ~~.;( • • ·0 ·~ ,_. •.r~· •• : f '0 I 33867 \ ~ ~ ~ K£NNElK CHEN~LT ~ . . : . ~ ••• CcJrnmisSion expces ... :

0 • . 9 ""·1 • • 00 i:o Sept 1 , I:VI i;o o

·.~···· ····· .. · •tf!f~••••••"PI~ 0

• •• rrf:N C"'··· ·••·····•

23

--------------------------------······----------

BRADY MOUNTAIN RESORT GARLAND COUNTY, LAKE OUACHITA, ARKANSAS

PARCEL 1

A tract or parcel of land lying and being situated in the NE% of Section 8, the ~A of Section 9, and the SE~ SE% SE% of Section 5, Township 2 South, Range 21 West, .Garland County, Arkansas, and being more particularly described as follows:

Beginning at a point from which the NE corner of the S~ NE% of Section 8, Township 2 South, Range 21 West, bears north 700 feet, more or less;

Thence S 57°45' W, 970 feet, more or less, to the 578-foot contour, NGVD;

Thence along the 578-foot contour, NGVD, in a northerly direction 1,850 feet, more or less, to a point;

Thence leaving said 578-foot contour, N 06°30' E, 220 feet, more or less, to a ¥2" metal rebar stake;

Thence N 67°30' W, 209 feet, more or less, to a ¥2" metal rebar stake;

Thence N 02°30' E, 94 feet, more or less, to a ¥2" metal rebar stake;

Thence S 77~'30' E, 162 feet, more or less, to a ¥2" metal rebar stake;

Thence N 19°30' E, 58 feet, more or less, to a nail set in the asphalt on the south edge of a road;

Thence along the south edge of said roadS 60°30' E, 66 feet to a point;

Thence from a point on the south side of the road to a point on the north side of the road 20 feet, more or less;

Thence N 33° W, along the east side of said road 220 feet, more or less, to a point;

Thence N 57° E, 30 feet, more or less, to a point;

Thence N 33° w, 60 feet, more or less, to a point;

EXHIBIT "A"

PARCEL 1 (Continued)

Thence S 57° W, 30 feet, more or less, to a point;

Thence N 33° W along the east side of said road, 175 feet, more or less, to a point;

Thence along the centerline of a drain northeasterly 220 feet, more or less, to a point, having an elevation of 578 feet, NGVD;

Thence along the 578-foot contour, NGVD, northeasterly and southeasterly 5,175 feet, more or less, to a point;

Thence N 6° E, 350 feet across a cove, to a point having an elevation of 578 feet, NGVD;

Thence along the 578-foot contour, NGVD, southerly and westerly 2,150 feet to a point;

Thence S 57°45' W, 890 feet, more or less, to a point of beginning, containing 54.64 acres, more or less.

2

. ·,

PARCEL 2

A tract or parcel of land lying and being situated in the NE~ of Section 8, the ~A of Section 9, and the S~ SW1A of Section 4, Township 2 South, Range 21 West, Garland County, Arkansas, and being more particularly described as follows:

Begin at a point from which the NE corner of the SE~ NE~ of said Section 8 bears north 700 feet, said point being on the existing boundary lease limits of the Brady Mountain Resort and the point of beginning for the tract herein described;

Thence from said point of beginning along said existing boundary lease limits, N 57°45' E, 890 feet, more or less to a point on a contour having an elevation of 578 feet National Geodetic Vertical Datum (N.G.V.D.);

Thence along the meanders of said contour in a generally easterly then northerly direction, 2,150 feet to a point;

Thence leaving said existing boundary lease limits continuing along said contour in a general, northeasterly direction, 3,210 feet, more or less to a point being 470 feet northerly of the south boundary line of said Section 4 and being 1,310 feet, westerly of the east line of the SWA of said Section 4;

Thence leaving said contour, parallel with said south boundary line, easterly, 980 feet, more or less to a point being 330 feet westerly of said east line of the SW1A;

Thence parallel with said east line of the SW1A, southerly 2,710 feet, more or less, to a point being 330 feet northerly of the southline of the ~A of said Section 9;

Thence parallel with said south line of ~A, westerly 2,860 feet, more or less, to a point on said existing boundary lease limits;

Thence along said existing boundary lease limits N 57° 45' E, 560 feet more or less to the point of beginning, containing 120 acres, more or less.

EXHIBIT II A II

3

.. ·I I ..

PARCEL 3

I

A tract or parcel of land lying and being situated in the S~A of Section 4, Township 2 South, Range 21 West, Ga~land County, Arkansas, and being more particularly described as follows; J

Begin at a point being 330 feet westerly of the kest line of said SWA and 470 feet northerly of the south line of kaid SWA;

Thence from said point of beginning, parallel wi~h said south line westerly, 980 feet, more or less, to a poiht on a contour having an elevation of 578 feet National Geod~tic Vertical Datum (N.G.V.D.);

I Thence along the meanders of said contour in a generally

northerly, southeasterly then northeasterly directionj 3190 feet, more or less, to a point being 330 feet westerly of said west line of the SWA; i

Thence leaving said contour, parallel with said rest line of the SWA southerly, 640 feet, more or less, to the point of beginning, containing 17 acres more or less.

It is understood and agreed to by Lessee that Palrcel No. 3 is subject to the completion of a cultural resource sJurvey, environmental assessment and supplement to the maste~ plan being approved by the Corps of Engineers. It is further un,derstood and agreed to by the Lessee that there will be no constru!ction or activity of any kind conducted on Parcel No. 3 until j1the above requirements have been fulfilled and the Lessee notif

1ied in

writing by the District Engineer. ·

EJCI{:IB:IT "A"

4

.. I I

Approximately 192 acres

SCALE

•·~-~·-=====~ .... ~==~·F~t 0 510 11020 11530 21040

LAKE OUACHITA

Brady Mountain Resort

Sections 4, 5, 8 and 9 Township 2 South, Range 21 West

Garland County, Arkansas

DACW38-1-08-82 EXHIBIT"B"

----·---------

~; . '

Jl I • a. . .

ENVIRONMENTAL BASELINE STUDY

Project Title: Lake Ouachita, Arkansas Brady Mountain Resort Lease No. DACW38-l-08-82

Anticipated Date of the Proposed Action: April 2008

In accordance with regulations issued by the Environmental Protection Agency at 40 CFR 373, it has been determined that there is no evidence to indicate that hazardous substance activity has taken place on the subject property during the period of ownership by the United States.

~1lrdt.. .,4, JOHN C. SEGREST 0"1 Chief, Real Estate Division

Date/

EXHIBIT "C"

,. ,.



THIS SUPPLEMENTAL AGREEMENT NO. 1, made and entered into, by, and between the UNITED STATES OF AMERICA, hereinafter referred to as the ''Government", and Bass Management, Inc., hereinafter referred to as the "Lessee" and/or "Assignor", and CNL Income Brady Mounta~ Marina, LLC, a Delaware limited liability company, hereinafter referred to as the "New Lessee" and/or "Assignee".

WITNESSETH THAT: .f~

WHEREAS, a lease agreement dated April ~, 2008, and designated as Contract No. DACW38-l-08-82, hereinafter referred to as the "Original Lease", was entered into, by, and between Bass Management,. Inc., referred· to as the "Lessee" .and/or "Assignor", for a term of twenty-five (25) years, beginning April 1, 2008 and ending March 31, 2033, for commercial concession purposes at Brady Mountain Resort and Marina, Lake Ouachita, Garland County, Arkansas; and,

WHEREAS, the Lessee, Bass Management, Inc., has requested that the original lease shall be assigned and all rights, title, interest, and equity in and to the original lease shall be transferred to CNL Income Brady Mountain Marina, LLC, a Delaware limited liability company, of Orlando, Florida; and,

. I

W&EREAS, the New Lessee and/or assignee has requested an option to renew the lease for two (2) successive periods ("extension terms") of fifteen (15) and ten (10) years each, at the end of the first original lease term; and,

WHEREAS, it is in the best interest of the Government to amend the original lease and approve the transfer of ownership to said company; and it is in the best interest of the Government to grant an option to renew the lease for two· (2) successive periods ("extension terms") of fifteen (15) and ten (10) years each, at the end of the first original lease term; and,

WHEREFORE, PREMISES CONSIDERED, the transfer of ownership from Bass Management, Inc,, to CNL Income Brady Mountain Marina, LLC, is hereby approved,and the first paragraph of the original

, '·


lease is amended to reflect that CNL Income Brady Mountain Marina, LLC, is the New Lessee.

WHEREFORE, PREMISES CONSIDBRBD, the following sentence shall be added to Condition No. 1 of the original lease:

The New Lessee shall have the right to extend the original term of the lease for two (2) successive periods ("extension terms") of fifteen (15) and ten (10) years each, provided that, as to each option, the Lessee shall give notice to the Government of its. election to extend such term at least twelve (12) months prior to the time when the term then in force would otherwise expire; that, at the time when such notice is given, there shall not be any uncured event of default on the part of the New Lessee~ the New Lessee shall continue to provide facilities and services necessary to serve the public, the New Lessee shall furnish additional facilities and services needed during the renewal period, and the New Lessee shall obtain the concurrence of the District Engineer for the extension terms; and that the term of this lease shall have been extended for the

·prior extension term, if any.

WHEREAS, the New Lessee will utilize the 10-year plan for the development of the .leased premises, attached and identified as Exhibit "D", and this development plan will become Exhibit "D" to the original lease; and,

WHEREFORE, PREMISES CONSIDERED, the following paragraph shall be added to Condition No. 5 of the original lease:

Condition No. S.f. The District Engineer may agree in writing to an extension of time for providing the facilities and activities designated in said Development Plan or may waive the providing thereof for other than those specified for the first lease year as designated in said Development Plan, whenever, in the opinion of the District Engineer, the public demand does not reach ~he anticipated level at the time stated, or when a delay in providing the facilities and services is beyond the control of the Lessee; provided, however, that at the discretion of the District Engineer, such undeveloped areas may be withdrawn from the leased premises.

