HomeMy WebLinkAbout6.k. 05-59-ME Vesterra LLC and Stonex, LLC Mineral Extraction Permit RenewalsAGENDA ITEM: 05 -59 -ME Vesterra, LLC and Stonex,
LLC Mineral Extraction Permit Renewals
AGENDA SECTION:
Consent
PREPARED BY: Rick Pearson, City Planner
AGE IJ r Ii' ;r
ATTACHMENTS: Draft 2006 Conditions, Draft 01/10/06 PC
Minutes, Application narrative
APPROVED BY:i)
RECOMMENDED ACTION:
Motion to approve the mineral extraction permit for Vesterra and Stonex subject to the
attached conditions for 2006.
4 ROSEMOUNT
CITY COUNCIL
City Council Regular Meeting: February 7, 2006
EXECUTIVE SUMMARY
ISSUE
Jonathan Wilmshurst has applied for the renewal of the Vesterra and Stonex mineral extraction permits.
The sites are contiguous on the south side of 135 street, 1/4 mile west of Blame Ave. (County Road 71).
Mr. Wilmshurst and John Chadwick owned both properties and acquired the permits. In the attached
narrative, Mr. Wilmshurst explains that activity has been minimal and that a new mining operator is being
sought for the combined propernes. Mineral extraction is an interim use m this locanon and it requires
annual renewal.
The properties have been sold to Flint Hills Resources which in turn leased the properties back to the
applicant for mineral extraction. Staff will modify the structure of the conditions to acknowledge Flint
Hills as the new property owner. The responsibility for securities and compliance with the conditions will
remain that of Stonex and Vesterra as the property lessee. The City Attorney has reviewed the modified
conditions and minor editing has occurred. The pernut modifications clarified references between the
Property Owner and Lessee. Combuung the two permits does simplify the momtormg of the pit area as
well as having one operator instead of two. The ultimate restoration plan has been modified to blend the
two properties and accommodate future roadways across the site. Stonex and Vesterra are not anticipated
to be combined into one entity.
PLANNING COMMISSION PUBLIC HEARING
On January 10, 2006, the Planning Commission conducted a pubhc hearing as required for the renewal.
Mr Wilmshurst was m attendance to answer questions. The Commissioners asked if the conditions for
the two pit areas were the same. Staff 'responded that the conditions were the same. There being no other
cominents, the Commissioners adopted the recommended action
BACKGROUND
Apphcant Jonathan Wilmshurst of Vesterra, LLC and Stonex, LLC
Property Owner: Flint Hills Resources
Location: South of 135"' Street (County Road 38) extending 1/2 mile to southern
boundary, 1 /4 mile west of Blame Ave.
Area in acres: Vesterra 75, the north half along 135 Street East
Stonex 80, the south half.
Comp Plan Designation: IM Industrial Mixed Use
Current zoning: Agriculture
Nature of request: Annual review of Interim Use permits for Mineral Extraction.
Previous approvals /renewals: Stonex originally approved by Council Feb. 15, 2005
Vesterra renewed by Council Feb. 15, 2005
Estimates: 7.5 9 5 million tons combined to be extracted.
Projected restoration date 2018
Surrounding land uses: Direction Land use designation Zoning
South Medium Density Residential (west half) Agriculture
Business Park (east half) Agrculture
West Urban Residential Agriculture
East Mixed Use Industrial Agriculture
North Agriculture Agriculture
Planning Commission Action: Recommendation of approval (5 -0)
The combined sites are included m the Metropolitan Urban Service Area (MUSA) expansion area that is
currently being reviewed by the Metropolitan Council. The current land uses surrounding the site are
agricultural. There is a 5 -acre agricultural residential use along side the western boundary line.
No activity has occurred on the Stonex property (the south 80 acres), and very little activity has occurred
in the Vesterra portion. Specifically, Bituminous Roadways removed several thousand tons of stockpiled
material. However, very little extraction occurred. Access to both properties is currently through a gate to
135t Street at the northeast corner of the Vesterra property As the activity on the Stonex property
progresses, access will be shifted to County Road 71, across an 80 acre parcel owned by Flint Hills
Resources.
RECOMMENDATION
Approve the mineral extraction permit for Vesterra and Stonex subject to the conditions for 2006.
2
Mineral Extraction Permit
2006 Conditions for Mineral Extraction Permit Renewal
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 severally 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. Property Owner consents to entry onto the Subject Property
by the City, the City's employees, agents, and contractors, as needed to inspect the
work of the permit, enforce the conditions of the permit and undertake any work
needed to comply with permit conditions including mine closing and reclamation.
