Via: Certified Mail, Return Receipt Requested No. 91 7199 9991 ...

Fritz Steiger 

August 9, 2011 

Page 2 

Enclosures: Notice of Violation 

APC&EC Regulation 8 

cc: Patricia Goff, Commission Secretary 

Teresa Marks, Director 

Ryan Benefield, Deputy Director 

Steve Drown, Chief, Water Division 

Mo Shafii, Assistant Chief, Water Division 

Tammy Harrelson, Chief Legal Counsel

IN THE MATTER OF: 

ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY 

Steiger Development, LLC 

2302 Southwest "I" Street 

Bentonville, AR 72712 

To: Fritz Steiger, Registered Agent 


1201 SW Naphatli Blvd. 


NPDES Permit Tracking No. ARR152350 

AFIN 04-01776 

LIS No. 11-I '3 lS 

NOTICE OF VIOLATION 

NOTICE is hereby given that the Director of the Arkansas Department of Environmental 

Quality (hereinafter "ADEQ") has determined that there are sufficient grounds to believe 

that Steiger Development, LLC (hereinafter "the Permittee") has committed the following 

violations of the Arkansas Water and Air Pollution Control Act, Ark. Code Ann.§ 8-4-101 

et. seq. and the regulations promulgated thereunder including but not limited to, the 

Arkansas Pollution Control and Ecology Commission (hereinafter "APC&EC") Regulation 

No.2: Regulation Establishing Water Quality Standards for Surface Waters of the State of 

Arkansas. The Notice of Violation (hereinafter "NOV") is issued in accordance with the 

provisions of Arkansas Pollution Control and Ecology Commission Regulation No. 7: Civil 

Penalties; and Arkansas Pollution Control and Ecology Commission Regulation No. 8: 

Administrative Procedures.

ALLEGATIONS AND PROPOSED FINDINGS OF FACT 

1. The Permittee owns and operates a construction site known as The Arbors at Deer 

Crossing (hereinafter "the Site") consisting of approximately 17 acres, located in Benton 

County, Arkansas. 

2. Because of its size, stormwater discharge from the Site was eligible for coverage 

under General Permit No. ARR150000- Operator of Facilities with Stormwater Discharges 

Associated with Construction Activity (hereinafter "ARR150000") issued by ADEQ on 

November 1, 2008. ARR 150000 is a general stormwater discharge permit issued through 

the authority of the National Pollutant Discharge Elimination System, Arkansas state law 

and the Clean Water Act, 33 USC 1251, et seq. Application of ARR150000 is made by 

the issuance of a Notice of Coverage from ADEQ to the owner/operator of a particular 

construction site. Thereafter, all stormwater discharges shall fully comply with 

ARR150000. Notices of Coverage for this particular permit are designated with the 

identifier of "ARR15". 

3. ADEQ determined the Site was eligible for coverage under ARR 150000 and issued 

a Notice of Coverage designated as General Permit Tracking Number ARR152991 to the 

Permittee on July 3, 2007. By virtue of the Notice of Coverage, Permittee was required as 

a matter of law to comply with General Permit No. ARR 150000. 

4. ARR150000 required the Permittee to develop and implement a Stormwater 

Pollution Prevention Plan (hereinafter "SWPPP") for the Site. A SWPPP is required to be 

implemented as written from the initial commencement of construction until the completion 

of final stabilization. The purpose of the SWPPP is to "Ensure compliance with the terms 

and conditions of this permit [ARR150000]" as provided by Part II(A) of ARR150000."

5. On February 22, 2011, in response to a citizen complaint, an inspection of the site 

was conducted by ADEQ personnel. The inspection identified multiple violations. 

6. ADEQ personnel identified that more than fourteen (14) days had passed since 

construction activities ceased and Site had not been stabilized by Permittee. 

