A conclusion and recommendation in Section 6

Based on the Phase I ESA completed by ABC Environmental, it is ABC Environmental's opinion that there may/may not be environmental contamination issues at the Site. ABC Environmental bases this opinion on the following facts:

*ABC environmental was retainte by client to conduct a phase 1 ESA of a commercial property.

report:

* own by client, occupied by hotel, restaurant, banquet and meeting hall.

Phase 1

* previous reports

* historical review

* review of reg site and area

* walk through

* activities on property

* Interviews

* preperation for report

* monitoing or testing

* layout drawing

* assessment of biological features

* assessments of permits or licences

Historical findings uses are found in section 3.0

Environmental findings in section 4.0

Located on west side 40 meters north of royal rd and bordering a unpaved parking lot to the east south is petro station, coffee and pub to the west parking lot.

Occupied since 1989

Irregular shape that is 2 acres , 12 story building , total area of 15,600,the ding covers 20% of the entire land. Consturcted originally in 1970's and hotel since 1989.

Concreat, concreate blocks, brick, multi roof, partial basement, 5-lvl parking located on the west.

Renovations occurred

Guest rooms

Linen rooms

Fitness room

Front desk, lobby

Resturant

Convience

Office

Meeting room

Storage room

2 elevators

Laundry room

Mechanical room

Boiler

Chiller

Generator

Penthouse lvl

Site exterior has an asphalt surface and has been paved since construction

Reminder covered in grass

2 monitoring wells on the south and western side

Water is from municipal

Sanitary wastewater discharged from municipal to sewage system

Storm water to municapl via piping/catch basins

Heated by roof naturral gas fire

2 natural gas boiler

Heated by pipes and close loop system

Hot water by gas

Chilled water by chiller system

Emergency diseal located in generator room

Ground surface in lvl

Gently sloping southeast

500 meters from minico creek

Near-surface groundwater is flows southeast

Comprised of clay silt till

Possible groundwater flow and contamination of mitigation

Bedrock to be shale limestone dolostone siltstone carbonated rock

3 reports

Draft phase 1

Phase 1

Groundwatering monitoring report

Historically there were no fire insurance plans,

Vacant, undeveloped land

Undeveloped with grassland

South under construction

North unoccupied

Small building where garage is brought

Small in areal

Northern portion occupied by printing company

Garage building was constructed

Garage was heated by natural gas unit heaters

Garage building storage chemical mineral spirits isopropyl alcohol, naphtha acetone

With sprinkle flammable liquids

Major addition in 1987

North and west seem to be vacant undeveloped

East seem occupied by roadway by vacant land

South appears to be occupied by residental homes

North side is occupied by roadway

Light industrial

West occupied land

Shell gas station 1970

Roadway and buildings associated with the airport

1988 prop west of hwy 8 occupied by commerial building and parking lot

East side parking lot and hotel

Park n fly

East appreares to be occupied by large commercial building

Present day shell gas

Bulk fueling station 1999

2004 surrounding of site similar observed to 1999

following information was obtained concerning 5835 Francis Road, located approximately 60 metres west and inferred upgradient of the Site:

Split serve station

Rebuilt in 2000

New pipe and dispensers5 2 walled gasoline UST on property installed 2000 3 tanks

Replaced 5 walled that contained gasoline

One diesil

2 horizonal propane

1997 propane leak was reported from tank and all piping was replaced

2 protection post damaged remote propane dispenser,

Propane turned off till fixed

Small leak was found

Leak found unknown

Inferred downgradient site

Self serve gasoline

1977 fiberglass units installed

1991 a leak was noted of one of the UST

Piping was removed

Replaced with fiberglass

Contaminated soil was reported removed from area

Soil was excavated

Follow up 1992 south east was assessed for hydrocarbon contamination issues

Site was ranked at low and moderate under building a waste oil UST was abandoned

No contaminiation

According to TSSA, the following information was obtained concerning 5815 Royal Road, located adjacent to the east and inferred transgradient of the Site (i.e., Park n' Fly):

There was MAY be potential contamination issues at site

Greening report

Low. Based on the fact that wastes are not stored within the Hotel Building, and these activities no longer take place.

Park n fly - unknow amount of gasoline spilled on ground moderate

Self serve esso gas station considered low

Sunco gas station Moderate. Based on the distance and inferred upgradient direction from the Site.

Based on a review of the environmental database information presented in the Greening Report, there is information in the above-noted databases that would an issue of potentially significant environmental contaminant concern at the Site.

Above ground storage tanks are located on storage room located in a room with no drains location replaced in 1986

Good condition with no cracking or staining

Observed that steel AST located in generator room surround by concrete wall no signs of staining or cracking and has a concrete floor

2 oil resevoirs located in mechanical room 1971 no signs of staining or cracking.

Noted leaking on both hydrolic elevator pumps with pails underneath to catch drippings.

Floor drain

Located near north tower

2 vent pipes of garage during site construction suggest ust presnce

No other ust at the site

Liquid chemicals located/stored at site

No floor drains observed

Stored on shelving

And floor surfaces

Observed staining on floors

Observed to be in good condition

No floor drains

Gas cylinders

Containing carbon dioxide/nitrogen

The cylinders are stored within kitchen storage rooms within the Hotel Building. The cylinders are used in the pop and beer dispensing machines

Did not observe any other compressed stored

Site well maintained

No deposit of soil waste

Generates non-hazardous waste in compactor room

According to the Site representatives no waste audit or reduction work plan has been conducted and/or prepared for the Site. Since the Hotel Building contains approximately 413 guest rooms, it is ABC Environmental's opinion that a waste audit and waste reduction work plan are likely required to be completed for the Site

Grease stored in bins in garbage room

Grease traps pumps out 2 a month by employee

Observation of no generation of liquid waste

Small amount of waste oil from elevator not stored on site

Pail of oil onserved on site no significant staining was observed

No spills have occurred at the site

There are no air emmissions permits of licences and no inventory of source no monitoring of testing

The natural gas-fired kitchen appliances are defined as equipment for restaurant operations, and are likely exempt from a C-of-A (Air & Noise) requirement

gas-fired heating equipment at the Site likely exceeds the 1,500,000 BTU/h exemption limit indicated in Regulation 346 (see Section B-4 in Appendix B), it is ABC Environmental's opinion that a Certificate-of-Approval (C-of-A) (Air & Noise) for this heating equipment and the diesel-fired emergency generator would likely be required.

Could affect environmental quality

No significant containment issues

No complainets have been raised

wastewater discharges from the Site have not been tested to ensure compliance, no environmental issues, complaints or orders have been raised by the City of Finnigan regarding wastewater discharges

ABC Environmental observed five sumps located in the pool mechanical room (three), the paint storage room (one) and in parking area of the Garage Building (one) on the Site.

ABC Environmental was advised by the Site representatives that an asbestos survey has not been conducted at the Site. Based on the age of the Site buildings (1963 and 1971), ABC Environmental anticipates that friable asbestoscontaining materials (ACMs) may be present

ABC Environmental anticipates that light ballasts at the Site may contain PCBs, since the use of PCBs in electrical equipment was not discontinued until the early 1980s. PCBs in light ballasts may become an issue if they are leaking or if they are taken out of service. ABC Environmental did not observe any leaking light ballasts at the Site during the Site reconnaissance.

lead-based paints may be present at the Site, since the use of lead-based paints was not discontinued indicated that some of the paint surfaces appeared to be in bad condition

ABC Environmental reviewed the current land uses of neighbouring properties from publicly accessible locations to assess potential environmental contaminant impacts to the Site that may arise from off-Site operations.