WHEREAS, Condition No. 3 of the original lease shall be modified to reflect the address of the New Lessee as CNL Income Brady Mountain Marina, LLC; c/o CNL Income Properties, .Inc.; 450 s. Orange Avenue, 12th Floor, Orlando, Florida 32801;

2

CONTRACT NO. DACW3 8 -1- 0 8- 8 2

THAT all other terms and conditions of said lease shall remain in full force and effect.

Q THAT this Supplemental Agreement No. 1 is effective as of ·~April 2008;

IN WITNESS WHEREOF, I have here~o se.t my hand by authority of the Secretary of the Army this. day of April, 2008.

LBSSOR: THB UHJ:TBD STATES OF AHBRICA I

. ~·1{ UJ!{l ~JOHN C. SEGREST

j Chief, Real Estate Division

THIS SUPPLEMENTAL AGUEMENT is a. grm. d,-.,~f and executed by the Lessee/Assignor this Lj"h day of ~ , 2008.

WITNESSES: LESSEE/ASSIGNOR:

~~~~;,;.~-----· .THIS SUPPLEMENTAL AGREEMENT is agreed to and executed by the

New Lessee/Assignee this day of , 2008.

WITNESSES: NEW LBSSEB/ASSIGNBB: CNL Income Brady Mountain Marina, LLC

Amy Sinelli, Senior Vice-President

450 s. Orange Avenue, 12th Floor · (Address of New Lessee)

~orlando, Florida 32801

3

I .., :1 ...

~ -

' • CONTRACT NO. DACW38-l-08-82


O THAT this Supplemental Agreement No. 1 is effective as of _J_ April 2008;

IN WITNESS WHEREOF, I have here~o set my hand by authority of the Secretary of the Army this day of April, 2008.


~JOHN C. SEGREST 0 Chief, Real Estate Division

THIS SUPPLEMENTAL AGREEMENT is agreed to and executed by the Lessee/Assignor this day of , 2008.

WITNESSES: LESSEE/ASSIGNOR: Bass Management, Inc.

Benton N. Bass, President

THIS SUPPLEMENTAL AGREEMENT is agreed to and executed by the New Lessee/Assignee this day of .Aprr \ , 2008.

WITNESSES: NEW LESSEE/ASSIGNEE: Marina, LLC

Vice-President

450 S. Orange Avenue, 12th Floor (Address of New Lessee)


3

BRADY MOUNTAIN RESORT & MARINA

MARINAS INTERNATIONAL'S (MI) OPERATIONAL AND DEVELOPMENTAL PLAN

Overall Plan

Goal: Ensure water access for the boating public and full use of the recreational facilities at Brady Mountain Resort & Marina. We at Marinas International intend to invest significant capital in order to improve and expand the marina and resort while maintaining profitable facilities that will serve to enhance the enjoyment of the public.

Objectives: Marinas International will foster an environment that supports accessibility by promoting safe clean facilities, technology and resources to personalize the boating experience. The Ml Executive team will coordinate resources including physical plant, budget revenues, and available grants, in an effort to broaden the impact, maximize the sustainability, and integrate new initiatives, to support boating and recreational pleasure for the public at Brady Mountain. We will further systematically review the facility in an effort to identify potential areas for improvement, and will coordinate with the USACE in our efforts to incorporate and implement any resultant plan of action. Continuous staff cross training will maximize our abilities to service the boating public and we will approach our marketing plan with the intent to develop a comprehensive strategic effort to promote the marina and the lake with the goal of increasing awareness of the facility and increasing Tourism to the area.

1. Organizational & Professional Development

Goal: Foster an organizational culture that causes the staff at Brady Mountain to be focused and "keyed" towards customer service.

The Ml Executive team Objectives are to:

a. Provide leadership and training to our employees that will not only incorporate learning and commitment toward customer service; but, also support and enhance a culture of learning in general to instill an attitude of "be the best we can".

b. Retain quality employees by creating a positive work environment based on a foundation of individual empowerment, competitive benefits programs and bottom up support for our marina team.

c. Develop marina facilities supported by state-of-the-art technology. d. Participate in the development of learning opportunities for all employees to increase skills and

career path training.

2. Community/Economic Development & Partnerships

Goal: Promote the health and economic vitality of the community through partnerships, coalitions, and collaborations.

Objectives: It is the Ml corporate desire, with the help of our marina staff, to build strategic alliances for workforce and economic development in the area. Through training and capital Investment Ml will provide inviting and available facilities for our internal and external community.

3. Goal -Marina Expansion

Goal: Plan and coordinate services, and facilities to meet community needs.

Objectives: The Ml Team will define the needs for future facility expansions based on analysis of need, demand, and financial feasibility. We will provide a detailed capital expansion plan that will cover dock improvements, facility improvements and expansion projects. Our initial & "preliminary" capital plan for the first five years is listed as follows:

Year 1-5: a. Remove existing docks E, F & G and replace with new sail boat docks b. Paint roofs on docks that are in need of painting c. Repair or replace walking surface on numerous gangways d. Enhance property landscaping e. Upgrade Marina & Resort signage f. Upgrade, Lodge/Motel {interior & exterior) g. Fencing repair h. Roadway resurfacing i. Fuel Dock upgrades j. Address deferred maintenance and upgrades on various docks k. Replace deteriorated mobile housing {rental unit) I. Upgrade computers and connectivity m. Increase public restroom facilities at Ships Store/Restaurant n. Add asphalt paving at existing gravel parking lot o. Add three new rental cabins p. Add new St Bart's dock with Fourth - 20' x 50' covered slips q. Add Ten new 22' x 70' covered slips to St Kitt's Dock r. Add Ten new 22' x 70' covered slips to St. Thomas' Dock s. Add Ten new 22' x 85' covered slips to StMartin's Dock

Note that items "a" through "I" are items that we are planning to address promptly and these items are anticipated to reflect expenditures in the range of $500,000. Items "m" through "s", all of which are for planning purposes and not concrete at this point, are still subject to our further evaluation and determination with regard to demand and financial feasibility. It is possible that the issues reflected in Items "m" through "s" could be modified, increased, decreased, enhanced, down graded, or even deleted entirely. However, as currently viewed, it is anticipated the items "m" through "s" reflect expenditures in the range of $2,000,000.

Year6-10:

It is very difficult to anticipate what the market demand will be 6-10 years in the future, to say nothing with regard to what the costs will be at that point. However, it could be anticipated that we could add another seventy slips from 40' to 85' in length as well as three more cabins and the expenditure could be in the range of $2,000,000.

4. Summation

Marinas International operates numerous marinas on coastal and inland lake environments. We work closely with various USACE districts and we view our relationship with the Corps as operating partnerships. We at Marinas International pride ourselves as strong operating partners and we continually strengthen our relationships with the USACE and our marina operational expertise.



THIS SUPPLEMENTAL AGREEMENT NO. 1, made and entered into, by, and between the UNITED STATES OF AMERICA, hereinafter referred to as the 11 Government", and Bass Management, Inc., hereinafter referred to as the "Lessee" and/or "Assignor", and CNL Income Brady Mountain Marina, LLC, a Delaware limited liability company, hereinafter referred to as the "New Lessee" and/or "Assignee".

WITNESSETH THAT: +I-

WHEREAS, a lease agreement dated April ~, 2008, and designated as Contract No. DACW38-1-08-82, hereinafter referred to as the "Original Lease", was entered into, by, and between Bass Management, Inc.~ .referred to as the "Lessee" and/or "Assignor", for a term of twenty-five (25) years, beginning April 1, 2008 and ending March 31, 2033, for commercial concession purposes at Brady Mountain Resort and Marina, Lake Ouachita, Garland County, Arkansas; and,

WHEREAS, the Lessee, Bass Management, Inc., has requested that the original lease shall be assigned and all rights, title, interest, and equity in and to the original lease shall be transferred to CNL Income Brady Mountain Marina, LLC, a Delaware limited liability company, of Orlando, Florida; and,

WHEREAS, the New Lessee and/or assignee has requested an option to renew the lease for two (2) successive periods ("extension terms") of fifteen (15) and ten (10) years each, at the end of the first original lease term; and,

WHEREAS, it is in the best interest of the Government to amend the original lease and approve the transfer of ownership to said company; and it is in the best interest of the Government to grant an option to renew the lease for two (2) successive periods ("extension terms") of fifteen (15) and ten (10) years each, at the end of the first original lease term; and,

WHEREFORE, PREMISES CONSIDERED, the transfer of ownership from Bass Management, Inc., to CNL Income Brady Mountain Marina, LLC, is hereby approved and the first paragraph of the original

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lease is amended to reflect that CNL Income Brady Mountain Marina, LLC, is the New Lessee.

WHEREFORE, PREMISES CONSIDERED, the following sentence shall be added to Condition No. 1 of the original lease:

The New Lessee shall have the right to extend the original term of the lease for two (2) successive periods ("extension terms") of fifteen (15) and ten (10) years each, provided that, as to each option, the Lessee shall give notice to the Government of its election to extend such term at least twelve {12) months prior to the time when the term then in force would otherwise expire; that, at the time when such notice is given, there shall not be any uncured event of default on the part of the New Lessee, the New Lessee shall continue to provide facilities and services necessary to serve the public, the New Lessee shall furnish additional facilities and services needed during the renewal period, and the New Lessee shall obtain the concurrence of the District Engineer for the extension terms; and that the term of this lease shall have been extended for the prior extension term, if any.