7. Part II (A)(4 )(H)(2)(d) of ARR150000 requires "Stabilization measures shall be 

initiated as soon as practicable in the portions of the site where construction activities have 

temporarily or permanently ceased, but in no case more that fourteen (14) days after the 

construction activity in that portion of the site has temporarily or permanently cease" as a 

requirement of Permittee's SWPPP. No exceptions to this requirement were claimed by 

Permittee or observed by ADEQ personnel. 

8. Permittee's failure to stabilize the Site is a violation Part II (A)(4)(H)(2)(d) of the 

ARR150000, Permittee's SWPPP and thus Ark. Code Ann.§ 8-4-217(a)(3) which states, 

"It shall be unlawful for any person to ... [v]iolate any provisions of ... a permit issued ... 

by the Arkansas Department of Environmental Quality". 

9. ADEQ personnel identified that sediment had been washed off several lots onto 

adjacent roads. 

10. Part II(A)(4 )(H)(1 )(d) of ARR150000 required Permittee's SWPPP to address the 

escape of soil from a site providing that, "If sediment escapes the construction site, off-site 

accumulations of sediment must be removed at a frequency sufficient to minimize 

minimum off-site impacts." 

11. Permittee had not removed sediment from the adjacent roads in violation of the 

terms of the ARR150000 and thus Ark. Code Ann. § 8-4-217(a)(3).

12. ADEQ personnel identified that the silt fencing along the northern boundary of the 

site was in state of disrepair. Excessive sediment buildup was observed in and along the 

silt fencing. This condition is a continuing and reoccurring violation at the Site. 

13. Part II(B)(17)(A) of permit ARR150000 provides that an operator shall at all times 

"Properly operate and maintain all control (and related appurtenances) which are installed 

or used by the operator to achieve compliance with the conditions of this permit." 

14. Permittee violated the Standard Permits Conditions of Permit ARR 150000 by failing 

to maintain the silt fences and remove silt accumulations from silt fences at the Site and 

thus Ark. Code Ann. § 8-4-217(a)(3). 

15. Permittee was mailed a copy of the February 22, 2011 inspection report and was 

requested to provide a written response to ADEQ on or before March 11, 2011. A true and 

correct copy of this report is attached hereto as Exhibit "A". 

16. ADEQ received a written response from Permittee dated March 14, 2011. A true 

and correct copy of this correspondence is attached hereto as Exhibit "B". In this 

correspondence, Permittee indicated that it would conduct all corrective action and provide 

evidence of completed activities to ADEQ. 

17. On July 5, 2011 , Permittee Attorney informed ADEQ that Permittee had removed silt 

from the roads and had installed a new silt fence on the north side of the property. A true 

and correct copy of this correspondence is attached hereto as Exhibit "C". 

18. ADEQ personnel conducted a follow-up inspection of the Site on July 6, 2011. A 

true and correct copy of this report is attached hereto as Exhibit "0". This report shows that 

Permittee was in violation for the conditions as stated immediately above in paragraphs 1- 

16.

19. Part 11(8)(2) of ARR150000 provides that the operator must comply with all 

conditions of this permit and that any permit noncompliance constitutes a violation of the 

federal Clean Water Act and the Arkansas Water and Air Pollution Control Act. 

20. Ark. Code Ann. § 8-4-103 (c)(1)(A) provides that "any person who violates any 

provision of ... [a] permit issued pursuant to this chapter [Arkansas Water and Air 

Pollution Control Act] may be assessed an administrative civil penalty not to exceed ten 

thousand dollars ($10,000) per violation. 

21. Ark. Code Ann.§ 8-4-103(c)(1 )(B) provides that "Each day of a continuing violation 

may be deemed a separate violation for purposes of penalty assessment." 

THEREFORE, as a result of the violations committed by the Permittee, the following 

actions are ordered herein and the following civil penalties are assessed pursuant to Ark. 

Code Ann.§§ 8-1-202(b)(2)(B), 8-4-103, and 8-4-203, and APC&EC Regulation No.8. 

