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HomeMy WebLinkAbout6.c Vesterra-Stonex Mineral Extraction Permit Renewal EXECUTIVE SUMMARY Planning Commission Meeting Date: April 26, 2016 Tentative City Council Meeting Date: May 17, 2016 AGENDA ITEM: Renewal of the Vesterra, LLC and Stonex, LLC Mineral Extraction Permit for 2016 AGENDA SECTION: Public Hearing PREPARED BY: Anthony Nemcek, Planner AGENDA NO. 6.C. ATTACHMENTS: Location Map; DRAFT 2016 Conditions for Mineral Extraction; Applicant’s Narrative; Stonex-Vesterra Borrow Pit Reclamation Protocol; Present Conditions and 2016 Mine Plan APPROVED BY: K.L. RECOMMENDED ACTION: Motion to recommend the City Council renew the Vesterra, LLC and Stonex, LLC Mineral Extraction Permit for 2016. SUMMARY Applicant: Jonathan Wilmshurst of Vesterra, LLC and Stonex, LLC Property Owner: Flint Hills Resources Operator: Solberg Aggregates Location: South of Bonaire Path, ¼ mile west of Blaine Ave. Area in acres: Vesterra – Northern 75 Acres along Bonaire Path Stonex – Southern 80 Acres directly south of Vesterra. Comp Plan Designation: LI, Light Industrial Current zoning: AG, Agriculture Material removed in 2015: 40,000 tons The applicant, Jonathan Wilmshurst of Vesterra LLC/Stonex LLC, requests renewal of the Vesterra and Stonex mineral extraction permit for 2016. The subject properties are located south of Bonaire Path, ¼ mile west of Blaine Avenue (County Road 71). The properties are owned by Flint Hills Resources which leases them back to the applicant for mineral extraction. While Flint Hills Resources and Vesterra, LLC/Stonex, LLC are parties to this application, the responsibility for securities and compliance with the conditions remains with Vesterra and Stonex as the property lessee. Upon review of the mineral extraction standards, police records and the information submitted by the applicant, staff recommends renewal of the permit for 2016. BACKGROUND According to the applicant, 2015 activity in the Vesterra/Stonex mine was down approximately 25% percent compared to 2014 levels. Solberg Aggregates remains the sole operator in 2016 and removed approximately 40,000 tons of aggregate. Solberg did not import any fill materials to the site in 2015. Vesterra/Stonex is working with Solberg and will provided detailed soil information consistent with the standards outlined in the Stonex, LLC and Vesterra, LLC Reclamation Protocol prior to review by City Council. These activity levels were down from the nearly 100,000 tons of aggregate removed and 10,665 tons of clean fill hauled back during 2013. A routine check of police records for the subject property noted no complaints during 2015. Mr. Wilmshurst and Solberg anticipate similar activity levels in the pit for 2016 based on an ever improving construction aggregate market. Mining will continue moving northwest and southwest in Phases 2, 3, 4, and 7, but no activity is expected to the east. Solberg intends to install an above-ground scale once business levels justify it. Overall extraction on the Vesterra property will be completed by 2018 and on the Stonex property by 2022. ISSUE ANALYSIS Standards for Small Scale Mineral Extraction are detailed in Section 11-10-4 of the City Code. A summary review of the subject property is provided below with more detailed conditions of operation listed in the attached Draft 2016 Conditions for Mineral Extraction Permit. This use meets or exceeds the applicable performance standards for small scale mineral extraction subject to the conditions listed in the attached permit. The subject property is zoned AG - Agriculture. Small scale mineral extraction is listed as an interim use within this district. The table below details the zoning, current land use, and future land use information for the surrounding properties. The sites to the west, south, and east are located within the current Metropolitan Urban Service Area (MUSA). It should be noted that some of the agriculture uses include associated residential uses and the applicant has a farming tenant operating on a portion of the subject property outside the active mining area. Surrounding Land Use and Zoning Information Direction Current Land Use Guided Land Use Zoning North Agriculture Agriculture Agriculture South Agriculture Medium Density Residential (west half) Business Park (east half) Agriculture East Agriculture Light Industrial Agriculture West Agriculture Low Density Residential Agriculture Preserve Currently, access to both properties comes through a gated entrance at the northeast corner of the Vesterra property along Bonaire Path. In the future, the applicant plans to shift access from Bonaire Path to Blaine Avenue (County Road 71) via an internal driveway that crosses the 80 acre parcel to the east owned by Flint Hills Resources. This will reduce truck traffic on Bonaire Path (a gravel road) and provide more direct access to County Road 42. When this change is necessary in the future, the applicant will come back to the City to amend their permit. CONCLUSION AND RECOMMENDATION Upon review of these standards, police records, and the information submitted by the applicant, staff recommends renewal of the Vesterra and Stonex Mineral Extraction Permit 2016. This request is subject to the conditions outlined in the attached permit as well as the mineral extraction permit standards outlined in Section 11-10-4. 