SITE INFORMATION AND CORRESPONDENCE_2

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� k Ron Rowe Registered Environmental Specialist February 2, 2000 Page 2 Prior Owners owned the Property. We will review the background evidence and show that the applicable standards for naming a party as a"responsible party" were not met with respect to the Prior Owners. FACTUAL BACKGROUND AND SUMMARY OF REQUEST FOR RECONSIDERATION SITE DEVELOPMENT, OPERATIONS AND SALE Parmaceast was a California limited partnership ("Parmaceast"). It acquired the Property as raw land from the Stockton Redevelopment Property in December, 1963 with the intent of developing it into a discount shopping center and leasing the facility to an operator. Parmaceast entered into a master lease with MAC/Disco of East Stockton, Inc. ("MAC"). Under this master lease, Parmaceast was obligated to build a tilt-up warehouse-style shell for the shopping center (similar to "Costco") and to create its paved parking area. Concurrently with its execution of the master lease, MAC subleased a corner of the property to Urich Oil Company ("Urich") under a long-term sublease. The sublease obligated Urich to build out the gas station improvements and operate the gas station.2 These two construction projects were run concurrently and completed in late March, 1964. Under the master lease, MAC operated the improved Property as a discount shopping center under the trade name "DISCO," and Urich operated the gas station under the sublease. All of MAC's stock was acquired in 1965 by Daylin Corporation ("Daylin"), a national chain and publicly traded company, and Daylin became the successor under the master lease. Daylin controlled and operated the Property as the master lessee from 1965 until early 1976, when Daylin abandoned the lease as a result of its bankruptcy. The Property was immediately marketed for sale to avoid liability exposure under the loans that Parmaceast had entered into to finance its acquisition of the raw land and its construction of the warehouse and parking lot. The Property was sold to Calpack on April 1, 1964, and Parmaceast dissolved in 1976, shortly after the sale. �I 2 As part of the "evidence" it submitted to the County in late 1993 to convince it to name the f Prior Owners as responsible parties, Del Monte presented a copy of a 1963 application in the name of Parmaceast for a conditional use permit ("CUP") to allow a gas station to be operated on the Property. It is common to have property owners submit such applications where land use entitlements are involved; even if the use will be conducted by others, as was true here. Notably, the application was not signed by any officer of Parmaceast. However,based on this application form, Del Monte extrapolated the argument that Parmaceast had built out, owned and operated the gas station. It did not; Urich did. 761778.3 6