PROPOSED ORDER AND CIVIL PENAL TV ASSESSMENT 

The parties do hereby stipulate and agree that: 

1. Prior to or upon the effective date of the final Order entered in this matter, the 

Permittee shall submit to ADEQ a comprehensive Corrective Action Plan with milestone 

schedule. The plan shall detail the steps the Permittee shall take to achieve compliance 

with the terms of the permit and to eliminate the violations cited in the Allegations and 

Proposed Findings of Fact and to prevent future violations. Upon approval by ADEQ, the 

submitted milestone schedule shall be incorporated into this Order by reference and shall

e followed by the Permittee. The Corrective Action Plan shall be mailed to the attention 

of: 

Arkansas Department of Environmental Quality 

Water Division Enforcement Branch 

5301 Northshore Drive 

North Little Rock, Arkansas 72118-5317 

2. In determining the amount of civil penalties assessed, ADEQ considered pertinent 

factors pursuant to and consistent with Section 9 of APC&EC Regulation No. 7 and the 

Water Division Enforcement Penalty guidelines. Therefore, pursuant to Ark. Code Ann.§ 

8-4-1 03, the total sum of civil penalties hereby assessed to the Respondent is Eight 

Thousand Two Hundred Dollars ($8,200.00). Payment of the penalty shall be made within 

thirty (30) days of the final Order entered in this matter, made payable to the Arkansas 

Department of Environmental Quality and mailed to the attention of: 

THEREFORE TAKE NOTICE THAT: 


Fiscal Division 

5301 Northshore Drive 

North Little Rock, Arkansas 72118-5317 

Publication of public notice of this NOV, as required by Ark. Code Ann. § 8-4-1 03(d) and 

APC&EC Regulation 8.405, shall occur on or about the 1 0 1 h or 25 1 h of the month following 

the date this NOV is executed. The Permittee must file a written response and request for 

hearing with the Commission Secretary, Arkansas Pollution Control and Ecology 

Commission, 101 East Capitol, Suite 205, Little Rock, Arkansas 72201, within twenty (20) 

days of service of the NOV, or these allegations will be deemed proven. Upon filing a

ADEQ 

A R K A N 5 A 5 

Department of Environmental Quality 

March 1, 2011 

Mr. Fritz Steiger 


2302 SW "I" Street 


RE: Arbors at Deer Crossing 

EXHIBIT 

I A 

AFIN: 04-01776 NPDES Permit Tracking No.: ARR152991 

Dear Mr. Steiger: 

On February 22, 2011, I performed a compliance inspection of the above-referenced facility in 

response to a complaint. Inspections were conducted previously at this site on August 28, 2009, 

December 10,2009 and August 5, 2010. This inspection was conducted in accordance with the 

provisions of the Federal Clean Water Act, the Arkansas Water and Air Pollution Control Act, and 

the regulations promulgated thereunder. The February 22, 2011 inspection revealed the following 

violations: 

1. Failure to meet site stabilization deadlines in violation ofPart II.A.4.H.2.d of the permit. 

This is a repeat violation. Numerous lots on your construction site have remained inactive 

for several months. You are required to implement effective stabilization measures 

throughout the site immediately. 

2. Sediment has escaped the construction site in violation of the Arkansas Water and Air 

Pollution Control Act, Ark. Code Ann. §8-4-217(a)(2). Sediment has been transported from 

unstabilized lots and deposited onto adjacent roads. This sediment must be recovered 

immediately. 

3. Failure to maintain sediment controls in violation of Part II.B.17.a of the permit. This is a 

repeat violation. Silt fencing along the northern boundary of the property is in a state of 

disrepair. In addition, excessive sediment buildup has occurred along the silt fencing. This 

fencing must be repaired or replaced and maintained as necessary until the criteria for final 

site stabilization have been met. 

The above items require your immediate attention. Please submit a written response to these 

findings to Cindy Gamer, Water Division Enforcement Branch Manager. This response should be 

mailed to the address provided below. This response should contain documentation describing the 

course of action taken to correct the items noted. You must include color photographs that 

ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY 

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

www.odeq.stote.or.us

Fritz Steiger, Arbors at Deer Crossing 

March 1, 2011 

Page 2 

document your corrective action, where applicable. This corrective action should be completed as 

soon as possible, and the written response is due by March 11, 2011. A follow-up inspection will 

be conducted after the response due date. 

