PHASE I ENVIRONMENTAL ASSESSMENT 55 DELHI STREET GUELPH, ONTARIO. Prepared For: VESTERRA INC. Prepared by: TRY ENVIRONMENTAL SERVICES INC.

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1 PHASE I ENVIRONMENTAL ASSESSMENT 55 DELHI STREET GUELPH, ONTARIO Prepared For: VESTERRA INC. Prepared by: TRY ENVIRONMENTAL SERVICES INC. Project: March 29, Widdicombe Hill Etobicoke, Ontario M9R 1B3 Tel: (416) Fax: (416)

2 TRY ENVIRONMENTAL SERVICES INC. 8 Widdicombe Hill Tel. (416) Etobicoke, Ontario, M9R 1B3 Fax. (416) Project: March 29, 2013 Vesterra Inc. 279 Woolwich Street Guelph, Ontario N1H 3V8 Attention: Mr. Robert Eilers Dear Sir: Phase I Environmental Site Assessment 55 Delhi Street, Guelph, Ontario Please find enclosed our report regarding a Phase I Environmental Site Assessment of the above-noted property. The subject property was developed for residential purposes in approximately No evidence of current potentially environmental hazardous practices was observed on the subject property. The findings of our assessment are presented below. i.) The property is located at on the east side of Delhi Street between Derry Street to the south and Spring Street to the north in Guelph, Ontario. The legal description of the property was not provided. ii.) iii.) The general topography of the area slopes to the southeast in an area of residential and commercial land use. The property is a rectangular-shaped piece of land with a vacant commercial office building situated centrally on the site. The area surrounding the building is landscaped with vehicular access to the surface parking at the north side from Delhi Street to the west. The vicinity properties are municipally serviced for water and sewers and any surface spills would likely be directed to the municipal sewer system with minimal impact on the property. The building at 55 Delhi Street is a commercial building with three stories above grade and one basement level. Heat is provided by a gas-fired boiler

3 PROJECT: TRY ENVIRONMENTAL SERVICES INC. located in the basement boiler room. A single storey concrete slab-on-grade addition to the rear of the building was completed in the mid 1980s. Lighting is provided by fluorescent and incandescent light fixtures. The interior finishes in the building were comprised of carpet, vinyl and ceramic floor tiles, acoustic ceiling tiles, drywall or plaster walls and ceilings. iv.) v.) vi.) vii.) viii.) The building is currently vacant and had most recently been used for office space by Child and Family Services. An aerial photograph from 1966 was obtained from the Ministry of Natural Resources. The subject building appears to be present on the subject site without the addition on the east side. The hospital building to the north, community centre building to the east, and houses to the south and west also appear to be present. A search of the Guelph City Directories was undertaken dating from 2012 back to the earliest available directory in The property at 55 Delhi Street was first listed in the 1917 directory as a Nurses Home. The building was reportedly built in 1910 as a nurses home for the adjacent nursing school at the Guelph General Hospital. From the 1900s until approximately 1955, the nurses home was listed in the directories. The property was not listed in 1957 and then from 1959 until 2010 Family & Children Services or Children s Aid was listed at the site. No listing was present in the 2012 directory. A fire insurance plan from June 1960 was reviewed for the subject area. A building consistent with the front 3-storey portion of the building was present on the site and shown to be occupied by the Children s Aid Society. The school for nurses was shown to be present at 73 Delhi Street north of the site. The property to the east (now 65 Delhi Street) was labeled as 51/53 Delhi Street and was vacant. The properties to the south and west were residential houses. No underground storage tanks were shown to be present on the subject or adjacent proeprties. The general area is comprised of relatively impermeable sandy till and consequently, the groundwater may be susceptible to contamination from surface spills. In this regard, the shallow groundwater table likely slopes in a southeasterly direction in a similar fashion to the topographic gradient and the upgradient residential houses and retail stores to the northwest would not