2 Vesterra-Stonex Site Mineral Extraction Permit 2016 Conditions for Mineral Extraction Permit VESTERRA, LLC and STONEX, LLC A. By their signatures below, Vesterra, LLC and Stonex, LLC (hereinafter collectively referred to as the “Property Lessee") and Flint Hills Resources (herein after “the Property Owner”) consent to these conditions, binding themselves and their successors, heirs or assigns to the conditions of this permit. Vesterra, LLC and Stonex, LLC are jointly and severall y liable and responsible for compliance with all conditions of this permit and all requirements of law relating to the licensed activities. Mineral Extraction is an Interim Use in the Agriculture District of which the permit area is a part according to Ordinance B, the City of Rosemount Zoning Ordinance Regulations. Propert y Owner consents to entry onto the Subject Property by the City, the Cit y’s employees, agents, and contractors, as needed to inspect the work of the permit, enforce the conditions of the permit and undertake an y work needed to compl y with permit conditions including mine closing and reclamation. B. This permit is granted for the area designated as Phases 2, 3, 4, and 7on Exhibit 2 Present Conditions and 2016 Mine Plan. C. The completion date of the overall mineral extraction process including site reclamation shall be no later than December 31, 2018 for the northern 75 acres, the Vesterra site. The completion date of the overall mineral extraction process including site restoration shall be no later than December 31, 2022 for the southern 80 acres, the Stonex site. The term of this permit shall extend from January 1, 2016 until December 31, 2016 unless revoked prior to that for failure to comply with the permit requirements. A mining permit fee of $370.00 shall be paid to the City of Rosemount. D. All required permits from the State of Minnesota, County of Dakota and City of Rosemount (hereinafter "City") or an y of their agencies shall be obtained and submitted to the City prior to the issuance of the permit. Failure by the Property Lessee to compl y with the terms and conditions of any of the permits required under this paragraph shall be grounds for the City to terminate said mining permit. E. The final grading for the permit area shall be completed in accordance with the grading plan labeled Exhibit 3, which is attached hereto, or as approved b y the City Engineer, and an y other conditions that may be imposed by the Cit y from time to time. F. All gravel trucks and other mining related traffic shall enter and exit the mining area from Bonaire Path (County Road 38). It shall be the Propert y Lessee’s responsibility to obtain any access permits or easements necessary for ingress and egress. The location of the accesses and/or easements for ingress and egress shall be subject to approval by the City, as well as the Dakota County Highway Department or the Minnesota Department of Transportation if applicable or if an y changes occur 2016 Mining Permit Vesterra, LLC / Stonex, LLC 2 of 6 relative to the mining process. The current location of the access driveway is indicated on the Location Map, Exhibit 1. Warning signs including “Trucks Hauling” shall be installed at the Propert y Owner’s expense as needed in accordance with Dakota County requirements. An y street improvements to Bonaire Path, County Road 71 or CSAH 42 necessary to accommodate the generated traffic shall be the sole responsibility of the Propert y Lessee. G. A plan for dust control shall be submitted to and subject to approval by the City. The Propert y Lessee shall clean dirt and debris from extraction or hauling operations related to the Mineral Extraction Permit from streets. After the Propert y Lessee has received 24-hour verbal notice, the Cit y ma y complete or contract to complete the clean-up at the Propert y Lessee’s expense. In the event of a traffic hazard as determined b y the City Administrator (or their designee) or Rosemount Police Department, the Cit y may proceed immediately to complete or contract cleanup at Property Lessee’s expense without prior notification. H. The surface water drainage of the mining area shall not be altered so as to interfere, contaminate or otherwise impact the natural drainage of adjacent property. I. No topsoil shall be removed from the site and the Property Lessee shall take necessary measures to prevent erosion of the stockpiled topsoil. The location of the stockpiled topsoil shall be indicated on Exhibit 2, Present Conditions and 2016 Mine Plan. J. Any costs incurred now or in the future in changing the location of existing public or private utilities including but not limited to pipelines, transmission structures and sewer infrastructure located within the permit area shall be the sole obligation and expense of the Property Lessee. K. All costs of processing the permit, including but not limited to planning fees, engineering fees and legal fees, shall be paid b y the Propert y Lessee prior to the issuance of the permit. The Propert y Lessee shall reimburse the Cit y for the cost of periodic inspections b y the City Administrator or any other City employee for the purpose of insuring that conditions of the permit are being satisfied. The Property Lessee agrees to reimburse the City for any other costs incurred as a result of the granting or enforcing of the permit. L. The daily