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HomeMy WebLinkAbout6.k. Flint Hills Resources Site Plan Review, Setback Variance, and Screening Variance Request for Rail Car Storage and Associated Rail Tracks, Case 13-06-SP, 13-07-V, 13-08-V�11OSEMOUNT EXECUTIVE SUMMARY CITY COUNCIL City Council Meeting Date: March 19, 2013 AGENDA ITEM: Case 13- 06 -SP; 13 -07 -V; 13 -08 -V; Flint Hills Resources Site Plan Review, Setback AGENDA SECTION: Variance, and Screening Variance Request for Rail Car Storage and Associated Rail I i C01W V� Tracks. -t PREPARED BY: Eric Zweber, Senior Planner AGENDA NO. CL, ATTACHMENTS: Resolution; Site Location Map; Aerial APPROVED BY: Inery; Rail Staging Addition /Future 1401 Street with Landscaping; Project Narrative; Investing in the Future of the Pine Bend Refinery; Proposed Propylene Sphere Grading Plan; Loading Track Plan; South Yard Plan; Dakota County EAW Comment Letter; Minnesota Department of Transportation EAW Comment Letter; Rosemount EAW Comment Letter; Metropolitan Council EAW Comment Letter; Excerpt of the Draft February 26 Planning Commission Minutes. p RECOMMENDED ACTION: Motion to approve a Resolution Concurring with the Board of Appeals and Adjustments and the Planning Commission regarding the Variances and Site Plan Review requests for the Flint Hills Resources Rail Car Storage Area North of 140th Street. SUMMARY Applicant & Property Owner: Flint Hills Pine Bend, LLC Location: North of 140th Street; West of US Highway 52; East of Blaine Avenue /Rich Valley Blvd Comp. Guide Plan Designation: GI — General Industrial Current Zoning: HI — Heavy Industrial Flint Hills is proposing a tank expansion, loading spur track, and a rail car storage area with associated railroad track. The three proposals are designed to store and ship propylene. The tanks and loading spur are interior to the refinery, adjacent to other tanks and loading spurs, and therefore those two proposals are minor expansions to existing infrastructure and do not require site plan review by the Planning Commission. The rail car storage is located south of the refinery and on an area of Flint Hills property that currently does not contain trackage or rail car storage. Because of that difference, both in geography and ownership, the rail car storage (and associated railroad tracks) requires site plan review under the Outdoor Storage standards of the HI: Heavy Industrial zoning district. Because the request represents a visible change in activity along the south side of Flint Hills, staff has scheduled the City Council review of these items. To approve the rail car storage, Flint Hills has submitted three applications and supporting plans. The three applications are a Site Plan Review, a Variance requesting a zero setback from the Union Pacific railroad tracks, and a Variance from the screening requirement from US Highway 52. In accordance with staff s recommendation, the Board of Appeals and Adjustments approved the setback variance and denied the landscaping variance; and the Planning Commission approved the Site Plan Review. Analysis of the staff recommendations is provided in detail below. PLANNING COMMISSION MEETING FEBRUARY 26, 2013 On February 26, 2013, the Planning Commission reviewed the Site Plan Review and Variance requests by Flint Hills Resources. The Planning Commission discussed the location of the tanks, the nearest residences to the expansion, the location of the realigned 140th Street, the separation between the railcars and the relocated 140th Street, and the operation of the railcars. Don Kern and Mark Colchin, Flint Hills representatives, reviewed the proposal with the Planning Commission and responded to questions. During the public hearing, Frank Knoll, a resident living on 145th Street, stated that he is comfortable with Flint Hill's proposal because there are already railcars carrying chemical on the tracks under US Highway 52. The Board of Appeals and Adjustments unanimously approved the Variance for a zero foot setback from the UP rail line and unanimously denied the Variance to eliminate the landscaping requirement from US Highway 52. The Planning Commission unanimously approved the Site Plan Review for the rail car storage after adding a condition that the revised risk management plan be reviewed by the City's first responders. The Zoning Ordinance allows the Community Development Director or a City Councilmember to appeal the Board of Appeals and Adjustments approval of a Variance or the Planning Commission approval of a Site Plan Review. Staff believes that the rail car storage area and associated tracks is a significant change in the use of the area, particularly when reviewing the changes that Flint Hills has made to the original proposal to allow the future realignment of 140th Street under US Highway 52 and therefore wanted to Council to weigh in on the applications. Given the Planning Commission and Board of Appeals and Adjustments actions, staff has prepared a Resolution for the City Council to concur with the Planning Commission approval. BACKGROUND Flint Hills refinery currently produces propylene, a chemical relative of propane. Flint Hills has identified a market where Flint Hills can sell its refinery grade propylene (RGP) to plastic manufacturers to be used in making clear plastic films and disposable cloth. To collect the propylene in quantities that they can supply to the plastics market, Flint Hills proposes to construct two 84 foot diameter storage spheres (located adjacent to five existing propane storage sphere), two parallel loading track spurs, (loaded west of the coke loading spurs), and five parallel tracks about 2,000 feet long each to store up to 134 rail cars. The rail storage tracks are located directly south of the Union Pacific rail line and about 1,000 feet north of the 140th Street. As summarized above, since the two new tanks and the two parallel loading spurs are adjacent to other tanks and loading spurs, they are a minor expansion to existing uses and therefore do not require Site Plan Review approval. The five parallel rail car storage tracks do happen to be adjacent to (directly south of) other rail tracks, but those tracks are on Union Pacific owned property and are exempt from local review. Over the last several years, staff has had numerous discussions with the City Attorney regarding regulation of railroads and railroad property. In a nutshell, activities that would qualify as relating to interstate commerce are not regulated by the City. Four of the five new tracks will be located on Flint Hills owned property, used for storage and not transportation, and therefore are subject to local review and approval. The City Code looks at the new track and the rail car storage as a new use on the property and therefore requires a Site Plan Review under the Outdoor Storage standards of the HI: Heavy Industrial zoning district. FA Before evaluating these standards, staff will provide some background on the other plans approved for this area. Over a decade ago, the Minnesota Department of Transportation (MnDOT) constructed the bridge decks north of 140th Street to allow the Union Pacific rail line to travel under US Highway 52 and elimination of the at -grade rail line crossing that had existed