Prepared For STERLING SAVINGS BANK 9755 SW BARNES ROAD, SUITE 480 PORTLAND, OR 97225 PHASE I ENVIRONMENTAL SITE ASSESSMENT REPORT 6701-17 SE Milwaukie Property 6701-6717 SE Milwaukie Avenue Portland, OR 97202 Date Issued: November 6, 2007 Alpha Project Number 07-1000 Prepared By 9525-A SW BEAVERTON HILLSDALE HWY. BEAVERTON, OREGON 97005 TEL (503) 627-0131 FAX (503) 627-0942 November 6, 2007 Shawn Marvin Sterling Savings Bank 9755 SW Barnes Road; STE 480 Portland, OR 97225 RE: PROJECT NO. 07-1000 PHASE I ENVIRONMENTAL SITE ASSESSMENT REPORT 6701-17 SE MILWAUKIE PROPERTY 6701-6717 SE MILWAUKIE AVENUE PORTLAND, OR 97202 Dear Shawn: Alpha Environmental Services, Inc. (Alpha) is pleased to provide the results of our Phase I Environmental Site Assessment of the 6701-6717 SE Milwaukie Avenue property located in Portland, OR 97202. This assessment was authorized on October 19, 2007, and performed in general accordance with Sterling Savings Bank scope of work for Phase I Environmental Site Assessments. This assessment included a site reconnaissance as well as research and interviews with representatives of the public, property management, and regulatory agencies. An assessment was made, conclusions stated, and recommendations outlined. We appreciate the opportunity to provide environmental services to you. If you have any questions concerning this report, or if we can assist you in any other matter, please contact us at (503) 627-0131. Very truly yours, ALPHA ENVIRONMENTAL SERVICES, INC. Phillip R. Brewer Principal Katie Lethe Environmental Consultant TABLE OF CONTENTS EXECUTIVE SUMMARY ...........................................................................................................................................1 1.0 INTRODUCTION...........................................................................................................................................5 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2.0 SITE DESCRIPTION .....................................................................................................................................8 2.1 2.2 2.3 2.4 2.5 2.6 3.0 User Provided Information ...............................................................................................................8 Location and Legal Description........................................................................................................8 Site and Vicinity General Characteristics .........................................................................................8 Current Use of the Property ..............................................................................................................9 Description of Site Utilities.............................................................................................................10 Current Use of Adjoining Properties ..............................................................................................10 User provided information ............................................................................................................................11 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 4.0 Purpose..............................................................................................................................................5 Scope of Services..............................................................................................................................5 Assumptions......................................................................................................................................5 Limitations and Exceptions...............................................................................................................6 1.4.1 Data Failure ........................................................................................................................6 1.4.2 Data Gaps ...........................................................................................................................6 User Responsibilities ........................................................................................................................6 Special Terms and Conditions ..........................................................................................................6 Use Reliance .....................................................................................................................................7 Title Records...................................................................................................................................11 Environmental Liens or Activity and Use Limitations (AULs) ......................................................11 Specialized Knowledge...................................................................................................................11 Commonly Known or Reasonably Ascertainable Information .......................................................11 Valuation Reduction for Environmental Issues ..............................................................................11 Owner, Property Manager, and Occupant Information...................................................................11 Reason for Performing Phase I.......................................................................................................11 Other ...............................................................................................................................................12 RECORDS REVIEW....................................................................................................................................13 4.1 5.0 Standard Environmental Record Sources .......................................................................................13 4.1.1 State and Federal Regulatory Review...............................................................................13 4.1.2 Local Regulatory Review .................................................................................................18 4.2 Physical Setting Sources .................................................................................................................19 4.2.1 Topography.......................................................................................................................19 4.2.2 Soils/Geology ...................................................................................................................19 4.2.3 Hydrology.........................................................................................................................20 4.2.4 Flood Zone Information....................................................................................................20 4.2.5 Oil and Gas Exploration ...................................................................................................20 4.3 Historical Use Information..............................................................................................................20 4.3.1 Aerial Photographs ...........................................................................................................21 4.3.2 Fire Insurance Maps .........................................................................................................23 4.3.3 City Directories.................................................................................................................24 4.3.4 Additional Environmental Record Sources ......................................................................27 4.3.5 Historical Use Information on Adjoining Properties........................................................27 SITE RECONNAISSANCE .........................................................................................................................29 5.1 Methodology and Limiting Conditions...........................................................................................29 ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 i STERLING SAVINGS BANK 5.2 6.0 General Site Characteristics ............................................................................................................29 5.2.1 Exterior Observations .......................................................................................................29 5.2.2 Interior Observations ........................................................................................................29 5.2.3 Solid Waste Disposal........................................................................................................29 5.2.4 Surface Water Drainage....................................................................................................30 5.2.5 Wells and Cisterns ............................................................................................................30 5.2.6 Wastewater .......................................................................................................................30 5.2.7 Additional Site Observations............................................................................................30 5.3 Potential Environmental Conditions ...............................................................................................30 5.3.1 Hazardous Materials and Petroleum Products Used or Stored at the Site ........................30 5.3.2 Evidence of Releases ........................................................................................................31 5.3.3 Polychlorinated Biphenyls (PCBs) ...................................................................................31 5.3.4 Landfills............................................................................................................................31 5.3.5 Pits, Ponds, Lagoons, Sumps, and Catch Basins ..............................................................31 5.3.6 On-Site ASTs and USTs...................................................................................................31 5.3.7 Radiological Hazards........................................................................................................31 5.3.8 Drinking Water .................................................................................................................32 5.3.9 Additional Hazard Observations.......................................................................................32 5.3.10 Asbestos-Containing Materials (ACM) ............................................................................32 5.3.11 Radon................................................................................................................................33 5.3.12 Lead-Based Paint..............................................................................................................33 INTERVIEWS ..............................................................................................................................................34 6.1 6.2 6.3 6.4 6.5 7.0 FINDINGS AND CONCLUSIONS..............................................................................................................35 7.1 7.2 7.3 7.4 7.5 8.0 Findings ..........................................................................................................................................35 7.1.1 On-Site Environmental Conditions...................................................................................35 7.1.2 Off-Site Environmental Conditions ..................................................................................35 7.1.3 Previously Resolved Environmental Conditions ..............................................................35 7.1.4 De Minimis Environmental Conditions ............................................................................35 Opinion ...........................................................................................................................................36 Conclusions.....................................................................................................................................36 