hours of operation for the mining area shall be limited to 7:00 a.m. to 7:00 p.m., Monday through Saturday subject to being changed b y the City Council. M. The Propert y Lessee shall deposit with the Planning Department a suret y bond or cash deposit in the amount of Seven Thousand, Five Hundred Dollars per acre ($7,500.00/acre) for any active phase in favor of the City for the cost of restoration, regrading and/or revegetating land disturbed b y mining activities and to ensure performance of all requirements of this agreement and City ordinances b y Property Lessee. The required surety bonds must be: 2016 Mining Permit Vesterra, LLC / Stonex, LLC 3 of 6 (1) With good and sufficient surety b y a surety company authorized to do business in the State of Minnesota. (2) Satisfactory to the City Attorney in form and substance. (3) Conditioned that the Property Lessee will faithfully comply with all the terms, conditions and requirements of the permit; all rules, regulations and requirements pursuant to the permit and as required by the City and all reasonable requirements of the City Administrator (or his designee) or an y other Cit y officials. (4) Conditioned that the Property Lessee will secure the City and its officers harmless against any and all claims, or for which the City, the Council or any City officer may be made liable by reason of any accident or injury to persons or propert y through the fault of the Propert y Lessee. (5) The suret y bond or cash deposit shall remain in effect from January 1, 2016 until J ul y 31, 2017. Upon thirty (30) days’ notice to the Propert y Lessee and suret y compan y, the City m ay reduce or increase the amount of the bond or cash deposit during the term of this permit in order to insure that the City is adequately protected. N. The Propert y Lessee shall furnish a certificate of comprehensive general liability insurance issued b y insurers duly licensed within the State of Minnesota in an amount of at least Five Hundred Thousand and no/100 ($500,000.00) Dollars for injury or death of an y one person in any one occurrence, and at least One Million Five Hundred Thousand and no/100 ($1,500,000.00) Dollars for injury or death of more than one person arising out of one occurrence and property damage liability in an amount of at least Two Hundred Fift y Thousand and no/100 ($250,000.00) Dollars arising out of an y one occurrence. The policy of insurance shall name the City as an additional insured and shall remain in effect from January 1, 2016 until July 31, 2017. O. No processing or mixing of materials shall occur on the site, except as approved by the Dakota County Environmental Management Department as incidental to a sand and gravel mining operation. Any such activities will be enclosed with snow or cyclone fencing or as approved b y Cit y staff. Construction of any ponding areas, wash plants or other processing or equipment brought to the site shall require additional site and grading plan information subject to review and approval of the City Engineer. P. The Propert y Lessee and the Propert y Owner shall hold the City harmless from all claims or causes of action that may result from the granting of the permit. The Property Lessee shall indemnify the Cit y for all costs, damages or expenses, including but not limited to attorney's fees that the City may pay or incur in consequence of such claims. 2016 Mining Permit Vesterra, LLC / Stonex, LLC 4 of 6 Q. The Propert y Lessee and the Propert y Owner shall comply with such other requirements of the City Council as it shall from time to time deem proper and necessar y for the protecti on of the citizens and general welfare of the community. R. Complete mining and reclamation is required in all phases before an y additional mining is authorized. Modifications or expansion of the mining areas must be approved in writing to the City. Propert y Lessee shall submit to the City semi- annually a written report indicating the amount of material extracted from the site for the prior six-month period. S. The Propert y Lessee shall incorporate best management practices for controlling erosion and storm water runoff as specified by the Minnesota Pollution Control Agency and the United States Environmental Protection Agency. T. The City of Rosemount shall have the ability to collect independent soil samples U. Reclamation shall include the replacement of the entire stockpile of topsoil on the mined area, reseeding and mulching necessary to re-establish vegetative cover for permanent slope stabilization and erosion control. The minimum depth of topsoil shall not be less than two inches after reclamation. Topsoil for reclamation shall conform to specifications on file with the City. No restored slopes may exceed a gradient of 25% or four to 1 (4:1). V. The Propert y Lessee must show how materials stockpiled for recycling will be processed and inform the City of all stockpiled materials. W. The Propert y Lessee ma y not assign this permit without written approval of the City. The Propert y Lessee will be responsible for all requirements of this permit and all City ordinances on the licensed premises for the permit period unless the Propert y Lessee gives sixty (60) days prior written notice to the City of termination and surrenders the permit to the City. The Property Lessee shall identify all Operators prior to their commencement