For additional information you may contact the enforcement branch by telephone at 501-682-0639 

or by fax at 501-682-0910. Ifl can be any assistance, please contact me at 479-267-0811, ext. 16. 

Sincerely, 

Jffi 

John Fazio 

District 1 Inspector 

Water Division 

cc: Water Division Enforcement Branch 

Water Division Permits Branch 

NPDES Report Page 2

I ADEQ Water NPDES Inspection I AFIN: 04-01776 I Permit#: ARR152991 

NPDES Report Page 4

I ADEQ Water NPDES Inspection I AFIN: 04-01776 Permit#: ARR152991 

NPDES Report Page 5


NPDES Report Page 6


NPDES Report Page 7

Davidson Law Finn 

ATIORNEYS AND COUNSELORS AT LAW 

CHARLES DARWIN "SKIP" DAVIDSON, J.D. 724 GARLAND STREET 

STEPHEN L. GERSHNER, J.D. 

CANTRELL AT STATE 

DARWIN DAVIDSON, J.D., L.L.M. 

P.O. BOX 1300 

J. PAUL DAVIDSON, J.D. 

LITTLE ROCK, ARKANSAS 72203 

ROBERT E. FAHR, JR., J.D.* 

(501) 37 4-9977 OFFICE 

*PafBnt and Trademark Attorney 

(501) 374-5917 FACSIMILE 

DANIEL J. RODA, J.D. 

BENJAMIN A. KENT, J.D. 

MOLLY E. LUCAS, J.D. 

(BOO) 353-9466 

1422 caldwen 

Conway, AR 72034 

(501) 336-9944 

Mr. Gerald Hartley, Attorney 


[HARTLEYG@adeq.state.ar.us) 

106 Ridgeway, Suite F 

Hot Springs, AR 71901 

(501) 620-4242 

Writer's Direct Dial: (501) 320-5104 

Writer's e-mail: sig@dlf-ar.com 

July 5, 2011 

RE: Steiger Development Co. LLC 

NPDES Permit No. ARR15350, The Arbors at Deer Crossing 

DA: June 30, 2011 

Dear Mr. Hartley; 

KIM BENNEFELD, OFFICE MANAGER 

SHEILA MANNIX, PARALEGAL 

SHARON WALL, PARALEGAL 

ELIZABETH A. BURTON, PARALEGAL 

NICOLE KOTSCH, PARALEGAL 

NOLA HENSLEY, PARALEGAL 

I write as a follow up to our telephone conversation and emalls last week regarding 

the above project in Benton County, Arkansas and your request for a Consent Order. 

Attached hereto are the following: 

a. Road photograph; 

b. Silt fence photograph; 

c. Complaint, Benton County Circuit No. CV2010-2569-3; 

d. Counterclaim, Cross-Claim and Third Party Complaint of Pinnacle Bank; 

e. Steiger Development Co., LLC's Answer to Pinnacle Bank's Counterclaim, 

Cross-Complaint and Third Party Complaint; 

f. The Arbors at Deer Creek Answer to Plaintiffs Complaint; and 

g. Proposed Judgment and Decree of Foreclosure on Counterclaim, Cross 

Complaint and Third-Party Complaint of Pinnacle Bank 

Pinnacle Bank is represented by Todd Lewis, Conner & Winters. LLP, 4375 N. 