Recommendations...........................................................................................................................37 Deviations .......................................................................................................................................37 REFERENCES..............................................................................................................................................38 8.1 8.2 9.0 Interview with Owner .....................................................................................................................34 Interview with Site Manager...........................................................................................................34 Interview with Occupants ...............................................................................................................34 Interview with Local Government Officials ...................................................................................34 Interviews with Others....................................................................................................................34 Reports, Plans, and Other Documents Reviewed: ..........................................................................38 Agencies Contacted: .......................................................................................................................38 signatures of environmental professionals ....................................................................................................39 9.1 9.2 Qualification of Environmental Professionals ................................................................................39 All Appropriate Inquiries Conformance .........................................................................................39 FIGURES Figure 1 Figure 2 Figure 3 Site Vicinity Map Site Plan Topographic Map ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 ii STERLING SAVINGS BANK APPENDIX Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H Site Photographs Historical Research Documentation Exhibit B-1 Aerial Photographs Exhibit B-2 Fire Insurance Maps Exhibit B-3 City Directories Exhibit B-4 Title Search Records Regulatory Records Documentation Exhibit C-1 Mapped Database Report Exhibit C-2 General Public Records Interview Records Client-Provided Documentation Laboratory Reports Other Supporting Documentation Qualifications Of Envionmental Professionals ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 iii STERLING SAVINGS BANK EXECUTIVE SUMMARY Alpha Environmental Services, Inc. (Alpha) has performed a Phase I Environmental Site Assessment (ESA) in accordance with the scope of work and limitations set forth by Sterling Savings Bank for the 6701-17 SE Milwaukie Property located at 6701-6717 SE Milwaukie Avenue, Portland, OR 97202 (the “Property”). The Phase I Environmental Site Assessment is designed to provide Sterling Savings Bank with an assessment concerning environmental conditions (limited to those issues identified in the report) as they exist at the property. This assessment was conducted utilizing generally accepted ESA industry standards in accordance with the All Appropriate Inquiry (AAI) standard ASTM E 1527-05, Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process and Sterling Savings Bank scope of work. The Property is comprised of two tax lots (15100 and 15200) which are 0.16 and 0.18 acres in size, respectively. The structure on the northern parcel was built in 1942, and the one on the southern site was built in 1929. The northwestern portion of the Property is occupied by an asphalt surfaced parking lot. The Property is used for commercial purposes. The Property was developed with residential structures sometime prior to 1909. By 1929, the dwelling was removed from the southeastern portion of the Property and a commercial structure was built. By 1936, the dwelling on the northeastern portion of the Property was removed and replaced by a commercial structure. The western half of the Property remained undeveloped until the early 1940s when it was paved and used as a parking lot. By approximately 1950, the structure at 6717 SE Milwaukie almost doubled in size as it expanded onto the southwestern portion of the Property with a warehouse area. The Property has been used for retail and restaurant purposes since these structures were built. A dry cleaner has occupied the northern structure (6701 SE Milwaukie) since approximately 1954. The current occupant has reportedly been onsite for three years. For the first two years of operation, the clothing was sent to a different store for cleaning. In the last year clothing has been cleaned onsite, the equipment operated on site is closed-loop 4th generation dry cleaning all-in-one machines; the used solvents are collected in a closed bucket behind the machine and are removed from the Property by Safety-Kleen when the bucket is full. Safety-Kleen has collected the solvents twice in the last year. The facilities were found in general good conditions and best management practices in place; however, dry cleaning practices prior to the current occupant are unknown. Based on the fact that the equipment operated on site is closed-loop 4th generation dry cleaning all-in-one machines, the waste generated is removed from the Property and that best management practices are in place, the current dry cleaning operation represents a low risk to environmentally impact the Property. During the site reconnaissance, a fill cap and vent pipe were noted next to the exterior stairs in the parking lot on the Property. There is a high potential that they are connected to an underground storage tank onsite. Also, in the sidewalk on the north side of the parking lot, a metal ring filled with concrete was observed. This is potentially a fill cap. In addition, a fill cap labeled “oil” was observed in the sidewalk to the east of the Property, along SE Milwaukie Avenue. However, based on the location of this cap, it is most likely associated with the site adjacent to the south of the Property (6805 SE Milwaukie). No evidence was found that these potential tanks have been decommissioned or the underlying sampled. Based on the age of the structures, there is a potential that Asbestos Containing Materials (ACM) and/or LeadBased Paint (LBP) may be present onsite. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 1 STERLING SAVINGS BANK The site is situated within an urban area in downtown Portland, Oregon. The commercial structures are bound to the north by SE Glenwood Avenue, beyond which is a parking lot; to the east by SE Milwaukie Avenue, beyond which are commercial structures including the Moreland Theatre, restaurants, and retail businesses; to the south are retail businesses and offices; and to the west is a coffee roaster and a law office. The site adjacent to the north of the Property, beyond SE Glenwood Avenue, was a gas station from approximately 1950 until 1965. No records of sampling or clean-up activities were found with the DEQ for this site. A dry cleaning business was located adjacent to the south of the Property from the 1930s until approximately 2007. Based on the Department of Environmental Quality’s (DEQ) Leaking Underground Storage Tank (LUST) department letter of No Further Action (NFA) for the site, on October 17, 2001 K&S Environmental collected soil samples beneath two 250 gallon Underground Storage Tanks (USTs) used for storing dry cleaning solvents. The sampling detected mineral spirits (Stoddards solvent) at concentrations up to 8550 ppm in soil directly beneath the tanks. The tanks were cleaned of sludge and solvent residue and decommissioned in place. Further sampling revealed a pocket of petroleum contamination 80 cubic yards in volume located between 8 and 14.5 feet below ground surface (bgs) beneath the tanks, and radiating out 6 to 10 feet from the tanks. The maximum concentration of total petroleum hydrocarbons (TPH) detected in the pocket of contamination was 8550 ppm. A risk-based assessment was performed on the site, and it was determined that no contaminant of concern was found at a concentration exceeding its human health riskbased screening level and groundwater is believed to first occur at a depth of 30 feet or greater. Therefore, the pocket of soil contamination was left onsite. The DEQ granted a letter of No Further Action (NFA) on January 7, 2002. Alpha obtained and reviewed a database report from TRACK Info Services, LLC for the Property and the surrounding area. Based on the database report, no other sites were identified as having more than a low potential to impact the Property. Conclusions Alpha has performed a Phase I Environmental Site Assessment in conformance with the scope and limitations of ASTM Practice E 1527-05 of 6701-6717 SE Milwaukie Avenue, Portland, OR 97202, the Property. Any exceptions to or deletions from this practice are described in Section 1.4 of this report. This assessment has revealed no evidence of recognized environmental conditions in connection with the Property, except for the following: • A dry cleaning business has been present on the Property (6701 SE Milwaukie) since approximately 1954. The current occupant has reportedly been on site for the past three years and has best management practices in place; however, the prior dry cleaning practices are unknown. • A dry cleaning business was located on the site adjacent to the south of the Property from the 1930s until approximately 2007. An NFA letter from the DEQ has been issued for the risk-based assessment of two 250-gallon leaking underground storage tanks (LUSTs) on the Property. However, a pocket of contamination was left onsite as it was determined that it did not threaten human health or the environment. • A gas station was located on the site adjacent to the north of the Property, beyond SE Glenwood, from approximately 1950 until 1965. No records of sampling or clean-up activities were found with the DEQ for this site. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 2 STERLING SAVINGS BANK • During the site reconnaissance, a fill cap and vent pipe were noted next to the exterior stairs in the parking lot on the Property. There is a high potential that they are connected to an underground storage tank (UST) onsite. Two other objects that may potentially be associated with underground storage tanks on the Property were noted in the sidewalks on the north and east side of the Property. • Based on the age of the structure, there is a potential that Asbestos Containing Materials (ACM) and/or Lead-Based Paint (LBP) may be present onsite. This assessment has revealed no other evidence of recognized environmental conditions or associated issues in connection with the Property. Recommendations Based on the findings of this ESA, Alpha recommends the following: • To address the potential of contamination on the Property from activities associated with the dry cleaning business present on the Property, the dry cleaning business present adjacent to the south, and the gas station adjacent to the north, soil and groundwater samples should be collected onsite. • The potential USTs should be investigated further. If they are determined to be USTs, soil samples should be collected and unused tanks decommissioned in accordance with DEQ standards. • Before any demolition or remodeling occurs in the future, an ACM and LBP survey should be performed onsite. The following table summarizes the findings of the significant elements of this investigation. Recognized Environmental Condition: Issues Identified in Environmental Record Sources Present Onsite: Standard Present Offsite Adjacent: no YES unknown n/a no no Historic use of concern (drycleaners, lumber mill, auto repair facility, etc.) YES YES Hazardous Materials and/or Petroleum Products YES n/a Unlabeled containers and/or drums no n/a Evidence of Release (staining, etc.) no no Polychlorinated Biphenyls no n/a Landfills no no Fire Department UST permits Oil or gas wells ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 3 STERLING SAVINGS BANK Pits, ponds, lagoons, sumps, catch basins no no YES n/a no no Asbestos Containing Materials (ACM) Unknown n/a Radon Unknown n/a Lead Based Paint Unknown n/a no no ASTs and USTs Radiological Hazards Other ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 4 STERLING SAVINGS BANK 1.0 INTRODUCTION Alpha Environmental Services, Inc. (Alpha) was retained by Sterling Savings Bank to conduct a Phase I Environmental Site Assessment (ESA) of the 6701-17 SE Milwaukie Property located at 6701-6717 SE Milwaukie Avenue, Portland, OR 97202 (the Property). The protocol used for this assessment is in conformance with ASTM E 1527-05, Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process and Sterling Savings Bank scope of work. On October 29, 2007, Katie Lethe, a representative of Alpha, conducted a site reconnaissance to assess the possible presence of petroleum products and hazardous materials at the Property. Alpha’s investigation included review of aerial photos, reconnaissance of adjacent properties, background research, and review of available local, state, and federal regulatory records regarding the presence of petroleum products and/or hazardous materials at the Property. Alpha contracted TRACK Info Services, LLC of Los Angeles, California, to perform a computer database search for local, state, and Federal regulatory records pertaining to environmental concerns for the Property and properties in the vicinity of the Property (see Section 3.0). 