north of 117th Street. As a part of that reconstruction, the City worked with MnDOT and Dakota County to ensure that 140t' Street can be relocated under US Highway 52 and provide a way to travel from western to eastern Rosemount without traveling through the County Road 42 /US Highway 52 interchange. Following that construction, the City acquired an easement within the Union Pacific property, under the bridge deck, that would allow for the construction of 140th Street south of the rail lines and a trail south of the new 140th Street. The City has designed a road alignment with a 35 mph design speed to construct the new road under the bridge decks. The City does not have any easements or right -of -way to construct the road across the Flint Hills property. The road is planned, but construction may not happen until the County Road 42 /US Highway 52 interchange is constructed. Flint Hills has redesigned it five rail car storage lines to stop short of the right -of -way line needed for the future 140th Street alignment. Last year, the Metropolitan Council approved the Rosemount Interpretive Trail Corridor that will connect Lebanon Hills Regional Park through Downtown Rosemount and onto the Mississippi River Trail Corridor. The trail alignment uses the easement within the Union Pacific property to travel under US Highway 52. Because Flint Hills redesigned its rail car storage tracks to stop short of the future 140th Street right -of -way, the regional trail corridor will not be impacted by the Flint Hills proposal. ISSUE ANALYSIS — OUTDOOR STORAGE STANDARDS Below is the analysis and finding of the proposed outdoor storage of rail cars about 1,000 feet north of the existing 140th street. Heavy Industrial Zoning District Accessory Uses; 11- 4 -16 -1 C.: Outdoor storage, subject to the follonring. 1. Outdoor storage uses are exempt from the site and building standards outlined in subsection 11-4 -16G of this chapter of the general industrial district. There are no buildings proposed with the rail car storage and associated tracks. 2. The outdoor storage area shall be designed to limit its effects on adjacent properties and public right(s) of may. The properties adjacent to the rail car storage are zoned either GI: General Industrial of HI: Heavy Industrial and will not be affected. The redesigned rail car storage tracks do not have an effect on the existing public rights -of -way and will stop short of the future right -of -way needed for the 140th Street realignment under US Highway 52. 3. The storage area shall be covered ;vith paving, porous paving, gravel, vegetation, or a combination thereof. If necessary, this covering shall include additional materials so as to comply with subsection 11 -9 -1 C, "Dust, Dirt, Smoke, Odor, Gases'; of this title. The rail storage tracks will be installed upon gravel or rock ballast and therefore will meet this standard. 4. The storage area shall not take up, or interfere with access to, any required parking, loading, maneuvering or pedestrian area. The redesigned storage tracks will stop short of the future 140`'' Street realignment and therefore do not interfere with any existing maneuvering or pedestrian area nor any planned future maneuvering or pedestrian area. 3 5. The storage area shall be maintained in a neat and orderly fashion. The rail cars will be pressurized gas rail cars on five parallel tracks in a neat and orderly fashion. 6. No public address system shall be audible from a noncommercial or nonindustrial use or district. This subsection shall not be read to prohibit or proscribe safety alarms or sirens. No public address system is needed nor provided for the rail car storage area. 7. The storage area shall be clearly identified on the approved site plan for the project, may only be located in either a side or rearyard, and shall not encroach into any required accessory structure or building setback Flint Hills has provided a site plan that clearly identifies the rail car storage area. The storage tracks are proposed within the side yard of the property adjacent to the Union Pacific rail lines, but Flint Hills has requested a variance to remove the side yard setback requirement. Staff is supportive of the variance and that the justification is provided in detail below. 8. All outdoor storage areas shall be set back and screened as outlined below. In no case shall any outdoor storage area be located within seventy five feet (75) of any public right of way or propery line. a. If an outdoor storage area is located between seventy five feet (75) and three hundred feet (300) of a public right of way, it shall be screened from eye level view from the public right of way by a one hundred percent (100 %) opacity screen to a height equal to the items being screened, but not more than thirty five feet (35). Screening shall be accomplished by buildings, structures, landscaping and berming, natural topography, screening wall, or a combination thereof. Any screening wall shall be made of a masonry material and shall not extend more than one hundred feet (100 ) without a change in architecture to reduce its mass and appearance. The rail car storage track is more than 1,000 feet from 140'' Street and therefore is exempt from this provision. The rail storage is within 300 feet of US Highway 52. While Flint Hills has requested a variance to this standard, staff is not supportive of this variance request. Staff recommends that landscaping be installed north of the future 1400' Street and south of the new storage tracks that is within 300 feet of US Highway 52. As a compromise, staff would recommend a condition that the landscaping be installed incrementally, over the next three years, provided that Flint Hills provides a Letter of Credit for 110% of the value of the entirety of the landscaping required. b. If an outdoor storage area is located between three hundred feet (300) and one thousand feet (1,000) from a public right of way, it shall be screened from the eye level view from the public right of way by a seventy five percent (75 01o) opacity screen to a height equal to the items being screened but not more than thirty five feet (35). Screening shall be accomplished by buildings, structures, landscaping and berming, natural topography, screening wall, or a combination thereof. Any screening wall shall be made of a masonry material and shall not extend more than three hundred feet (3 00 ) without a change in architecture to reduce its mass and appearance. The rail car storage track is more than 1,000 feet from 14001 street and therefore is exempt from this provision. The rail storage is within 1,000 feet of US Highway 52. While Flint Hills has requested a variance to this standard, staff is not supportive of this variance. Staff recommends that landscaping be installed north of the future 14001 Street and south of the new storage tracks that is within 1,000 feet of US Highway 52. As a compromise, staff would recommend a condition that the landscaping be installed incrementally, over the next three years provided that Flint Hills provides a Letter of Credit for 110% of the value of the entirety of the landscaping required. 