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Home My WebLink About5.b. PCExecSum Vesterra-Stonex Mineral Extraction Permit RenewalEXECUTIVE SUMMARY Planning Commission Meeting Date: December 19, 2016 Tentative City Council Meeting Date: January 17, 2017 AGENDA ITEM: Renewal of the Vesterra, LLC AGENDA SECTION: and Stonex, LLC Small Scale Mineral Public Hearing Extraction Permit for 2016 PREPARED BY: Kim Lindquist, Community Development AGENDA NO. Director 5.b. ATTACHMENTS: Location Map; Draft 2017 Mining Permit APPROVED BY: for Mineral Extraction; K.L. Narrative RECOMMENDED ACTION: Motion to recommend the City Council renew the Vesterra, LLC and Stonex, LLC Small Scale Mineral Extraction Permit for 2017. 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 2016: approx. 35-40,000 tons The applicant, Jonathan Wilmshurst of Vesterra LLC/Stonex LLC, requests renewal of the Vesterra and Stonex mineral extraction permit for 2017. 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 2017. BACKGROUND The applicant received their last annual permit renewal in May 2016. At that time there were no issues associated with the activity at the mine, which is still the case. According to the applicant, 2016 activity in the Vesterra/Stonex mine was estimated to be similar to 2015, which was down approximately 25% percent as compared to 2014 levels. Solberg Aggregates remains the sole operator in 2016 and removed approximately 35-40,000 tons of aggregate. Solberg did not import any fill materials to the site in 2016. Mr. Wilmshurst and Solberg anticipate similar activity levels in the pit for 2017 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. Based upon the mining permit conditions, 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 2017 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 Medium Density Residential (west half) South Agriculture Agriculture Business Park (east half) 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 2017. The request is subject to the conditions outlined in the attached permit. 2 Stonex-Vesterra Site Map November 30, 20161:9,600 0437.58751,750ft 0135270540m Property Information Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. MineralExtractionPermit 2017ConditionsforMineralExtractionPermit VESTERRA,LLCandSTONEX,LLC A.Bytheirsignatures below,Vesterra,LLCand Stonex, LLC(hereinaftercollectively referred toas the“PropertyLessee")andFlint Hills Resources (hereinafter“the PropertyOwner”)consent to theseconditions, bindingthemselvesand their successors, heirs orassigns to the conditions of thispermit. Vesterra,LLCand Stonex,LLCarejointlyand severallyliableand responsible forcompliancewith all conditions of this permit and allrequirements of lawrelatingto thelicensed activities. Mineral Extraction is anInterim Useinthe AgricultureDistrictofwhich the permit areais a partaccordingto OrdinanceB,the Cityof Rosemount Zoning OrdinanceRegulations. PropertyOwnerconsentsto entryonto theSubjectProperty bythe City, theCity’semployees,agents, andcontractors, asneeded to inspect the work of thepermit, enforcethe conditions of thepermit and undertakeanywork needed to complywith permit conditions includingmineclosingandreclamation. B.Thispermitis granted for theareadesignated as Phases 2, 3, 4, and 7 onExhibit 1 Present Conditions and 2017Mine Plan. C.Thecompletion date oftheoverall mineral extraction process includingsite reclamation shall benolaterthan December 31,2018 forthe northern 75acres, the Vesterrasite. Thecompletion dateof theoverallmineral extraction process includingsiterestoration shall beno later thanDecember31, 2022 for thesouthern 80acres, theStonexsite.Theterm ofthis permitshallextend fromJanuary1,2017 until December31,2017unless revoked prior to that forfailureto complywith the permit requirements. Aminingpermit feeof $370.00 shall bepaid to the Cityof Rosemount. D.All required permits from theStateof