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6.2. SR 03-21-2011REQUEST FOR ACTION TO ITEM NUMBER Ci Council 6.2. AGENDA SECTION MEETING DATE PREPARED BY Communi Develo ment March 21, 2011 erem Barnhart, Plannin Mana er ITEM DESCRIPTION REVIEWED By Request by Trident Polymers, LLC fox Conditional Use Permit fox Plastics Processing Facility in I-1 Light Industrial, Public REVIEWED BY Hearing -Case No. CU 11-04 ACTION REQUESTED Staff and the Planning Commission recommend approval of the Conditional Use Permit request as illustrated on application dated January 31, 2011, with the following conditions: 1. As a Conditional Use Permit is not a Building Permit, the applicant shall apply for all require permits. 2. The development shall meet all applicable fire codes. 3. No outside storage of dumpsters or trailers shall be permitted on the north or east side of the building. BACKGROUND/DISCUSSION Trident Polymers and Lake State Recycling are two businesses proposing to use the former All-Tool industrial building at 19188 Industrial Blvd for their relocated recycling businesses. A recycling processing center is a Conditional Use Permit in the I-1 zoning district. The companies receive recyclable materials (Trident deals in plastics, much of which is post-industrial waste; Lake State is primarily electronic products, computers, TV monitors, etc.), break them down, either by disassembly or chipping, then bales them, selling the broken down, sorted bales to third parties that use the material for their processes. Full descriptions can be found in the attached narrative. A more complete review of the proposal can be found in the attached March 8, 2011 memo to the Planning Commission. Planning Commission Review The Planning Commission held a public hearing on this item on March 8, 2011. Commissioners questioned the recycling process and traffic. Commissioners questioned why this use required a CUP in the industrial district. Staff responded that there is potential for greater than reasonable issues with a generic "processing center" description; the CUP process allowed greater review and an ability to correct these issues down the road. Public Comment Other than the applicant, no comments have been received in support or opposition to the request. N:\Departments\Communiry Development\Planning\Case Files\CUP\CU 11-04 Trident Polymers\CU 11-04 Trident SR to CC 3-21-11.docx FINANCIAL IMPACT None ATTACHMENTS ^ Planning Commission packet Action Motion by Second by Vote Follow Up N:\Departments\Communiry Development\Planning\Case Files\CUP\CU 11-04 Trident Polymers\CU 11-04 Trident SR to CC 3-21-11.docx REQUEST FOR ACTIOIN TO ITEM NUMBER Plannin Commission 5.1 AGENDA SECTION MEETING DATE PREPARED BY Planning Items March 8, 2011 Jeremy Barnhart, Planning Manager ITEM DESCRIPTION REVIEWED By Request by Trident Polymers, LLC for Conditional Use Permit for Plastics Processing Facility in I-1 Light Industrial, Public REVIEWED BY Hearing -Case No. CU 11-04 ACTION REQUESTED Staff recommends approval of the Conditional Use Permit request, as illustrated on application dated January3l, 2011, with the following conditions: 1. As a Conditional Use Permit is not a Building Permit, the applicant shall apply for all require permits. 2. The development shall meet all applicable fire codes. 3. No outside storage of dumpsters or trailers shall be permitted on the north or east side of the building. Applicant Red Circle Drive, LLC Location/ Address 19188 Industrial Blvd 60 Day Rule The City must take action by May 28, 2011 OVERVIEW Trident Polymers and Lake State Recycling, on behalf of the property owner Red Circle Drive, LLC, is requesting Conditional Use Permit approval to operate recycling processing centers at 19188 Industrial Blvd. The property is zoned I-1 light industrial. A recycling processing center is a conditional use in the I-1 light industrial zoning district. Both companies, separate tenants in the building, receive bulk or waste materials from industrial or consumer operations which theybreak down and separate into commodities for sale and distribution to other companies. These operations will occur completelywithin the formerAll-Tool industrial building. Large dumpsters will be stored on site to receive the broken down pieces for further distribution. Lake State will initially occupy 15,000 square feet; Trident Polymers will occupy 40,000 square feet. Both may expand into the remainder of building as their businesses grow. No changes are proposed to the exterior of the building. Any interior modifications will require a ~/ building permit. Case File: CU i1-04 Trident/ bake State Conditional Use Permit -Recycling processing center Page 2 