4 c. If an outdoor storage area is located more than one thousand feet (1,000) from a public right of way, no screening shall be required. The rail car storage track is more than 1,000 feet from 140`s Street. No landscaping is required for the section of storage tracks located more than 1,000 feet from US Highway 52. Based on these findings, staff recommends approval of the Site Plan Review with the four conditions provided in the recommended motion. ISSUE ANALYSIS — SETBACK VARIANCE STANDARDS Below is the analysis and finding of the requested variance for no (zero feet) setback from the Union Pacific right -of -way. 1. Is variance in harmony with purposes and intent of the ordinance? The variance request is to reduce the setback from the Union Pacific right -of -way from 75 feet to zero feet. Since the proposed use within the reduced setback is railroad track similar to the railroad tracks within the Union Pacific right -of -way, purposes and intents of the HI: Heavy Industry zoning district are in harmony with the requested variance. 2. Is variance consistent with the comprehensive plan? The subject property is guided GI — General Industrial by the Comprehensive Plan. This section of the Plan emphasizes uses that have heavy transportation needs, such as railroad tracks and their associated rail cars. The proposed setback variance does not conflict with the development characteristics emphasized by the General Industrial section of the Comprehensive Plan. As a result, staff finds the variance consistent with the City's Comprehensive Plan. 3. Does proposal put propery to use in a reasonable manner? Staff finds that location railroad tracks adjacent to existing railroad tracks as a reasonable use of the property. Requiring that the new railroad tracks be installed 75 feet from the existing Union Pacific tracks would be unreasonable and result in tracks being located closer to the existing 140`s Street than is proposed. This would be counter to the Ordinance's intention of using distance to buffer the impact of heavy industrial uses from the public right -of -way. 4. Are their unique circumstances to the pmpery not created by the landowner? Heavy industrial uses commonly require railroad service. Railroads own the property under their main lines and therefore a property line in created by receiving railroad service. Construction of the Flint Hills owned railroad tracks for train car storage should not require a setback simply due to different ownership of the land under the tracks. 5. Will the variance, ifgranted, alter the essential character of the locali-ty? The area is planned for general industrial and zoned HI: Heavy Industrial. Granting the reduction of the setback to construct the new railroad tracks will not alter the industrial character of the locality. Based on these findings, staff recommends approval of the variance for no setback from the Union Pacific right -of -way. ISSUE ANALYSIS — LANDSCAPING /SCREENING VARIANCE STANDARDS Below is the analysis and finding of the requested variance to not require the screening requirement from US Highway 52. 5 1. Is variance in harmony with purposes and intent of the ordinance? The variance request to not require screening from US Highway 52 is not in harmony with the purpose and intent of the Ordinance. The intent of the HI: Heavy Industrial zoning district is to use distance as a buffer from the disruptive nature of heavy industrial uses. Screening, through landscaping or other means, is required when a setback of 1,000 feet cannot be achieved. Eliminating this screening requirement would not meet the buffering intent. 2. Is variance consistent with the comprehensive plan? The Comprehensive Plan identifies that industrial uses are necessary to the community but must be buffered from residential uses or public rights -of -way. Eliminating this screening requirement would not be consistent with the Comprehensive Plan. 3. Does proposal put property to use in a reasonable manner? Construction of railroad tracks with a proper screen from the public right -of -way is a reasonable use of the property. 4. Are there unique circumstances to the propery not created by the landowner? There are no unique circumstances that would prevent the installation landscaping to screening the rail car storage from US Highway 52. S. Will the variance, ifgranted, alter the essential character of the localiy? Eliminating the screening requirement would alter the character of locality of the other improvement construction in the area that met the screening requirements. Based on these findings, staff recommends denial of the variance to not require screening from US Highway 52. As a compromise, staff has recommended a condition within the site plan review approval that the landscaping be allowed to be installed incrementally over the next three year provided that Flint Hills provides a Letter of Credit for 110% of the value of the entirety of the landscaping required. MPCA REVIEW OF THE EAW The Minnesota Pollution Control Agency staff has recommended a negative declaration of need of an environmental impact statement (EIS), but as of writing of this Executive Summary, the PCA Commissioner has not approved this declaration. If the Commissioner does make his determination by the time of the City Council review, staff will provide an update at the March 19th meeting. RECOMMENDATION Staff recommends that the City Council concur with the Planning Commission's approval of the Site Plan review for railcar storage with condition and the Board of Appeals and Adjustments approval of the Variance for a zero foot setback and denial of a Variance to eliminate that landscaping requirement from US Highway 52. 0 CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2013 - A RESOLUTION CONCURRING WITH THE BOARD OF APPEALS AND ADJUSTMENTS AND THE PLANNING COMMISSION REGARDING THE VARIANCES AND THE SITE PLAN REVIEW REQUESTS FOR THE FLINT HILLS RESOURCES RAIL CAR STORAGE AREA NORTH OF 140TH STREET WHEREAS, the City of Rosemount received a request for Site Plan Review and Variances from Flint Hills Resources for the construction of a rail car storage area directly south of the Union Pacific rail lines and about 1,000 feet north of the existing 140`h Street. WHEREAS, on February 26, 2013, the Board of Appeals and Adjustments of the City of Rosemount reviewed the Variance for a Zero Foot Setback from the Union Pacific Rail Line and the Variance to Eliminate the Landscaping Requirement from US Highway 52; and WHEREAS, on February 26, 2013, the Board of Appeals and Adjustments of the City of Rosemount Approved the Variance for a Zero Foot Setback from the Union Pacific Rail Line and Denied the Variance to Eliminate the Landscaping Requirement from US Highway 52; and WHEREAS, on February 26, 2013, the Planning Commission of the City of Rosemount reviewed the Site Plan Review for the Rail Car Storage Area; and WHEREAS, on February 26, 2013, the Planning Commission Approved the Site Plan Review for the Rail Car Storage Area with Conditions; and WHEREAS, on March 19, 2013, the City Council of the City of Rosemount reviewed the Board of Appeals and Adjustments' Approval and Denial and Planning Commission's Approval. NOW, THEREFORE, BE IT RESOLVED, the Council of the City of Rosemount hereby Concurs with the following: 1. The Board of Appeals and Adjustments Approval of the Variance allowing No (Zero Foot) Setback for the Rail Car Storage from the Union Pacific Railroad Property Line. 2. The Board of Appeals and Adjustments Denial of the Variance from the Outdoor Storage Screening Requirement from US Highway 52. 