1.1 Purpose The purpose of this Phase I Environmental Site Assessment (ESA) was to identify existing or potential Environmental Conditions (as defined by ASTM Standard E-1527-05) in connection with the Property. Alpha understands that the findings of this study will be used by Sterling Savings Bank to evaluate a pending financial transaction in connection with the Property. 1.2 Scope of Services The scope of work for this ESA is in accordance with Sterling Savings Bank Phase I Environmental Site Assessment protocol and is in general accordance with the requirements of ASTM Standard E 1527-05. Alpha warrants that the findings and conclusions contained herein were accomplished in accordance with the methodologies set forth in the Scope of Work. These methodologies are described as representing good commercial and customary practice for conducting an Environmental Site Assessment of a property for the purpose of identifying recognized environmental conditions. No other warranties are implied or expressed. 1.3 Assumptions There is a possibility that even with the proper application of these methodologies there may exist on the Property conditions that could not be identified within the scope of the assessment or which were not reasonably identifiable from the available information. Alpha believes that the information obtained from the record review and the interviews concerning the site is reliable. However, Alpha cannot and does not warrant or guarantee that the information provided by these other sources is accurate or complete. The methodologies of this assessment are not intended to produce all inclusive or comprehensive results, but rather to provide Sterling Savings Bank with information relating to the Property. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 5 STERLING SAVINGS BANK 1.4 Limitations and Exceptions The findings and conclusions contain all of the limitations inherent in these methodologies that are referred to in ASTM E 1527-05. Specific limitations and exceptions to this ESA are more specifically set forth below: 1.4.1 Data Failure A data failure is defined in ASTM E 1527-05 as “A failure to achieve the historical research objectives . . . even after reviewing the standard historical sources . . . that are reasonably ascertainable and likely to be useful. Data failure is one type of data gap.” No significant data failure was encountered during this Phase I Environmental Site Assessment. 1.4.2 Data Gaps A data gap is defined in ASTM E 1527-05 as “a lack of or inability to obtain information required by this practice despite good faith efforts by the environmental professional to gather such information.” At the time of the site reconnaissance, the site occupants stated that there was no basement. However, the Multnomah County Assessor and City of Portland records later indicated that the structure located at 6717 SE Milwaukie has a basement. The basement was therefore not viewed during the site reconnaissance. 1.5 User Responsibilities As outlined in ASTM E 1527-05, it is the responsibility of the User of this Phase I Environmental Site Assessment to provide the following pieces of information: 1.6 Environmental clean-up liens and Activity and Use Limitations (AULs): The User must search for environmental clean-up liens and AULs. AULs include institutional controls (ICs) and engineering control s(ECs). Specialized knowledge: Property. Relationship of purchase price to fair market value of Property, if not contaminated: The User must consider the relationship of the purchase price of the Property to the fair market value of the Property if it was not contaminated. The User must consider specialized knowledge about the Special Terms and Conditions The work performed is governed by our verbal agreement with Shawn Marvin of Sterling Savings Bank agreed upon on October 19, 2007. The conclusions and findings set forth in this report are strictly limited in time and scope to the date of the evaluations. The conclusions presented in the report are based solely on the services described therein, and not on scientific tasks or procedures beyond the scope of agreed-upon services or the time and budgeting restraints imposed by the client. No subsurface exploratory ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 6 STERLING SAVINGS BANK drilling or sampling was done under the scope of this work. Unless specifically stated otherwise in the report, no chemical analyses have been performed during the course of this ESA. Some of the information provided in this report is based upon personal interviews, and research of available documents, records, and maps held by the appropriate government and private agencies. This is subject to the limitations of historical documentation, availability, and accuracy of pertinent records, and the personal recollections of those persons contacted. 1.7 Use Reliance “Client”, in evaluating a request for an extension of credit (the “Loan”) to be secured by the property may rely upon this report. This information also may be used by any actual or prospective purchaser, transferee, assignee, or servicer of the Loan, any actual or prospective investor (including agent or advisor) in any securities evidencing a beneficial interest in or backed by the Loan, any rating agency actually or prospectively rating any such securities, any indenture trustee, and any institutional provider(s) from time to time of any liquidity facility or credit support for such financing. In addition, this report or a reference to this report may be included or quoted in any offering circular, registration statement, or prospectus in connection with a securitization or transaction involving the Loan and/or such securities. This report has no other purpose and should not be relied upon by any other person or entity. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 7 STERLING SAVINGS BANK 2.0 SITE DESCRIPTION 2.1 User Provided Information Pursuant to ASTM E 1527-05, Alpha requested the following site information from Sterling Savings Bank (User of this report) and from the site contact. ITEM PROVIDED BY USER 2.1.1 Environmental Pre-survey Questionnaire NOT PROVIDED BY USER X 2.1.3 Environmental Liens or Activity and Use Limitation X 2.1.4 Specialized Knowledge X 2.1.5 Valuation Reduction for Environmental Issues X 2.1.6 Identification of Key Site Manager X YES, SEE SECTION 1.1 2.1.8 Prior Environmental Reports 2.2 DOES NOT APPLY X 2.1.2 Title Records 2.1.7 Reason for Performing Phase 1 ESA DISCUSSED BELOW X Location and Legal Description The address of the Property is 6701-6717 SE Milwaukie Avenue, Portland, OR 97202. The Property is located in a commercial area of Multnomah County. According to the Multnomah County Assessor’s Office, the Property consists of two parcels and the assessor’s parcel numbers of the Property are R134053 and R134502. The legal description is attached in Appendix G. According to the Multnomah County Tax Assessor’s office, the Property is currently owned by Scope Business Co. Inc. who has owned the Property since 1987. 2.3 Site and Vicinity General Characteristics The Property is located in a commercial area that is characterized by numerous retail businesses and restaurants. There is also residential development in the vicinity. The Property is zoned CS – Storefront Commercial by the City of Portland. The Property consists of two rectangular-shaped parcels approximately 0.16 and 0.18 acres in size— totaling 0.34 acres in size. The Property is designed and used for commercial purposes. Currently, the Property is developed with two structures. The one on the northern parcel was constructed in 1942 and the one on the southern parcel was constructed in 1929. The site offers a total of three tenant spaces, for commercial use. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 8 STERLING SAVINGS BANK Access to the asphalt-surfaced Property parking lot on the northwestern portion of the Property is provided from Glenwood Avenue. The surface lot accommodates approximately six to eight vehicles. No other structures or significant surface features were noted on the Property at the time of the reconnaissance. Exterior The building on the northern parcel is of concrete slab-on-grade with brick construction and has an interior square footage of 3,500. The building on the southern parcel is of concrete slab-on-grade with concrete tilt-up construction and has an interior square footage of 7,400 on the main level and 1,000 in an unfinished basement. The structures have built-up roofs. Interior The interior of the building on the northern parcel consists of painted concrete walls and decorative mud finish on the ceilings. The front entryway floor is covered with carpet, the hallway is covered with vinyl floor tiles, and the back is exposed concrete. The interior of the building on the southern parcel consists of two businesses: an antique store and a bar. The antique store’s interior is of painted gypsum wallboard walls and ceiling. The bar’s interior is of painted gypsum wallboard and has acoustical ceiling tiles. The floors of both have vinyl floor tiles. The antique store has a top level that has wood flooring. 2.4 Current Use of the Property At the present time, the Property is developed with two structures that are currently used for commercial purposes. According to the City of Portland, the Property is zoned CS—Storefront Commercial. The occupancy at the time of the site reconnaissance was reported to be 100% percent. Based on the information reviewed during the preparation of this report and the observations made during the reconnaissance of the Property, the tenant spaces are currently occupied by the tenants and activities identified in the table below: SITE OCCUPANTS UNIT TENANT OPERATION 6701 SE Milwaukie Avenue Westmoreland Cleaners Westmoreland Cleaners is a dry cleaning business that utilizes the building to perform dry cleaning functions. As part of the process, small amounts of hazardous waste in the form of dry cleaning solvents are generated. It is stored in a plastic container that was properly labeled and grounded. According to the owner, he has operated his business on the Property for approximately 3 years. During the first two years, the clothes were sent to a different location for cleaning. In the last year they have been cleaned onsite, and the waste generated has been collected by Safety-Kleen twice in the last year. The facilities were found in general good condition and best management practices in place. 