WHEREAS, the New Lessee will utilize the 10-year plan for the development of the leased premises, attached and identified as Exhibit "D", and this development plan will become Exhibit "D" to the original lease; and,

WHEREFORE, PREMISES CONSIDERED, the following paragraph shall be added to Condition No. 5 of the original lease:

Condition No. 5.f. The District Engineer may agree in writing to an extension of time for providing the facilities and activities designated in said Development Plan or may waive the providing thereof for other than those specified for the first lease year as designated in said Development Plan, whenever, in the opinion of the District Engineer, the public demand does not reach the anticipated level at the time stated, or when a delay in providing the facilities and services is beyond the control of the Lessee; provided, however, that at the discretion of the District Engineer, such undeveloped areas may be withdrawn from the leased premises.

WHEREAS, Condition No. 3 of the original lease shall be modified to reflect the address of the New Lessee as CNL Income Brady Mountain Marina, LLC; c/o CNL Income Properties, Inc.; 450 S. Orange Avenue, 12th Floor; Orlando, Florida 32801;

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Q THAT this Supplemental Agreement No. 1 is effective as of --4-- April 2008;

IN WITNESS WHEREOF* I have here~o set my hand by authority of the Secretary of the Army this. day of April, 2008.

LESSOR: 'l'HB UNITED STATES OF AMERICA '

t JOHN C. SEGREST Chief, Real Estate Division

THIS SUPPLEMENTAL AGiEEMEN'l' is agr/fn,.,~r and executed by the Lessee/Assignor this ~~~ day of----~~~~~-~~------' 2008.

WITNESSES: LESSEE/ASSIGNOR:

THIS SUPPLEMENTAL AGREEMENT is agreed to and executed by the New Lessee/Assignee this day of , 2008.

WITNESSES; NEW LESSEE/ASSIGNEE: CNL Income Brady Mountain Marina, LLC

Amy Sinelli, Senior Vice-President


,orlando, Florida 32801

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THAT this Supplemental Agreement No. 1 is effective as of ____ April 2008;

IN WITNESS WHEREOF, I have hereunto set my hand by authority of the Secretary of the Army this day of April, 2008.


JOHN C. SEGREST Chief, Real Estate Division

THIS SUPPLEMENTAL AGREEMENT is agreed to and executed by the Lessee/Assignor this day of , 2008.

WITNESSES: LESSEE/ASSIGNOR: Bass Management, Inc.

Benton N. Bass, President

THIS SUPPLEMENTAL AGREEMENT is agreed to and executed by the New Lessee/Assignee this day of 2008.

WITNESSES: NEW LESSEE/ASSIGNEE: CNL Marina, LLC



3

BRADY MOUNTAIN RESORT & MARINA

MARINAS INTERNATIONAL'S (MI) OPERATIONAL AND DEVELOPMENTAL PLAN

Overall Plan

Goal: Ensure water access for the boating public and full use of the recreational facilities at Brady Mountain Resort & Marina. We at Marinas International intend to invest significant capital in order to improve and expand the marina and resort while maintaining profitable facilities that will serve to enhance the enjoyment of the public.

Objectives: Marinas International will foster an environment that supports accessibility by promoting safe clean facilities, technology and resources to personalize the boating experience. The Ml Executive team will coordinate resources including physical plant, budget revenues, and available grants, in an effort to broaden the impact, maximize the sustainability, and integrate new initiatives, to support boating and recreational pleasure for the public at Brady Mountain. We will further systematically review the facility in an effort to identify potential areas for Improvement, and will coordinate with the USACE in our efforts to incorporate and implement any resultant plan of action. Continuous staff cross training will maximize our abilities to service the boating public and we will approach our marketing plan with the intent to develop a comprehensive strategic effort to promote the marina and the lake with the goal of increasing awareness of the facility and Increasing Tourism to the area.

1. Organizational & Professional Development

Goal: Foster an organizational culture that causes the staff at Brady Mountain to be focused and "keyed~ towards customer service.

The Ml Executive team Objectives are to:

a. Provide leadership and training to our employees that will not only incorporate reaming and commitment toward customer service; but, also support and enhance a culture of learning in general to instill an attitude of "be the best we can~.

b. Retain quality employees by creating a positive work environment based on a foundation of individual empowerment, competitive benefits programs and bottom up support for our marina team.

c. Develop marina facilities supported by state-of·the·art technology. d. Participate in the development of learning opportunities for all employees to increase skiHs and

career path training.

2. CommunHy/Economlc Development & Partnerships

Goal: Promote the health and economic vitality of the community through partnerships, coalitions, and collaborations.

Objectives: It Is the Ml corporate desire, with the help of our marina staff, to build strategic alliances for workforce and economic development in the area. Through training and capital Investment Ml will provide inviting and available facilities for our internal and external community.

3. Goal-Marina Expansion

Goal: Plan and coordinate services, and facilities to meet community needs.

Objectives: The Ml Team will define the needs for future facility expansions based on analysis of need, demand, and financial feasibility. We will provide a detailed capital expansion plan that will cover dock improvements, facility improvements and expansion projects. Our initial & "preliminary· capital plan for the first five years is listed as follows:

Year 1-5: a. Remove existing docks E, F & G and replace with new sail boat docks b. Paint roofs on docks that are in need of painting c. Repair or replace walking surface on numerous gangways d. Enhance property landscaping e. Upgrade Marina & Resort signage f. Upgrade, Lodge/Motel (interior & exterior) g. Fencing repair h. Roadway resurfacing i. Fuel Dock upgrades j. Address deferred maintenance and upgrades on various docks k. Replace deteriorated mobile housing (rental unit) I. Upgrade computers and connectivity m. Increase public restroom facilities at Ships Store/Restaurant n. Add asphalt paving at existing gravel parking lot o. Add three new rental cabins p. Add new St Bart's dock with Fourth - 20' x 50' covered slips q. · Add Ten new 22' x 70' covered slips to St KiH's Dock r. Add Ten new 22' x 70' covered slips to St. Thomas' Dock s. Add Ten new 22' x 85' covered slips to St Martin's Dock

Note that items ·a· through "I" are items that we are planning to address promptly and these items are anticipated to reflect expenditures in the range of $500,000. Items ·m· through ·s·. all of which are for planning purposes and not concrete at this point, are still subject to our further evaluation and determination with regard to demand and financial feasibility. It is possible that the issues reflected in items •m• through ·s~ could be modified, increased, decreased, enhanced, down graded, or even deleted entirely. However, as currently viewed, it is anticipated the items •m• through "s" reflect expenditures in the range of $2,000,000.

Year 6-10:

It is very difficult to anticipate what the market demand will be 6- 10 years in the future, to say nothing with regard to what the costs will be at that point. However, it could be anticipated that we could add another seventy slips from 40' to 85' in length as well as three more cabins and the expenditure could be in the range of $2,000,000.

4. Summation

Marinas International. operates numerous marinas on coastal and Inland lake environments. We work closely with various USACE districts and we view our relationship with the Corps as operating partnerships. We at Marinas International pride ourselves as strong operating partners and we continually strengthen our relationships with the USACE and our marina operational expertise.

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·. .·... . . . : · .. · ... _· ·' . : .

· US Arm;. Corps ofEngin~ers ·.· .. ·vicksburg. District R.ea:t Estate Division ·. ·· ·.· . i lO l North Ftbhtag~ Road Vicksbui-g)\£s~i!?sippi3.9lso-si91 Attn:.iChief;.R;e~ Estate ])ivision

· F\,;bruary 1. 2oos ·CNL® · i~dome Properties, Inc.

· •..• CNL Center at City CAm mons 450 $t>Lith Oriuige Avenue

· · . Orl3ndo, Plorida)280!-3336.· . tel4oi.65o:wcio 86o~6so.o6so

· · fax 4o7.540.2s44 · wwW.cnLcom · . • Mailing Addr£SS::

· · . . P.o: Bo.i< 4920 · · • · Orland6, Flilrida 32802-4920 . ·.: :-_·:' >:·.

Rc: •.·•· .•.. ~ep~ttni~ri~ ~f th~ Arllly .Lease No. DACW38 .. 1•96-.46. for Coinlll~n~l tollcession ·· .·: . flifposes dated Jan1Jary l, 1996- Brady Mountain Resort & M2t'rina, Lake

. O~achita, Garlaiid CollnfY,Ar.I<ansas (the ''Le11~e'') · · · .·. ·· ·

. ·.· I)ear dhief o~"~ Ii~~te bi~isi~ri:. •• . ··

..••• ~ ~~ ad~;~~c~>~tbyour reques~·we·ke.•providing thisl~ert~ briehystate.~by we need an· .• < ... ··· . . additio~a] exidision. of: the' term. of the Leas¢ totilling 25 years>(5 renewa) options of 5 :Years each), in ... · \ addition to the: 2S~y~lif.tenii exteO,S.i(:)ri being requested by the current "Lessee" under the Lea5e . . · .. ·. . . ..... ·· .... ··.····· •' •' ... ,. .... ·' .. . . ··· ...

·. ·· ' ~ ~com~ ·~rop~ies, 1hC. ("CIP") i~ a. Real Estat~ II}vestnientTrust (REIT)~at. acquires . prnpe~ies and leases them on a lorig-term, triple net ba~is. CNLJncome Company; LLC is the adyisor

.•... ad rui affiliate of CIP. · We invest in properties that we believe have t~e poteJ1t~~1 to generate Iong~term revenue. Becau~e of our position as a REIT and oilr long-tenn investrrieJ1t strategy,. Vie hay~ traditionally 1-iurch6sed fee simple properties·filth~rthan leasehold properties. We are a pub.lic,ri.Ori~tr~qe(fentiiy' that owns a number of re.creationata:rid. lifestyle properties and we are excited.· about. parttierlhg again with

... •.· .• M ariji~s Iriternati6nal h1 ordet to. adcl another marina property to Olli public recreation poitfoii& w c. are 11i~king a very significant and important investment and, as yqu Can<see frotii our Asset Pttrchase .. Agreement and r~Jated .· documenis,. it will require the investrilelltof ~illior1S of dollars ..• Our decision;;· .•