B. This permit is granted for the area designated as Phase 1 on Exhibit 2 which is
attached hereto as one of the exhibits.
C. The completion date of the overall mineral extraction process including site
reclamation shall be no later than December 31, 2014 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, 2018 for the southern
80 acres, the Stonex site. The term of this permit shall extend from January 17, 2006
until December 31, 2006 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 any of their agencies shall be obtained and
submitted to the City prior to the issuance of the permit Failure by the Property
Lessee to comply 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 by the City
Engineer, and any other conditions that may be imposed by the City from time to
time.
F. All gravel trucks and other mining related traffic shall enter and exit the mining area
from 135 Street East (County Road 38). It shall be the Property 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
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or the Minnesota Department of Transportation if applicable or if any changes occur
relative to the mining process. The current location of the access driveway is
indicated on the Location Map, Exhibit A. Warning signs including "Trucks
Hauling" shall be installed at the Property Owner's expense as needed in accordance
with Dakota County requirements. Any street improvements to County road 38, 71
or CSAH 42 necessary to accommodate the generated traffic shall be the sole
responsibility of the Property Lessee.
G. A plan for dust control shall be submitted to and subject to approval by the City.
The Property Lessee shall clean dirt and debris from extraction or hauling operations
related to the Mineral Extraction Permit from streets. After the
Property Lessee has received 24 -hour verbal notice, the City may complete or
contract to complete the clean-up at the Property Lessee's expense. In the event of
a traffic hazard as determined by the City Administrator (or his designee) or
Rosemount Police Department, the City 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, the Phasing 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 by the Property Lessee prior to the
issuance of the permit. The Property Lessee shall reimburse the City for the cost of
periodic inspections by 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., subject. however, to being changed by the City Council.
M. The Property Lessee shall deposit with the Planning Department a surety 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 by mining activities and to ensure
performance of all requirements of this agreement and City ordinances by Property
Lessee. The required surety bonds must be:
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Vesterra, LLC
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(1) With good and sufficient surety by 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 any
other City 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 property through the fault of the Property Lessee.
(5)
The surety bond or cash deposit shall remain in effect from January 17, 2006
until July 31, 2007.
Upon thirty (30) days notice to the Property Lessee and surety company, the City
may 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 Property Lessee shall furnish a certificate of comprehensive general liability
insurance issued by 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 any one person in any one occurrence, and at least One Million
and no /100 ($1,000,000.00) Dollars for injury or death of more than one person
arising out of one occurrence and damage liability in an amount of at least Two
Hundred Fifty Thousand and no /100 ($250,000 00) Dollars arising out of any one
occurrence. The policy of insurance shall name the City as an additional insured and
shall remain in effect from January 17, 2006 until July 31, 2007.
O. No processing or mixing of materials shall occur on the site, except as approved by
the Dakota County Environmental Health Department as incidental to a sand and
gravel mining operation. Any such activities will be enclosed with snow or cyclone
fencing or as approved by City 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 Property Lessee and the Property 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 City for all costs, damages or expenses,
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Q.
including but not limited to attomey's fees that the City may pay or incur in
consequence of such claims.
The Property Lessee and the Property Owner shall comply with such other
requirements of the City Council as it shall from time to time deem proper and
necessary for the protection of the citizens and general welfare of the community.
R. Complete mining and reclamation is required in all phases before any additional
mining is authorized. Modifications or expansion of the mining areas must be
approved in writing to the City. Property 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 Property 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 Property Lessee must have a copy of the Dakota County Soil and Water
Conservation District mining application completed and on file with the City of
Rosemount Planning Department prior to the issuance of the Mineral Extraction
Permit.
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 Property Lessee must show how materials stockpiled for recycling will be
processed and inform the City of all stockpiled materials.
W. The Property Lessee may not assign this permit without written approval of the City.
The Property Lessee will be responsible for all requirements of this permit and all
City ordinances on the licensed premises for the permit period unless the Property
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 Property Lessee shall install and maintain a "stock" gate (or equivalent) at the
entrance to the property where the mining operation is located. The gate must be
secured at 7:00 p.m. and at any time the pit is not in use.
Y. There shall be no "haul- back" of materials from any other property or job site that
would be imported to the property for fill or other purposes other than incidental
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concrete recycling as referred to in paragraphs 0 and V; 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 "fake" or engine brakes (except in emergency
situations) or other such activities that result in excessive noise.
AA. The Property 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 activity is permitted on the site. Materials imported to the site are limited to
materials to be recycled 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.