6707 SE Milwaukie Pogo’s Tavern Pogo’s is a tavern that serves food and alcoholic beverages. According to the patrons in the facility at the time of the site reconnaissance, it has ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 9 STERLING SAVINGS BANK SITE OCCUPANTS UNIT Avenue TENANT 6717 SE Milwaukie Avenue 2.5 Star’s Antiques OPERATION been operating for approximately 30 to 40 years. More Stars is an antique store. According to the store manager, it has been on the Property for approximately 8 to 9 years. Description of Site Utilities Stormwater runs over land to the municipal storm drains in the street. The City of Portland supplies drinking water to the property from the municipal distribution system. Sanitary discharges on the Property are discharged into the municipal sanitary sewer system. No septic systems or drywells were discovered onsite during this investigation. The heating system onsite is powered by natural gas. Electricity is provided to the Property by Portland General Electric (PGE). Natural gas is provided by Northwest Natural Gas. 2.6 Current Use of Adjoining Properties During the vicinity reconnaissance, Alpha observed the following land use on properties in the immediate vicinity of the Property. North: Adjacent to the north of the Property, beyond Glenwood Avenue, is a customer parking lot. South: Adjacent to the south of the Property is Digital Vision (6805A SE Milwaukie) and Clogs N More (6805 SE Milwaukie) shoe store. East: Adjacent to the east of the Property is SE Milwaukie Avenue, with Limelight (6708 SE Milwaukie), Moreland Theatre (6712 SE Milwaukie), and Haggis McBaggis Restaurant (6716 SE Milwaukie) beyond. West: Adjacent to the west of the Property is an office building housing a Sports Medicine business. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 10 STERLING SAVINGS BANK 3.0 USER PROVIDED INFORMATION 3.1 Title Records A 50-year chain-of-title was not requested for this study. Historical use of the Property was researched using other standard historical sources. 3.2 Environmental Liens or Activity and Use Limitations (AULs) According to the User of this report, no environmentally-related liens Activity and Use Limitations (AULs) have been recorded against the Property. 3.3 Specialized Knowledge The Mr. Pham, the owner of Westmoreland Cleaners, the dry cleaner on the Property, stated that he has occupied the site for approximately three years. The first two years he performed no dry cleaning operations onsite. All clothes were sent to his other store to be cleaned, and then returned to the Property to be picked-up. In the past year, dry cleaning equipment began to be used onsite. The equipment operated on site is closed-loop 4th generation dry cleaning all-in-one machines; the used solvents are collected in a closed bucket behind the machine and are removed from the Property by Safety-Kleen when the bucket is full. Safety-Kleen has collected the solvents twice in the last year. The facilities were found in general good conditions and best management practices in place. The managers of both More Stars and Pogo’s stated that no hazardous materials were used or stored onsite. 3.4 Commonly Known or Reasonably Ascertainable Information Based on the commonly known activities of a dry cleaner, there is a potential that hazardous materials have been used and stored onsite 6701 SE Milwaukie. Based on the commonly known activities of an antique store and of a tavern, there is a low potential for hazardous materials to be used onsite 6707-17 SE Milwaukie. 3.5 Valuation Reduction for Environmental Issues No valuation reduction was reported by the User. 3.6 Owner, Property Manager, and Occupant Information The Property Contact, Mr. Don Hanna Jr., was interviewed for this review. He said he was not aware of any environmental issues on the Property. 3.7 Reason for Performing Phase I Alpha understands that the findings of this study will be used by Sterling Savings Bank to evaluate a pending financial transaction in connection with the Property. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 11 STERLING SAVINGS BANK 3.8 Other No other relevant User provided information was used for this review. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 12 STERLING SAVINGS BANK 4.0 RECORDS REVIEW 4.1 Standard Environmental Record Sources 4.1.1 State and Federal Regulatory Review Information from standard Federal and state environmental record sources was provided through TRACK Info Services, LLC. Data from governmental agency lists are updated and integrated into one database, which is updated as these data are released. This integrated database also contains postal service data in order to enhance address matching. Records from one government source are compared to records from another to clarify any address ambiguities. The demographic and geographic information available provides assistance in identifying and managing risk. The accuracy of the geocoded locations is approximately +/-300 feet. In some cases, location information supplied by the regulatory agencies is insufficient to allow the database companies to geocoded facility locations. These facilities are listed under the unmappables section within the TRACK Info Services, LLC report. A review of the unmappable facilities indicated that one of these facilities are within the ASTM minimum search distance from the Property. This facility is discussed under the appropriate database heading below. Regulatory information from the following database sources regarding possible recognized environmental conditions, within the ASTM minimum search distance from the Property, was reviewed. Specific facilities are discussed below if determined likely that a potential recognized environmental condition has resulted at the Property from the listed facilities. Please refer to Appendix C-1 for a complete listing. AMSD* On Property Adjacent Properties <1/8 mile 1/8 to 1/4 mile 1/4 to 1/2 mile > 1/2 mile Federal National Priority List (NPL) 1.0 0 0 0 0 0 0 Federal Delisted NPL List 0.5 0 0 0 0 0 Federal CERCLIS list 1.0 0 0 0 0 0 Federal CERCLIS NFRAP list 0.5 0 0 0 0 0 Federal Lists ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 13 STERLING SAVINGS BANK Federal RCRA CORRACTS TSD Facilities List 1.0 0 0 0 0 0 Federal RCRA NonCORRACTS TSD Facilities List 0.5 0 0 0 0 0 0 Federal Institutional Control (IC) and Engineering Control (EC) Registries Property 0 Federal RCRA Generators Site and adjoining 0 0 Federal RCRA No Longer Regulated (NLR) Generators Site and adjoining 0 0 Federal ERNS Sites Site and adjoining 0 0 State Lists AMSD* On Property Adjacent Properties <1/8 mile 1/8 to 1/4 mile 1/4 to ½ mile > 1/2 mile State Equivalent CERCLIS list 0.5 0 0 0 0 0 State and Tribal Landfill and/or Solid Waste Disposal (SWD) Sites List 0.5 0 0 0 0 0 State and 0.5 0 1 18 67 163 ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 14 STERLING SAVINGS BANK Tribal Leaking Underground Storage Tank (LUST) List State and Tribal Registered Underground Storage Tank (UST) List Site and adjoining 0 State and Tribal Institutional Control (IC) and Engineering Control (EC) Registries Property 0 State Spills List Vicinity 0 0 1 0 0 Brownfields 0.5 0 0 0 0 0 0 0 *AMSD: Approximate Minimum Search Distance, in miles, pursuant to ASTM E 1527-05 Federal NPL The National Priorities List (NPL) is the Environmental Protection Agency (EPA) database of uncontrolled or abandoned hazardous waste sites identified for priority remedial actions under the Superfund Program. The Property is not listed as a NPL facility. No NPL sites are located within one mile of the Property. Federal CERCLIS List The Comprehensive Environmental Response, Compensation and Liability Information System (CERCLIS) list is a compilation of sites that the EPA has investigated or is currently investigating for a release or threatened release of hazardous substances. The Property is not listed as a CERCLIS facility. No CERCLIS sites are listed within onehalf mile of the Property. Federal CERCLIS NFRAP Sites List The CERCLIS No Further Remedial Action Planned (NFRAP) List is a compilation of sites that the EPA has investigated, and has determined that the facility does not pose a threat to human health or the environment, under the CERCLA framework. . ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 15 STERLING SAVINGS BANK The Property is not listed as a CERCLIS-NFRAP facility. No CERCLIS-NFRAP sites are listed within one half mile of the Property. Federal Resource Conservation and Recovery Act (RCRA) CORRACTS TSD Facilities List The EPA Resource Conservation and Recovery Act (RCRA) Program identifies and tracks hazardous waste from the point of generation to the point of disposal. The RCRA Treatment, Storage and Disposal (TSD) database is a compilation by the EPA of reporting facilities that treat, store or dispose of hazardous waste. The CORRACTS database is the EPA’s list of treatment storage or disposal facilities subject to corrective action under RCRA. The Property is not listed as a RCRA CORRACTS TSD facility. No RCRA CORRACTS TSD facilities are listed within one mile of the Property. Federal Resource Conservation and Recovery Act (RCRA) Non-CORRACTS TSD Facilities List The RCRA TSD database is a compilation by the EPA of reporting facilities that treat, store or dispose of hazardous waste. The Property is not listed as a RCRA-TSD facility. No RCRA TSD sites are listed within one-half mile of the Property. Federal Institutional Control/Engineering Control (IC/EC) Registries Any Federal institutional controls and/or engineering controls imposed on the Property would have been listed in one of the above-referenced registries. Since the Property is not listed on any of the above-referenced registries, there is a low potential for federal institutional controls and/or engineering controls to have been imposed on the Property. Federal RCRA Generator List The RCRA program identifies and tracks hazardous waste from the point of generation to the point of disposal. The RCRA Generators database is a compilation by the EPA of reporting facilities that generate hazardous waste. The Property is not listed as a RCRA facility. No RCRA Generator facilities are listed on the Property or on the adjacent properties. Federal Emergency Response Notification System (ERNS) The Emergency Response Notification System (ERNS) is a national database used to collect information or reported release of oil or hazardous substances. No ERNS sites were listed on the Property or on the adjacent properties. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 16 STERLING SAVINGS BANK State Priority List The state of Oregon does not maintain a State Priority List (SPL) of sites considered to be actually or potentially contaminated and presenting a possible threat to human health and the environment. State and Tribal CERCLIS-Equivalent List The Oregon Department of Environmental Quality (DEQ) maintains a State and Tribal CERCLIS-equivalent list (SCL) of sites under investigation that could be actually or potentially contaminated and presenting a possible threat to human health and the environment. The Property is not listed as a State or Tribal CERCLIS facility. No SCL sites are listed within one-half mile of the Property. Solid Waste/Landfill Facilities (SWLF) A database of SWLF is prepared by Oregon Department of Environmental Quality (DEQ). The Property is not listed as a SWLF facility. No SWLF facilities are listed within one-half mile of the Property. State and Tribal Leaking Underground Storage Tank List (LUST) The Oregon Department of Environmental Quality (DEQ) compiles lists of all leaks of hazardous substances from underground storage tanks. The US EPA Region 10 maintains an inventory of Indian Land leaking underground storage tanks currently under federal administration. The Property is not listed as a LUST facility. 