BACKGROUND/PRECEDENT In the last five 5~ars, the City has not reviewed a conditional use application for recycling processing center. GENERAL INFORMATION Location Existing Use Comprehensive Plan Designation Current Zoning Subject Property Industrial Light Industrial I-1 Light Industrial North Industrial Light Industrial I-1 Light Industrial South Industrial Light Industrial I-1 Light Industrial East Industrial Light Industrial I-1 Light Industrial West Vacant Light Industrial I-1 Light Industrial ANALYSIS A recycling processing center requires Conditional Use Permit review, in part due to the potential for ~' greater than normal noise, dust, vibration, and outdoor storage over standard manufacturing processes common in the industriallyzonedareas. Recycling processes implies bringing in used (consumer or industrial waste which maynot be packaged neatly, creating oppoltunityfor litter. Additionally, if a processing center received materials directly from consumers, there is an additional public access component that must be reviewed. All facets of the dismantling and breakdown occur indoors. Storage of materials is completed indoors, with the exception of shipping trailers outdoors during loading and unloading. The businesses have indicated no direct consumer drop off of product; in the event that service was provided, there are adequate lot entrances and minimal customer interaction with larger trucks could be managed. The narrative for Lake State suggests the need for exterior large dumpsters for the collection of product before distribution. Staff suggests a 3~ condition, requiring this and anyvehicle storage to occur not in the north or east yard. Based on the information received from the applicant, it appears that the use is consistent with more typical manufacturing or industrial operations. APPLICABLE REGULATIONS Conditional Use Permit The issuance of a Conditional Use Pemut can be ordered only if the use at the proposed location: N:\Departments\CommuniryDevelopment\Planning\Case Files\CCJI'\CU 11-04 Trident Polymers\CU 11-04 Trident polymers 3-8-ll.docx Case File: CU 11-04 Trident/ Lake State Conditional Use Permit -Recycling processing center Page 3 1. Will not endanger, injure or detrimentally affect the use and enjoyment of other property in t1~e immediate vicinity or the public health, safety, morals, comfort, convenience or general welfare of tl~e neighborhood or tl~e city. 2. Will be consistent with the comprehensive plan. 3. Will not impede the normal and orderly development and improvement of surrounding vacant property. 4. Will be served adequately by and will not adversely affect essential public facilities and services including streets, police and fire protection, drainage, refuse disposal, water and sewer systems, parks and schools; and ~~ill not, in pay-ticular, create traffic congestion or interference with traffic on adjacent and neighboring public thoroughfares. S. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons or property because of excessive tra~c, noise, smoke, fumes, glare, odors, dust or vibrations. 6. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. 7. Will fully comply with all other requirements of this Code, including any applicable requirements and standards for tl~e issuance of a license or permit to establish and operate the proposed use in the city. If denial of such a permit should occur, it shall accompany recommendations or determinations by findings or a report stating how the proposed use does not complywith the standards set forth in Section 30-654. t In the review of the standards for CUP as outlined, it appears that the request is consistent with all of these standards. ATTACHMENTS ^ Location Map ^Applicant's Narrative ^ Applicant space breakdown ^Applicant floor plan ACtton Motion by Second by Vote Follow Up N:\Departments\CommunityDevelopment\Planning\Case Files\CCJI'\CCJ 11-04 Trident Polymers\CU 11-04 Trident polymers 3-8-ll.docx WV ST ZZ~8 TTOZ/UZ'6n~p~deW uo!;e~o~\s~aw~(lod l~ep!alb0-TT f1J\df17\sa~!