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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 Arkansas Department of Environmental Quality [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.
Page 2 and 3: Fritz Steiger August 9, 2011 Page 2
Page 4 and 5: ALLEGATIONS AND PROPOSED FINDINGS O
Page 6 and 7: 12. ADEQ personnel identified that
Page 8: e followed by the Permittee. The Co
Page 11: Fritz Steiger, Arbors at Deer Cross
Page 14 and 15: I ADEQ Water NPDES Inspection I AFI
Page 16: I ADEQ Water NPDES Inspection I AFI
Page 37: I ADEQ Water NPDES Inspection I AFI

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