4 PROJECT: TRY ENVIRONMENTAL SERVICES INC. likely have a significant adverse environmental impact on the subject property. ix.) x.) xi.) xii.) An inspection of the exterior of the adjacent properties to the north, west, south, and east revealed no indications of potential contaminants which would adversely impact on the subject property. The air conditioning units could be equipped with a refrigerant which contains chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs) which are ozone depleting substances. The owner should consider developing a management plan for their continuing use regarding inspection, testing, and maintenance of the equipment but no further action is required or warranted at this time. However, retrofitting the equipment with an alternative coolant may be required at some future date. In accordance with Section 9 of the Ontario Environmental Protection Act, Ministry of Environment Certificate of Approval (CofA) air permits are required to operate equipment that discharge or may discharge contaminants into the natural environment (air). Natural gas fired boilers, make-up air units, emergency generators, and cooling towers would be examples of equipment that normally require CofA permits. A CofA is required under Ontario Regulation 419/05, as amended, if total thermal input of all of the fuel burning equipment that is used to provide comfort heating in the building is greater than 1.58 million kilojoules per hour (O. Reg. 524/98 CofA exemptions air). Paints made before 1950 contained large amounts of lead. Under Canada s Hazardous Products Act and Regulations, lead levels in indoor paint were limited to 0.5 percent by weight in 1980 and there is little concern for lead levels in paints in structures built after that date. All consumer paints produced in Canada after 1992 are virtually lead-free (currently, lead-based paint is defined as any paint application containing 0.009% lead by weight). In this regard, it is possible that lead-containing paints are present in the building; however, no peeling or disintegration was observed on any of the painted surfaces that would release any potential lead in the paint.

5 PROJECT: TRY ENVIRONMENTAL SERVICES INC. xiii.) A comprehensive intrusive inspection for mould was not performed as part of this Phase I ESA; however, no potential mould amplification sites were noted on the day of inspection.

6 PROJECT: TRY ENVIRONMENTAL SERVICES INC. TABLE OF CONTENTS 1. INTRODUCTION PURPOSE SCOPE OF WORK/METHODOLOGY 1 2. SITE DESCRIPTION LOCATION AND LEGAL DESCRIPTION SITE AND AREA CHARACTERISTICS DESCRIPTION OF IMPROVEMENTS PROPERTY USAGE AND ACTIVITIES ADJOINING AND SURROUNDING PROPERTY USES AND ACTIVITIES 3 3. RECORDS REVIEW GEOLOGIC MAPS AND TOPOGRAPHY AERIAL PHOTOGRAPHS OCCUPANCY SEARCH FIRE INSURANCE MAPS ONTARIO MINISTRY OF THE ENVIRONMENT (MOE), SPILLS ACTION OTHER SOURCES PREVIOUS REPORTS 6 4. SITE INSPECTION FOR ENVIRONMENTAL LIABILITIES HAZARDOUS MATERIALS IN CONNECTION WITH IDENTIFIED USES SUBSTANCE CONTAINERS STORAGE TANKS POLYCHLORINATED BIPHENYLS (PCBS) WASTE MANAGEMENT ASBESTOS BILL DESIGNATED SUBSTANCES POTENTIAL FOR MIGRATION OF RELEASED MATERIALS RECONNAISSANCE OF ADJACENT PROPERTIES NOISE AND VIBRATION CHLOROFLUOROCARBONS AND HYDROCHLOROFLUOROCARBONS AIR EMISSIONS UREA FORMALDEHYDE FOAM INSULATION (UFFI) LEAD-BASED PAINT MOULD 9 5. SUMMARY OF FINDINGS AND CONCLUSIONS 9 6. LIMITATIONS CONSULTANT QUALIFICATIONS 13

7 PROJECT: TRY ENVIRONMENTAL SERVICES INC. DRAWINGS DRAWING 1: SITE PLAN APPENDICES APPENDIX A: SITE PHOTOGRAPHS APPENDIX B: REGULATORY INQUIRIES