3. The Planning Commission Approval of the Site Plan for the Rail Car Storage and Associated Railroad Tracks, Subject to the Following Conditions: a. Provision of a Letter of Credit for 110% of the Value of the Landscaping required for screening from US Highway 52. b. Installation of one -third of the required landscaping in each year of 2013, 2014, and 2015. c. Negative Declaration of Need for an EIS by the Minnesota Pollution Control Agency regarding the Environmental Assessment Worksheet or Satisfactory Completion of an EIS as required by the MnPCA. RESOLUTION 2013- d. Conformance with the City Engineer's Memorandum dated February 15, 2013. e. Submittal of an updated risk management plan to the City to be reviewed by the first responders. ADOPTED this 19'' day of March, 2013, by the City Council of the City of Rosemount. William H. Droste, Mayor ATTEST: Jeffrey May, Deputy City Clerk Dakota County, MN Z A P � r LOADIN rim RACKSIMI OP F"' 41-Aw -1 ; rt4t� A. oiscmxneroapondporcedata are believed tn»e accurate, but accuracy is not guaranteed. This $not map Scale a legal document and should not bc substituted for o title search, appraisal, survey, o, for zoning 1 inch = 1601 feet verification. Dakota County assumes no legal responsibility for the information contained in this data. Z/ZZ/ZO13 PROPOSED NEW PROPYLENE SPHERES PROPOSED NEW PROPYLENE LOADING RACK & SPUR ~Y HI; 55, VA rWEST TANK FARM A� '� I✓i'O -T V �. nil 1�It+aU e" EXISTING FCC UNIT ry r yf, --a Oiiew .8 *Aft i 7 till t EX [STING DIMERSOL UNIT { _ _ -Y iz J � ;I EXISTING RAIL STAGING AREA - i PROPOSED RAIL STAGING AREA ADDITION Current Features N Proposed Features Approximate Impact Area 1 inch = 1,200 feet Plant Boundary 1,200 0 1,200 Southern Property Boundary of Land Owned Feet —' by FHR and Union Pacific Railroad Figure 2a SITE PLAN AERIAL IMAGERY - PROJECT DETAILS Propylene Tanks and Piping Flint Hills Pine Bend, LLC Rosemount, Minnesota 1! § E S / § o£cc F o Bt E0 MOM 3/w � Z - \ \w/ — C k � 0 / c � § ■§Lj C0 w \� � § §2 R i L IM kE � k� Lu =a ` I LL �| QCo \�0 0 R § \ / O #n . ¢0 R |` |� > / E w x222© (D m | :.. ]nN]3v Tai: /*3 NOO w / E \ƒ _ & 2R w. 0 ] w }\ Nkv+NmNMnaL U. 1� z d w o / ¢R \ \ / /\ 8 WZ b \m C4 2 e / Om E 7 CO ƒe I ±/ : \ \§ %•�� O \ . >y y\ > . •� 2 R §„ U / % / ` \. Iw\ ! LAP l:3, §k)) 2g' S L « »§ | v F� FLINT HILLS resources® Pine Bend Refinery January 29, 2013 Mr. Eric Zweber Senior Planner City of Rosemount 2875145th Street West Rosemount, Minnesota 55068 -4997 RE: Flint Hills Resources Pine Bend, LLC; Site Plans for the Propylene Storage and Distribution Project Dear Mr. Zweber: Attached please find a package of drawings and additional information related to the Propylene Storage and Distribution Project proposed for the Flint Hills Resources Pine Bend, LLC (FHR) petroleum refinery. This information is intended to meet the requirements of the Planning Commission for site plan review of this project. Also attached are two variance requests associated with the proposed project. Enclosed is Check #3944 in the amount of $1200 for the Site Plan Review FEE. FHR is in the process of obtaining checks for the Variance fees. We intend to have those to you by February 1. The primary purpose of the project is to give FHR the flexibility to diversify our product mix by marketing refinery grade propylene (RGP) that is already produced at the refinery and is a key ingredient in the manufacture of plastics. In order to accomplish this, certain additions are needed as described in the MPCA's Environmental Assessment Worksheet (EAW), which as you know, was published for public comment on January 18th, 2013 (copy attached). The public comment period is due to close on February 20th. It is our hope that we can obtain copies of any public comments and forward those to the Planning Commission prior to the Commission's February 26th scheduled meeting. Following are key components of the project as described in that EAW: The proposed Project consists of the construction of redundant dryer beds, two steel RGP storage spheres (total volume 40,000 barrels each, net capacity 32,000 barrels each), and a RGP rail loading rack as well as piping between these units. The proposed Project also includes building an addition to the existing rail staging area at the south side of the Refinery. The propylene spheres would operate at high pressures ( >250 pounds per square inch) and have 8 foot tall supporting platform below, resulting in an installed height of nearly 84 feet. Figures 2, 2a, and 3 show areas of construction associated with the Project. As shown in Figure 4, if the proposed Project is implemented, some or all of the RGP that is currently sent to the Facility's Dimersol Unit would be pumped, via four -inch diameter above ground piping to two new steel RGP storage spheres. The RGP would remain in the storage spheres until it is sold, at which time it would be pumped to the proposed RGP rail loading rack and into closed rail cars. The RGP loading rack would include a vapor combustion unit (VCU). The VCU would capture and destroy residual volatile organic compounds (VOC) in the RGP supply line. The proposed additional RGP rail staging area would include five tracks adjacent to an existing rail staging area to the south of the Refinery fence line on property owned by FHR and Union Pacific Railroad. The new staging area would accommodate approximately 150 additional rail cars. [FHR added clarification: Note that the east end of the rail staging area, near Highway 52, will be shortened slightly to address concerns pointed out recently by the City Engineer. An enlarged view of that portion (draft form) is attached to this Site Plan review package. j Rail cars will be used to bring RGP to market. The limited number of additional rail cars will likely be absorbed by current rail capacity, so we wouldn't expect a noticeable impact on local rail traffic. During the loading processes, liquid RGP would be pumped form one of the storage spheres to a new propylene rack in the Refinery's existing West Tank Farm. During rail car loading, one sphere can be emptied while the other can concurrently be filled with RGP. Empty FHR -owned rail cars are expected to be exclusively loaded with RGP to maintain product quality. The proposed Project does not involve significant demolition or removal of existing structures. The proposed new storage spheres fit within the Refinery's West Tank Farm without removing any existing structures. The project is not anticipated to include any new underground process piping. Existing underground petroleum piping would be sleeved at the point where new rail track crosses over these lines. The project is anticipated to begin April, 2013 with a target completion of approximately September, 2014. FHR anticipates that the first rail car would be loaded with propylene for transfer offsite in the fall of 2014. There will be no increase in permitted capacity of any processing units and we expect only a slight increase in total