Minnesota, Countyof DakotaandCityof Rosemount (hereinafter"City")oranyof their agencies shall beobtainedand submitted to the Citypriorto theissuanceof thepermit.FailurebytheProperty Lesseeto complywith theterms and conditions ofanyof thepermits required under this paragraph shall begrounds forthe Cityto terminate said miningpermit. E.Thefinalgradingforthepermit areashall be completed in accordancewith the gradingplan labeledExhibit 2,which is attachedhereto, oras approvedbythe City Engineer, andanyother conditions that maybeimposedbythe Cityfromtime to time. F.All gravel trucks and other miningrelated traffic shallenterandexit the miningarea from BonairePath (CountyRoad 38).It shall bethe PropertyLessee’s responsibilityto obtainanyaccess permits or easements necessaryforingress and egress. Thelocation oftheaccesses and/oreasements foringress andegress shall be subject to approvalbytheCity,aswellas the Dakota CountyHighwayDepartment orthe Minnesota Department ofTransportation ifapplicable orifanychangesoccur 2017MiningPermit Vesterra,LLC/Stonex,LLC 2of6 relative to the miningprocess.The current location ofthe access drivewayis indicated on thePresent Conditions and2017 Mining Plan.Warningsigns including“Trucks Hauling” shall be installedat thePropertyOwner’s expense as needed in accordance with Dakota Countyrequirements. Anystreet improvements to BonairePath, CountyRoad 71 or CSAH42 necessaryto accommodatethegenerated trafficshall bethe sole responsibility ofthe PropertyLessee. G.A plan fordust control shall besubmitted to and subject to approvalbytheCity. ThePropertyLesseeshall clean dirt anddebris from extraction orhaulingoperations related to theMineral Extraction Permit from streets. After thePropertyLessee has received 24-hourverbalnotice, the Citymaycompleteor contract to completethe clean-upat thePropertyLessee’sexpense. In theevent of atraffichazardas determinedbythe CityAdministrator (ortheirdesignee) orRosemount Police Department, theCitymayproceed immediatelytocomplete orcontract cleanupat PropertyLessee’s expense withoutprior notification. H.Thesurfacewaterdrainageofthemining areashall not be altered so as to interfere, contaminate,or otherwiseimpact thenatural drainageofadjacent property. I.No topsoil shall beremoved from the siteand thePropertyLessee shall take necessarymeasures to prevent erosion of thestockpiled topsoil. Thelocation ofthe stockpiled topsoilis located on Present Conditions and 2017Mine Plan. J.Anycosts incurred noworin thefuturein changingthe location ofexistingpublicor privateutilities includingbut not limited to pipelines, transmission structures and sewer infrastructurelocated within the permit areashall be thesoleobligation and expense of thePropertyLessee. K.All costs of processingthepermit, includingbut not limited to planningfees, engineeringfees andlegal fees, shall bepaid bythePropertyLesseeprior to the issuanceofthe permit. ThePropertyLesseeshallreimbursethe Cityforthecost of periodicinspections bythe CityAdministrator oranyother Cityemployeeforthe purposeof insuringthat conditions of thepermit arebeingsatisfied. TheProperty Lesseeagrees to reimbursethe Cityforanyother costs incurredas a result of the grantingorenforcingof thepermit. L.Thedailyhours of operation forthe miningareashall belimited to 7:00 a.m. to 7:00 p.m., Mondaythrough Saturdaysubject to beingchangedbythe CityCouncil. M.ThePropertyLessee shall deposit with thePlanningDepartment a suretybond or cash deposit in theamountofSeven Thousand,Five HundredDollars per acre ($7,500.00/acre)foranyactivephaseinfavor of theCityforthecost of restoration, regradingand/or revegetatingland disturbedbyminingactivities and to ensure performanceofallrequirements of this agreementandCityordinancesbyProperty Lessee.Therequired suretybonds must be: 2017MiningPermit Vesterra,LLC/Stonex,LLC 3of6 (1)With goodand sufficientsuretybyasuretycompanyauthorized to do