8 PROJECT: TRY ENVIRONMENTAL SERVICES INC. 1 PHASE 1 ENVIRONMENTAL SITE ASSESSMENT 55 DELHI STREET GUELPH, ONTARIO 1. INTRODUCTION TRY Environmental Services Inc., was retained by Mr. Robert Eilers on behalf of Vesterra Inc., to carry out a Phase I environmental site assessment (ESA) of the property at 55 Delhi Street in Guelph, Ontario that is occupied by an office building. The closest major intersection is Eramosa Road with Delhi Street approximately 150 m to the southeast. The scope of this review is in support of financing or sale of the property where a Record of Site Condition (RSC) is not intended and generally conforms to the requirements outlined by the Canada Mortgage and Housing Corporation (CMHC) and the Canadian Standards Association (CSA) Standard Z for Phase I ESAs. 1.1 PURPOSE The purpose of the assessment was to identify current and previous land use on or adjacent to the property which might be associated with potential sources of environmental concern. This preliminary assessment did not include sampling or testing. 1.2 SCOPE OF WORK/METHODOLOGY The scope of the assessment entailed: (i) perform site visit on February 22, 2013 (ii) interpret available historic aerial photographs (iii) undertake a city directory search to determine the occupancy history (iv) verify aspects of regulatory compliance with the Ministry of Environment (MOE) (v) request a search by the Spills Action Centre (SAC) of any documented hazardous spills which may have occurred near the site (vi) search MOE documents regarding the potential historical use of the property for waste disposal sites, coal gasification plant waste sites, or industrial sites which produced or used coal tar and related tars

9 PROJECT: TRY ENVIRONMENTAL SERVICES INC. 2 (vii) (viii) request a search by the Fuels Safety Division of the Technical Standards & Safety Authority (TSSA) of their records regarding registration of underground storage tanks provide recommendations regarding the need for potential remedial action or further investigations 2. SITE DESCRIPTION The property was inspected on February 22, 2013 by Melanie Ostry of TRY Environmental Services Inc. Note for the purposes of reporting, Delhi Street is assumed to extend in a north-south direction. 2.1 LOCATION AND LEGAL DESCRIPTION The property is located on the east side of Delhi Street between Derry Street to the south and Spring Street to the north in Guelph, Ontario. The legal description of the property was not provided. 2.2 SITE AND AREA CHARACTERISTICS The general topography of the area slopes to the southeast in an area of residential and commercial land use. The property is a rectangular-shaped piece of land with a commercial office building situated centrally on the site. The area surrounding the building is landscaped with vehicular access to the surface parking at the north side from Delhi Street to the west. The vicinity properties are municipally serviced for water and sewers and any surface spills would likely be directed to the municipal sewer system with minimal impact on the property. A site plan is presented as Drawing 1 and photographs taken during the site inspection are presented in Appendix A. 2.3 DESCRIPTION OF IMPROVEMENTS The building at 55 Delhi Street is a vacant commercial building with three stories above grade and one basement level. Heat is provided by a gas-fired boiler located in the basement boiler room. A single storey concrete slab-on-grade addition to the rear of the building was completed in the mid 1980s. Lighting is provided by fluorescent and

10 PROJECT: TRY ENVIRONMENTAL SERVICES INC. 3 incandescent light fixtures. The interior finishes in the building were comprised of carpet, vinyl and ceramic floor tiles, acoustic ceiling tiles, drywall or plaster walls and ceilings. 2.4 PROPERTY USAGE AND ACTIVITIES The building is currently vacant and had most recently been used for office space by Child and Family Services. 2.5 ADJOINING AND SURROUNDING PROPERTY USES AND ACTIVITIES The properties adjacent to the subject site are occupied as follows: North: East: South: West: Northwest: -75 Delhi Street, Medical Centre/Dialysis unit of Guelph General Hospital -65 Delhi Street, Guelph Community Centre -47 Delhi Street, residential dwelling -Delhi Street then Delhi Street, residential houses Delhi Street, retail plaza housing Delhi Street Bistro, Ontario Home Health Oxygen, and Floral Images 3. RECORDS REVIEW 3.1 GEOLOGIC MAPS AND TOPOGRAPHY According to information presented on the Ontario Geological Survey Map 2153, Pleistocene Geology of the Guelph Area, published by the Ontario Department of Mines (1963), the subject site is situated in an area of relatively impermeable buff or pink sandy till of the Wentworth Formation. Information presented on the topographic map for the area (40P/8) indicates that the regional topography slopes to the southwest and shallow groundwater flow would likely be in a similar direction towards the Speed River which is situated approximately 400 m (metres) southwest of the site. 3.2 AERIAL PHOTOGRAPHS An aerial photograph from 1966 was obtained from the Ministry of Natural Resources. The subject building appears to be present on the subject site without the addition on the east side. The hospital building to the north, community centre building to the east, and houses to the south and west also appear to be present.

