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HomeMy WebLinkAbout6.m. Renewal of the Max Steininger, Inc. Small Scale Mineral Extraction Permit for 2022 EXECUTIVE SUMMARY City Council Regular Meeting: February 15, 2022 AGENDA SECTION: AGENDA ITEM: Renewal of the Max Steininger, Inc. Small Consent Scale Mineral Extraction Permit for 2022 PREPARED BY: Julia Hogan, Planner AGENDA NO. 6.m. ATTACHMENTS: Site Location, Draft 2022 Mining Permit, Excerpt from the January 25, 2022 Planning Commission Meeting Minutes, Project APPROVED BY: LJM Narrative, Location Map, Haul Route, Current Conditions, Mine Plan, Reclamation Plan, Site and Aerial Photographs RECOMMENDED ACTION: Motion to approve renewal of the Max Steininger, Inc. Small Scale Mineral Extraction Permit for 2022, subject to the terms and conditions in the attached Draft 2022 Conditions for Mineral Extraction. SUMMARY Applicant and property owner: Max Steininger, Inc., 3080 Lexington Avenue South, Eagan, MN Location: Approximately one mile east of US Highway 52 along CSAH 42; adjacent to 4322 145th Street East Area in acres: 78.91 Acres (overall site); 37.8 (mining area); 5 acres (active mining) Mining Area: 2.2 acres to be mined in 2022. Comp. Guide Plan Designation: LDR– Low Density Residential, MDR – Medium Density Residential and HDR – High Density Residential Current Zoning: AG – Agricultural The Planning Commission is being asked to consider a request from Max Steininger, Inc. to renew the existing Small-Scale Mineral Extraction Permit for its operation located along County Highway 42 and east of State Highway 52 in the southeastern portion of Rosemount. Small Scale Mineral Extraction is permitted in the City as an Interim Use Permit (IUP) within specified areas, and the permit for such uses expires after one year. The applicant applied for the initial mining permit IUP in the summer of 2018 and was granted a renewal of the permit that extended it through 2021. The current request would extend the mining permit for one additional year through the end of 2022. PLANNING COMMISSION ACTION The Planning Commission reviewed the Interim Use Permit renewal request at their meeting on January 25, 2022. There were no public comments received during the public hearing and the Commission did not raise any specific concerns about the request. The Planning Commission unanimously adopted a motion to recommend approval of the Max Steininger, Inc. Small Scale Mineral Extraction Permit for 2022, subject to the conditions in the attached 2022 conditions for Mineral Extraction. BACKGROUND The applicant, Max Steininger, Inc. (affiliated with the property owner County Road 42 Properties), owns a construction and excavation business in Eagan and received approval from the City in 2018 to start a new mining operation next to the Danner Inc. mine along Highway 42. Over the last three and a half years, the applicant has commenced mining activities in the northern-most portions of their Phase 1 mining area, constructed an access road for the mine, and installed a berm along the access road using topsoil from the active mining area. Because the mineral extraction use is closely tied to the applicant’s primary business, there will be limited sales of materials to outside projects from the mine. The applicant has provided a detailed application packet for the mining renewal and has hired Sunde Engineering to help prepare plans for the site and to provide information as required under the City’s mineral extraction ordinance. Since it started mining operations on the property in the summer of 2018, the applicant indicates that it has removed approximately 108,000 tons of material from the site, all of which were mined from the extreme northern portion of the Phase 1 mining area. Overall, roughly 5 of the 15 acres in Phase 1 have been stripped and either have been mined or will be mined in 2022. The updated topographic survey for the operation shows that current elevation of the mining floor is at 840 feet, which is the maximum depth allowed under the mining permit. In addition to the mining, the applicant finished construction of the berm planned along the entrance road in early 2020. The berm was moved further to the east along the acres road to provide a more direct and effective screen between the mining road and nearby residential structures. It was also completed to its planned height of 15 feet with an appropriate cover material to prevent erosion, dust and soil loss. For 2022, the applicant intends to extract 35,000 tons of material, which will include mining roughly 2.2 acres of the land already stripped to the south of the active mining wall. As noted by the applicant, material is excavated and processed on site. Processing consists of crushing and screening with portable processing equipment set up upon the floor of the mine recessed from the surrounding grade to reduce noise and dust emissions. Material is stockpiled on the floor of the mine. The applicant also intends to perform recycling of concrete and asphalt material on the property, which will be crushed and blended with on-site materials to produce recycled aggregate blends. The recycling operations will likely not occur in 2022 and will commence once there is a sufficiently large enough mine floor area in which to work. The applicant will need to obtain approval by the Dakota County Environmental Management Department prior to the recycling operations. No haul back material was brought to the site in 2021, and no topsoil has been removed from the property (most of the stripped soil has been used to construct the berm). ISSUE ANALYSIS Aggregate mining is reviewed through an interim use permit which is Quasi-Judicial actions. As such, the City has a set of standards and requirements for review. Generally, if the applications meet the ordinance requirements they must be approved. The standards and requirements for this mineral extraction are detailed in Section 11-10-4 of the Zoning Ordinance and the attached Mineral Extraction permit. The subject property is zoned AG – Agriculture and meets or exceeds the applicable performance standards for small scale mineral extraction. Small scale mineral extraction is listed as an interim