business in the State ofMinnesota. (2)Satisfactoryto theCityAttorneyin form and substance. (3)Conditioned that thePropertyLesseewill faithfullycomplywith all the terms, conditions and requirements of thepermit; allrules, regulations and requirements pursuant to the permit and asrequired bythe Cityandall reasonablerequirementsofthe CityAdministrator(orhis designee) orany otherCityofficials. (4)Conditioned that thePropertyLesseewill securethe Cityand its officers harmlessagainst anyandallclaims, or forwhichtheCity, the Council or any Cityofficer maybemadeliable byreason ofanyaccident orinjuryto persons orpropertythroughthe fault of thePropertyLessee. (5)Thesuretybond orcashdepositshall remain in effect from January1,2017 untilJuly31,2018. Upon thirty(30)days’ noticeto thePropertyLesseeand suretycompany, the City mayreduceor increasethe amount of thebond orcash depositduringthe term of this permit in order to insurethat the Cityis adequatelyprotected. N.ThePropertyLessee shall furnish a certificate of comprehensivegeneral liability insuranceissuedbyinsurers dulylicensedwithin the State ofMinnesota inan amount of at least FiveHundred Thousandand no/100 ($500,000.00)Dollars for injuryor death of anyoneperson in anyoneoccurrence,andat least OneMillion Five Hundred Thousandand no/100 ($1,500,000.00) Dollars forinjuryordeath of morethan oneperson arisingout of oneoccurrenceandpropertydamageliabilityin anamount of at least Two HundredFiftyThousandand no/100 ($250,000.00) Dollars arisingout of anyoneoccurrence.Thepolicyof insuranceshall name the Cityas an additional insuredand shallremain in effect fromJanuary1,2016 until July31,2017. O.No processingor mixing ofmaterials shall occuron the site,except as approvedby the Dakota CountyEnvironmentalManagement Department as incidental to a sand and gravel miningoperation.Anysuchactivities will beenclosed with snowor cyclone fencingoras approvedbyCitystaff.Construction ofanyponding areas, wash plants or otherprocessingorequipment brought to the siteshall require additional site and gradingplan information subject to reviewandapproval of the CityEngineer. P.ThePropertyLesseeandthe PropertyOwner shallhold theCityharmless from all claims or causes ofaction that mayresult from thegrantingofthe permit. The PropertyLessee shall indemnifythe Cityforallcosts, damages or expenses, includingbut not limited to attorney'sfees that theCitymaypayor incur in consequenceof such claims. 2017MiningPermit Vesterra,LLC/Stonex,LLC 4of6 Q.ThePropertyLesseeandthe PropertyOwner shallcomplywith such other requirements of theCityCouncilas it shall from time to time deem properand necessaryfortheprotection ofthe citizens and general welfareof the community. R.Completeminingand reclamation is required in all phases beforeanyadditional miningis authorized.Modifications or expansion of theminingareas mustbe approved in writingto theCity.PropertyLesseeshall submit to theCity annuallyawritten reportindicatingtheamount of material extracted from the site forthe prior 12-month period. S.ThePropertyLessee shall incorporate best management practices for controlling erosion and storm water runoffas specifiedbytheMinnesota Pollution Control Agencyand theUnited States EnvironmentalProtection Agency. T.TheCityofRosemountshall havethe abilitytocollectindependentsoil samples U.Reclamation shall includethe replacement oftheentirestockpileof topsoil on the minedarea,reseedingand mulchingnecessarytore-establish vegetative coverfor permanent slopestabilization anderosion control. Theminimum depth oftopsoil shall not beless than two inches afterreclamation. Topsoil forreclamation shall conform to specificationson file with the City.No restored slopes mayexceeda gradient of25%orfour to 1 (4:1). V.ThePropertyLessee must show how materials stockpiled forrecyclingwillbe processedand inform theCityofall stockpiled materials. W.ThePropertyLessee maynot assign