air emissions as a result of this project. If you have any questions on any of this information, please contact me directly at 651 - 438 -1701. Sincerely, Mark W. Colchin Project Manager Enclosures Cc (cover only): Mayor Bill Droste Kim Lindquist, Community Development Director Andy Brotzler, City Engineer FLINT HILLS r e s o u r c e so Since it was established as the Great Northern Oil Company in 1955, the Flint Hills Resources Pine Bend refinery has played a pivotal role in provid the transportation fuels that power Minnesota and the Midwest. Today, wil. a capacity of 320,000 barrels per day, Pine Bend is among the nation's tc producers of fuels and other petroleum -based products that are essential to the economy and modern life. Most importantly, Pine Bend is one of the safest and cleanest refineries operating in the United States, and it contirn to improve. Since 1997 the Pine Bend refinery has lowered emissions of traditional criteria pollutants by 70 %, while increasing production to help meet demand for transportation fuels. The refinery has reduced total on -sii emissions in 10 of the last 11 years, and its emissions per barrel are 50% lower than the industry average for large refineries. Pine Bend has also realized new standards in safety, earning recertification as a Minnesota ST worksite and reducing injuries by more than 80% over the past 15 years. Pine Bend is committed to building on its success. With a number of projects underway and others proposed for implementation over the next several years, the refinery is focused on maintaining a safe work environmE becoming more efficient, continuing to lower key emissions, and remaininc fully compliant with all state and federal regulations. These projects range in scope from a recently completed $2 million staircase safety structure around one of Pine Bend's major units to a series of proposed reliability ar efficiency improvement projects, costing approximately $400 million, whic' will reduce key emissions and improve the refinery's ability to convert crud oil into transportation fuels. These new projects are expected to create as many as 4 million hours of new work, increasing the temporary contract workforce from a daily average of about 500 people today to more.than 1,000 over at least the next five years. The projects require a permit from t Minnesota Pollution Control Agency and still must receive final approval fri Flint Hills Resources management. Flint Hills Resources is planning a number of projects at Pine Bend that are in various stages of development. Some of these projects may require permits, and each project is subject to final management Propvienee Storag , and DistrR ullmn —gives the refinery the flexibility to diversify its product mix by marketing a key ingredient in the manufacturing of plastics. The project involves building a rail rack and staging area on Flint Hills Resources' property as wE as adding two storage spheres. rude./Coker llni =r vefncent roject:z involves replacing three less efficient heaters with two new state -of -the -art heaters, upgrading an existing process heater, and making improvements to the refinery's cooling towers. The new and modified heaters will include best available control equipment for nitrogen oxide emissions and will use cleaner- burning natural gas or fuel gas. The new equipment and process improvements will lead to more efficient operations, allowing the refinery to operate closer to its current design capacity of 320,000 barrels per day while continuing to make reductions in key emissions. A Waste 'viva;er TreatMent Plata— strengthens the refinery's wastewater treatment capability and improves its ability to remove materials from its water dischar ich will help ensure the refinery remains elow its permit limits. Among other things, the oject includes adding a large equalization tank and adding additional oil /water separation equipment. Cabe Urmtt Replaa.eme fit —improves the safety and reliability of essential equipment that allows the refinery to convert petroleum to fuel. The project involves replacing two large, 10 -story coke drums that are reaching the end of their useful lives with newly fabricated vessels of the same size. One of the largest cranes in the U.S. will be on site in the fall of 2013 to install the new drums. NeVV Stlildings — provide space for personnel and equipment, including adding up to 100,000 square feet for construction and project management offices, contractor offices, engineering space, machine shops, and an upgraded lab. As part of the ongoing safety improvements, approximately 30 state -of- the -art, reinforced office modules will be added to provide contractors a place inside the refinery for regular breaks and meetings. 'i �- .'. +� i�i�,i=i 31` e t .:?£ C ra: I i fil.., O" fir , f Oil t In the last 10 years, Flint Hills Resources' project investments at Pine Bend have equaled the resources -required to build more than five Minnesota Twins baseball stadiums. .t Flint Hills spends and invests roughly $300 -400 million annually to operate and maintain the refinery, which t ( i 7 t ; t is a top local employer and Minnesota's most active continuous construction site. ref the gaczr-,iits F The Flint Hills Resources Pine Bend refinery employs r`i "1� j fuel �,;, }, [ �.n;i� �ttrFt , t; more than 900 people full -time and can have between 400 and 2,000 contract workers on -site on any given day. r)f the, Jet fuel used at the W1, n�'secip iii; St, P�':irl airport as. y ir;''s als asphalt and other !" e,,sse ntia€ products. Statewide, Flint Hills Resources employs more than 1,000 full -time workers. Separate studies by Harrah Analytics and the Minnesota Department of Employment and Economic Development estimate that Flint Hills Resources is responsible for creating 5,400 -7,500 jobs annually in Minnesota. Newly proposed reliability and efficiency improvement projects (crude /coker improvement projects), estimated at $400 million, are expected to create as many as 4 million hours of new work, increasing the temporary contract workforce from a daily average of about 500 people to more than 1,000 over at least the next five years. Flint Hills Resources is proud to support many organizations and programs that help make Minnesota a special place to live and work. The annual Flint Hills International Children's Festival in partnership with the Ordway Center for the Performing Arts Science Museum of Minnesota programming, school assemblies, and overnight field trips Minnesota Zoo traveling "Zoomobile" and school assemblies The annual Girls and Science exhibition in partnership with FOX 9 Ducks Unlimited statewide wildlife preservation and habitat restoration programs Pine Bend Bluffs natural prairie and habitat restoration project in partnership with Friends of the Mississippi River and Great River Greening Project Green Fleet and the Minnesota Clean Air Dialogue in partnership with Environmental initiative DARTS Learning Buddies program Flint Hills Resources Discovery Scholarships � z: �\ k� ) /| §N � a � 3 Z` � % z� 2 _ y ( .�� : . C � I |I 1 I !e ( � § \/ \\ \� . � v , �te� §22 ( ! ®44 ® -k 2 § o (L r e \ \ \ a \\ E \ \ \ k i I . ■~ z � ) [i \ !\ !i � .�y § [ : � 2 � . ......... spf ii� Ems. 