248 LUST sites are listed within one-half mile of the Property. Of these, 163 are located at a distance of greater than one-quarter mile from the Property. Of the remaining eighty-five sites, sixty-eight have been remediated according to DEQ standards and the files have been closed. The remaining seventeen open sites have contamination that is limited to surface soils. Since groundwater has not been impacted, there is a low potential for contamination from these sites to migrate to the Subject Property. One of these closed sites is located adjacent to the south of the Property and is discussed below: • Dral Cleaners is located at 1623 Bybee Blvd., Portland, OR 97202. On October 17, 2001 K&S Environmental collected soil samples beneath two 250 gallon Underground Storage Tanks (USTs) used for storing dry cleaning solvents. The sampling detected mineral spirits (Stoddards solvent) at concentrations up to 8550 ppm in soil directly beneath the tanks. The tanks were cleaned of sludge and solvent residue and decommissioned in place. Further sampling revealed a pocket of petroleum contamination 80 cubic yards in volume located between 8 and 14.5 feet below ground surface (bgs) beneath the tanks, and radiating out 6 to 10 feet from the tanks. The maximum concentration of total petroleum hydrocarbons (TPH) detected in the pocket of contamination was 8550 ppm. A risk-based assessment was performed on the site, and it was determined that no contaminant of ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 17 STERLING SAVINGS BANK concern was found at a concentration exceeding its human health risk-based screening level and groundwater is believed to first occur at a depth of 30 feet or greater. Therefore, the pocket of soil contamination was left onsite. The DEQ granted a letter of No Further Action required (NFA) on January 7, 2002. State and Tribal Underground Storage Tank List (UST) The Oregon Department of Environmental Quality (DEQ) compiles a list of UST locations. The US EPA Region 10 maintains an inventory of Indian Land underground storage tanks currently under federal administration. The Property is not listed as an UST facility. No registered UST facilities are listed adjacent to the Property. State and Tribal Institutional Controls/Engineering Controls (IC/EC) Registries Any State or Tribal institutional controls and/or engineering controls imposed on the Property would have been listed in one of the above-referenced registries. Since the Property is not listed on any of the above-referenced registries, there is a low potential for state or tribal institutional controls and/or engineering controls to have been imposed on the Property. State Spill Sites The Oregon Fire Marshal compiles a list of spills that have occurred in the state of Oregon. One spill site is located in the vicinity of the Property. This site is a drug lab located at 7025 SE 17th Avenue, Portland, OR 97202. It was discovered and remediated in 1999. Drug labs generally consist of surface contamination that is removed when the site is remediated. Since this site was remediated approximately eight years ago, there is a low potential for this spill site to impact the Property. Brownfields The Oregon Department of Environmental Quality (DEQ) maintains a list of Brownfields sites as part of its Environmental Cleanup Site Information System (ECSI). No State or Tribal Brownfields sites were listed within one-half mile of the Property. 4.1.2 Local Regulatory Review 4.1.2.1 Fire Officials Records from Portland Fire Department were reviewed for evidence indicating the presence of underground storage tanks and for the use of hazardous materials. Historical permits are currently being scanned by the department so that they can be accessed online in the future. Therefore, they are not available to view and a record request must be submitted. Alpha submitted a record request on October 29, 2007. On November 2, 2007 the department was contacted to check on the status of the request and a voice message was recorded. By November 5, 2007, still no information had been received and so the department was contacted a ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 18 STERLING SAVINGS BANK second time. The contact, Susan, stated that the request had not yet been sent to the appropriate office and would be sent on that day. By the date of publication of this report, no information had been received from the Portland Fire Department. 4.1.2.2 Building Department Records from Portland Building Department were reviewed for evidence indicating the developmental history of the subject Site, and for the presence of documentation relative to underground storage tanks. The records indicate the current site structures were constructed in 1929 (6717 SE Milwaukie) and 1942 (6701 SE Milwaukie). A building plan on file for 6717 SE Milwaukie shows an area on the first floor that is labeled, “Remove fl. Furnace and cap plumbing, patch floor with MGR conc. over building paper & laminated wood deck. Cut off pipes & plug. Plug floor holes.” (See Appendix G). Based on the age of this structure, there is a potential that this may have been the location of an oil furnace. Prior land use was not indicated. 4.1.2.3 Other Agencies A letter of No Further Action for the site adjacent to the south of the Property, Dral Cleaners, was requested from the DEQ. The contents of the letter are discussed in section 4.1.1. 4.2 Physical Setting Sources 4.2.1 Topography The United States Geological Survey (USGS), Lake Oswego, OR Quadrangle 7.5 minute series topographic map was reviewed for this ESA. This map was published by the USGS in 1981. According to the contour lines on the topographic map, the Property is located at approximately 100 feet above mean sea level (MSL). The contour lines in the area of the Property indicate the area is sloping gently to the east. The Willamette River is located approximately 0.47 miles to the west of the Property and Crystal Springs Lake is located approximately 0.35 miles to the east of the Property. 4.2.2 Soils/Geology The Property is located in the Cascade Range Province. The bedrock is classified as the Qs rock unit, which consists of lacustrine and fluvial sedimentary rocks dating from the Pleistocene. The description is as follows; “Unconsolidated to semiconsolidated lacustrine clay, silt, sand, and gravel; in places includes mudflow and fluvial deposits and discontinuous layers of peat. Includes older alluvium and related deposits of Piper (1942), Willamette Silt (Allison, 1953; Wells and Peck, 1961), alluvial silt, sand, and gravel that form terrace deposits of Wells and others (1983), and Gresham and Estacada Formations of Trimble (1963).” ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 19 STERLING SAVINGS BANK Based on the soil survey maps published by the USDA Soil Conservation Service (1983), the Property is mapped as Urban Land Latourell Complex, 0 to 3 percent slopes. This complex consists of Urban land and well drained Latourell soils. In most areas of this comples, the soils have been graded, cut, filled, or otherwise disturbed. This complex is on broad terraces that have long, convex slopes. Areas are generally irregular in shape and 20 to 100 acres in size. The Urban land and Latourell soils are in such an intricate pattern or so small in area that to separate them in mapping was not practical. Eleveation is 50 to 400 feet. The average annual precipitation is 40 to 60 inches, the average annual air tempterature is 52 to 54 degrees F, and the frost-free period is 165 to 210 days. In areas where soils are relatively undisturbed, permeability is moderate and available water capacity it 8 to 12 inches. In areas dominated by cuts, fills, and Urban land, permeability and available water capacity are variable. Runoff is slow, and the hazard of erosion is slight. 4.2.3 Hydrology According to Geological Survey Water-Supply Paper 1793 “Ground Water in the East Portland Area, Oregon” the Property is located within part of a broad downwrap of prePliocene rocks between the Cascade Mountains and the Coast Range. The principal water-bearing rock units in the area are the Troutdale Formation of early Pliocene age, fluviolacustrine deposits of late Pleistocene age, and alluvium of recent age. Each of these water-bearing units is tapped in places by wells that yield moderate to large amounts of water of good chemical quality. The groundwater bodies are chiefly recharged by infiltration of precipitation. According to this Water Resources Department (WRD) online database, first groundwater is located approximately 11-30 feet below grade. However, based on a DEQ letter of No Further Action (NFA) for the site adjacent to the south of the Property, first groundwater is located at a depth of greater than 30 feet below surface grade. Based on the topography of the Property and vicinity, and the Property's proximity to the Willamette River (0.47 miles to the west of the Property) and Crystal Springs Lake (0.35 to the east of the Property), groundwater is anticipated to flow to the east. No on-site water wells or springs were observed during the Property reconnaissance. No settling ponds, lagoons, surface impoundments, wetlands or natural catchbasins were observed at the Property during this investigation. 4.2.4 Flood Zone Information According to the map image produced at ESRI/Federal Emergency Management Agency (FEMA) Project Impact Hazard Site, the Property is not located in a flood zone The map was derived from the effective Flood Insurance Rate Map (FIRM) but the base cartographic map information such as roads, rivers, and political boundaries were not. Therefore, information derived from this map image should be considered an advisory tool for general hazard awareness. 4.2.5 Oil and Gas Exploration According to the Oregon Department of Geology and Mineral Industries, no oil or gas wells are located on the Property. 