11 PROJECT: TRY ENVIRONMENTAL SERVICES INC OCCUPANCY SEARCH A search of the Guelph City Directories was undertaken dating from 2012 back to the earliest available directory in The property at 55 Delhi Street was first listed in the 1917 directory as a Nurses Home. The building was reportedly built in 1910 as a nurses home for the adjacent nursing school at the Guelph General Hospital. From the 1900s until approximately 1955, the nurses home was listed in the directories. The property was not listed in 1957 and then from 1959 until 2010 Family & Children Services or Children s Aid was listed at the site. No listing was present in the 2012 directory. The occupancy history of the subject and adjacent properties is mixed residential, commercial, and institutional as summarized in the following table: Property 55 Delhi Street (subject site) Delhi Street (property to the west) 47 Delhi Street (property to the south) 65 Delhi Street (property to the east) 51/53 Delhi Street (property to the east, known as 65 Delhi Street after 1960) Delhi Street (property to the northwest) 75 Delhi Street (property to the north) Occupancy History History Nurses Home (1910 to 1955) Children s Aid/Child Services ( ) Residential houses since first listing in early 1900a Residential house since first listing in early 1900s Recreation Centre since first listing 1964 Isolation Hospital (early 1900s to 1950s) Retail stores since 1940s Residential listings from early 1900s to 1940s Medical Centre since 1950s Guelph General Hospital Students Residence and Nursing School (1950s) General Hospital- old building since first listing early 1900s 3.4 FIRE INSURANCE MAPS A fire insurance plan from June 1960 was reviewed for the subject area. A building consistent with the front 3-storey portion of the building was present on the site and shown to be occupied by the Children s Aid Society. The school for nurses was shown to be present at 73 Delhi Street north of the site. The property to the east (now 65 Delhi Street) was labeled as 51/53 Delhi Street and was vacant. The properties to the south and west were residential houses. No underground storage tanks were shown to be present on the subject or adjacent proeprties.

12 PROJECT: TRY ENVIRONMENTAL SERVICES INC ONTARIO MINISTRY OF THE ENVIRONMENT (MOE), SPILLS ACTION CENTRE (SAC) AND TECHNICAL STANDARDS & SAFETY AUTHORITY (TSSA) A request was submitted to the MOE Freedom of Information and Protection of Privacy Office (Appendix C) in order to determine if there were any environmental incidents or violations associated with the property; whether any Control Orders have been issued; whether there have been any other environmental concerns associated with the property such as complaints, inspections, etc.; whether any environmental investigations have been carried out regarding the subject property; and to determine if SAC s files contain any reported spills that had occurred in the site vicinity. Note that the SAC s database dates back only to 1988 and many of the occurrences on file have only been reported voluntarily. A response to the above noted request was not received by this office at the time of the report preparation. In the event that any environmental incidents are reported to have occurred in the vicinity, the response will be forwarded to the client under separate cover as soon as it becomes available. The TSSA was requested to review their computer database for the subject and adjacent properties with regard to registered underground storage tanks and above ground storage tanks containing petroleum products. A customer service representative with the TSSA indicated that they have no records of buried tanks at the subject property. 3.6 OTHER SOURCES A review of the following documents indicated that no waste disposal site, industrial coal tar sites or coal gasification plants had ever been in the immediate vicinity of the subject property: Inventory of Waste Disposal Sites in Ontario - Ontario MOE Inventory of Industrial Sites Producing or Using Coal Tar and Related Tars in Ontario - Ontario MOE Inventory of Coal Gasification Plant Waste Sites in Ontario - Ontario MOE The subject and vicinity properties were not listed in the Ontario PCB Site Inventory System (MOE, 2003). The subject property was not listed in the MOE Hazardous Waste Information System (HWIS) The Guelph General Hospital at 115 Delhi Street was listed in the HWIS system as a registered waste generator for removal of waste aromatic solvents,

