BROWNFIELD

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BROWNFIELD REDEVELOPMENT
Maurice J. Coleman, CFA Cherokee 702 Oberlin
Road Suite 150 Raleigh, NC 27605 [phone]
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Introduction to Brownfields

• Brownfields are former industrial or commercial
  sites that are prevented from attaining their
  highest and best use as a result of perceived or
  actual environmental contamination
• No comprehensive accounting exists of brownfields
  in the U.S.
• Most states and cities do not keep comprehensive
  lists
• EPA compiles only selected listings
• Different sources use different definitions for
  their lists
• Need various sources to determine broad estimates
  for
• Number of U.S. brownfields sites
• Types of sites
• Site locations
• These issues/challenges are common in other
  countries as well

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History of Cherokee

• Cleanup of contaminated brick sites in the 1980s
  learned to handle environmental liability as a
  principle
• Remediation of contaminated soil from leaking
  petroleum storage
• tanks became the largest remediator of
  petroleum
• contamination in the southeastern U.S.
• In 1990, started new business of deliberately
  buying contaminated brownfield sites as
  investments
• First institutional capital of 50 million
• (Fund I) in 1996
  
• Raised 250 million Fund II in 1998
• Raised 620 million Fund III in 2002

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Introduction to Cherokee
MISSION To acquire environmentally impaired
properties, remediate them and return them to
productive use. Cherokee embraces a win-win
attitude, enabling our partners, our investors,
our employees and the communities we improve to
share in the benefits of our work restoring
brownfields.

• Cherokees investors are large institutional
  pension funds, university endowments and state
  funds
• Cherokee is the largest redevelopment firm of its
  kind
• More than 1.6 billion of assets under management
• Acquired more than 520 properties since 1990
• 3 billion in available capital
• More than 250 million will be spent on
  remediation
• Investments encompass a wide variety of property
  types, sellers, contaminants and regulatory
  agencies
• In all of our transactions, Cherokee has never
  reverted to an indemnified party to support the
  costs of remediation or redevelopment

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Cherokee Approach

• Commitment to safety, remediation and sustainable
  development
• Service provider to corporations and local,
  regional and national governments
• Continuing, active community and stakeholder
  involvement
• Large pool of discretionary capital
• No financing contingencies
• Use of capital and experience to transfer
  liability and protect owners
• Effective environmental liability management and
  insurance

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Cherokee Meadowlands - Rutherford, N.J.Phase I

• 785 acres in the N.J. Meadowlands along the
  Hackensack River
• Four former landfills - widespread contamination
• State seeking landfill closure and economic
  development of the area selected Cherokee
  because of track record and experience
• Project under the New Jersey Brownfield
  Reimbursement Act
• US145 million in tax-exempt bonds have been
  issued

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Cherokee Meadowlands - Rutherford, N.J.Phase I

• Redevelopment plan includes
• Smart growth design
• 2,600 residential units
• Hotel and conference center
• Two golf courses
• 100,000 square feet retail
• Contract with national homebuilder
• Community benefits
• Increased tax revenues
• Thousands of new jobs
• Open space with recreational trails and preserved
  wetlands
• Shuttle service to New Jersey Transit rail line

Master Plan
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Cherokee North Arlington - North Arlington,
N.J.(Cherokee Meadowlands) Phase II

• Phase II
• 550 acres
• Landfill closures
• Shuttered industrial buildings
• Redevelopment plan includes
• 80 acres of development
• Over 400 acres of golf, wetlands and open
  space
• 1,375 residential units
• Neighborhood amenities

Master Plan
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Cherokee Ashley Charleston, S.C.

• Most significant brownfield cleanup and
  redevelopment program in the southeastern U.S.
• 31 separately owned parcels on 350 acres in
  Charleston, S.C.
• Contaminants from fertilizer and steel
  manufacturing and former oil refinery operations
• 2 NPL Superfund sites, 3 USEPA Removal Actions
• 16 State Brownfield Agreements
• Liability transfer with ExxonMobil, British Gas,
  Macalloy and Beazer
• Preparing master plans for a unique, sustainable
  mixed-use redevelopment

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Cherokee Ashley Charleston, S.C.

• Redevelopment includes
• Carefully planned, mixed-use community with up to
  9,000 residential units
• Up to one million square feet of commercial and
  retail space
• 130 acres dedicated to urban parks, public space
  and wetlands preservation
• Transportation alternatives, walkable community,
  sustainable built environment

Master Plan
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Cherokee North Hills - Raleigh, N.C.

• 481,000 square feet shopping mall on 32 acres in
  Raleigh, NC
• Petroleum contamination due to leak from nearby
  gas station and asbestos in buildings
• Remediation and mixed-use redevelopment complete
  
  
  

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Summary

• Our investments have a three-fold outcome
  positive economic, social and environmental
  results
• Immense impact on environment and property reuse
• Win-win outcomes for communities and other
  stakeholders (economic development, jobs, tax
  revenues, etc.)
• Our responsibility extends beyond real estate
• We believe community service, compassion and
  social accountability make us better investors
• Our nonprofit outreach efforts promote strong
  local communities and economic development around
  the world
• We strive to be innovative and a world leader in
  our performance
• Smart growth approach to urban planning - mixed
  use, rail transit, etc.
• The first (and, we believe, the only) private
  equity firm with ISO 14001 certification

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Cherokee Investment Partners
Maurice J. Coleman, CFA
mcoleman_at_cherokeefund.com [phone]
www.cherokeefund.com