this permit without written approvalofthe City. ThePropertyLessee willberesponsible forallrequirements of this permit and all Cityordinances on thelicensedpremises forthe permitperiod unless the Property Lesseegives sixty(60)dayspriorwritten noticeto the Cityof terminationand surrenders thepermitto theCity.ThePropertyLessee shall identifyall Operators prior to their commencement ofmineral extraction-relatedactivities in thepit area. TheCityshall havetheauthorityto causeall mineral extraction activities to ceaseat anytime thereis anapparent breach of thetermsofthis Permit. X.ThePropertyLessee shall maintain a “stock” gate(orequivalent)at theentranceto the propertywherethe miningoperationis located.Thegate must besecuredat 7:00 p.m. andat anytime thepit is not in use. Y.Thereshall be no“haul-back”of materials from anyotherpropertyor job sitethat would beimported to thepropertyforfill or other purposes other than incidental concreterecyclingasreferred to in paragraphs O,Vand FF; and topsoil imported forthe purposeofre-establishingturfasacceptedbythe City. Z.Truck operators within the pit areashall not engagein practices involvingslamming tailgates, vibratingboxes, usingof “jake”orenginebrakes(except in emergency situations) orothersuchactivities thatresult in excessivenoise. 2017MiningPermit Vesterra,LLC/Stonex,LLC 5of6 AA.ThePropertyLessee shall complywith directionsfrom theCityEngineer. BB.A landscapingplan shallbeprepared subject to approvalbyCityStaff, forthe purposeof providingvegetative screeningwithin the setbackareas of thevarious phases of themining area.Said landscapingshall beinstalledaccordingto City standards, prior to commencement ofoperations withinanadjacent phasearea. CC.No retail activityis permitted on thesite. Materials imported to thesiteare limited to materials to berecycledand mixed with aggregateextracted from the site and topsoil forreestablishing groundcover orturf. DD.Off-sitemining connected with thereconstructionofCountyRoad 38 or construction ofConnemaraTrail shallrequireseparate project approvalbytheCity Council.Thesitereclamation plan with proposedgrades andfuturestreet alignments is subject to approvalbythe CityEngineer. EE.Thestorageofequipment (unrelated to thesandandgravel miningand processing), manure,construction debris, orhazardous materials of anykind shall not be permitted on site. Theplacement ofconstructiondebris, manure,asphaltor hazardous materialsin anyform within the pit as fill shall bestrictlyprohibited. FF.Thefill areare-gradingand reclamation shallfollow theproceduresdescribed in the StonexLLCandVesterraLLC Reclamation Protocol Rosemount, Minnesota. Stonex,LLCandVesterra,LLC shallcompact theentirereclamation site to a minimum compaction of95%of maximum drydensity. Reports shall besubmitted stst to theCitybyAugust 1andFebruary1describinganyfill importation from stthstst January1throughJune30andJuly1throughDecember 31respectively.The bi-annual reports submitted shall describethequantities of material brought in, wherethe material camefrom, and thetest results, includingsupportinganalytical results of thematerials. IN WITNESS WHEREOF, Vesterra,LLCand Stonex,LLCherebyconsents andagrees to theforegoingconditions of said miningpermit thisdayof , 20. Vesterra, LLC and Stonex, LLC By: Jonathan J. Wilmshurst, Owner 2017MiningPermit Vesterra,LLC/Stonex,LLC 6of6 STATE OFMINNESOTA) ) ss COUNTY OFDAKOTA) Theforegoinginstrumentwas acknowledgedbeforeme thisdayof , 20,byJonathan J.Wilmshurst,the Owner of Vesterra,LLCand Stonex,LLC NotaryPublic IN WITNESS WHEREOF,Flint Hills Resources, herebyconsents and agrees to the foregoingconditionsofsaid miningpermit thisdayof, 20. Flint Hills Resources Its STATE OFMINNESOTA) )ss COUNTYOFDAKOTA) Theforgoinginstrumentwas acknowledgedbeforemethisdayof , 20,by_,Flint Hills Resources,Its, the PropertyOwner, onbehalf ofthe company. NotaryPublic Blaine Avenue E. 100-Foot Setback