13 PROJECT: TRY ENVIRONMENTAL SERVICES INC. 6 aliphatic solvents, petroleum distillates, pharmaceuticals, detergents and soaps, photoprocessing wastes, pathological wastes, inorganic laboratory chemicals, organic laboratory chemicals, and paint/pigment/coating residues. A review of the MOE Brownfield Environmental Site Registry was conducted with a search radius of 250 m. No records were found within the search area. 3.7 PREVIOUS REPORTS No previous reports were available for our review. 4. SITE INSPECTION FOR ENVIRONMENTAL LIABILITIES 4.1 HAZARDOUS MATERIALS IN CONNECTION WITH IDENTIFIED USES No hazardous materials were observed on the day of inspection. 4.2 SUBSTANCE CONTAINERS No other substance containers were observed during our inspection. 4.3 STORAGE TANKS One vent pipe was observed in the vicinity of the gas meter at the exterior north side of the building. No other vent or fill pipes normally associated with underground storage tanks were noted on site on the day of inspection. It is unlikely that an underground storage tank is present in this vicinity. 4.4 POLYCHLORINATED BIPHENYLS (PCBS) Lighting in the building is provided by fluorescent light fixtures. The production and installation of PCB containing electrical equipment was banned in The building may have PCB containing electrical equipment. Nevertheless current regulations do not prohibit the continued use of PCB-containing ballasts. 4.5 WASTE MANAGEMENT No evidence of waste storage or burial or significant fill was apparent on the day of inspection.

14 PROJECT: TRY ENVIRONMENTAL SERVICES INC ASBESTOS Asbestos-containing materials are commonly found in building construction materials (particularly in older buildings constructed prior to 1985). Acoustic ceiling tiles, and other building materials which may contain asbestos may be present in various areas of the building. These materials were in a non-friable condition and do not pose a risk to the building s occupants under normal use. Friable asbestos (friable is defined as able to powder or crumble using hand pressure) was widely used in sprayed fireproofing until 1973, and in decorative or finishing plasters, and mechanical insulation until the early 1980s. The application of friable asbestos was banned by O.Reg. 654/85 (currently R.R.O. 1990, Reg. 838). However, we note that the current asbestos Regulation, O.Reg. 278/05 requires that all buildings, with the exception of owneroccupied residences have an asbestos survey and management plan. 4.7 BILL DESIGNATED SUBSTANCES A brief review of the site s components was conducted to assess the potential for designated substances identified in Bill 208, Article 18(a). The presence of PCBs and asbestos containing materials were addressed in Section 4.4 and Section 4.6, respectively. The following comments relate to the potential for the presence of other designated substances on the property: acrylonitrile - potential not observed arsenic - potential not observed benzene - potential not observed coke oven emissions - potential not observed ethylene oxide - potential not observed isocyanates - potential not observed lead - metallic lead may be present in the soldering joints of any plumbing system mercury - potential observed in thermostats silica - any cementitious materials could contain silica; analysis required to establish type vinyl chloride - potential not observed Generally, there is no reason to suspect that the above substances were present in sufficient quantities to exceed exposure limits.