4.3 Historical Use Information ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 20 STERLING SAVINGS BANK By 1909, the Property was developed with two dwelling and a small shed. By 1928, a third dwelling was added to the Property. By 1929, the dwellings were removed and a commercial structure was built on the southeastern portion of the Property. By 1936, an additional commercial structure was built on the northeastern portion of the Property. The western half of the Property remained undeveloped until the early 1940s when it was paved and used as a parking lot. In the 1940s, the northern commercial structure (6701-11 SE Milwaukie) was occupied by a coffee shop, a dry goods store, a café, and the Oregon Liquor Control Commission. The southern commercial structure (6717 SE Milwaukie) was occupied by a grocery store. By approximately 1950, the structure at 6717 SE Milwaukie almost doubled in size as it expanded onto the southwestern portion of the Property with a warehouse area for Flatt’s furniture store which replaced the grocery store that was previously occupying the site. In approximately 1954, DeMir Cleaners & Dyers replaced Oregon Liquor Control Commission in the 6701 SE Milwaukie structure. That structure has continued to be occupied by a dry cleaner since that time up to the present. In the late 1960s, the restaurant at 6707 SE Milwaukie was replaced by Pogo’s Tavern and has remained unchanged up to the present time. In approximately 1970, Flatt’s Furniture Dealers in 6717 SE Milwaukie was replaced by Graham’s Five, Ten & Twenty-Five Cent Store. In the 1980s, this was changed to Rodger’s Stores, and in approximately 1999 it was changed to Star’s Antique Mall. It has remained unchanged up to the present time. 4.3.1 Aerial Photographs Available aerial photographs dated 1936, 1944, 1956, 1964, 1973, 1980, 1990, 1998, and 2006, from the University of Oregon and GoogleEarth.com were reviewed for this ESA. Copies of selected photographs are included in Appendix B-1 of this report. The photographs are discussed below: Date: Scale: Photo I.D. No.: Description: 1936 n/a 1936-20WVP-2041C In the 1936 photo, the eastern half of the Property is developed with two commercial structures. The western half is undeveloped. Adjacent to the north of the Property is a road with residential structures beyond; to the east is a road with commercial structures beyond; to the south is a commercial structure; and to the west is a residential structure and a vacant lot. No recognized environmental conditions are evident in this photo. Date: Scale: Photo ID: Description: 1944 n/a 1944-20ORS4M-20103V-135 In the 1944 photo, the western half of the Property has been paved. The Property is otherwise unchanged since the 1936 photo. All adjacent sites appear unchanged since the 1936 photo. No recognized environmental conditions are evident in this photo. Date: Scale: ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 1956 n/a 21 STERLING SAVINGS BANK Photo ID: Description: 1956-20OHP-2021-26 In the 1956 photo, the southern structure on the Property has been expanded to occupy the entire southern half of the site. The Property is otherwise unchanged since the 1944 photo. Adjacent to the north of the Property, beyond the road, the two dwellings have been removed and replaced by a gas station. All other adjacent sites appear unchanged since the 1944 photo. Date: Scale: Photo ID: Description: 1964 n/a 1964-20MET-2013-45 In the 1964 photo, the Property appears unchanged since the 1956 photo. Adjacent to the north of the Property, beyond the road, the gas station has been removed and replaced by a parking lot. All other adjacent sites appear unchanged since the 1956 photo. No recognized environmental conditions are evident in this photo. Date: Scale: Photo ID: Description: 1973 n/a 1973-20PO73-209-20 In the 1973 photo, the Property appears unchanged since the 1964 photo. All adjacent sites appear unchanged since the 1964 photo. No recognized environmental conditions are evident in this photo. Date: Scale: Photo ID: Description: 1980 n/a 1980-20PO80-209-27 In the 1980 photo, the Property appears unchanged since the 1973 photo. All adjacent sites appear unchanged since the 1973 photo. No recognized environmental conditions are evident in this photo. Date: Scale: Photo ID: Description: 1990 n/a 1990-20PO90-2011-15 In the 1990 photo, the Property appears unchanged since the 1980 photo. All adjacent sites appear unchanged since the 1980 photo. No recognized environmental conditions are evident in this photo. Date: Scale: Photo ID: ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 1998 n/a 1998-20PO98-2011-14 22 STERLING SAVINGS BANK Description: In the 1998 photo, the Property appears unchanged since the 1990 photo. All adjacent sites appear unchanged since the 1990 photo. No recognized environmental conditions are evident in this photo. Date: Scale: Photo ID: Description: 2006 n/a n/a In the 2006 photo, the Property appears unchanged since the 1998 photo. All adjacent sites appear unchanged since the 1998 photo. No recognized environmental conditions are evident in this photo. 4.3.2 Fire Insurance Maps Sanborn Fire Insurance maps dated 1909, 1928, and 1950 were available for review, and were provided by EDR/Sanborn at the Multnomah County Library. Copies of the maps are included in Appendix B-2. Date: Description: 1909 In the 1909 map, the Property is developed with two dwellings and a small shed. Adjacent to the north of the Property is Glenwood Avenue; beyond which are two dwellings. Adjacent to the west is a vacant lot, with E 16th Street beyond; to the south is a dwelling with a hot house attached; and to the east is Milwaukie Avenue. The area beyond Milwaukie Avenue is not mapped this year. Date: Description: 1928 In the 1928 map, an additional dwelling has been constructed on the Property. It is otherwise unchanged since the 1909 map. Adjacent to the south of the Property, the previous dwelling has been removed and replaced by a different dwelling and two stores. A dwelling has also been constructed on the previously vacant lot adjacent to the west of the property. Adjacent to the east of the Property, beyond Milwaukie Avenue, are vacant lots. To the southeast of the Property, beyond Milwaukie Avenue, is a gas station. The site adjacent to then north of the Property, beyond Glenwood Avenue, is unchanged since the 1909 map. Date: Description: 1950 In the 1950 map, the dwellings have been removed and replaced by a Liquor Store, a Restaurant, and a Furniture Warehouse and Store. Adjacent to the south of the Property, the dwellings have been replaced by a Store and a Drycleaner. An additional dwelling has been constructed on the other previously vacant lot adjacent to the west of the Property. Adjacent to the east of the Property, beyond Milwaukie ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 23 STERLING SAVINGS BANK Avenue, the vacant lots have been developed with approximately ten stores and a movie theatre. The gas station previously located to the southeast of the Property has been replaced by a drug store. Adjacent to the north of the Property, beyond Glenwood Avenue, the dwellings have been removed and replaced by a gas station. 4.3.3 City Directories Historical City directories published by Polk and Cole were reviewed at the Multnomah County Library for past names and business that were listed for the Property and adjoining properties. The listings were reviewed at five year intervals from the present year back to 1939. Occupancies of interest on the Property and adjacent sites are listed below: Property: Year 1939-1943 6701 SE Milwaukie: 6711 SE Milwaukie: 6717 SE Milwaukie: 6701 SE Milwaukie: 6707 SE Milwaukie: 6711 SE Milwaukie: 6717 SE Milwaukie: 6701 SE Milwaukie: 6707 SE Milwaukie: 6717 SE Milwaukie: 6701 SE Milwaukie: 6707 SE Milwaukie: 6717 SE Milwaukie: 6701 SE Milwaukie: 6707 SE Milwaukie: 6717 SE Milwaukie: 6701 SE Milwaukie: 6707 SE Milwaukie: 6717 SE Milwaukie: Store 6701 SE Milwaukie: 6707 SE Milwaukie: 6717 SE Milwaukie: 6701 SE Milwaukie: 6707 SE Milwaukie: 6717 SE Milwaukie: 6701 SE Milwaukie: 6707 SE Milwaukie: 6717 SE Milwaukie: 1943-1950 1950-1953 1954-1965 1965-1970 1970-1975 1975-1985 1985-1999 1999-2007 Listing of Interest Siberian Cream & Coffee Shop Restaurant Teeny David G. Dry Goods Teeny’s Grocery; Poe Luther S. Meats Oregon Liquor Control Commission Kinney’s Café Bybee Florist Vacant Oregon Liquor Control Commission Hosang’s Restaurant Flatt’s Furniture Dealers DeMir Cleaners & Dyers Moreland Restaurant Flatt’s Furniture Dealers Demir Cleaners & Dyers Moreland Floor and Drinks Restaurant Graham’s Fire, Ten & Twenty-Five Cent Store Peter’s Economy Cleaners &Laundry Pogo’s Tavern Graham’s Five, Ten & Twenty-Five Cent Erv’s Cleaners & Laundry Pogo’s Tavern Rodger’s Westmoreland Store Westmoreland Cleaners Pogo’s Tavern Rodger’s Stores Westmoreland Cleaners Pogo’s Tavern More Stars Antique Mall North: Year 1939-1943 1943-1950 1950-1959 ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 Listing of Interest 6661 SE Milwaukie: Vacant 6661 SE Milwaukie: Residential 6661 SE Milwaukie: Foster’s Union Service Station 24 STERLING SAVINGS BANK Year Listing of Interest 6661 Se Milwaukie: Union Oil Station 6661 SE Milwaukie: No Listing 6661 SE Milwaukie: Tea Rific Bento 6661 SE Milwaukie: No listing Year Listing of Interest 6803 SE Milwaukie: Sellwood-Moreland Electric Co. 6805 SE Milwaukie: Besson Hale & Besson Pys. 6809 SE Milwaukie: Tom Thumb Five & Ten Notions 6903 SE Milwaukie: Sirianni Tony Beer Parlorr 6909 SE Milwaukie: Newman Tarbell Co. Real Estate 1623 SE Bybee: Dral Dry Cleaners 1625 SE Byee: Nelson Henry A. Shoe Repairs 1627 SE Bybee: Moreland Barber & Beauty Shop 1631 SE Bybee: Bubble’s Flower Shop 6803-9 SE Milwaukie: Koehler’s Dept. Store 6805 SE Milwaukie: Pebley Gordon V. Chiro & Dentist 6903 SE Milwaukie: Foxcafe 6909 SE Milwaukie: Vacant 1623 SE Bybee: Dral Dry Cleaners 1625 SE Byee: Moreland Shade Shop 1627 SE Bybee: Moreland Barber & Beauty Shop 1631 SE Bybee: Bubble’s Flower Shop 6803 SE Milwaukie: Boldman’s Bootery Shoes 6805 SE Milwaukie: Fillmore Lumber Sales 6809 SE Milwaukie: Koehler’s Clothes 6903 SE Milwaukie: Kay’s Bar & Grill 1623 SE Bybee: Dral Dry Cleaners 1625 SE Byee: Moreland Shade Shop 1627 SE Bybee: Moreland Barber & Beauty Shop 1631 SE Bybee: Flower Shop 6803 SE Milwaukie: M. Caldwell & Olson 6805 SE Milwaukie: Digital Image Inc. 6809 SE Milwaukie: April Showers Wedding Boutique 6903 SE Milwaukie: Kay’s Bar & Grill 1623 SE Bybee: Dral Dry Cleaners 1625 SE Byee: Moreland Shade Shop 1627 SE Bybee: Moreland Barber & Beauty Shop 1631 SE Bybee: Crantford’s Flower Shop 6805 SE Milwaukie: Digital Image Inc. 6809 SE Milwaukie: April Showers Wedding Boutique 6903 SE Milwaukie: Kay’s Bar & Grill 1621 SE Bybee: Oaks Bottom Public House 1623 SE Bybee: Dral Dry Cleaners 1625 SE Byee: Moreland Shade Shop 1627 SE Bybee: Moreland Barber & Beauty Shop 1631 SE Bybee: Crantford’s Flower Shop 1959-1965 1965-1999 1999-2003 2003-2007 South: 1939-1954 1954-1970 1970-1975 1975-1994 1994-2007 ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 25 STERLING SAVINGS BANK East: Year 1939-1950 6712 SE Milwaukie: 6716 SE Milwaukie: 6802 SE Milwaukie: 6808 SE Milwaukie: 6812 SE Milwaukie: 6910 SE Milwaukie: Station #43 6712 SE Milwaukie: 6716 SE Milwaukie: 6802 SE Milwaukie: 6808 SE Milwaukie: 6812 SE Milwaukie: 6910 SE Milwaukie: Station #43 6708 SE Milwaukie: 6712 SE Milwaukie: 6716 SE Milwaukie: 6802 SE Milwaukie: 6808 SE Milwaukie: 6910 SE Milwaukie: 6708 SE Milwaukie: 6712 SE Milwaukie: 6716 SE Milwaukie: 6802 SE Milwaukie: 6808 SE Milwaukie: 6910 SE Milwaukie: 6708 SE Milwaukie: 6712 SE Milwaukie: 6716 SE Milwaukie: 6802 SE Milwaukie: 6808 SE Milwaukie: 6910 SE Milwaukie: 1950-1965 1965-1980 1980-1994 1994-2007 Listing of Interest Moreland Theatre Allnuth Selby Meats, Wizer Jas J. Grocery Wall Frank h. Hardware Moreland Bakery Fashionette Dress Shop Monarch Pharmacy; U.S. Post Office Sub Moreland Theatre Checkaich’s Fine Foods Bybee Hardware Moreland Bakery Jacqueline Shops Women’s Clothes Monarch Pharmacy; U.S. Post Office Sub Pepper Mill Restaurant & Lounge Moreland Theatre Eighty-Eight Cents Discount Mart Wiley Stan Inc.—Realtors Oldtyme Baking Establishment Monarch Pharmacy The Intermezzo Moreland Theatre Hong Chow Restaurant Western Title Co. Coffee Concerto Monarch Pharmacy Limelight Restaurant & Lounge Moreland Theatre Springwater Grill Haggis McBaggis Stickers Asian Cafe Westmoreland Monarch Pharmacy West: Year 1939-1959 1959-1980 1980-1999 1999-2007 ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 Listing of Interest 6716 SE 16th Avenue: Residential 1606-1610 SE Glenwood: Residential 6716 SE 16th Avenue: Residential 1606 SE Glenwood: The Monogram Shop 1610 SE Glenwood: Lawyers 6716 SE 16th Avenue: Residential 6720 SE 16th Avenue: Coffee Roasters 1606 SE Glenwood: Law Offices 1610 SE Glenwood: Oregon Championship; Lawyers 6720 SE 16th Avenue: Coffee Roasters 1606 SE Glenwood: Law Offices 1610 SE Glenwood: Portland Sports Medicine; Lawyers 26 STERLING SAVINGS BANK 4.3.4 Additional Environmental Record Sources No additional environmental record sources were accessed for this report. 