. maJ<ers; ar~ requiring these additi<>.P.aJ renewal· options in .()rder tp fuake this investrrierit artio.rtiie i!Self ai,ld be a . financ~ally ·. success fill . property. . As is our' npimal··· course; we. (:tfe anticipating invesi@r . signif1cfifl(ad~iti~ilal capitt:tJ}nto this property in the form of additional capitaJirnPt'oy~rnent5i As you rita y )cnt)\:Y, Miil:inas InterrifttJonal will pr~vide the day to day op~r~tion and mariagemenf of the prOperty. . a5 <lui: t:eriani: ~c1 property in~ag~r. ·Marina~ Iritematiomit wilfplay a primary role)n jhe <fevefopment · and improveinen(Ofthe marina; . . . .. . . . . . . . . ... . . . . . . . .

. . . optiO~~o=%ri~~~I~:et~t'.:~i4~!ri:k~ ~~~~~n~·~£~~T:a.!';%c~}*- .. ·near ~tlire.iit!f4t~s.~ the need to b~ild additionalloclgirig, slips, and i~crease'ttieh6tisehoafciri<ismall boat. r~ntatf}~~~x Qvet the course of time, •. vie may r~quire funds in. the f'b.rm. of bank loans. •to further impro:Ve the.prop~rty. It wili not be 'feasible to attrac'f the capital required to pursue these ~d4itional irnprovem~ ·· • ·. · oiit the additiona.l 1~~newal options t<{the Leas~ requested herein. . .. · ·.. ·•·•···. •

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Transmittal lrerracan To:

Company:

Project Name I Location:

Project No.:

From:

Mark Stafford

Marinas International 11226 Indian Trail Dallas, Texas 76229 972.406.5223

Brady Mountain Resort and Marina 4120 Brady Mountain Rd Royal, Arkansas

94117680

Bonnie Lee

Date:

§ PER YOUR REQUEST

FOR YOUR APPROVAL

FOR YOUR REVIEW § FOR YOUR USE

FOR YOUR RECORD

PLEASE RETURN § OVERNIGHT DELIVERY

HAND CARRIED

FAX TO NO.

COPIES DATED DESCRIPTION

1 12.19.11 Waste Management Plan

REMARKS:

Should you have any questions, please do not hesitate to contact us.

12.19.11

§COURIER

1st CLASS MAIL

OTHER: CMRRR

Message For j 0ov-P ·1

tram ~~ A C.. o,.J date_/_/_

cc(s): Joe 0 Belknap (1 copy; FedEx) Brady Mountain Resort and Marina 4120 Brady Mountain Rd Royal, Arkansas 71968

taken by.c__ ___ _

best call back time date

Terracon Consultants, Inc. 8901 John W. Carpenter Freeway, Suite 100 Dallas, Texas 75247 P [214]630 1010 F [214]630 7070 terracon.com

Geotechnical 8 Environmental • Construction Materials • Facilities

The information contained in this message is confidential and intended only for the individual or entity named above. If you are not the intended recipient, any use, review, dissemination,

distribution, or copying of this document is strictly prohibited. If you have received this document in error, please notify us by telephone and destroy the original message. Thank you.

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Waste Management Plan

Brady Mountain Resort and Marina

4120 Brady Mountain Road

Royal, Arkansas 71968

December 19, 2011

Terracon Project No. 94117680

Prepared for:

Marinas International

Dallas, Texas

Prepared by:

Terracon Consultants, Inc.

Dallas, Texas

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December 19, 2011

Marinas International 11226 Indian Trail Dallas, Texas 75229 Attn: Mark Stafford

Telephone: (972) 406-5223 Email: [email protected]

Re: Waste Management Plan Brady Mountain Resort and Marina 4120 Brady Mountain Road Royal, Arkansas Terracon Project No. 94117680

Dear Mr. Stafford:

lrerracan

Terracon Consultants, Inc. (Terracon) is pleased to submit this Waste Management Plan (WMP) for the above-referenced facility. This investigation was performed in accordance with Terracon Proposal No. P94111346, dated November 11, 2011.

We appreciate the opportunity to perform these services for Marinas International. Please contact either of the undersigned at (214) 630-1010 if you have questions regarding the information provided in the report.

Sincerely,

lterracon

Prepared By:

Project Manager

Reviewed By:

Terracon Consultants, Inc. 8901 John W. Carpenter Freeway, Suite 100 Dallas, Texas 75247

P [214]630 1010 F [214]630 7070 terracon.com

Geotechnical • Environmental • Construction Materials • Facilities

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TABLE OF CONTENTS

Page No.

1.0 FACILITY DESCRIPTION ............................................................................................ 1

2.0 ADEQ PERMIT .............................................................................................................. 1

3.0 SEPTIC TANK SYSTEMS AND OPERATIONS ........................................................... 2

4.0 SIGNS OF SYSTEM FAILURE ..................................................................................... 8

5.0 EMPLOYEE TRAINING ................................................................................................ 9

5.0 SURFACE WATER TESTING ............ : ......................................................................... 9

6.0 RECORDS RETENTION ............................................................................................ 1 0

7.0 ADDITIONAL RESOURCES ...................................................................................... 10

LIST OF APPENDICES

Appendix A: Figure 1 - General Location Map Figure 2 - Locations of Septic Tank Systems

Appendix B: ADEQ Permit Appendix C: System Schematics Appendix D: Inspection, Maintenance, and Training Records Appendix E: Record of Pump Out Activities Appendix F: Material Safety Data Sheets Appendix G: Laboratory Analytical Reports

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WASTE MANAGEMENT PLAN

BRADY MOUNTAIN RESORT AND MARINA 4120 BRADY MOUNTAIN ROAD

ROYAL, ARKANSAS

Terracon Project No. P94111346

December 19, 2011

1.0 FACILITY DESCRIPTION

The facility currently operates primarily as a marina at 4120 Brady Mountain Road, City of Royal, Garland County, Arkansas 71968, Section 9, Township 2 South, Range 21 West, 34°34'50.65"N/93°15'50.06"W. The facility consists of 175 acres along the shores of Lake Ouachita. The general facility location is indicated on Figure 1 (Appendix A).

The facility is currently developed with the Brady Mountain Resort Lodge, Brady Mountain Restaurant, swimming pool, rental units (rooms, cabins, mobile homes and cabins), Ouachita Marine Service, dry storage units, horse stables, two major boat ramp areas: west (past lodge) and east sides (end of Caribbean Cove) of the property, Hill's Lake Escape, and Lake Ouachita Dive Center. The marina is open Monday through Sunday from approximately 8:00a.m. to 6:00p.m. The marina is open year round with the official boating season being between Memorial Day and Labor Day.

The facility currently maintains fifteen (15) 1 ,000-ga//on concrete-constructed septic tanks to handle domestic and restaurant sanitary wastes generated on-site. The septic tank systems were installed in 1954. Due to absence of original documentation, the facility does not have information on tank manufacturer. General schematics of septic tank system components are included in Appendix C.

2.0 ADEQ PERMIT

The facility's septic systems are permitted under the Arkansas Department of Environmental Quality (ADEQ) Water Division Permit Number4917-W. The permit, effective on January 12,2007, will expire on January 12, 2012. The permit requires the on-site waste disposal system be constructed, operated, and maintained in accordance with a Waste Management Plan (WMP) as approved by the ADEQ. A copy of the permit is maintained in Appendix B.

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Waste Management Plan Brady Mountain Resort and Marina • Royal, Arkansas December 19, 2011 • Terracon Project No. 94117680

3.0 SEPTIC TANK SYSTEMS AND OPERATIONS

Septic tank systems are used to treat and dispose of wastewater from houses and/or businesses. A septic system has three major components: a septic tank, distribution box(es) and a drainfield.

3.1 Septic Tank

The purpose of a septic tank is to digest organic matter and separates floatable matter (e.g., oils and grease) and settleable solids from the wastewater. Septic tanks are watertight and can be constructed from materials including concrete, plastic, or fiberglass. Wastewater flows from the source to the septic tank where it should stay for at least 24 to 48 hours. The tank is designed to retain wastewater and allow heavy solids to settle to the bottom. Solids are allowed to settle in the tank, which is accomplished by using either baffles or tees. The purpose of baffles or tees is to slow the wastewater coming into the septic tank and to prevent the scum and solids from escaping. Baffles are made of the same material as the tank and are usually fitted during manufacturing of the tank. A tee is a pipe fitting that is typically made of plastic, like the inlet and outlet pipes.

These settled solids are·then partially decomposed by bacteria to form sludge. Grease and light particles float, forming a layer of scum on top of the wastewater. The bacteria cannot break down all . of the sludge and scum; therefore, the septic tank needs to be pumped periodically.

The facility currently maintains fifteen (15) 1 ,000-gallon concrete-constructed septic tanks to handle domestic and restaurant sanitary wastes generated on-site. Figure 2 (Appendix A) includes the location of each septic tank in relation to the facility property. The facility septic systems use gravity to help septic tank effluent trickle through soil and organic matter to remove or neutralize pollutants like disease-causing pathogens, nitrogen, phosphorus, and other contaminants. The permit currently estimates the facility septic tank system to process 6,000 gallons per day during operation. A general schematic of a septic tank is included in Appendix C.

3.2 Distribution Box

The septic distribution box is part of the conventional drain field system. As effluent flows out of the septic tank, it travels a short distance into a septic distribution box. The distribution box, which comes in many shapes and sizes, handles the effluent by sending the wastewater into various drainfield lines or trenches.

The facility currently maintains five distribution boxes (3 feet by 3 feet by 3 feet) at the northwestern portion of the facility property. Four distribution boxes are associated with the septic tank for the on-site mobile home park and one distribution box is associated with Cabin G. The distribution boxes are inspected and maintained as-needed with the septic tanks. The location of each distribution box is indicated on Figure 2 (Appendix A). A general

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Waste Management Plan Brady Mountain Resort and Marina 11 Royal, Arkansas December 19, 2011 a Terracon Project No. 94117680

