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CONCLUSIONS AND RECOMMENDATIONS At the request of Mr. Matt Barker with Capstone Homes, Carlson McCain, Inc. (Carlson McCain) has performed a Phase I Environmental Site Assessment (ESA) in general conformance with the scope and limitations of American Society for Testing and Materials (ASTM) Standard Practice E 1527-21 for the Property located at 16330 US Highway 10 NW in the City of Elk River, Minnesota.Any exceptions to, or deletions from this practice are described in Section 8.0 of this report. This Assessment has revealed no evidence of "recognized environmental conditions" (RECs) in connection with the Property except for the following: •The diesel and gasoline underground storage tanks (USTs) located on the former bus lot and the gasoline UST located near the garage are considered RECs since it is possible that residual petroleum contamination is present near the tanks. •The presence of bus companies at the Property from at least 1977-2017, and in particular, the bus maintenance garage is considered a REC due to the use and storage of hazardous chemicals/petroleum products, including chlorinated solvent compounds used in brake cleaner, commonly associated with vehicle maintenance. The bus garage has a maintenance pit with a drain, and the drain reportedly leads to a buried 55-gallon drum with holes in it that drains into the subsurface of the Property. It is possible that over time, hazardous chemicals have entered the drain and are present in the subsurface of the Site. In addition, staining was observed under the aboveground storage tank (AST) located outside the bus garage. Since the bus garage was locked during the Site reconnaissance and the interior was not observed, it is considered a data gap. •The surficial solid waste area is considered a REC since it is possible that a release of hazardous chemicals and/or petroleum products has occurred in the area. •The fertilizer storage area and pesticide storage, loading, and mixing area are considered RECs since it is possible that chemicals are present in the soil in these areas due to spillage over time. •The STEVE'S OIL SERVICE site, which is located adjacent to and in an up-gradient position in relation to the Property, is considered a REC since a review of files obtained from the MPCA failed to identify the location and extent of the petroleum release, which may have migrated onto the Property. Historical recognized environmental conditions (HRECs) are defined by ASTM as a past release of any hazardous substances or petroleum products that has occurred in connection with the Property and has been addressed to the satisfaction of the applicable regulatory authority or meeting unrestricted use criteria established by a regulatory authority, without subjecting the Property to any required controls. •There were no HRECs identified during the course of this assessment. Phase I Environmental Site Assessment 16330 US Highway 10 NW, Elk River, Minnesota September 4, 2024 Carlson McCain, Inc.i