Vantage, Fayetteville, Akansas 72073; 479-582-5711. A foreclosure action is pending in 

Benton County Circuit Court Case No • CV 201 0-2569-3; Stock Building Supply Of 

Arkansas, LLC vs. The Arbors At Deer Crossing, LLC; Pinnacle Bank, et al (the 

"Foreclosure") . Pinnacle Bank filed a counterclaim and cross complaint for foreclosure 

against The Arbors At Deer Crossing, Fritz Steiger and Carolyn Steiger. Pinnacle Bank 

seeks judgment against the Arbors at Deer Crossing and the Steigers of in excess of

Mr. Gerald Hartley 

July 5, 2011 

Page2 

$5,800,000. A copy of a consent judgment requested by Pinnacle Bank is enclosed along 

with a copy of the Pinnacle Bank Counter Claim, Cross Complaint and Third Party 

Complaint. West Doss, an attorney in Fayetteville represents the Arbors at Deer Crossing 

and the Steigers in the Foreclosure. I have been engaged to file Chapter 7 bankruptcy 

case for the Steigers. Mr. Steiger believes that the property is worth Jess than $2,000,000 

in the current economy. 

Steiger Development, LLC has no funds or unencumbered property and is unable to 

comply with the proposed Consent Order. Fritz Steiger and his wife are insolvent and will 

be filing a Chapter 7 bankruptcy case. However, Mr. Steiger can borrow enough money 

to hydroseed the property. Mr. Steiger has already erected silt barriers and removed silt 

from the pavement as shown In he attached photos. However, Mr. Steiger lacks the 

ability to pay a fine In addition to performing the requested remedial work. 

Mr. Steiger spent countless hours in soliciting investors to purchase the property and 

remedy the matters referenced in the proposed Consent Order. However, the investor 

group was unable to meet the demands of Pinnacle Bank. In a phone conversation with 

Ms. Gardner on March 14, 2011, Mr. Steiger told her that the property was being 

foreclosed on by Pinnacle Bank, but that he was working with investors who were 

Interested in purchasing the property. Mr. Steiger informed her that he was hopeful that 

this deal could be worked out and If so there would be funds available to address the 

issues, especially the major challenge of achieving 80% vegetation on the property. She 

seemed sympathetic to this situation and encouraged Mr. Steiger to at least address the 

silt fence and minor accumulation of silt in the road. In addition, ADEQ had waived the 

80% rule for the last two years, as long as the owner was doing a good job of controlling 

the silt from the undeveloped lot. 

Unfortunately, the investor groups were unable to reach an agreement with the 

bank. The bank is proceeding with foreclosure and Mr. Steiger is preparing to file Chapter 

7 personal bankruptcy in a few weeks since the bank has declined the investors offer. 

Because of these circumstances, my clients request that the proposed penalty be 

waived and Mr. Steiger be given opportunity to remedy the Issues. As a gesture of good 

faith, Mr. Steiger he has already taken care of the first two Issues by removing the silt from 

the roads and has Installed a new silt fence on the north side of the property. (See 

attached photos) 

Mr. Steiger has received two quotes to hydroseed the property and is prepared 

cause this work to be done. However, both hydroseed contractors have suggested that it 

would be better to wait until early September, at the earliest, to hydroseed due to the 

extreme heat and current drought. 

The silt runoff has been very minimal over the past two years and the Impact has 

been negligible; Mr. Steiger has been cooperative in working with Ms. Alison West in 

addressing these issues. The economic recession that has taken its toll on many • 

developers is beyond my clients' control. In behalf of Mr. Steiger, I respectfully request that ..., 

the Department waive Its proposed penalties.


Location: Arbors at Deer Crossing 

Water Division NPDES Photographic Evidence Sheet 

Witness: 

Date: 1205 

1205 

NPDES Report Page 3




1206 

1207 

NPDES Report Page 4


Location: 


Photogra Witness: 

Photo# Date: 1209 

1210 

NPDES Report Page 5




Witness: 

Date: 1211 

1212 

NPDES Report Page 6




Witness: 

Date: 1213 

1214 

NPDES Report Page 7




Witness: 

Date: 1214 

NPDES Report Page 8




1218 

1219 

NPDES Report Page 9


Location: 

Witness: 

ence Sheet 

Date: 1229 

1230 

NPDES Report Page 1 0

I ADEQ Water NPDES Inspection I AFIN: 04-01776 I Perm it #: ARR 152991 



Witness: 

Date: 1231 

1232 

NPDES Report Page 11


Location: 


Witness: 

Date: 1208 

Last operator inspection conducted on 01/25/ll. Fonn says areas vegetated and in good condition. 