schematic of a distribution box is included in Appendix C.

3.3 Drainfield

A typical drainfield consists of two to five trenches excavated into the subsoil. The separated wastewater in the tank is pushed out into the drainfield as more wastewater enters the septic tank from the source. The primary treatment of wastewater occurs in the soil beneath the drainfield. Sewage effluent flows out of the tank as a cloudy liquid that still contains many disease-causing germs and environmental pollutants. Effluent flows into the perforated pipe in the trenches, passes

through the holes in the pipe, then trickles down through the gravel to the soil. As effluent enters and flows through the soil, many of the bacteria that can cause diseases are filtered out. Some of the smaller germs, such as viruses, are absorbed by the soil uritil they are destroyed. The soil can also retain certain chemicals including phosphorus and some forms of nitrogen.

If the drainfield is uphill from the septic tank, a lift station will be installed in-line after the septic tank.

An electric pump in the lift station forces effluent out to the drainfield every time it fills to a certain level.

If too much water is flushed into the septic tank in a short period of time, the wastewater flows out of the tank before it has had time to separate. This can happen on days when water use is unusually high (e.g., laundry day), or more often if the septic tank is too small for the needs of the facility.

When wastewater leaves the septic tank too soon, solids can be carried with it into the drainfield. Solids damage the drainfield by clogging the small holes in the drainfield pipes and the surrounding gravel, and excess water strains the system unnecessarily.

The facility maintains 14 drainfields associated with the 15 septic tanks. The facility also maintains two lift stations, one located at the southwest.portion of the facility and one located east of Brady House. The location of each drainfield and the lift station is indicated on Figure 2 (Appendix A). General schematics of a drainfield and lift station are included in Appendix C.

3.4 Inspection

Inspections can be a proactive way of monitoring the health of the septic tank system and can reveal problems before they become serious. By checking the levels of sludge and scum in the tank, the facility may also determine a more accurate idea of how often the tank should be pumped out.

An inspector will first locate each septic system to uncover the manhole and inspection ports. Uncovering the manhole and inspection ports may require digging. If they are buried, the facility shol!ld try to make access easier for future inspections. Risers (elevated access covers) may be installed if necessary.

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An inspector will check the condition of the septic tank and other components for cracks and other

damage. The inspector will check to make sure that the tees or baffles are properly connected to both the inlet and outlet pipes of the tank.

The inspector will also check the effluent filter, as applicable. These filters are located on the outlet

side of the tank, in the outlet tee. The filter needs to be maintained so as not to allow solids to carry over into the drainfield. Maintenance of these filters consists of pulling the filter and hosing the

contents back into the septic tank.

The inspector will also measure the layers of sludge and scum inside the tank. Frequently used

methods for measurement include pushing a hollow clear plastic tube through the different layers to

the bottom of the tank, which, when brought back up, will retain a sample showing a cross section of

the contents of the tank.

The layers can also be measured using a long stick and a smaller piece of wood to form a "foot" at the end of the stick. The stick is pushed down through the scum to the liquid layer then, when the

stick is moved up, the foot will meet resistance on the bottom of the scum layer. The inspector will mark the stick at the top of the layer to measure the total thickness. As a general guideline, if the scum layer is within 3 inches of the bottom of the inlet baffle, the tank should be pumped. The sludge layer is measured by wrapping a cloth around the bottom of the stick and lowering it to the bottom of the tank. This should be done either through a hole in the scum layer or through the baffle

or tee, if possible, to avoid getting scum on the cloth. The sludge depth can be estimated by the length of sludge sticking to the cloth. If the sludge depth is equal to one third or more of the liquid depth, the tank will be pumped.

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Waste Management Plan Brady Mountain Resort and Marina a Royal, Arkansas December 19, 2011 • Terracon Project No. 94117680

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The septic tank systems will be inspected at least annually. The inspections are currently conducted in-house. A record of each inspection will be maintained in Appendix D.

3.5 Maintenance

The following interior and exterior maintenance activities will be performed as necessary at the

facility.

3.5.11nterior Maintenance:

• Conserve water

• Fix leaks and drips

• Install low flow fixtures (flow reducer on shower heads, low flow toilets)

• Do not overload the system (do laundry throughout the week, not on one day)

• Limit the use of garbage disposals as they can increase the amount of solids added

to a septic tank. Do not dump coffee grounds into the sink.

• Do not pour fats and oils down the drain

• Put paper towels, tissue, cigarette butts, disposal diapers, feminine hygiene

products, and other material in the trash can, not in the toilet.

• Don't drain water from hot tubs or swimming pools into the septic system.

• Use normal amounts of detergents, bleaches, drain cleaners, household cleaners, and other products. Overuse of chemicals can kill the beneficial bacteria in the septic tank so solids can't break down as quickly.

• Avoid dumping solvents like dry cleaning fluid, pesticides, photographic chemicals, paint thinner, or auto products down the drain~ These hazardous chemicals can damage the septic tank system and will eventually migrate to groundwater causing impact and contamination.

3.5.2 Exterior Maintenance:

• Design landscaping, roof gutters, and foundation drains to divert excess water from the septic field to avoid saturating the area with excess water.


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Waste Management Plan Brady Mountain Resort and Marina a Royal, Arkansas December 19, 2011 a Terracon Project No. 94117680

• Dense grass cover and other shallow rooted plants are beneficial over a septic field;

however, do not plant trees because large roots can clog or break the pipes. Trees

should be planted at least 100 feet from the septic system.

• Avoid compacting the soil over the infiltration area. Do not drive or park vehicles

over the area and don't build a shed or driveway in this area. These activities can

crack pipes or cause the distribution box to settle unevenly, meaning that effluent will

only flow into part of the drain field.

At the beginning of every season, the facility cleans the septic tank system lines with a "jetter" to prevent buildup within the lines. A record of maintenance activities will be maintained in Appendix D.

The facility currently utilizes RootX to prevent the growth of roots through and around the septic system lines. RootX is a foaming, root-control chemical for residential andmunicipal sewer lines, storm pipes, and septic systems. RootX utilizes the aquatic herbicide Dichlobenil which is non-caustic, non-fumigating, non-systemic, and does not contain diquat bromide, copper sulfate, or metam sodium. RootX is classified as a General Use Product by the Environmental Protection Agency, and it is registered for use in all 50 states (EPA Registration# 68464-1). A Material Safety Data Sheet (MSDS) for each maintenance chemical will be maintained in Appendix F.

3.6 Additives

There are two types of septic system additives: biological (bacteria, enzymes, yeast) and chemical.

Most biological additives are harmless but some chemical additives can potentially harm the soil in

the drainfield and contaminate groundwater. Additives can also damage the system by breaking up

sludge and scum layers, causing them to flush out of the tank and clog the infiltration· bed. There

has not been extensive research on the study of the effectiveness of these products and the general consensus is that septic system additives are unnecessary.

The facility will maintain an MSDS in Appendix F for additives, if any, used in the on-site septic tank systems.

Responsive a Resourceful • Reliable 6



3.7 Pump Out Activities

1ferracan

Sludge in the septic tank can build up to the point where wastewater is released without sufficient

time in the tank for treatment and settling of particles which may result in pollution of groundwater or

cause eventual clogging of the drainfield. The accepted maximum level of solids in the tank is 1/3 of

the liquid depth. Any more than this and the tank is overdue for pumping.

Pumping frequency depends on several factors including, but not limited to, the size of the septic

tank, household practices, and water usage. Annual inspections can also aid in determining a pump out schedule. The septic tank will be pumped out regularly by a licensed contractor. A member of

the facility staff will be present during pumping operations. The tank should be pumped through the

manhole, not the smaller inspection ports, to avoid damage to the baffles or tees. The tank should

be cleaned completely, leaving nothing in the tank. An inspector will check the condition of the tank

and other components for cracks and other damage. Watertightness is important, as wastewater

must be kept in the tank so that it does not contaminate the groundwater, and groundwater must be

kept out of the tank so that the tank is not over filled. The only way to make sure a tank is watertight is to have it pumped and the interior visually inspected.

The septic tank systems are currently maintained by Jim Little (501) 627-8353 with A-1 Pumping Service in Hot Springs, Arkansas.