~ ase~\6u!uue~d\;uawdo~ana4 ~(;!unwwo~\s;uaw~eda4\:N Trident Polymers, LLC Trident Polymers, LLC Business Summary Companv Overview Trident Polymers was formed in December of 2005. The business of Trident is to provide recycling, brokerage, consulting, and sourcing services primarily in the area Post Industrial plastics. Customers are large scale retail, medical, printing and thermoforming operations. These include Best Buy, Target, Medtronic, Reynolds Food Packaging and RockTenn. Companv Owners John and CJ Mork John and CJ are also sole owners Progressive Packaging which is a national brokerage firm providing diverse packaging supplies to large national food processors throughout the US and Canada. Progressive is amulti-million dollar company that was started 18 years ago and operates out of Plymouth Minnesota. Greg Nelson Greg has held numerous senior management positions with companies such as National Car Rental, Gage Marketing and Audio King. During the past 10 years he has held senior management roles with UltraPac, Ivex and Reynolds Food Packaging. Greg has the primary role of Administration and Operations for Trident Polymers. He also holds the position of Director -New Business Development for Progressive Packaging. Terry Nichols Terry has had numerous technical and operational management positions in the retail and plastics industry. He has worked with Audio King, CPA firms and plastics manufacturers like UltraPac. Recently he was Director of Operations for a large merchant sheet supplier. Terry has primary responsibility for Sales and Operations. Offices Administration 14700 28th Ave North Suite 35 Plymouth, MN 55447 Office: 763-541-1440 Fax: 763-541-1510 Production and Warehouse 2500 West County Road B #12A Roseville, MN 55113 Number of employees at the production facility: 7, with planned growth to 10 during 2011. Planned hours of operation : 7 days per week, 24 hours per day. ^ Trident Polymers, LLC Detailed description of work performed: We assist prospective and existing customers develop sustainable recycling programs for post industrial plastic waste generated by their daily operations. Depending on a customer's type and quantity of waste plastic, we may "spot" a trailer at their site, pickup at their site, or have them deliver to our warehouse. Once the material is checked for quality, weighed and received at our location it is stored for future processing. Future processing can include: Sorting by material type, form, or color. Baling. Grinding. After the materials are processed, they are stored until there is sufficient material to be sold. Upon receipt of an order, delivery is setup and the material is shipped. - All plastics processed are considered commodity materials approved for use in food packaging, medical packaging or products, or consumer products processes. - Current planned equipment is a grinder, a shredder, and a bailer. Additional consideration may be given to extrusion or pelletizing equipment as the company develops. No waste water is generated by any of the proposed operations. - No outside storage is planned for any materials other than temporary trailer storage during delivery or shipping. - No chemical processes are performed during the proposed recycling of the materials, only mechanical processing. Description of grinding process and equipment: Segregated materials originating in large totes (4'x4'x4') are placed in a "Tote Dumper"(A) with the use of a forklift. The operator then slowly dumps the material in the tote onto a 12' x 3' sorting table. The material is then placed into the grinder(B) by the operator. Once the material is granulated to a size that allows it to pass through the screen in the grinder, it falls into a blower basin. The blower then transfers the material to a "Cyclone"(C) to allow for the filling of a tote of ground product. The ground material(D) drops into a tote placed under the cyclone. Once the tote is full it is weighed, labeled, and a sample is taken. The material is recorded on a daily production sheet which is used to update inventory at the end of the shift. Description of bailing process and equipment: Material is sorted as it is being bailed. As an example, clear and color Low Density Polyethylene film(E) may be received in bale form. The operator will hand sort the colors from the clear and first bale the clear then bale the colors. The bailer(F) allows us to group like materials together in a format that reduces shipping costs. Process and Material Pictures A. ~~, :~ ~~ `'a B. ~~ . ~ ,' ~:~'; ,~ M ~ ~~~F; w I ~+ yy'.. ;:~.:.n.rYi ..~.... ~~~Y.i.W.r•_.Mrw~, iM ,~~A': ~ »z s '` ~ ~ ~ "' ; w 4 _i+e91 .: ~.7 i~.~,.~ I Z"e I .~~. a i ~~ _ .~~ ~~: .} ,~ ~~ .,, C. Material Pictures LDPE Bales that need sorting w.. ~- .. ~ ~"~", ~n'~ ~xi ~ i~ gy Z. ~' - .1 t NcR .ws.~ •: ~ ~'' `' i # ~ ~ s ~. -~.» '~' 'x. ~ G ~ a N4W ~ ~ ~t ~. ry~,~ ''f.3tKn.. • t p:' f 7 ~~`~ ,~., :: s, s r 3 rv ~y 'YA~aM'"f" ' .3.11• :. iw.b c ~ .. ., _._ ... ~.4~` n _.... W . ? lFt ~t `. _ .,,..... ..