4.3.5 Historical Use Information on Adjoining Properties By review of the standard historical sources referenced above, the historical uses of the adjoining properties are summarized below: North: The site adjacent to the north of the Property was developed with two small dwellings sometime prior to 1909. The site remained unchanged until approximately 1950 when the dwellings were removed and replaced by a gas station called Foster’s Union Service Station. The name was later changed to Union Oil Station. In approximately 1964 the gas station was removed and replaced by a parking lot. It has remained unchanged up to the present time. South: By 1909, the site adjacent to the south of the Property was developed with a residential structure with a hot house attached. By 1928, that dwelling was removed and replaced by a different dwelling and two stores. By 1939 these structures were occupied by Dral Dry Cleaners (1623 SE Bybee), Sellwood-Moreland Electric Co. (6803 SE Milwaukie), Besson Hale & Besson Pys (6805 SE Milwaukie), and Tom Thumb Five & Ten Notions (6809 SE Milwaukie). The dry cleaner remained unchanged until approximately 2007. By approximately 1954, the Electric Co. was replaced by Koehler’s Dept. Store, the Physicial was replaced by a Chiropractor and Dentist, and Tom Thumb was replaced by Foxcafe. By approximately 1970, Koehler’s was replaced by Boldman’s Bootery Shoes, the Chiropractor and Dentist was replaced by Fillmore Lumber Sales, and Foxcafe was replaced by Koehler’s Clothes. By approximately 1975, the shoe store was replaced by M. Caldwell & Olson, the lumber store was replaced by Digital Image Inc., and Koehler’s Clothes was replaced by April Showers Wedding Boutique. It has remained unchanged up to the present time. East: The site adjacent to the east, beyond SE Milwaukie Avenue, was vacant until approximately 1935. At that time it was developed with commercial structures. By 1939 the structures were occupied by Moreland Theatre (6712 SE Milwaukie), Allnuth Selby Meats and Grocery (6716 SE Milwaukie), Frank H. Wall Hardware (6802 SE Milwaukie), and Moreland Bakery (6808 SE Milwaukie). By approximately 1965, the grocery store was replaced by Eighty-Eight Cents Discount Mart, and the hardware store was replaced by a Realtor’s office. By approximately 1980, the discount mart was replaced by Hong Chow Restaurant. By approximately 1994, the Realtor office was replaced by Haggis McBaggis, a restaurant. The usages have remained unchanged up to the present time. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 27 STERLING SAVINGS BANK West: ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 Sometime between 1909 and 1928 the site adjacent to the west of the Property was developed with a dwelling. By approximately 1950, a second dwelling was developed on the site. By approximately 1959, one dwelling was occupied by The Monogram Shop and a Law office (1606 to 1610 SE Glenwood). By approximately 1980, a coffee roaster business was started in the other dwelling (6720 SE 16th Avenue). By 1999, a sports medicine business was added to the structure occupied by law offices. The usages of these structures has remained unchanged up to the present time. 28 STERLING SAVINGS BANK 5.0 SITE RECONNAISSANCE The Property was inspected by Katie Lethe on October 29, 2007. 5.1 Methodology and Limiting Conditions The weather at the time of the site visit was overcast and of moderate temperatures. 5.2 General Site Characteristics The Property is located in a commercial area that is characterized by numerous retail businesses and restaurants. There is also residential development in the vicinity. The Property is zoned CS – Storefront Commercial by the City of Portland. The Property consists of two rectangular-shaped parcels approximately 0.16 and 0.18 acres in size— totaling 0.34 acres in size. The Property is designed and used for commercial purposes. Currently, the Property is developed with two structures. The one on the northern parcel was constructed in 1942 and the one on the southern parcel was constructed in 1929. The site offers a total of three tenant spaces, for commercial use. Access to the asphalt-surfaced Property parking lot on the northwestern portion of the Property is provided from Glenwood Avenue. The surface lot accommodates approximately six to eight vehicles. No other structures or significant surface features were noted on the Property at the time of the reconnaissance. 5.2.1 Exterior Observations The building on the northern parcel is of concrete slab-on-grade with brick construction and has an interior square footage of 3,500. The building on the southern parcel is of concrete slab-on-grade with concrete tilt-up construction and has an interior square footage of 7,400 on the main level and 1,000 in an unfinished basement. The structures have built-up roofs. 5.2.2 Interior Observations The interior of the building on the northern parcel consists of painted concrete walls and decorative mud finish on the ceilings. The front entryway floor is covered with carpet, the hallway is covered with vinyl floor tiles, and the back is exposed concrete. The interior of the building on the southern parcel consists of two businesses: an antique store and a bar. The antique store’s interior is of painted gypsum wallboard walls and ceiling. The bar’s interior is of painted gypsum wallboard and has acoustical ceiling tiles. The floors of both have vinyl floor tiles. The Store has a top level that has wood flooring. 5.2.3 Solid Waste Disposal Solid waste on the Property is collected in dumpsters situated in the parking lot on the northwest corner of the Property. The solid waste is collected once a week by Heiberg, and is deposited in the local landfill. No indication of potentially hazardous material disposal was noted during Alpha’s reconnaissance. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 29 STERLING SAVINGS BANK 5.2.4 Surface Water Drainage Surface water drainage is achieved at the Property via gutters channeling water from the Property building to the municipal storm drain system located along SE Milwaukie Avenue. 5.2.5 Wells and Cisterns No aboveground evidence of wells or cisterns was observed during the site reconnaissance. 5.2.6 Wastewater No indications of industrial wastewater disposal or treatment facilities were observed during the onsite reconnaissance. 5.2.7 Additional Site Observations No additional relevant general Site characteristics were observed. 5.3 Potential Environmental Conditions 5.3.1 Hazardous Materials and Petroleum Products Used or Stored at the Site The following table identifies the hazardous materials and hazardous wastes found to be used, stored or generated on the Property. HAZARDOUS SUBSTANCES/WASTES NOTED ONSITE SUBSTANCE Dry cleaning solvents 5.3.1.1 CONTAINER SIZE/ TOTAL AMOUNT LOCATION 10-gallon bucket Behind dry cleaning machine SUBSTANCE USE Dry cleaning DISPOSAL METHOD (IF APPLICABLE) Safety-Kleen disposes of it Unlabeled Containers and Drums No Unlabeled containers or drums were observed during the Site reconnaissance. 5.3.1.2 Disposal Locations of Regulated/ Hazardous Waste According to the Property contact, Mr. Pham, dry cleaning solvents are used at Westmoreland Cleaners. He stated that he has operated his business at that location for approximately the last three years. The first two years, all clothing was sent off-site to Mr. Pham’s other store location to be cleaned. No actual dry cleaning operations were performed on the Property during that time. In the past year, Mr. Pham has been dry cleaning onsite. He stated that the spent solvents are drained from the machine into a 10-gallon bucket. When the bucket is full, Safety-Kleen is called to removed the contents. This has occurred two times in ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 30 STERLING SAVINGS BANK the past year. Mr. Pham was not aware of the practices of the dry cleaning businesses that operated at the site prior to him. 5.3.2 Evidence of Releases No obvious indications of hazardous material or petroleum product releases, such as stained or corroded areas or stressed vegetation, were observed during the site reconnaissance or reported during interviews. Asphalt-paved parking areas exhibited normal surface staining due to use. 5.3.3 Polychlorinated Biphenyls (PCBs) Older transformers and other electrical equipment could contain polychlorinated biphenyls (PCBs) at a level that subjects them to regulation by the U.S. EPA. PCBs in electrical equipment are controlled by United States Environmental Protection Agency regulations 40 CFR, Part 761. Under the regulations, there are three categories into which electrical equipment can be classified: • Less than 50 parts per million (PPM) of PCBs – “Non-PCB” transformer • 50 ppm-500 ppm – “PCB-Contaminated” electrical equipment • Greater than 500 ppm – “PCB” transformer No transformers or other equipment likely to contain PCBs was noted on the Property during the site reconnaissance. 5.3.4 Landfills No evidence of on-site landfilling was observed or reported during the site reconnaissance. 5.3.5 Pits, Ponds, Lagoons, Sumps, and Catch Basins No evidence of on-site pits, ponds, lagoons was observed or reported during the site reconnaissance. No evidence of sumps or catch basins, other than used for stormwater removal, was observed or reported during the site reconnaissance. 5.3.6 On-Site ASTs and USTs During the site reconnaissance, a fill-cap and vent pipe were noted next to the exterior stairs in the parking lot on the Property. There is a high potential that they are connected to an underground storage tank onsite. Also, in the sidewalk on the north side of the parking lot, a metal ring filled with concrete was observed. This is potentially a fill-cap. In addition, a fill cap labeled “oil” was observed in the sidewalk to the east of the Property, along SE Milwaukie Avenue. However, based on the location of this cap, it is most likely associated with the site adjacent to the south of the Property. 5.3.7 Radiological Hazards No radiological substances or equipment was observed or reported stored on the subject site. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 31 STERLING SAVINGS BANK 5.3.8 Drinking Water The Property is connected to the city water supply provided by the Portland Water Bureau. According to the EPA website (http://www.epa.gov/safewater/dwinfo.htm), the drinking water supplied to the site is within state and federal standards, including lead and copper 5.3.9 Additional Hazard Observations No additional hazards were observed on the Site. 5.3.10 Asbestos-Containing Materials (ACM) In accordance with the Scope of Services, Alpha has conducted a limited, visual evaluation of interior, accessible areas for the presence of suspect asbestos containing materials (ACM) at the Property. The objective of this visual survey was to note the presence and condition of suspect ACM observed. Based on the date of construction (1929 and 1942) there is a potential that ACM was used in construction materials. In addition, the Occupational Safety and Health Administration (OSHA) regulation 29 CFR 1926.1101, requires certain construction materials to be presumed to contain asbestos, for purposes of this regulation. All thermal system insulation (TSI), surfacing material, and asphalt/vinyl flooring that are present in a building constructed prior to 1981 and have not been appropriately tested are presumed asbestos containing material (PACM). The survey consisted of noting observable materials (materials which were readily accessible and visible during the course of the site reconnaissance) that are commonly known to potentially contain asbestos. This activity was not designed to discover all sources of suspect ACM, PACM, or asbestos at the site; or to comply with any regulations and/or laws relative to planned disturbance of building materials such as renovation or demolition, or any other regulatory purpose. Rather, it is intended to give the lender an indication if significant (significant due to quantity, accessibility, or condition) potential sources of ACM or PACM are present at the Site. Additional sampling, inspection, and evaluation will be warranted for any other use. No building plans or specifications, which may be useful in determining areas likely to have used ACM, were made available for review. The following table represents a summary suspect ACM observed in this facility. SUSPECT ACM Suspect ACM Vinyl floor tiles Acoustical Ceiling tiles in Pogo’s Estimated Quantity of ACM (SF/LF) n/a n/a Friable Yes/No no yes PACM? yes no Physical Condition Good Good According to the EPA, ACM and PACM that is intact and in good condition can, in general, be managed safely in-place under an Operations and Maintenance (O&M) program until removal is dictated by renovation, demolition, or deteriorating material condition. Prior to any disturbance of the construction materials within this facility, a comprehensive ACM survey is recommended. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 32 STERLING SAVINGS BANK 5.3.11 Radon The US EPA has prepared a map to assist National, State, and local organizations to target their resources and to implement radon-resistant building codes. The map divides the country into three Radon Zones, Zone 1 being those areas with the average predicted indoor radon concentration in residential dwellings exceeding the EPA Action limit of 4.0 picoCuries per Liter (pCi/L). It is important to note that the EPA has found homes with elevated levels of radon in all three zones, and the EPA recommends site specific testing in order to determine radon levels at a specific location. However, the map does give a valuable indication of the propensity of radon gas accumulation in structures. Review of the EPA Map of Radon Zones places the Property in Zone 2, where average predicted radon levels are between 2.0 and 4.0 pCi/L. 5.3.12 Lead-Based Paint A lead-based paint survey was not included in the scope of work for this assessment. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 33 STERLING SAVINGS BANK 6.0 INTERVIEWS Interviews were conducted with the following individuals. Findings from these interviews are discussed in the appropriate sections in this report. 6.1 Interview with Owner 6.2 Mr. Don Hanna Jr., Site Contact, 503-774-8893 Interview with Site Manager 6.3 n/a Interview with Occupants Manager (name withheld), More More Stars, 503-235-9142 Bar tender (name withheld), Pogo’s, 503-233-4220 Mr. Thanh H. Pham, Westmoreland Cleaners, 503-236-6386 6.4 Interview with Local Government Officials Representative (name withheld), City of Portland Records Department, 503-823-7660 Representative (name withheld), Multnomah County Assessor’s Office, 503-988-3356 Representative (name withheld), Portland Fire & Rescue Records, 503-823-3712 6.5 Interviews with Others n/a ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 34 STERLING SAVINGS BANK 7.0 FINDINGS AND CONCLUSIONS 7.1 Findings 7.1.1 On-Site Environmental Conditions Dry cleaning businesses have been located on the Property at 6701 SE Milwaukie Avenue since approximately 1954. The current business has only been on the site for approximately 3 years. Previous practices are therefore unknown. During the site reconnaissance, a fill cap and vent pipe were noted next to the exterior stairs in the parking lot on the Property. There is a high potential that they are connected to an underground storage tank onsite. Also, in the sidewalk on the north side of the parking lot, a metal ring filled with concrete was observed. This is potentially a fill cap. In addition, a fill cap labeled “oil” was observed in the sidewalk to the east of the Property, along SE Milwaukie Avenue. However, based on the location of this cap, it is most likely associated with the site adjacent to the south of the Property. Based on the age of the structures, there is a potential that Asbestos Containing Materials (ACM) and/or Lead-Based Paint (LBP) may be present onsite. 7.1.2 Off-Site Environmental Conditions The site adjacent to the north of the Property, beyond SE Glenwood Avenue, was a gas station from approximately 1950 until 1965. No record of a site investigation or clean-up was encountered during this review. 7.1.3 Previously Resolved Environmental Conditions A dry cleaning business was located adjacent to the south of the Property from the 1930s until approximately 2007. Based on the Department of Environmental Quality’s (DEQ) Leaking Underground Storage Tank (LUST) department letter of No Further Action (NFA) for the site, on October 17, 2001 K&S Environmental collected soil samples beneath two 250 gallon Underground Storage Tanks (USTs) used for storing dry cleaning solvents. The sampling detected mineral spirits (Stoddards solvent) at concentrations up to 8550 ppm in soil directly beneath the tanks. The tanks were cleaned of sludge and solvent residue and decommissioned in place. Further sampling revealed a pocket of petroleum contamination 80 cubic yards in volume located between 8 and 14.5 feet below ground surface (bgs) beneath the tanks, and radiating out 6 to 10 feet from the tanks. The maximum concentration of total petroleum hydrocarbons (TPH) detected in the pocket of contamination was 8550 ppm. A risk-based assessment was performed on the site, and it was determined that no contaminant of concern was found at a concentration exceeding its human health risk-based screening level and groundwater is believed to first occur at a depth of 30 feet or greater. Therefore, the pocket of soil contamination was left onsite. The DEQ granted a letter of No Further Action required (NFA) on January 7, 2002. 7.1.4 De Minimis Environmental Conditions No de minimis environmental conditions were identified in connection with the Property during the course of this assessment. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 35 STERLING SAVINGS BANK 7.2 Opinion The following are Alpha’s opinons regarding the Environmental Conditions detailed in the preceding Findings Section pursuant to the ASTM E 1527-05 Standard: 7.3 • A dry cleaning business was located on the Property for approximately fifty years, and another dry cleaning business was located adjacent to the south of the Property for approximately seventy years. In addition, a gas station was located adjacent to the north of the Property, beyond SE Glenwood Avenue, for approximately fifteen years. Based on the information reviewed for this report, insufficient data exists to determine if the Property has been affected by these operations. Therefore, soil and groundwater samples should be collected onsite to determine if contamination is present on the Property. • During the site reconnaissance, a fill cap and vent pipe were noted next to the exterior stairs in the parking lot on the Property. There is a high potential that they are connected to an underground storage tank (UST) onsite. Two other objects that may potentially be associated with underground storage tanks on the Property were noted in the sidewalks on the north and east side of the Property. Therefore, these potential USTs should be investigated further. If they are determined to be USTs, soil samples should be collected in accordance with DEQ standards and all unused tanks should be decommissioned in accordance with DEQ standards. • Based on the age of the structure, there is a potential that Asbestos Containing Materials (ACM) and/or Lead-Based Paint (LBP) may be present onsite. Before any demolition or remodeling occurs in the future, an ACM and LBP survey should be performed onsite. Conclusions Alpha has performed a Phase I Environmental Site Assessment in conformance with the scope and limitations of ASTM Practice E 1527-05 of 6701-6717 SE Milwaukie Avenue, Portland, OR 97202, the Property. Any exceptions to or deletions from this practice are described in Section 1.4 of this report. This assessment has revealed no evidence of recognized environmental conditions in connection with the Property, except for the following: • A dry cleaning business has been present on the Property (6701 SE Milwaukie) since approximately 1954. • A dry cleaning business was located on the site adjacent to the south of the Property from the 1930s until approximately 2007. An NFA letter from the DEQ has been issued for the risk-based assessment of two 250-gallon leaking underground storage tanks (LUSTs) on the Property. However, a pocket of contamination was left onsite as it was determined that it did not threaten human health or the environment. • A gas station was located on the site adjacent to the north of the Property, beyond SE Glenwood, from approximately 1950 until 1965. No records of sampling or clean-up activities were found with the DEQ for this site. • During the site reconnaissance, a fill cap and vent pipe were noted next to the exterior stairs in the parking lot on the Property. There is a high potential that they are connected to an underground storage tank (UST) onsite. Two other objects that may potentially be ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 36 STERLING SAVINGS BANK associated with underground storage tanks on the Property were noted in the sidewalks on the north and east side of the Property. • 7.4 Based on the age of the structure, there is a potential that Asbestos Containing Materials (ACM) and/or Lead-Based Paint (LBP) may be present onsite. Recommendations Based on the findings of this ESA, Alpha recommends the following: 7.5 • To address the potential of contamination on the Property from activities associated with the dry cleaning business present on the Property, the dry cleaning business present adjacent to the south, and the gas station adjacent to the north, soil and groundwater samples should be collected onsite. • The potential USTs should be investigated further. If they are determined to be USTs, soil samples should be collected and unused tanks decommissioned in accordance with DEQ standards. • Before any demolition or remodeling occurs in the future, an ACM and LBP survey should be performed onsite. Deviations This Phase I ESA substantially complies with the scope of services and ASTM E 1527-05, as amended, except for exceptions and/or limiting conditions as discussed in Section 1.4. ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 37 STERLING SAVINGS BANK 8.0 REFERENCES 8.1 Reports, Plans, and Other Documents Reviewed: American Society for Testing and Materials, Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process, ASTM Designation: E 15272005. ESRI/Federal Emergency Management Agency web site. TRACK Info Services, LLC, Environmental FirstSearch Report™, 6701-17 SE Milwaukie Avenue, Portland, OR 97202. October 23, 2007. United States Department of Agriculture, Natural Resources Conservation Service, Soil Survey of Multnomah County, Oregon, 1983. United States Environmental Protection Agency, EPA Map of Radon Zones (Document EPA-402R-93-071), http://www.epa.gov/radon/zonemap/oregon.htm, accessed via the Internet, November 2007. United States Geological Survey, Geological Map of Oregon, 1991. United States Geological Survey, 7.5 Minute Topographic Quadrangle of Lake Oswego, OR, 1989. U.S. Geological Survey, Water-Supply Paper 1793 “Ground Water in the East Portland Area, Oregon” State of Oregon Water Resources Department website. 8.2 Agencies Contacted: City of “Portland” Records Fire Department County of “Multnomah” Assessment and Taxation State of “Oregon” Department of Environmental Quality ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 38 STERLING SAVINGS BANK 9.0 SIGNATURES OF ENVIRONMENTAL PROFESSIONALS 9.1 Qualification of Environmental Professionals I declare that, to the best my professional knowledge and belief, I meet the definition of environmental professional as defined in 3.12.10 of 40 CFR 312 and I have the specific qualifications based on education, training, and experience to assess a property of the nature, history, and setting of the subject property. 9.2 All Appropriate Inquiries Conformance I have developed and performed the all appropriate inquiries in conformance with the standards and practices set forth in 40 CFR Part 312. Phillip R. Brewer Principal ENVIRONMENTAL SITE ASSESSMENT PROJECT NO. 07-1000 39 STERLING SAVINGS BANK
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