Currently, the facility septic tanks and distribution boxes are checked on or before every weekend and are pumped as needed. During the peak season (May through September), the septic tanks are pumped out at least monthly. On holiday weekends, septic tanks are pumped prior to every weekend. The septic tank and distribution boxes associated with the mobile home park are monitored by a pump truck 24 hours a day, seven days a week during peak season (as needed) and holiday weekends to ensure there is no overflow or other issues that may arise.

A record of the pump out activities and associated manifests will be maintained in Appendix E.

Responsive • Resourceful Reliable 7



4.0 SIGNS OF SYSTEM FAILURE

11erracan

Septic systems that are properly planned, designed, sited, installed, operated, and maintained can

provide excellent wastewater treatment; however, systems which exceed the treatment capacity of

regional soils and systems that are poorly designed, installed, operated, or maintained can cause

problems. Serious problems involve contamination of surface waters and groundwater with disease

causing pathogens and nitrates. Other problems include phosphorus pollution of inland surface

waters which increases algal growth and lowers dissolved oxygen levels.

The facility will be alert to the following warning signs of a failing system:

• Slowly draining sinks and toilets; Gurgling sounds in the plumbing; Plumbing backups

This situation may occur if the sewer lines to the tank are plugged, an inlet or outlet pipe is

plugged, the septic tank is full, or the drainfield has failed.

• Sewage odors in the house or yard

If the system is operating properly, there should be no odors. If there are odors, it can be an

early warning sign of system failure.

• Ground wet or mushy underfoot

This situation may develop when sludge particles have clogged the drainfield, tree roots or broken pipes are keeping the waste water from dispersing through the entire drainfield , or when water use at the source is exceeding the design capacity of the system. When these

conditions occur, wastewater does not move through the soil as it should and instead, rises to the surface, creating a serious health risk and odor problems.

Responsive • Resourceful Reliable 8


Waste Management Plan Brady Mountain Resort and Marina • Royal, Arkansas December 19,2011 • Terracon Project No. 94117680

11erracan • Grass growing faster and greener in one particular area of the yard or excessive weed or

algae growth in the water near shorelines

•

Nutrients leaking from septic systems could be a cause of this type of growth.

Tests show the presence of bacteria in well water

Tests may show the presence of indicator bacteria (e.g., total coliform, fecal coliform) in the water. Nitrate testing is not commonly performed and may need to be requested.

The appearance of one or more of these signs should prompt the facility to have the system inspected. Septic system failure also can occur without any of the above warning signs. For this reason, the facility will inspect the septic tank systems at least annually. The facility will call a

licensed professional whenever there is a problem with the septic system or if there are any signs of system failure. Records of inspection and maintenance will be maintained in Appendix D.

5.0 EMPLOYEE TRAINING

Facility employees will be trained at the time of hire and then as-needed in general septic tank system maintenance. Employees will be shown the location of all on-site septic tank systems and will be trained to observe potential signs of septic tank system failure. Employee training records will be maintained in Appendix D.

5.0 SURFACE WATER TESTING

The facility will maintain records of surface water testing to demonstrate permit compliance and proper function of on-site septic tank systems. Laboratory analytical reports will be maintained in Appendix G.


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6.0 RECORDS RETENTION

The facility will maintain written records of inspection, maintenance, pump out activities, laboratory

analytical, training, and other related documentation with this WMP. Records will be readily

available for review to the ADEQ.

7.0 ADDITIONAL RESOURCES

"R,~R~~m·~.!i!{~;;·~}·.· .'',; ., .. ··;;;.{'>':',. ,. ...... ·; ·:cO'iitact ,-, · · ·. '-,._, ·p,ll'One,Numb&:f · ··· •. , .. ,.

. , ·; o>A .~'/':'-'•.~' -~~ r .. •··-~ . ·,. !,- a•. -"~~ ~,--,.~--trv;~-.... .,..v-...."'!:· . ..,,_ · -·u. , .. ADEQ Water Division Steve Drown (501) 682-0655

Arkansas Department of Health Deryl Godwin (501) 661-2584

National Environmental Services Center N/A (800) 624-8301

httQ://www.nesc.wvu.edu/index.cfm

us Environmental Protection Program, Robert Todd (214) 665-2156

Region 6, Septic Coordinator


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Waste Management Plan . Brady Mountain Resort and Marina • Royal, Arkansas December 19, 2011 • Terracon Project No. 94117680

APPENDIX A

Figure 1 - General Location Map Figure 2 - Location of Septic Tank Systems



~ml ~--~~1·~~~~2·~~-0 .51 11 1.51 Image courtesy of the U.S . Geological Survey

DIAGRAM IS FOR GENERAL LOCATION ONLY, AND IS NOT INTENDED FOR CONSTRUCTION PURPOSES

Project No.

lrerracan GENERAL LOCATION MAP 94117680

Scala: See above Brady Mountain Resort and Marina Quad N"\'l~i Springs, Arkansas Consulting Engin('('rS & 5cicntisl:5 4120 Brady Mountain Road Data: tll901 C.pent•r FrMWIIy, SUie 100 Dllu. r- 752-47 Royal, Garland County, A rkansas

1980 PH. (214) 6»-1010 FAX. (214) 630-7070

FIG No.

1

Project No.

lrerracan 94117680 Scale:

Source: Consulting Engineers & Scientists

Date: 1901 C.lptnl« Ff-r,. Suite 100 Dallu, Teq• 75247

2011 PH.(2l4)630-1010 FAX..(214)6~707'0

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LOCATION OF SEPTIC TANK SYSTEMS

Brady Mountain Resort and Marina 4120 Brady Mountain Road

Royal, Garland County, Arkansas

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FIG No.

2

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I I I

PERMIT

ISSUED BY

STATE OF ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY

8001 NATIONAL DRIVE, P.O. BOX 8913 LITTLE ROCK.. ARKANSAS 72219-8913

AFIN No. 26-00867

4917-W

Effecth'e Date January 12, 2007

Expiration Date January 11, 2012 Permit No.

TO: Ned Bass Brady Mountain Resort 4120 Brady Mountain Road Royal, AR 71968

This permit is your authority to construct, operate and maintain the waste disposal system in Section 9, Township 2 South, Range 21 West, in Garland County as set forth in your application or transfer form received August I, 2006. This permit is issued subject to provisions of the Arkansas Water and Air Pollution Control Act (A.C.A. Sec. 8-4-101 et seq.) and the following conditions:

I.

2.

3.

4.

5.

6.

7.

8.

9.

JO.

II.

This permit is for the operation of a subsurface disposal system for a mobile home park and restaurant. Waste shall not be discharged from this operation to the waters of the State or onto the land in any manner that may result in runorf to the waters of the State.

Tbe waste disposal system shall be constructed, oper'llted, and maintain~ in accordance with the Waste Management Plan (WMP) as apprO\'ed by the Department of Em·ironmental Qua lit)'.

Failure to begin construction within six (6) months of the effectiYe date may result in termination of this permit if a request for an extension is not submitled to the Department in a timely manner.

The disposal system shall be serviced by qualified personnel and maintained in good operating condition at all times.

Bypassing of the disposal system is prohibited and may result in the revocation of Ibis permit and/or other appropriate enforcement action by the Department.

There shall be no increase in the volume or strength of the waste being treated by the disposal system except within design limits covered in the WMP approved by the Department.

Thl~; permit may be revoked or modified at any time, If in the opinion of the .Department, II is necessary to prevent or abate pollution of any waters of the State.

Nothing herein contained shall be construed a• releasing the permilll'e from an)' liability far damage to persons or propert)• by reason of the installation, maintenance or operation of the disposal system.

Any violations to this permit must be reported to the Department imm~iately.

This permit is issued in reliance upon the statements and reprtscntations made in the application and the WMP. The Dtpartmcnt has no responsibility for the adequacy or proper functioning of the disposal system.

OPERATION SHALL NOT COi\'1:\lENCE FOR NEW OR MODIFIED WASTE DISPOSAL FACILITIES UNTIL THE PERMITTEE HAS OBTAINED A LETTER OF AUTHORIZATION FR0;\1 THE DEPARTMENT.

PLEASE NOTE ADDITIONAL COi'\DITIONS ON THE ATTACHED SHEETS.

ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY

By:- ~~--------~ -!2--c::J/ Martin Ma r, P.E., Chief, Water Division Date

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12.

13.

14.

15.

16.

17.

18.

19.

20.

ADDITIONAL CONDITIONS FOR A SUBSURFACE SYSTEM OPERATION Ned Bass/Brady Mountain Resort

PERMIT NO. 4917~\V and AFIN NO. 26-00867

The permittee shall comply with all applicable permit fee requirements for state permits as described in ADEQ Regulation No. 9, Fee System for Environmental Pennits, as amended. Failure to promptly remit all required fees shall be grounds for the Director to initiate action to terminate this permit under the provisions of ADEQ Regulation No. 8, Administrative Procedures, as amended.

The permittee must prohibit any introduction of any substance that could adversely affect the operation of the disposal system.

The Department reserves the right to require adJitional measures, as m:cessary, to eliminate public nuisance conditions.

The permittee shall take all reasonable and necessary measures to minimize obnoxious and offensive odors.

Solid materials, oil or grease accumulated in the waste storage traps or basins shall be re~oved as necessary to maintain the trap or basin design volume and to protect the system. Solid materials, oil or grease collected in screens, traps or basins shall be disposed of by methods approved by the Department.

The system shall be maintained to prevent leaking or seepage. Any leaks or seeps shall be reported to the Department and appropriately corrected. Any discharge from the system such as an overflow, broken pipe, etc., shall be immediately reported to the Department.