=. ~. ` x,,.. ` i.. LDPE Sorted: Regrind pictures: Lake State Recycling Lake State recycling was founded by Chris Baumgardt and Harley Hanson. Lake State Recycling was formally PC Smashers a sole proprietorship that Chris purchased in 2006. Since purchasing PC Smashers in'06 recycling has experience extreme growth causing demand to skyrocket. In April of 2009 Harley Hanson was hired by PC Smashers. Harley has a 15 year background in recycling. In April of'09 Harley sold his shares to a company that he started out of a 2000 square foot warehouse in Rogers, MN. At the time of sale roughly 15 years later Integrated Recycling employed over 40 people operating out of 2 buildings and was experiencing gross sales in excess of $35,000,000 annually. The primary goal of lake State Recycling is to continue to harness the fast pace demand of the e- recyclingindustry, also to expand in other facets of the recycling industry. In order to accomplish our next goal, we need a larger facility and more employees. We recently stumbled across a "joint lease" venture with Trindent Polymers. We have done preliminary research and we are very pleased with the location of the building in Elk River. Elk River offers our company a lot of growth potential. Our core business plan consists of providing large scale disposal of e-waste. E-waste on a commercial level consists of individual work stations, server equipment and all peripherals that have a cord essentially. The following are the steps we take to process the a-scrap once we have received it at our facility. The e-scrap is transported via semi truck and is delivered to our ware house. Once the material is on site we take a complete inventory of the electronics that we received. After the product is staged and cataloged it will be put on the schedule for dismantling. We currently have 2 employees dedicated to this particular process. As our dismantlers tear down the product it is segregated into several categories. We separate the following commodities, steel, gold bearing circuit boards, non-ferrous and plastic. Steel roughly makes up about 60% of our recycled commodities. We will generate roughly 2- 30 yard containers per week. The containers will need to be outside. The other main ingredient is the circuit board. There are several types of circuit boards. They range in value in accordance to how much gold was use to manufacture them. We have roughly 12 different categories for our boards. As we separate the boards they are prepped and staged for several refiners that we deal with. As we achieve our desired quantities we will then set up appointments and schedule shipping to specific refiners in order to optimize our return. The non-ferrous metals are any metal that a magnet will not be attracted to. Non-ferrous metals consist of all types of aluminum, copper, brass and stainless steel. In our business you get better value by segregating all the metals and having them packaged in accordance to the mills specifications. One of the expansions of our business we would like to do once we take possession is to buy non-ferrous metals from local machine shops, automotive repair shops, electrical contractors, public utilities and any potential walk in customer. The final step in our a-scrap process is to process and market the plastic that are generated. Plastics are another avenue for us. There are very few domestic consumers of plastic. Lake State and Trindent Polymers are working together to offer a domestic solution for e-scrap recyclers. Currently the majority of plastics in the industry are sent to China for recycling. Monitors and CRT's (Cathode Ray Tubes) are segregated and dismantled. We recover the circuit boards and copper wiring. The actual glass is packaged and is then sent to a facility that has specialty equipment specifically designed to process CRT's. Once the CRT's are processed the glass is cleaned and recycled. Throughout our entire process we are able to not only recover precious metals but to drastically cut the amount of this material being dumped into our landfills. Recycling also takes away the need to increase mining production. Some of the equipment we will be using will be forklifts, balers, shears and hand tools. Forklifts will be operating on propane. The baler will be used to consolidate our raw materials. Shipping is vital in our business and in order to maximize weight we will bale the majority of all our metals, cardboard and plastic. The shear is a large scale hydraulically powered scissors. We use this to shear various types of copper, aluminum and light gage iron. Finally, the hand tools. The hand tools are battery operated drills and impact guns. They are light weight and vital to the demanufacturing process and offer us the ability to adapt to any socket/bit size instantly. In closing Lake State Recycling is company that has growth potential ~~' ~ ti7®Z i 4 l rrna ~.. A ~a7 ~m W Q U m m 0 z a m N O ,,,,~,;. c i c r ¢r r ', ~. o~ ~: o ~ m m U m _ I c~ '~ ~ v v y, r m 0 m C ~T___..,._--- C ', I ~ I G. _ ~ ~ L __.