use within the Agriculture district. The table below details the current land use, zoning, and future land use information for the surrounding properties. These properties are all currently zoned Agricultural and are located within the 2030 Metropolitan Urban Service Area (MUSA). The 2040 Future Land Use Map anticipates a mixture of low, medium, and high density residential on the applicant’s parcel. Future reclamation of the site will need to be performed before an impacted area may be developed for housing in accordance with the City’s future land use plan. 2 Surrounding Land Use and Zoning Information Direction Current Land Use Zoning Guided Land Use Agricultural BP – Business Park North Agriculture South Agriculture Agricultural LDR – Low Density Residential Agricultural LDR, MDR, and HDR – Low, Medium, and High East Agriculture/Mining Density Residential CC- Community Commercial West Agriculture Agricultural LDR, MDR and HDR – Low, Medium, and High Density Residential Access to the Steiniger mine comes from County Road 42 via a gravel road along the eastern edge of the property. The applicant has secured the necessary access permits from Dakota County for the access road, and will need to continue to abide by the terms and conditions of this permit throughout the life of the mine. The permit application notes that haul routes within the City will continue to be County Road 42 to State Highway 52. As a part of the annual review of all mineral extraction permits, staff performs an inspection of the site and consults with the Rosemount Police Department regarding any police activity. No ordinance or permit condition violations were apparent during the inspection, and ground cover has been established on all restored areas. Police records found no incidents at the subject property during 2021. RECOMMENDATION Planning Commission and Staff recommends renewal of the Small Scale Mineral Extraction Permit for Max Steininger, Inc. for 2022 based upon a review of the information submitted by the applicant, the mineral extraction standards in Section 11-10-4 of the City Code, City Police records and the attached draft permit. 3 Max Steininger, Inc Mine Location Site 1 Mineral Extraction Permit 2022 Conditions for Small Scale Mineral Extraction Permit MAX STEININGER, INC. A Max Steinnger Inc., hereinafter referred to as the “Property Owner”, shall sign a written consent to these conditions binding itself and its successors or assigns to the conditions of said permit. B The property Owner shall comply with all terms of this permit as well as the standards for mineral extraction listed in Section 11-10-04 of the City Code. C This permit is granted for the area designated as Phase 1 (approximately 15 acres) on Exhibit A, Mineral Extraction Permit Mine Plan, which is attached hereto as an exhibit. Regrading and reclamation shall occur in the area designated Phase 1 on Exhibit A in accordance with the requirement of Section 11-10-4.4 of the City Code. Reclamation is not expected to occur in the 2022 calendar year, D The term of the permit shall extend from the date approved by the City Council until December 31, 2022 unless revoked prior to that for failure to comply with the permit requirements. An Annual Mining Permit fee shall be paid to the City of Rosemount. E 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 Owner 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. F The final grading for the permit area shall be completed in accordance with the Final Reclamation Plan, attached as Exhibit B, or as approved by the City Engineer, and any other conditions that may be imposed by the City from time to time. G All gravel trucks and other mining related traffic shall enter and exit the mining area from County State Aid Highway 42. It shall be the Property Owner'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 County Highway Department if any changes occur relative to the mining process. H A plan for dust control shall be implemented and subject to approval by the City. The Property Owner shall clean dirt and debris from extraction or hauling operations related to the Mineral Extraction Permit from streets. After the Property Owner has received 24-hour verbal notice, the City may complete or contract to complete the clean-up at the Property Owner’s expense. In the event of a traffic hazard as determined by the Public Works Director or Rosemount Police Department, the City may proceed immediately to complete or contract cleanup at Property Owner’s expense without prior notification. I The surface water drainage of the mining area shall not be altered so as to interfere, contaminate, or otherwise affect the natural drainage of adjacent property. 2 J No topsoil shall be removed from the site and the Property Owner shall take necessary measures to prevent erosion of the stockpiled topsoil. The location of the stockpiled topsoil shall be as indicated on Exhibit A. K 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 Owner. L All costs of processing the permit, including but not limited to planning fees, engineering fees and legal fees, shall be paid by the Property Owner prior to the issuance of the permit. The Property Owner shall reimburse the City for the cost of periodic inspections by the City Engineer or any other City employee for the purpose of insuring that conditions of the permit are being satisfied. The Property Owner agrees to reimburse the City for any other costs incurred as a result of the granting or enforcing of the permit. M 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, however, to being changed by the City Council. N The Property Owner shall deposit with the Planning Department a surety bond or cash escrow in the amount of Seven Thousand Five Hundred Dollars per acre ($7,500.00/acre) of active phase in favor of the City for the cost of restoration, regrading and/or revegetating land disturbed by mining activities and to assure compliance with these conditions by the Property Owner. The required surety bonds must be: (1) With good and sufficient surety by a surety company authorized to do business in the State of Minnesota with the right of the surety company to cancel the same only upon at least