The pem1ittee must maintain current and complete records of all activities related to the removal of solid materials, oil, grease, wastewater, etc., from the operation. The following information must be recorded and made available to ADEQ personnel on request: date of the activity, volume or weight of material removed, type of material removed, interim or final destination of the material discarded, ~nd complete identification of the carrier(s) transporting the material.

The Pennittee must notify the Department of any changes in the system and obtain approval prior to implementation.

Should the facility under this pennit cease operations, the permittee shall submit to the Department a closure plan for the system's storage and treatment structures within sixty (60) days of the final day of operation.

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21.

22.

If the permitlee wishes to continue the activity regulated by this pem1it after its expiration date, the pennittee must apply and obtain a new permit. The complete application must be submitted to the Department at least 120 days before the expiration date of the permit. The Director may grant permission to submit an application less than 120 days in advance but not later than the permit expiration date.

The permit conditions will continue in effect past its expiration date pending a new permit, provided that:

(a) The permittee has timely submitted a complete application as described in Condition 21, and

(b) The Director, through no fault of the permittee, does not issue a new pcnnit before the expiration date of the previous permit.

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STATEMENT OF BASIS

THIS IS A STATE WATER PERMIT FOR A NO-DISCHARGE OPERATION UNDER DRAFT PERJ\1JT NUMBER 4917-W AND AFIN (FILE) NUMBER 26-00867. WASTE MUST NOT BE DISCHARGED FROM THIS FACILITY TO THE WATERS OF THE STATE OR ONTO LAND IN ANY MANNER THAI MAY RESULT IN RlJNOFFTOTHE \\'ATERSOFTHE STATE.

DATE: January 9, 2007

ISSIIJNG OFFICE:

1.

Arkansas Department of Environmental Quality Water Division. State Pennits Branch 800 I National Drive Post Office Box 8913 Little Rock, Arkansas 72219

ADEQ EV ALUATJNG ENGINEER: Marcus J. Tilley

APPLICA~T:

Ned Bass Brady Mountain Resort 4120 Brady Mountain Road Royal, AR 71968 501-767-3422

F ACJLITY TN FORMATION

§J££~: 2451

CONSULTANT: Jimmy Daley Daley Enterprises 1220 Blacksnake Rd. Hot Springs, AR 71913 501-767-1123 .

~A!~£<?.9.~: 321991

f.J.t~.ili!Y ... TY.P:P..J!ni..~;i~: Mobile Home Park & Restaurant w/ Conventional Septic System (6000 gpd)

:\YM.t~..§tom.g~'TJ~}JliJJenLC.o,mp..QQ..ttQl!§.): 3 1200 gallon Holding/Pump Tanks /6000 fl of Leach Field

~tre.aw..,..~S!!l..Sm: .2F li.W~r..e.am: Lake Ouachita

~~t&qffi!!!!.!QiU·:: Royal ~9~~.1l!Y: Garland

.~OJ!: 9 l.~~Qjp: 2 South fuln&i: 21 West

fulc.il!!Y.J...M.imf!J;: 34° 34' 42" N ~;llity.b~.P$!.t.u.Q.t;,: 93° 15' 47" w

RP.M!J-~qc..l.l.i.Pn)t£§Pf.i.Pl!gn: Hv.')'. 270 East to 929 (Brady Mt. Rd.) turn right. Field located on right just before Canibeali. Cove Rd.

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2. GENERAL REQUIREMENTS

The storage volume required for the waste generated at the facility is based on the size of the facility and the amount of waste produced. Solid material accumulated in all waste storage basins shall be removed as necessary to maintain the basin's design volume. The storage facility's liners and structures shall be maintained to prevent leaking or seepage. Any leaks or seeps shall be reported to the Department and appropriately corrected. Any discharge from the waste storage system such as an overflow, a broken pipe, etc., shall be immediately reported to the Department.

3. BASIS FOR PERMIT CONDITIONS

The Arkansas Depanmcnt of Environmental Quality has made a tentative determination to issue a permit for the no-discharge facility as described in the application and waste management plan. Permit requirements and conditions are based on regulations pursuant to the Arkansas Water and Air Pollution Control Act (Act 472 of 1949, as amended, Ark. Code Ann. 8-4-101 et. seq.).

4. SOURCES FOR DOCUMENT DEVELOPMENT

A. Regulation No.2, Water Quality Standards for Surface Waters of the State of Arkansas, as amended.

B. Regulation No. 8, Administrative Procedures, as amended.

C. Regulation No. 9, Fee System for Environmental Permits, as amended.

D. ACT 165 of 1993, Public Notice Requirements

E. ACT 472 of 1949, as amended, Arkansas Water and Air Pollution Control Act

5. PUBLIC NOTICE

A public notice regarding this draft permit was sl!nt to a newspaper having general circulation in the county of the facility for publication with a copy provided to the applicant. The public notice described the facility and the procedures used In issuing the permit. A 30-day comment period followed the publication of the notice, during which the Department accepted written comments regarding the technical merits of the pennit. In addition, a public hearing may have been held during which the Depanment accepted both written and oral comments. All comments were considered by the Director before a fmal permit decision was made. Those who submitted \Vritten comments or made oral comments for the record at a public hearing had legal standing to appeal the Director's final permit decision. The permit became fmal and effective 30 days following the Director's final permit decision.·

For additional information, contact:

Doug Szenher, Information Officer Arkansas Department of Environmental Quality 8001 National Drive P.O. Box 8913

\

Little Rock, AR 72219-8913

(501) 682-09!5

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STATE OF ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY

BOO! :'IIATIONAL DRIVE, P.O. BOX 8913 LJTTLE ROCK. ARKANSAS 7%219-8913

PHONE: (501) 682-0648 FA.\:: {501) 682-0910

RESPONSE TO COMMENTS DRAFf PERMIT

Ned Bass/Brady Mountain Resort PERl'\11T NO. 4917-W, AFIN NO. 26-00867

A public notice of the draft penn it for the above-referenced facility was published in The SeminelRecord on December 6, 2006. During the 30-day comment period following publication of the notice, NO COMMENTS were received concerning the draft p!;:nnit for the proposed facility.

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CERTIFICATE OF SERVICE

The Department's decision to issue a permit is final for purposes of appeal, as of the date indicated in the certification below.

I, Mary Doolin, Secretary of the State Permits Branch, Water Division, hereby certify that a penn it (Permit No. 4917-W, AFIN No. 26-00867) has been sent by certified mail to the permittee at the following address:

Ned Bass Brady Mountain Resort 4120 Brady Mountain Road Royal, AR 71968

This final penn it was mailed on or before this _!_j_ day of ~'ry , 20 (21_.

1-;1- 0 7 Date

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ADEQ A R K A N S A S Department of Environmental Quality

CERTIFIED MAlL: 7005 1160 0000 3835 0070 RETUR.J~ RECEIPT REQUESTED

January 19, 2007

Ned Bass Brady Mountain Resort 4120 Brady Mountain Road Royal, AR 71968

RE: AFIN No. 26-00867, Permit No. 4917-W

Dear Mr. Bass:

Enclosed is your permit for the waste disposal system as set forth in your application reccived August 1, 2006.

After consideration of the completed application, the public comments on the record, the requirements of the Arkansas Water and Air Pollution Control Act· (A.C.A. Sec. 8-4-101 et seq) and pertinent regulations, the Department has determined that your permit for the construction, operation, and maintenance of a water pollution control system be issued and effective on the date specified in the permit. This decision is final unless a Commission review has been properly requested under Arkansas Pollution Control and Ecology Commission, Regulation No. 8, within 30 days after service of this decision. If you wish to request a Commission review of this decision, you may submit a Request for Commission review and Adjudicatory Hearing pursuant to APC&EC Regulation No.8, §2. L 14. Any other person, who submitted comments on the record, may request an adjudicatory hearing and Commission review pursuant to Regulation 8, §2.1.13 and §2.5.3. Any request must be in the form and submitted in the manner required by Regulation No. 8, as amended.

In addition to the permit conditions contained herein, the permittee must comply with all other applicable State and Federal Regulations, Including, but not limited to, Acts I 059, 1060, and I 061 of2003, and the regulations promulgated thereunder by the Arkansas Natural Resources Commission.

Please note that per condition II of the attached permit, you must obtain a letter of authorization from the Department prior to the operation of your facility. This letter may be obtained once the consultant issues a Cenification Letter stating that the system was built in accordanct) with the design shown in the approved waste management plan.

If you have any questions, please contact the State Permits Branch at (50 1) 682-0648 .

Chid, Water Diviswn

cc: Jimmy Dalt:y. Consultant, Da!t:y Enterprises Jim McSwain. District Fit:ld lnspec10r. Garland County r-\rkansas Department of Health and Human Services·

WATER DIV~S~ON 6001 N,\nONAL ORIVE I POSl OFFIC~ SOX 8913 I l-ITTLE ROCK. !\~i<J.~Nsi.\5 .. 72219-8913 I THE PHONE SQI.6Bt.?.199 ' FAX 501-687-0910

\-..•ww,odf?q ')1ote dt u.~.

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Waste Management Plan Brady Mountain Resort and Marina a Royal, Arkansas December 19, 2011 • Terracon Project No. 94117680

APPENDIXC

General System Schematics


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lri~pection pipe Ground l~el

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lnepection pipe

we~~tewater

goee to &rainfleld

~ludge variee with ue;e

Figure I. fllusJ-rotion courtesy' of the Maryland Dtp<trttnenl of the F.nvironmmt ..

.S.chematic pf a. Septic; TQ·nk

Schematic of a Distribution Box

Responsive Resourceful • Reliable 14



Di5t r ibutiof1 box

Gravc.i or crushed mck Tile llne5

1ferracan

lligur( 2. HJustmtJun courte!iy of tltt: United Srur~ Envuonmmtu.l ProtecttonAgmry

Schemqtic of a Drai·nfield

j i manhole / elecblcal bolt

lift $latlon

Schematic of a Lift Station


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APPENDIXD

,II ... '• ... • -e'·"'·-······-····-··-~---'·· 1 .;racan

Inspection, Maintenance, and Training Records


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APPENDIX E

Record of Pump Out Activities


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APPENDIX F