of mineral extraction-related activities in the pit area. The City shall have the authority to cause all mineral extraction activities to cease at any time there is an apparent breach of the terms of this Permit. X. The Propert y Lessee shall maintain a “stock” gate (or equivalent) at the entrance to the propert y where the mining operation is located. The gate must be secured at 7:00 p.m. and at an y time the pit is not in use. Y. There shall be no “haul-back” of materials from any other propert y or job site that would be imported to the property for fill or other purposes other than incidental concrete recycling as referred to in paragraphs O, V and FF; and topsoil imported for the purpose of re-establishing turf as accepted by the City. Z. Truck operators within the pit area shall not engage in practices involving slamming tailgates, vibrating boxes, using of “jake” or engine brakes (except in emergency situations) or other such activities that result in excessive noise. 2016 Mining Permit Vesterra, LLC / Stonex, LLC 5 of 6 AA. The Propert y Lessee shall comply with directions from the City Engineer. BB. A landscaping plan shall be prepared subject to approval by City Staff, for the purpose of providing vegetative screening within the setback areas of the various phases of the mining area. Said landscaping shall be installed according to City standards, prior to commencement of operations within an adjacent phase area. CC. No retail activit y is permitted on the site. Materials imported to the site are limited to materials to be rec ycled and mixed with aggregate extracted from the site and topsoil for reestablishing ground cover or turf. DD. Off-site mining connected with the reconstruction of County Road 38 or construction of Connemara Trail shall require separate project approval by the City Council. The site reclamation plan with proposed grades and future street alignments is subject to approval by the City Engineer. EE. The storage of equipment (unrelated to the sand and gravel mining and processing), manure, construction debris, or hazardous materials of any kind shall not be permitted on site. The placement of construction debris, manure, asphalt or hazardous materials in any form within the pit as fill shall be strictly prohibited. FF. The fill area re-grading and reclamation shall follow the procedures described in the Stonex LLC and Vesterra LLC Reclamation Protocol Rosemount, Minnesota. Stonex, LLC and Vesterra, LLC shall compact the entire reclamation site to a minimum compaction of 95% of maximum dry density. Reports shall be submitted to the City b y August 1st and February 1st describing an y fill importation from January 1st through June 30th and July 1st through December 31st respectively. The bi-annual reports submitted shall describe the quantities of material brought in, where the material came from, and the test results, including supporting analytical results of the materials. IN WITNESS WHEREOF, Vesterra, LLC and Stonex, LLC hereb y consents and agrees to the foregoing conditions of said mining permit this day of , 20 . Vesterra, LLC and Stonex, LLC By: Jonathan J. Wilmshurst, Owner 2016 Mining Permit Vesterra, LLC / Stonex, LLC 6 of 6 STATE OF MINNESOTA ) ) ss COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 20 , by Jonathan J. Wilmshurst, the Owner of Vesterra, LLC and Stonex, LLC Notary Public IN WITNESS WHEREOF, Flint Hills Resources, hereb y consents and agrees to the foregoing conditions of said mining permit this day of , 20 . Flint Hills Resources Its STATE OF MINNESOTA ) )ss COUNTY OF DAKOTA ) The forgoing instrument was acknowledged before me this day of , 20 , by_ , Flint Hills Resources, Its , the Property Owner, on behalf of the company. Notary Public Vesterra, LLC and Stonex, LLC Annual Mining Permit Renewal Request for 2016 March, 2016 Material removed from the pit during 2015 was approximately 40,000 tons. Solberg continued to be the primary operator, having made a long-term commitment in 2009. The market for construction aggregates has recovered greatly over the last few years, but remains below levels of pre-2007. Smaller amounts of material were removed by other single-project operators. Solberg has built a regular customer base and expects to see a similar year in 2016 to what they experienced in 2015. They intend to install an above-ground scale and portable scale house just south of the old homestead as shown on the attached map once business levels justify it. Truck traffic from the operation continues to exit onto Belaire Path. In due course the plan remains to relocate truck access onto County Rd 71 which was resurfaced in 2012. There has been some progression of mining to the south during 2015 year that will eventually open up this route to this exit. The southern eighty acre parcel was recently drilled by a large Twin Cities based producer, and we are waiting to hear if they have any interest. At this time there is no interest in mining to the east end of the northern parcel, but this would make a decent base product and could be of interest in the future. The 2016 mine plan shows the “open” area, the area previously stripped, and the area proposed to be stripped. The total acreage included in these three areas is just under 15 acres which is a slight increase on last year. Dust control measures will be employed as follows: regular reclamation and planting/seeding of berms and pit floor will keep exposed soils to a minimum, and roads will be sprayed with water as necessary. In addition, the much lower elevation of the mine floor with the trees and vegetation that have sprouted in earlier areas of activity have been steadily reducing the exposed pit floor. All the storm water is retained on the property, and mining does not approach anywhere near the water table, with the floor of the pit being at or above the elevation of Bonaire Path. No fill materials were imported onto the site during 2015. Vesterra/Stonex thanks the Rosemount Planning Commission and City Council for its consideration of this application for renewal. 