15 PROJECT: TRY ENVIRONMENTAL SERVICES INC POTENTIAL FOR MIGRATION OF RELEASED MATERIALS The general area is comprised of relatively impermeable sandy till and consequently, the groundwater may be susceptible to contamination from surface spills. In this regard, the shallow groundwater table likely slopes in a southeasterly direction in a similar fashion to the topographic gradient and the upgradient residential houses and retailstores to the northwest would not likely have a significant adverse environmental impact on the subject property. 4.9 RECONNAISSANCE OF ADJACENT PROPERTIES An inspection of the exterior of the adjacent properties to the north, west, south, and east revealed no indications of potential contaminants which would adversely impact on the subject property NOISE AND VIBRATION The levels of noise and vibration at the time of inspection were noted to be likely suitable for a residential/commercial area CHLOROFLUOROCARBONS AND HYDROCHLOROFLUOROCARBONS The air conditioning units could be equipped with a refrigerant which contains chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs) which are ozone depleting substances. The owner should consider developing a management plan for their continuing use regarding inspection, testing, and maintenance of the equipment but no further action is required or warranted at this time. However, retrofitting the equipment with an alternative coolant may be required at some future date AIR EMISSIONS In accordance with Section 9 of the Ontario Environmental Protection Act, Ministry of Environment Certificate of Approval (CofA) air permits are required to operate equipment that discharge or may discharge contaminants into the natural environment (air). Natural gas fired boilers, make-up air units, emergency generators, and cooling towers would be examples of equipment that normally require CofA permits. A CofA is required under Ontario Regulation 419/05, as amended, if total thermal input of all of the fuel burning equipment that is used to provide comfort heating in the building is greater than 1.58 million kilojoules per hour (O. Reg. 524/98 CofA exemptions air).

16 PROJECT: TRY ENVIRONMENTAL SERVICES INC UREA FORMALDEHYDE FOAM INSULATION (UFFI) UFFI, a mixture of urea-formaldehyde resin, a foaming agent, and compressed air was developed and used as an improved means of insulating buildings in the mid- 1970s until Health implications from UFFI resulted in a ban of its use in However, no evidence of UFFI was observed in the building LEAD-BASED PAINT Paints made before 1950 contained large amounts of lead. Under Canada s Hazardous Products Act and Regulations, lead levels in indoor paint were limited to 0.5 percent by weight in 1980 and there is little concern for lead levels in paints in structures built after that date. All consumer paints produced in Canada after 1992 are virtually leadfree (currently, lead-based paint is defined as any paint application containing 0.009% lead by weight). In this regard, it is possible that lead-containing paints are present in the building; however, no peeling or disintegration was observed on any of the painted surfaces that would release any potential lead in the paint MOULD A comprehensive intrusive inspection for mould was not performed as part of this Phase I ESA; however, no potential mould amplification sites were noted on the day of inspection. 5. SUMMARY OF FINDINGS AND CONCLUSIONS i.) The property is located at on the east side of Delhi Street between Derry Street to the south and Spring Street to the north in Guelph, Ontario. The legal description of the property was not provided. ii.) The general topography of the area slopes to the southeast in an area of residential and commercial land use. The property is a rectangular-shaped piece of land with a vacant commercial office building situated centrally on the site. The area surrounding the building is landscaped with vehicular access to the surface parking at the north side from Delhi Street to the west. The vicinity properties are municipally serviced for water and sewers and any

17 PROJECT: TRY ENVIRONMENTAL SERVICES INC. 10 surface spills would likely be directed to the municipal sewer system with minimal impact on the property. iii.) The building at 55 Delhi Street is a commercial building with three stories above grade and one basement level. Heat is provided by a gas-fired boiler located in the basement boiler room. A single storey concrete slab-on-grade addition to the rear of the building was completed in the mid 1980s. Lighting is provided by fluorescent and incandescent light fixtures. The interior finishes in the building were comprised of carpet, vinyl and ceramic floor tiles, acoustic ceiling tiles, drywall or plaster walls and ceilings. iv.) v.) vi.) vii.) The building is currently vacant and had most recently been used for office space by Child and Family Services. An aerial photograph from 1966 was obtained from the Ministry of Natural Resources. The subject building appears to be present on the subject site without the addition on the east side. The hospital building to the north, community centre building to the east, and houses to the south and west also appear to be present. A search of the Guelph City Directories was undertaken dating from 2012 back to the earliest available directory in The property at 55 Delhi Street was first listed in the 1917 directory as a Nurses Home. The building was reportedly built in 1910 as a nurses home for the adjacent nursing school at the Guelph General Hospital. From the 1900s until approximately 1955, the nurses home was listed in the directories. The property was not listed in 1957 and then from 1959 until 2010 Family & Children Services or Children s Aid was listed at the site. No listing was present in the 2012 directory. A fire insurance plan from June 1960 was reviewed for the subject area. A building consistent with the front 3-storey portion of the building was present on the site and shown to be occupied by the Children s Aid Society. The school for nurses was shown to be present at 73 Delhi Street north of the site. The property to the east (now 65 Delhi Street) was labeled as 51/53 Delhi Street and was vacant. The properties to the south and west were residential houses. No underground storage tanks were shown to be present on the subject or adjacent proeprties.

