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HomeMy WebLinkAbout6.n. Vesterra, LLC and Stonex, LLC to Renew Small Scale Mineral Extraction Permit for 2017 EXECUTIVE SUMMARY City Council Meeting: January 17, 2017 AGENDA ITEM: 16-59-ME Request by Vesterra, LLC and Stonex, LLC to Renew Small Scale Mineral Extraction Permit for 2017 AGENDA SECTION: Consent PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 6.n. ATTACHMENTS: Location Map; Planning Commission Minutes and Packet December 19, 2016, Draft 2017 Mining Permit for Mineral Extraction; Applicant’s Narrative APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve the Vesterra/Stonex Small Scale Mineral Extraction Permit for 2017, subject to the terms and conditions 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. At the Planning Commission meeting, the Commission opened the public hearing. There was no one from the public present and the Commission had no questions. The Commission unanimously recommended approval of the 2017 mining permit. 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. 2 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 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 2017. The request is subject to the conditions outlined in the attached permit. Stonex-Vesterra Site Map Property Information November 30, 2016 0 875 1,750437.5 ft 0 270 540135 m 1:9,600 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. EXCERPT OF DRAFT MINUTES PLANNING COMMISSION REGULAR MEETING DECEMBER 19, 2016 5.b. Request by Stonex, LLC/Vesterra, LLC. for annual renewal of a Small Scale Mineral Extraction Permit for 2017. (16-59-ME) Community Development Director Lindquist gave a brief summary of the staff report. Public Comment opened at 7:24 pm. Public comments: None MOTION by Clements to close the public hearing. Second by VanderWiel. Ayes: 6. Nays: 0. Motion Passes. The public hearing closed at 7:25 pm. Additional Comments: None Motion by Clements to recommend the City Council renew the Vesterra, LLC and Stonex, LLC Small Scale Mineral Extraction Permit for 2017. Second by Freeman. Ayes: 6. Nays: 0. Motion Passes. E X E C U T I V E S U M M A R Y Planning Commission Meeting Date: December 19, 2016 Tentative City Council Meeting Date: January 17, 2017 AGENDA ITEM: Renewal of the Vesterra, LLC and Stonex, LLC Small Scale Mineral Extraction Permit for 2016 AGENDA SECTION: Public Hearing PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 5.b. ATTACHMENTS: Location Map; Draft 2017 Mining Permit for Mineral Extraction; Applicant’s Narrative APPROVED BY: K.L. 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, 2 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 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 2017. The request is subject to the conditions outlined in the attached permit. Mineral Extraction Permit 2017 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 1 Present Conditions and 2017 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, 2017 until December 31, 2017 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 2, 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 2017 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 Present Conditions and 2017 Mining Plan. Warning signs including “Trucks Hauling” shall be installed at the Propert y Owner’s expense as needed in accordance with Dakota County requirements. Any street improvements to Bonaire Path, County Road 71 or CSAH 42 necessary to accommodate the generated traffic shall be the sole responsibilit y 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 is located on Present Conditions and 2017 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 City 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: 2017 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, 2017 until J ul y 31, 2018. 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. 2017 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 annuall y a written report indicating the amount of material extracted from the site for the prior 12-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. 2017 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 2017 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 100-Foot Setback135th Street E.Blaine Avenue E.PL A NT 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 Prepared for Vesterra, LLCI hereby certify that this plan, document, or report was prepared byme or under my direct supervision and that I am a duly LicensedProfessional Geologist under the laws of the state of Minnesota. J.D. Lehr Date: November 11, 2016Reg. No. 30063 Stonex and Vesterra Properties City of Rosemount, Dakota County, MN0300600Feet Parcel data from Dakota County. Aerial photograph from USDA-FSA-APFOFlown September 27, 2015 50-foot property line setbacks except where noted in northwest Top of Mine Face November 2016 Reclaimed Proposed 2017 Stripping Stockpile Topsoil Storage Berm Pond Phasing Plan Stonex & Vesterra Property Line PRESENT CONDITIONS AND 2017 MINE PLAN Exhibit 1 Vesterra,LLC and Stonex,LLC Annual Mining Permit Renewal Request for 2017 November, 2016 Material removed from the pit during 2016 will be approximately 35-40,000 tons. Solberg continues 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 2017 to what they experienced in 2016. 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 Bonaire Path. In due course the plan remains to relocate truck access onto County Rd 71 which was resurfaced in 2012. We continue to receive interest from medium to large contracting or mining companies which it is hoped will lead to an increase in activity at some point. 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. We recently had Wenck fly the property with a drone to ensure that all contouring and the outlines shown on the 2017 mine plan are correct. The 2017 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. 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 have been imported onto the site during 2016. Vesterra/Stonex thanks the Rosemount Planning Commission and City Council for its consideration of this application for renewal.