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Department Office of GIs Mr. Sommer, Parks and Open Space Department Surveyor's Office Transit Office Thank you for the opportunity to comment on the Environmental Assessment Worksheet Transportation Department (EAW) for the Propylene Storage and Distribution Project proposed at the Flint Hills Water Resources Department Resources site. Dakota County and the city of Rosemount have recently completed a master plan for the Rosemount Regional Greenway adopted by the City, the County, and the Metropolitan Council. The alignment for the greenway trail passes under Highway 52 at the existing underpass location, on the south side of future 145th Street, in the area of the proposed rail yard expansion. The Highway 52 underpass was designed by MnDOT to accommodate the railroad track, future 145th street, and a trail. The City of Rosemount has an easement of UP property at this location for the trail and road. The proposed rail yard expansion should be configured in a manner that would accommodate the Rosemount Regional Greenway Trail and the future 145th street. Dakota County staff are available to meet with Flint Hills Resources and Rosemount city staff to discuss how the proposed rail yard, 145th street connection, and Greenway alignment can be designed to share the underpass at Highway 52. Thank you again for the opportunity to review the EAW. If you have questions or concerns regarding Dakota County's comments, please contact Kurt Chatfield in the County Office of Planning and Analysis by phone at 952 -891 -7022 or by email at kurt.chatfield @co.dakota.m n.us. Sincerely, Lynn hompson Director, Dakota County Physical Development Division CC: Commissioner Mike Slavik, District 1 Commissioner Nancy Schouweiler, District 4 Brandt Richardson, County Administrator is NwUd - —Yd d PFPW wNs IOC; �asF•cmnar.er waste A FQ4.0 Qwcr Aah'U9 cF Minnesota Department of Transportation Metropolitan District Waters Edge Building OF. 1500 County Road B2 West Roseville, MN 55113 February 15, 2013 Steve Sommer Minnesota Pollution Control Agency 520 Lafayette Road North St. Paul, MN 55155 — 4194 SUBJECT: Flint Hills Resources — Storage Tanks MnDOT Review # EAW 13 -001 West side of US 52, across from TH 55 Rosemount, Dakota County Control Section 1906 Dear Mr. Sommer: Thank you for the opportunity to review the EAW for the Flint Hills Resources Propylene Storage and Distribution Project. MnDOT has reviewed the EAW and has the following comment: Permits: Any use of or work within or affecting MnDOT right -of -way requires a permit. It is anticipated that more specific impacts to MnDOT right -of -way will be determined during the FEIS and Preliminary Engineering phases. Permit forms are available from MnDOT's utility website at.www.dot.state.mn.us/tecsup/utility. Please include one 11 x 17 plan set and one full size plan set with each permit application. Please direct any questions regarding permit requirements to Buck Craig (651- 234 -7911 or buck.craig t sstate.mn.us) of MnDOT's Metro Permits Section. Review Submittal Options: MnDOT's goal is to complete the review of plans within 30 days. Submittals sent in electronically can usually be turned around faster. There are four submittal options. Please submit either: 1. One (1) electronic pdf. version of the plans. MnDOT can accept the plans via e -mail at metrodevreviews.dotgstate.mn.us provided that each separate e- mail is under 20 megabytes. 2. Three (3) sets of full size plans. Although submitting seven sets of full size plans will expedite the review process. Plans can be sent to: MnDOT — Metro District Planning Section Development Reviews Coordinator 1500 West County Road B -2 Roseville, MN 55113 3. One (1) compact disc. 4. Plans can also be submitted to MnDOT's External FTP Site. Please send files to: ftp: / /ftp2. dot. state. mn. us / pub /incoming /MetroWatersEdge /Planning Internet Explorer doesn't work using ftp so please use an FTP Client or your Windows Explorer (My Computer). Also, please send a note to metrodevreviews.dotnstate.mn.us indicating that the plans have been submitted on the FTP site. If you have any questions concerning this review, please feel free to contact me at (651) 234 -7793. Sincerely, Z�dve Michael J. Corbett, PE Senior Planner Copy sent via E -Mail: Bruce Irish, Water Resources Nancy Jacobson, Design Buck Craig, Permits Lee Williams, Right -of -Way Jon Solberg, Area Planner David Sheen, Traffic Engineering Clare Lackey, Traffic Engineering Julie Lindquist, Dakota County Program Services Ann Braden, Metropolitan Council 4ROSEMOUNT COMMUNITY DEVELOPMENT February 20, 2013 Minnesota Pollution Control Agency Attn. Steve Sommer 520 Lafayette Road North St. Paul, MN 55155 -4194 Dear Mr. Sommer, This letter serves as the comments from the City of Rosemount regarding the Flint Hills Resources — Propylene Storage and Distribution Project Environmental Assessment Worksheet (SW). Page 7; Table 8 -1: Flint Hills has submitted for a Site Plan Review of the rail storage track north of 140'' Street, a variance for no setback from Union Pacific owned rail line, and a variance from the landscaping /screening requirement from US Highway 52. The public hearing for these three requests ate scheduled for Tuesday, February 26. No rezoning is needed because all Flint Hills owned property is zoned HI: Heavy Industrial. The AG: Agricultural zoning property west of the rail car storage tracks is owned by the Union Pacific railroad. Page 7; Item 9 Land Use; Second Paragraph: The refinery is in the City of Rosemount and therefore there should be no miles between the refinery and the City. Another alternative would be that the refinery is 4 miles northeast of Downtown Rosemount. Page 11; Item 17 Water Quality: The existing FHR's SWPPP boundary should be shown on an exhibit. If the FHR's General Stormwatet Permit is not amended to include the project area, then the project would be required to manage the water quality in accordance with the City of Rosemount Storm-water Management Plan requirements. Page 12; Item 18 Water Quality — Waste Water: Not all of the refinery's wastewater is treated by the FHR WWTP. The City provides sanitary sewer service to the maintenance building and the central administration building. Page 15; Item 21 Traffic: Please quantify the existing train traffic along the existing rail line for reference. Page 18; Item 25 Nearby Resources: There is an approved regional trail corridor (Rosemount Interpretative Trail) that will be using the railroad tight -of -way under US Highway 52. The City of Rosemount will be considering this trail corridor during the Site Plan Review for the rail car storage tracks north of 1400' Street. Page 19; Item 28 Impact on Infrastructure and Public Services: The City has a roadway easement within the railroad right -of -way under US Highway 52 for the future extension /realignment of 140'' Street. The City of Rosemount will be considering this roadway easement and a 35 mph design speed for the 140t" Street extension /realignment during the Site Plan Review for the rail car storage tracks. SPIRIT OF PRIDE AND PROGRESS Rosemount City Hall • 2875 145th Street West • Rosemount, MN 55068 -4997 651- 423 -4411 • TDD /TTY 651 -423 -6219 • Fax 651- 