18 PROJECT: TRY ENVIRONMENTAL SERVICES INC. 11 viii.) ix.) x.) xi.) xii.) The general area is comprised of relatively impermeable sandy till and consequently, the groundwater may be susceptible to contamination from surface spills. In this regard, the shallow groundwater table likely slopes in a southeasterly direction in a similar fashion to the topographic gradient and the upgradient residential houses and retail stores to the northwest would not likely have a significant adverse environmental impact on the subject property. An inspection of the exterior of the adjacent properties to the north, west, south, and east revealed no indications of potential contaminants which would adversely impact on the subject property. The air conditioning units could be equipped with a refrigerant which contains chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs) which are ozone depleting substances. The owner should consider developing a management plan for their continuing use regarding inspection, testing, and maintenance of the equipment but no further action is required or warranted at this time. However, retrofitting the equipment with an alternative coolant may be required at some future date. In accordance with Section 9 of the Ontario Environmental Protection Act, Ministry of Environment Certificate of Approval (CofA) air permits are required to operate equipment that discharge or may discharge contaminants into the natural environment (air). Natural gas fired boilers, make-up air units, emergency generators, and cooling towers would be examples of equipment that normally require CofA permits. A CofA is required under Ontario Regulation 419/05, as amended, if total thermal input of all of the fuel burning equipment that is used to provide comfort heating in the building is greater than 1.58 million kilojoules per hour (O. Reg. 524/98 CofA exemptions air). Paints made before 1950 contained large amounts of lead. Under Canada s Hazardous Products Act and Regulations, lead levels in indoor paint were limited to 0.5 percent by weight in 1980 and there is little concern for lead levels in paints in structures built after that date. All consumer paints produced in Canada after 1992 are virtually lead-free (currently, lead-based paint is defined as any paint application containing 0.009% lead by weight). In

19 PROJECT: TRY ENVIRONMENTAL SERVICES INC. 12 this regard, it is possible that lead-containing paints are present in the building; however, no peeling or disintegration was observed on any of the painted surfaces that would release any potential lead in the paint. xiii.) A comprehensive intrusive inspection for mould was not performed as part of this Phase I ESA; however, no potential mould amplification sites were noted on the day of inspection. The subject property was developed for residential purposes in 1910 No evidence of current potentially environmental hazardous practices were observed on the subject property. 6. LIMITATIONS TRY Environmental Services Inc., has performed this site assessment in accordance with local generally accepted professional practices and procedures at the time of the assessment within the scope of Phase 1 ESAs specified by the CMHC and CSA. As such, the assessment does not include any sampling or testing for potential contaminants such as asbestos, PCBs, radon gas, or airborne pollutants, etc. Occupancy use, codes, rules, and procedures change rapidly with time in the environmental engineering field and the reader is advised to update the findings and recommendations on a regular basis. The report herein comprises a statement of professional opinion and judgment based on visual observation only and the reader is advised that visual observation is not effective in determining all conditions that affect environmental compliance. These services are not subject to any express or implied warranties and none should be inferred. This report was prepared by TRY Environmental Services Inc., for the account of Vesterra Inc. The material in it reflects the judgment of TRY Environmental Services Inc., in light of the information available to it at the time of preparation. Any use which a Third Party makes of this report, or any reliance on decisions to be made based on it, are the responsibility of such Third Parties. TRY Environmental Services Inc. accepts no responsibility for damages, if any, suffered by any Third Party as a result of decisions made or actions based on this report. TRY Environmental Services Inc., reserves the right to modify our conclusions in the event that regulatory responses are received after issuance of this report that indicate environmental issues have been identified to be present.