1221 


" 


I WATER DIVISION NPDES COMPLAINT REPORT I 

GPS LOCATION: 36.3491' -94.2250 AFIN: 04-01776 

PERMIT#: ARR152991 

DATE RECEIVED: 06/30/11 COUNTY: Benton 

COMPLAINANT NAME: Paul Sergeant COMPLAINT AGAINST: Fritz Steiger 


ADDRESS: ADDRESS: 2302 SW "I" Street 


PHONE: 479-531-3484 PHONE: 479-936-1867 

TRACKING & REFERRAL INFORMATION 

PERSON RECEIVING REPORT: DATE: SUPERVISOR REFERRAL: DATE: 

Deb Gerst 06/30/11 

INSPECTOR REFERRAL: DATE: MEDIA SUPERVISOR REFERRAL: DATE: 

PHONE REFERRAL CONTACT: DATE: RECEIVING INSPECTOR: DATE: 

John Fazio 07/06/11 

l_f_OMPLAINT RECEIVED BY: ltiPHONE DLETTER 0VERBAL DINTERNET DEMAIL 

DETAILED DESCRIPTION 

Site has been inactive for extended period, and lots have not been stabilized. In addition, existing sediment controls have 

not been maintained. Sediment on several roads is entering pond as a result of runoff. 

2302 SW "I" Street, Bentonville, AR 72712 

LOCATION 

PREVIOUS COMPLAINT: ltiYES ONO DATES: 02/15/11, 01/11/11, 08/04/10, 08/26/09 

DISCHARGE TO WATERS OF THE STATE: DYES ONO NAME OF WATERBODY: Possibly into retention pond 

and stream after pond. 

INVESTIGATION 

INSPECTOR: John Fazio DATE: 07/06/11 

ACTION TAKEN: l PHOTOS TAKEN: ltiYES ONO 

I met with the complainant at the site where he pointed out several areas of concern, including an offsite area where soils derived from the 

permitted site are stockpiled. The following violations were noted at the time of the inspection. 

• Placement of waste in such a manner that it is likely causing pollution to the waters of the State. Sediment appears to be entering 

curb inlets in some areas during/following rain events. Stormwater entering these drains ultimately enters onsite retention pond 

which discharges into small stream ; 

• Site stabilization deadlines have been exceeded; 

• Sediment has been transported from the unstabilized areas and onto several roads in the development; 

• Sediment that has been transported onto roads has not been recovered; 

• Inadequate maintenance of some existing perimeter controls; 

• Absence of sediment controls in areas where needed; 

• Sediment controls no longer in use and various construction debris need to be removed from site and disposed of properly; 

• The last operator inspection was conducted on 01/25/11; 

In addition, soils derived from this site have been stockpiled on an adjoining property south of the site and may be causing infilling of the 

onsite stormwater retention pond. Sediment controls had been emplaced to prevent this from occurring, but have not been maintained. 

The complainant stated that it is his understanding that Mr. Steiger entered into an agreement with the property owner to stage the soils 

on this property. The complainant believes that this property may have been planned for development as Arbor's at Deer Crossing Phase 

II. I will attempt to contact the current property owner and get more details as to what is or what was planned for this site, and to advise 

the owner to emplace sediment and erosion controls as needed. The complainant stated that on occasion, loads of these stockpiled soils 

are hauled from the site. Photographs of these stockpiles are available. Additional photographs of site conditions at Mr. Steiger's site are 

available upon request. 

FURTHER ACTION: 

This inspection is to be reviewed by the Legal Division. 

SIGNATURE: John Fazio j£ li DATE: 

07/07/11

Via: Certified Mail, Return Receipt Requested No. 91 7199 9991 ...

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