423 -5203 www.ci.rosemounr.mn.us If you have any questions, feel free to contact me at eric.zweber @ci.rosemount.inn.us or 651- 322 -2052. Sincerely, `5•c Eric Zweber, Senior Planner cc. Don Kern, Flint Hills Resources Metropolitan Concil i u February 20, 2013 Mr. Steve Sommer Principal Planner Minnesota Pollution Control Agency 520 Lafayette Road North Saint Paul, MN 55155 -4194 RE: Flint Hills Resources Propylene Storage and Distribution Project EAW Flint Hills Resources Pine Bend, LLC City of Rosemount, Dakota County, Minnesota Metropolitan Council District 16, Wendy Wulff Review File No. 21071 -1 Dear Mr. Sommer: Metropolitan Council staff has reviewed the EAW for the project described above to determine its adequacy and accuracy in addressing regional concerns, its potential for significant environmental impact, and its consistency with regional plans and policies. The Council finds that an EIS is not necessary for regional purposes, but offers the following comments concerning issues addressed in the EAW that need to be clarified or expanded upon in the Response to Comments document. Item 13 — Water Use The EAW states on page 10 that the project will not involve installation or abandonment of wells, changes in public water supply, or appropriation of any ground or surface water. The text indicates on pages 17 and 18, that water or dust suppressants may be applied to exposed soil surfaces and unpaved roads to control dust. Will existing water appropriations need to be amended to increase water use, or will water for dust suppression and other construction needs be met using existing water appropriations? Item 19a — Geologic Hazards and Soil Conditions The EAW states that there are no sinkholes, shallow limestone formations, or karst conditions present in the vicinity of the proposed project. Due to the highly localized nature of sinkholes and other karst conditions, and the limited number and depth of wells in this area, we recommend this conclusion be reworded to be clear that there are no documented sinkholes or karst conditions in the area of the Proposed project. The Prairie du Chien - Jordan aquifer is generally recognized to exhibit karst conditions throughout the entire metro area, and it should be acknowledged that lack of documentation does not mean karst conditions are not possible at the site. (See recent MN Pollution Control Agency guidance document 4 -09 for more information: llttp: / /www pca state mii us /index ph /view document html7gid= 3033.) This item should also address the large number of wells identified as `unlocated' wells, as documented by the MN County Well Index, and the likelihood of additional unidentified wells that may serve as pathways for contamination to move into drinking water aquifers. Item 20 — Solid Wastes, Hazardous Wastes, Storage Tanks The EAW states that scrap metal, welding rods, etc. are anticipated to be generated during the construction phase of this project but this item does not identify any wastes or storage tanks that would be generated or used during future operation. If this information is described in the requested detail www.metrocouncil. org 390 Robert Street North • St. Paul, MN 55101 -1805 • (651) 602 -1000 Fax (651) 602 -1550 •TTY (651) 291 -0904 An Equol Opportunity Employer Mr. Steve Sommer February 20, 2013 Page 2 elsewhere in the document, please summarize the information here and reference additional detail in the EAW. If not listed elsewhere, please add the required detail here in Item 20. Item 25c — Nearby Resources -- Designated Parks, Recreation Areas or Trails Dakota County and the City of Rosemount prepared a master plan for the Rosemount Greenway Regional Trail, which was approved by the Metropolitan Council in 2012. The Rosemount Greenway Regional Trail will connect Lebanon Hills Regional Park in Eagan to Spring Lake Park Reserve in Rosemount. The planned regional trail is considered part of the regional parks system and is protected through the Council's 2030 Regional Parks Policy Plan. The Council- approved alignment for the regional trail is planned to cross Highway 52 at the existing underpass near the Flint Hills Resources site and parallel the highway heading southward for 0.5 miles through the parcel on which the rail yard expansion is planned. Council staff recommends that Flint Hills Resources, Dakota County and the City of Rosemount collaborate to ensure that the rail yard expansion and regional trail can be accommodated to share the site as well as the underpass of Highway 52. If you have questions about these comments, please contact Jim Larsen PE, Principal Reviewer, at 651- 602 -1159. Sincerely, LisaBeth Barajas, anager Local Planning Assistance cc: Wendy Wulff, Council District 16 Patrick Boylan, Planning Sector Representative Kyle Colvin, MCES Engineering Services Assistant Manager Judy Sventek, MCES Water Resources Assessment Manager Reviews Coordinator N:\CommDev \L.I'A\Agencies \MPCA \Letters \MPCA 2013 EAW Flint Hills Resources Propylene Storage Distribution Project 2107E Ldoc 4ROSEMOUNT PUBLIC WORKS MEMORANDUM DATE: February 15, 2013 TO: Eric Zweber, Planner CC: Kim Lindquist, Community Development Director Andrew Brotzler, Director of Public Works /City Engineer Kathie Hanson, Planning Department Secretary FROM: Phil Olson, Assistant City Engineer RE: FHR Propylene Storage & Distribution Engineering Review SUBMITTAL: Prepared by TKDA and Barr Engineering, the Propylene Storage & Distribution plans were received January 28, 2013. Engineering review comments were generated from the following documents included in the submittal: • Location Maps and Aerial Views (5 pages) • Propylene Layout • Grading and Drainage Plans (9 pages) • Rail Plan Drawings (46 pages) • Stormwater Design Calculations • Investing in the Future (4 pages) GENERAL STORMWATER MANAGEMENT PLAN COMMENTS: The City's stormwater management requirements are proposed to be met by two different methods. Stormwater for the Propylene Storage Facility is proposed to be directed to the existing on -site stormwater storage pond. The railroad expansion is proposed to be directed a newly constructed ditch and a stormwater storage pond. 2. The stormwater storage ponds and ditch areas are proposed to be privately owned and maintained. The property owner is required to maintain the ponds and ditch so they operate as designed. STORMWATER MANAGEMENT PLAN: Provide a drainage area map demonstrating that the runoff from the railroad expansion will flow to a stormwater storage area as indicated in the design calculations. The drainage area map should include contours and area calculations. 2. The stormwater runoff volume analysis for the railroad track expansion is required to be updated using the NRCS (SCS -curve number) Method. With the NRCS Method, it is estimated that the impervious area would generate approximately 1.4 acre -feet of runoff volume which exceeds the proposed 1.2 acre -feet provided in the design. 3. The water quality calculations are required to be updated using NURP standards. It appears that the analysis was completed to NPDES standards. 4. Additional infiltration testing and /or a letter from a professional engineer are required to verify that an infiltration rate higher than that allowed in the engineering guidelines is justified. 