20 PROJECT: TRY ENVIRONMENTAL SERVICES INC CONSULTANT QUALIFICATIONS TRY Environmental Services Inc., is an incorporated company providing consulting engineering services in the environmental field. The company is registered in Ontario and operates under a Certificate of Authorization # from the Professional Engineers Ontario. The firm carries professional liability insurance for environmental consultants and Mr. Robert C. Ostry M.A., P. Eng., with 35 years of applied experience is the senior environmental consultant and principal of the firm.

21 PROJECT: TRY ENVIRONMENTAL SERVICES INC. DRAWINGS

22 Subject Site: 55 Delhi Street DRAWING NO. 1 SITE AND LOCATION PLAN PHASE I ENVIRONMENTAL SITE ASSESSMENT 55 DELHI STREET GUELPH, ONTARIO TRY ENVIRONMENTAL SERVICES INC. PROJECT:

23 PROJECT: TRY ENVIRONMENTAL SERVICES INC. APPENDIX A SITE PHOTOGRAPHS

24 Interior office area Facing southeast to addition at east side of building Vent pipe at north exterior side of the building Facing west to east side of building Facing southeast to front of building Gas-fired boiler Facing west to front of building Facing south to addition at east side of building

25 APPENDIX B REGULATORY INQUIRIES

26 Ministry of Environment and Energy Freedom of Information Request This form is for requesting documents which are in the Ministry's files on environmental concerns related to properties. Please refer to the guide on the completion and use of this form. Our fax no. is (416) Requester Data For Ministry Use Only Name, Title, Company Name and Mailing Address of Requester Mr. Robert Ostry TRY Environmental Inc. 8 Widdicombe Hill Toronto, Ontario M9R 1B3 FOI Request No. Fee Paid $ Date Request Received ACCT CHQ VISA/MC CASH Address: Telephone/Fax Nos. Tel : Fax : try.env@rogers.com.com Your Project/Reference No Signature of Requester CNR ER NOR SWR WCR S AC IEB Request Parameters Municipal Address / Lot, Concession, Geographic Township (Municipal address essential for cities, towns or regions) 55 Delhi Street, Guelph Present Property Owner(s) and Date(s) of Ownership Vesterra Inc. Previous Property Owner(s) and Date(s) of Ownership Present/Previous Tenant(s), if applicable Search Parameters Files older than 2 years may require $60.00 retrieval cost. There is no guarantee that records responsive to your request will be located. Environmental concerns (General correspondence, occurrence reports, abatement) Orders Spills Investigations/prosecutions Owner and tenant information must be provided Waste Generator number/classes Specify Year(s) Requested All years All years All years All years All years Certificates of Approval Proponent information must be provided 1985 and prior records are searched manually. Search fees in excess of $ could be incurred, depending on the types and years to be searched. Specify Certificates of Approval number (s) (if known). If supporting documents are also required, mark SD box and specify type e.g. maps, plans, reports, etc. SD Specify Year(s) Requested air - emissions water - mains, treatment, ground level, standpipes & elevated storage, pumping stations (local & booster) sewage - sanitary, storm, treatment, stormwater, leachate & leachate treatment & sewage pump stations waste water - industrial discharge waste sites - disposal, landfill sites, transfer stations, processing sites, incinerator sites waste systems - haulers: sewage, non-hazardous & hazardous waste, mobile waste processing units, PCB destruction pesticides - licenses A $5.00 non-refundable application fee, payable to the Minister of Finance, is mandatory. The cost of locating on-site and/or preparing any record is $30.00/hour and 20 cents/page for photocopying and you will be contacted for approval for fees in excess of $ (02/00) Page 19 of 27

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