IN WITNESS WHEREOF, Vesterra, LLC and Stonex, LLC hereby consents
and agrees to the foregoing conditions of said mining permit this day of
2006.
STATE OF MINNESOTA
ss
COUNTY OF DAKOTA
Vesterra, LLC and Stonex, LLC
By:
Jonathan J. Wilmshurst, Owner
The foregoing instrument was acknowledged before me this day of
2006, by Jonathan J. Wilmshurst, the Owner of Vesterra, LLC and
Stonex, LLC
Notary Public
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Vesterra, LLC
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IN WITNESS WHEREOF, Flint Hills Resources, hereby consents and agrees to
the foregoing conditions of said mining permit this day of
2006.
Flint Hills Resources
Its
STATE OF MINNESOTA
)ss
COUNTY OF DAKOTA
The forgoing instrument was acknowledged before me this day of
2006 by Flint Hills Resources, Its the
Property Owner, on behalf of the company.
Notary Public
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0ata: January 13 2005
Draft Excerpt of Minutes from the Planning Commission Special Meeting of January
10, 2006
Public Hearing:
5c. 05 -59 -ME Vesterra, LLC/Stonex, LLC Mineral Extraction Permit Renewal.
Mr. Pearson reviewed the staff report. Jonathan Wilmshurst apphed for the renewal of the
Vesterra and Stonex mineral extraction permits. The sites are contiguous on the south side
of 135 street,' mile west of Blaine Ave. (County Road 71). Mr. Wilmshurst and John
Chadwick own both properties and intend to have one operator for both properties.
Therefore, staff recommended a single set of conditions that would regulate both properties
Chairperson Messner asked the Commission if they had any questions for Mr. Pearson.
Commissioner Powell questioned if the conditions were the same on both sites. Mr.
Pearson stated that is correct.
Chairperson Messner invited the applicant to come forward. The applicant, Jonathan
Wilmshurst, did not have any comments
Chairperson Messner opened the Pubhc Heanng.
MOTION by Powell to close the Public Hearing. Second by Schultz. Ayes. A1L
Nayes None Motion approved.
Chairperson Messner asked the Comnussion for any additional follow -up comments or
questions.
MOTION by Powell to recommend the City Council approve the mineral
extraction permit for Vesterra and Stonex subject to the attached conditions for 2006
which shall be approved by the City Attorney.
Second by Schultz. Ayes: All. Nayes: None. Motion approved.
Mr Pearson stated this item will go to the City Council on February 7`".
Vesterra, LLC and Stonex, LLC
Annual Mining Permit Renewal Request
November, 2005
There has been little activity at the Vesterra operation during 2005, and the current lessee,
Plaisted Companies, has decided to terminate its lease effective 12 31 05. Plaisted has
been unable to generate sufficient activity to warrant staying involved.
In October, 2005, the surface rights (but not the sand and gravel) on both properties were
sold to Flint Hills Resources. At the same time, a twenty -year lease back to Vesterra and
Stonex on both properties was executed with Flint Hills, with mining as the intended use
Meanwhile, negotiations are at an advanced stage with a new lessee who will take up the
mineral rights on both properties
The new lessee will sub -lease the properties and install a crushing, washing and screening
plant, together with settling ponds in spring of 2006 A well will be required, for which
permits will be secured from the DNR. The layout of the operation will look very much
as it does today. The plant will process 300 tons per hour of sand and gravel. The
estimated annual volume in the short term is estimated at 300,000 tons
Conversation with City Staff indicates that the prudent approach under the new
circumstances is to maintain a single permit for both Vesterra and Stonex, because there
is a single land owner, single lessee, and single operator. Vesterra and Stonex will
remain involved and will continue to ensure a good neighbor approach to business.
Truck traffic from the operation is minimal as yet. The Kraft family is still living in the
farmhouse and will probably not be leaving until summer of 2006. Eventually, it is
intended to exit the pit in the southeast corner using the existing Kraft farm driveway
direct onto Co. Rd. 71, but this will probably not occur until 2007 At that time, the
appropriate driveway and access improvements will be made. In the meantime, Vesterra
accepts that it will be responsible for fixing any impacts made to Co Rd 38 as a result of
truck traffic.
Dust control measures will be employed as follows: regular xlamation and
planting/seeding of berms and pit floor will keep exposed soils to a minimum, and roads
will be regularly sprayed with water In addition, the much lower elevation of the mine
floor will tend to protect it from westerly winds that may pick up dust. Vesterra thanks
the Rosemount Planning Commission and City Council for its consideration of this
application for renewal