1 STONEX, LLC. and VESTERRA, LLC. BORROW PIT RECLAMATION PROTOCOL ROSEMOUNT, MINNESOTA Vesterra, LLC and Stonex, LLC are currently leasing their property to third parties for the primary purpose of sand and gravel mining. Final grading plans have previously been submitted to, and approved by, the City of Rosemount. We have an obligation to reclaim the property and there are opportunities from time to time to import clean fill materials onto the property to use in the reclamation process. The materials that will be imported will be restricted to larger projects where the source can be fully assessed, such as projects that involve street reconstruction for local municipalities. Materials taken from larger projects are much easier to monitor than odd loads from many different places. Larger projects can be assessed beforehand in terms of their history and ownership and are therefore more practical to manage. Protocol The reclamation process contemplates restoring the properties to a condition suitable for agriculture, with the ultimate end-use guided as light-industrial. To this end, the following steps will be put in place: 1. All sources of fill materials will be evaluated for the likely presence of contaminants prior to being brought into the mine. 2. Imported fill that contains contaminants, most likely petroleum products but including excessive amounts of organic or plant matter, or waste or trash will not be permitted to be brought into the mine. 3. Organic-rich material will be used for surface reclamation rather than being buried. 4. Imported fill will generally be suitable for compaction so that the property can ultimately be developed without excessive re-working of the fill. 5. Large amounts of fill will be placed in lifts. 6. Imported fill will be visibly inspected for contamination, and also ‘sniffed’ to check for petroleum or other volatile or odiferous compounds. 7. Imported fill will not be higher than the original landform except along the alignment of the proposed bike trail. 8. Imported fill will not in any case be placed thicker than 45 feet. Quality control Inspection procedures All imported fill will be inspected prior to removal at origin, and again after placement. It will always be the responsibility of the landowner and/or contractor excavating and/or transporting the fill to ensure it is clean and free from contaminants. Periodically, spot checks will be performed on imported fill by a certified testing laboratory to ensure that it is free of contaminants. As a general rule, these tests will be at the expense of the owner/contractor, who will ultimately be held responsible for the treatment or removal of contaminated materials. Where quantities of fill in excess of five thousand cubic yards are imported from a single site, or where fill is placed more than twenty feet thick, then additional testing will be done to ensure that the fill is compactable and that it has a normal moisture:density relationship. These tests will be done in accordance with ASTM: D698 and ASTM: D422. STONEX/VESTERRA RECLAMATION PROTOCOL - 2010 2 Placement procedures Material placement will be determined by the quality of material being brought in, moisture conditions in the soils, and weather conditions. Organic materials such as plant debris will be set aside to be burnt if necessary, or placed in the surface lift if they are sufficiently composted. Wet materials will be allowed to dry out before being compacted. Material will be compacted in lifts, the thickness of which will be determined at the time depending on the fill quality and the weather conditions. No filling will be done if the ground is saturated or frozen. The final surface will be graded so as not to allow standing water to accumulate, unless by design. 1 0 0 -F o o t S e t b a c k 135th Street E. B l a i n e A v e n u e E . P L A N T H A U L R O U T E Future Mining Phase 3Phase 7 Phase 2Phase 5 Phase 1 Phase 4 Phase 6 Phase 8 Pre pared for Vesterra, LL CI hereb y ce rtify that this plan, docum ent, or re port was prepared byme o r u nde r m y dire ct supe rvisio n an d th at I a m a duly LicensedProfessional Geo logist un der the laws o f the state of M innesota. J.D. L ehr Date: March 8, 2016Reg. No. 30 063 Stonex and Vesterra Properties City of Rosemount, Dakota County, MN PRESENT CONDITIONS AND 2016 MINE PLAN 0 300 600 Feet Parce l data fro m Dakot a Count y. Aeria l p hoto graph fro m USDA-FSA-APFOFlown Se ptem ber 1 2, 20 10 50-foot prope rty line se tbacks excep t where n oted in north west Top of Mine Face - January 2016 Reclaimed Proposed 2016 Stripping Stockpile Topsoil Storage Berm Pond Phasing Plan Stonex & Vesterra Property Line