Material Safety Data Sheets


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MATERIAL SAFETY DATA SHEET Emergency Phone: Chemtrec 800-424-9300 Effective Date: April14, 2011

11. PRODUCT AND COMPANY IDENTIFICATION

PRODUCT NAME: Rootx DESCRIPTION: A foaming herbicide for control of roots in pipelines. EPA Reg. No. 68464-1

COMPANY IDENTIFICATION: General Chemical Company PO Box7626 Salem, OR 97303 1-800-844-497 4

12. HAZARD IDENTIFICATION

HAZARDS TO HUMANS AND DOMESTIC ANIMALS: CAUTION Causes moderate eye irritation. Harmful if swallowed, inhaled or absorbed through skin.

ENVIRONMENTAL HAZARDS: This chemical has properties and characteristics associated with chemicals detected in ground water. The use of this chemical in areas where soils are permeable, particularly where the water table is shallow may result in ground-water contamination. Do not use near a well or where drinking water is stored. Do not contaminate water when disposing of equipment, wash water or rinsate.

I 3. COMPOSITION /INFORMATION ON INGREDIENTS

Ingredient Chemical Name CAS Number Com~osition TLv*

Sulfa,mic Acid N/A 5329-14-6 40-50% Not Established

Quartz, Crystalline Silica N/A 14808-60-7 > 1.5% 0.1 mg/m3

Dichlobenil 2,6-dichlorobenzonitrile 1194-65-6 0.55% Not Established

:J: The Threshold Limit Value listed is an inhalation limit established by the American Conference of Governmental Industrial Hygienists (ACGIH).

I 4. FIRST AID

Have the product container or label with you when calling a poison control center or doctor, or going for treatment. You may also contact 1-800-858-7378 for emergency medical treatment information.

IF ON SKIN OR CLOTHING: Take off contaminated clothing. Rinse skin immediately with plenty of water for 15-20 minutes. Call a poison control center or doctor for treatment advice.

IF IN EYES: Hold eye open and rinse slowly and gently with water for 15-20 minutes. Remove contact lenses, if present, after the first 5 minutes, then continue rinsing eye.

IF INHALED: Move person to fresh air. If person is not breathing, call 911 or an ambulance, then give artificial respiration, preferably by mouth-to-mouth, if possible. Call a poison control center or doctor for further treatment advice.

IF SWALLOWED: Immediately call a poison control center or doctor. Have person sip a glass of water if able to swallow. Do not induce vomiting unless told to do so by the poison control center or doctor. Do not give anything by mouth to an unconscious person.

NOTE TO PHYSICIAN: Probable mucosal damage may contraindicate the use of gastric lavage. Measures against circulatory shock, respiratory depression and convulsions may be needed.

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I 5. FIRE-FIGHTING MEASURES

Flash point (Closed Cup): > 420°F

Auto Ignition Temperature: 980°F

Flammable Limits (LFL-UFL): Not Determined

Fire and Explosion Hazards: Thermal decomposition may release oxide~ of carbon, sulfur, and nitrogen and I or ammonia. Means of Extinction: Water fog, foam, dry chemical or C02.

Fire Fighting Instructions: Keep upwind and isolate hazard area. Use any means necessary to fight surrounding fire. Dike and collect any runoff to prevent entry to drains or water bodies.

Firefighting Equipment: Self-contained breathing apparatus and full bunker gear.

NFPA Ratings: Health- 2/ Flammability- 1/lnstability- 1

Is. ACCIDENTAL RELEASE MEASURES

Clean up spills immediately observing the precautions in Section 8 of this MSDS. Control spill at the source and vacuum spill to avoid creating dust. Once all material is cleaned up and placed in disposal containers, seal the containers and arrange for disposal.

11. HANDLING AND STORAGE

Avoid contact with skin, eyes, or clothing. Avoid breathing dust. Wash thoroughly with soap and water after handling and before eating, drinking, chewing gum, using tobacco or using the toilet. Remove clothing immediately if pesticide gets inside. Then wash thoroughly and put on clean clothing. Wash contaminated clothing before reuse.

Do not contaminate water, food, or feed by storage or disposal. Store in a dry place and avoid storage near food or feed products.

I 8. EXPOSURE CONTROLS I PERSONAL PROTECTION

Engineering Controls: Handle only with adequate ventilation. Facilities storing or utilizing this material should be equipped with an eyewash station and a safety shower.

Protective Clothing: Applicators and other handlers, including mixers and loaders, must wear longsleeved shirt, long pants, shoes plus socks and chemical-resistant gloves. Mixers and loaders must also wear a chemical-resistant apron. Wear a NIOSH approved personal respirator if dust from this product exceeds permissible exposure levels (Section 3). ·

General: Remove PPE immediately after handling this product. Wash the outside of gloves before removing. As soon as possible, wash thoroughly and change into clean clothing. Follow manufacturer's instruction for cleaning/maintaining PPE. If no such instructions for washables exist, use detergent and hot water. Keep and wash PPE separately from other laundry.

I 9. PHYSICAL AND CHEMICAL PROPERTIES

Appearance: White to light brown powder Odor: Slight aromatic pH: 2- 3 (25% solution in water) Density: 17. 114 lbs/gal Solubility: Disperses in water

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j10. STABILITY AND REACTIVITY

CONDITIONS TO AVOID: None known.

CHEMICAL STABILITY: Stable under normal use and storage conditions .

HAZARDOUS DECOMPOSITION PRODUCTS: Thermal decomposition may release oxides of carbon, sulfur, and nitrogen and I or ammonia.

INCOMPATIBILITY WITH OTHER MATERIALS: Strong oxidizing agents, nitric acid or chlorine .

POLYMERIZATION: Will not occur.

j11. TOXICOLOGICAL INFORMATION

ACUTE ORAL TOXICITY Oral LD50 (rat): > 5,000 mg/kg

ACUTE DERMAL TOXICITY Dermal LD50 (rat): > 2,000 mglkg

ACUTE INHALATION TOXICITY Inhalation LC50 (rat): > 2 mg/L (4-hour)

EYE IRRITANT Rabbit- Slightly to moderately irritating

SKIN IRRITATION Rabbit- Slightly irritating

SENSITIZATION Guinea Pig - Not a contact sensitizer

MEDICAL CONDITIONS AGGRAVATED BY EXPOSURE: None known.

CARCINOGENICITY: ACGIH: Not listed I ARC: Not listed NTP: Not listed OSHA: Not listed

MUTAGENIC DATA: No evidence of mutagenic effects during in vivo and in vitro assays.

ADDITIONAL DATA: Not known to cause reproductive or birth defects at normal exposure levels.

j12. ECOLOGICAL INFORMATION

For terrestrial uses, do not use near a well or where drinking water is stored. Do not apply directly to water or to areas where surface water is present or to inter tidal areas below the mean high water mark. Do not contaminate water when disposing of equipment, wash water or rinsate. This chemical has properties and characteristics associated with chemicals detected in ground water. The use ofthis chemical in areas where soils are permeable, particularly where the water table is shallow may result in ground-water contamination.

The following data is for the active ingredient Dichlobenil:

AQUATIC TOXICITY Various Fish Species (LC50 96-hr): 5- 13 mg/L Daphnia (LC50 48-hr): 6.2 mg/L Algae (ECso 5-day): 2.0-2.7 mg/L

AVIAN TOXICITY Bobwhite Quail (LD50): 683 mg/kg

OTHER Bees (LDso Contact): > 111Jg/bee Worms (LDsa): > 1000 mg/kg substrate

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113. DISPOSAL CONSIDERATIONS

Do not contaminate water, food or feed by disposal.

PESTICIDE DISPOSAL: Wastes resulting from the use of this product must be disposed of on site or at an approved waste disposal facility.

CONTAINER DISPOSAL: Nonrefillable container. Do not reuse or refill this container. Refer to the product label for additional container disposal instructions.

114. TRANSPORT INFORMATION

DOT PROPER SHIPPING NAME: Not regulated by DOT.

SEVERE MARINE POLLUTANT: No

115. REGULATORY INFORMATION

FIFRA-AII pesticides are governed under the Federal Insecticide, Fungicide, and Rodenticide Act. The regulatory information presented below is pertinent only when this product is handled outside of the normal use and application as a pesticide.

SARA Title Ill -Section 302 Extremely Hazardous Substances Not Listed

SARA Title Ill- Section 311/312 Hazard Categories Immediate (Acute), Delayed (Chronic)

SARA Title Ill- Section 312 Threshold Planning Quantity N/A

SARA Title Ill- Section 313 Reportable Ingredients None

CERCLA- Section 304 Reportable Ingredients None

CALIFORNIA PROP 65 STATUS-This product contains crystalline silica, a compound known to the state of California to cause cancer.

116. OTHER INFORMATION

This product has been classified in accordance with the hazard criteria of the Controlled Products Regulations (CPR) and the MSDS contains all of the information required by CPR.

DISCLAIMER:

TO THE EXTENT CONSISTENT WITH APPLICABLE LAW, MANUFACTURER WILL NOT BE LIABLE FOR ANY LOSS, INJURY OR DAMAGES AND TO THE EXTENT CONSISTENT WITH APPLICABLE LAW,.PURCHASERS AND/OR USERS OF THIS PRODUCT HEREBY WAIVE ANY STRICT LIABILITY. THERE ARE NO IMPLIED WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR THE PARTICULAR PURPOSE, AND THERE ARE NO OTHER IMPLIED WARRANTIES, EXCEPT AS SPECIFICALLY SET FORTH ON THE PRODUCT LABEL MANUFACTURER'S OBLIGATION ON ANY CLAIM IS LIMITED TO REPLACEMENT OF ANY DEFECTIVE PACKAGE OF ROOTX. TO THE EXTENT CONSISTENT WITH APPLICABLE LAW, MANUFACTURER WILL NOT BE LIABLE FOR ANY LOSS, INJURY OR DAMAGES TO PERSONS OR PROPERTY RESULTING FROM FAILURE OR IMPROPER USE OF THE PRODUCT, NOR WILL THE MANUFACTURER BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND SUSTAINED BY THE PURCHASER OR USER OF THIS PRODUCT. TO THE EXTENT CONSISTENT WITH APPLICABLE LAW, PURCHASERS AND/OR USERS OF THIS PRODUCT HEREBY WAIVE ANY STRICT LIABILITY OR PRODUCT LIABILITY CLAIM THEY MIGHT HAVE AGAINST THE MANUFACTURER AND/OR SELLER. SELLER AND MANUFACTURER ARE NOT LIABLE FOR ANY USE OF THIS PRODUCT NOT IN COMPLIANCE WITH THE DIRECTIONS ON THE PRODUCT LABEL.

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Waste Management Plan . Brady Mountain Resort and Marina a Royal, Arkansas December 19, 2011 • Terracon Project No. 94117680

APPENDIXG

Laboratory Analytical Records

Responsive 11 Resourceful • Reliable 19

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Documents

To Whom It May Concern,€¦ · To Whom It May Concern, I am enclosing all of the required documents for approval of a Waste Water Management Plan. I have checked off all of the information