thirty (30) days written notice to the permit holder and the City. (2) Satisfactory to the City Attorney in form and substance. (3) Conditioned that the Property Owner 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 Engineer, or any other City officials. (4) Conditioned that the Property Owner 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 Owner. (5) The surety bond or cash escrow shall remain in effect from December 31, 2021 to July 31, 2023. Upon thirty (30) days’ notice to the permit holder and surety company, the City may reduce or increase the amount of the bond or cash escrow during the term of this permit in order to insure that the City is adequately protected. O. The Property Owner 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, bodily injury liability in an amount of at least One Million Five Hundred Thousand and no/100 ($1,500,000.00) Dollars and property 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 December 31, 2021 to July 31, 2023. P. 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, or hazardous materials within the pit as fill shall be strictly prohibited. The placement of asphalt in any form shall also be prohibited unless specifically approved by the City as part of the aggregate and concrete recycling activities. 3 Q. 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 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. R. 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 Owner shall indemnify the City 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. S. 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. T. 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 Owner shall submit to the City semiannually a written report indicating the amount of material extracted from the site for the prior six-month period. U. The Property Owner 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. V. 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. No restored slopes may exceed a gradient of 25% or four to 1 (4:1). W. The Property Owner must show how materials stockpiled for recycling will be processed and inform the City of all stockpiled materials. No stockpiles shall exceed elevation of the grades adjacent to the mine (the height of the pit wall). X. The Property Owner may not assign this permit without written approval of the City. The Property Owner will be responsible for all requirements of this permit and all City ordinances on the licensed premises for the permit period unless the Property Owner gives sixty (60) days prior written notice to the City of termination and surrenders the permit to the City. The Property Owner 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. Y. The Property Owner 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. Z. 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 concrete recycling as referred to in paragraphs Q and W; topsoil imported for the purpose of re-establishing turf as accepted by the City; and earthen fill materials from projects that further meets the requirements of testing in documents by American Engineering Testing, Inc. (or other City approved geotechnical testing firm), and which is used to replace sand and gravel mined below approved finish grades. 4 AA. Max Steininger., Inc. shall submit semi-annually to the City documentation of the American Engineering Testing, Inc. (or other City approved geotechnical testing firm) environmental and geotechnical testing with documentation verifying the source and quantity of any “haul-back” material. These reports shall be provided by May 15th and November 15th of each year. BB. Max Stieninger., Inc. shall submit an incidence report to the City within three days of any testing that fails for contamination or hazardous materials, or will not produce a normal moisture-density relationship for compaction. CC. Max Steininger., Inc. shall compact the entire reclamation site to a minimum compaction of 95% of maximum dry density. DD. Mining to the elevation of 840 feet above mean sea level provided that the site is reclaimed to the elevation shown on Exhibit A with haul-back, clean-fill material. In no instance shall mining occur in the groundwater aquifer. EE. Blasting or the use of explosives is prohibited. FF. 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. GG. The City of Rosemount shall have the ability to collect independent soil and water samples. HH. The operator shall install and maintain “No Trespassing” signs consistent with the standards outlined in Minnesota State Statute 609.605. Max Steininger, Inc., Property Owner, hereby consents and agrees to the foregoing conditions of said mining permit. IN WITNESS WHEREOF, the Property Owner has hereunto set his hand this _____ day of __________________, 2022. MAX STEININGER, INC. By:__________________________________ Its: _________________________ STATE OF MINNESOTA ) ) § COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ______day of _________________, 2022, by __________________________________, on behalf of Max Stieninger, Inc., Property Owner. ______________________________________ Notary Public EXCERT FROM THE JANUARY 25, 2022 PLANNING COMMISSION MEETING MINUTES 5.a. Renewal of the Max Steininger, Inc. Small Scale Mineral Extraction Permit for 2022. (21-69-ME) Planner Hogan gave a presentation and summary of the staff report for the Planning Commission. The public hearing opened at 6:36 pm. Public Comments: Max Steininger, 3070 Lexington Ave South, Eagan, stated that he is attending the meeting in place of his son, who couldn’t make it to the Planning Commission meeting. MOTION by Reed to close the public hearing. Second by Schmisek. Ayes: 6. Nays: 0. Motion Passes. The public hearing closed at 6:37 pm. Additional Comments: Vice-Chair Reed stated that the proposed application is a renewal. MOTION by Marlow to Recommend City Council approve the renewal of the Max Steininger, Inc. Small Scale Mineral Extraction Permit for 2022, subject to the terms and conditions in the attached Draft 2022 Conditions for Mineral Extraction. Second by Rivera. Ayes: 6. Nays: 0. Motion Passes. Max Steininger, Inc. Aerial Images September 2021 September 2020 Max Steininger, Inc. Aerial Images April 2021 April 2020