5. The footprint of the stormwater storage areas and high water elevations are required to be shown on the railroad plans. 6. Ditch checks are recommended throughout the project to prevent erosion. Should you have any questions or comments regarding the items listed above, please contact me at 651 - 322 -2015. EXCERPT OF DRAFT MINUTES PLANNING COMMISSION REGULAR MEETING FEBRUARY 26, 2013 a. Flint Hills Resources Site Plan Review and Variance Request to Allow Placement of Rail Car Storage Tracks (13- 06 -SP, 13 -07 -V, 13- 08 -V). Senior Planner Zweber stated that Flint Hills is proposing a tank expansion, loading spur track, and a rail car storage area with associated railroad track. The rail car storage (and associated railroad tracks) requires site plan review by the Planning Commission under the Outdoor Storage standards of the HI: Heavy Industrial zoning district. To approve the rail car storage, Flint Hills has submitted three applications and supporting plans. The three applications are a Site Plan Review, a Variance requesting a zero setback from the Union Pacific railroad tracks, and a Variance from the screening requirement from US Highway 52. Staff is supportive of the Site Plan Review and the setback Variance, but does not support the screening Variance. Mr. Zweber further explained staff's recommendations. Commissioner Miller asked for clarification on the storm water management plan and potential for future flooding of the new road. Project Engineer Olson responded that overall, the water is directed towards a low area and there is plenty of room on the property to move the storm basins if required. He further stated there isn't a plan design of the roadway yet but staff would insure that the future road designs would be built at a higher elevation. Commissioner Husain asked the distance between residents to the proposed tanks. Mr. Zweber showed on the map the closest resident to the tanks that already exist on the property and stated they would not be able to see the new tanks unless specifically looking around the existing tanks. Commissioner Husain asked if Flint Hills would be using the existing Union Pacific rail line next to the proposed new tracks. Mr. Zweber showed on the map the proposed plan for the new tracks and stated the applicant would have to answer the question of sharing the tracks with Union Pacific. Commissioner Weber asked what type of landscaping is being required and Mr. Zweber responded that no berm is required, only trees. Don Kern, of Flint Hills and Mark Colchin, Manager for propylene project, of Flint Hills, were present at the meeting. Commissioner Miller had questions for the applicants about the landscaping timeline, if there would be materials stored in the railcars and the amount of risk having the railcars so close to the road for possible public interaction. Mr. Kern responded that initially they did not know where the City would require the landscaping to be installed and now that they know, they would be able to install it faster than the three years as in the condition. Mr. Kern stated the storage cars will come and go and will be stockpiled at times awaiting transport. Some will be empty; some will have materials in them and Union Pacific manages the transport. Mr. Kern further stated that the risk profile will be similar to other sites within the metro area where railcars are close to a road. Chairperson Powell asked with Union Pacific in charge of the transport whether or not there is a risk management agreement between the two parties in the event something happens with the railcars. Mr. Kern stated that in terms of the management of an accident, it would be a combined effort of local, state and Flint Hills emergency responders. Commissioner Husain asked for a clarification of the safety measures for the new tanks and Chairperson Powell asked how many railcars are expected on the new tracks. Mr. Colchin explained the safety measures and stated there will be 134 cars. Mr. Zwebet provided more clarification on the trail corridor plans and stated that as a part of that project, it is required for a fence to be installed on the north side of the new 140`h Street and some additional infrastructure between the road and the railcar tracks. Chairperson Powell asked what governs the distance between the end of the tracks and the road and Mr. Colchin responded that the edge of the right of way to the road dictates the distance. The public hearing was opened at 7:13p.m. Frank Knoll, 4322 145`" Street East, stated he did not see any problem with the current request since there are already chemicals stored in railroad cars on the tracks under Highway 52. There were no public comments. MOTION by Miller to close the public hearing. Second by Husain. Ayes: 4. Nays: None. Motion approved. Public hearing was closed at 7:15p.m. Commissioner Miller asked for an explanation of Condition #3 of the site plan recommendation and also asked if the City has reviewed the Flint Hills risk management plan with respect to the storage of railcars. Mr. Zweber explained that the MnPCA needs to make a Negative Declaration that there is no need to do further environmental work on this matter, and because the vote has not actually happened yet, staff made it a condition before the tracks could be installed. As far as the risk management plan, Mr. Zweber stated he would need to follow up with the Police and Fire Department for more information. MOTION by Powell to Approve a Variance allowing No (Zero Foot) Setback for the Rail Car Storage from the Union Pacific Railroad Property Line. Second by Miller. Ayes: 4. Nays: None. Motion approved. MOTION by Weber to Deny the Variance from the Outdoor Storage Screening Requirement from US Highway 52. Second by Husain. Ayes: 4. Nays: None. Motion approved. Chairperson Powell recessed the Board of Appeals and Adjustment meeting and reconvened the regular Planning Commission meeting at 7:19pm. a. Flint Hills Resources Request for Site Plan Review (13 -06 -SP). The Planning Commission continued its discussion on the site plan review request by Flint Hills. The public hearing was opened at 7:19p.m. There were no public comments. MOTION by Miller to close the public hearing. Second by Powell. Ayes: 4. Nays: None. Motion approved. Public hearing was closed at 7:20p.m. Commissioner Miller requested a new condition be added requiring the submittal of an updated risk management plan to the City. MOTION by Powell to Approve the Site Plan for the Rail Car Storage and Associated Railroad Tracks, Subject to the Following Conditions: 1. Provision of a Letter of Credit for 110% of the Value of the Landscaping required for screening from US Highway 52. 2. Installation of one -third of the required landscaping in each year of 2013, 2014, and 2015. 3. Negative Declaration of Need for an EIS by the Minnesota Pollution Control Agency regarding the Environmental Assessment Worksheet or Satisfactory Completion of an EIS as required by the MnPCA. 4. Conformance with the City Engineer's Memorandum dated February 2-2 15, 2013. 5. Submittal of an updated risk management plan to the City to be reviewed by the first responders. Second by Weber. Ayes: 4. Nays: None. Motion approved.