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5.4. SR 05-19-2008REQUEST FOR ACTION To Item Number Ci Council 5.4. Agenda Section Meeting Date Prepared by Communi Develo ment Ma 19, 2008 exem Barnhart, Plannin Mana er Item Description Reviewed by Request by Jason Bebeau fox a Conditional Use Permit fox Mineral Excavation, Public Hearing Case CU 08-08 Reviewed by Action Requested Staff and the Planning Comtnission recommend approval of the Conditional Use Permit request, with the following conditions: 1. All conditions of the 2004 Conditional Use Permit shall apply, except letter of credit amount (9d) and haul routes (10). 2. A written agreement between Schmidt and the applicant shall be provided, verifying the land hank purchase agteement, prior to mining operations. 3. A letter of credit in the amount of $97,101.40 shall be provided to guarantee the completion of the reclamation plan. Summary The applicant received a Conditional Use Permit (CUP) in 2004 (CU 04-21). A CUP is permitted indefinitely, unless action ceases fox a period longer than 6 months. Mining licenses were received fox 2005, 2006, and mining activity was occurring those years. No license was applied fox in 2007, and no mining activity occurred; therefore, the Conditional Use Permit expired. Jason Bebeau, of J & B Mining, is requesting Conditional Use Permit approval fox a gravel/peat mining operation on his property, legally described as: South Half of the Northeast Quarter of the Northeast Quarter (S'/a of NE'/a of NE'/a), Section 10 and Northwest Quaxtex of the Northwest Quarter (NW '/a of NW '/<), Section 11, all in Township 33, Range 26, Sherburne County, Minnesota. T'he mining proposal includes a proposal to mine approximately 40 acres out of the 60-acre site. Approximately 1,190,000 cubic yards of materials are proposed to be mined; about 1 /3 of this consists of peat. `fhe proposal includes a desire to excavate approximately 40 feet below ground water using a dxagline. While the subject property was not included in the original 1994 Environmental Impact Statement (EIS) on Mineral Excavation, an Environmental Assessment Worksheet (EAW) has been completed. The City Council made a negative declaration regarding the need fox an EIS at their September 7, 2004 meeting. The Conditional Use Pernut request is identical to the origina12004 approval, with the exception of changes to the haul routes and increasing the amount of the letter of credit. Transportation The original Conditional Use Permit included proposed haul routes north to 225`x' Avenue. This raised some concerns from the public during the original review. The current proposal uses 217`" and 219`h Avenues to access Highway 169 for greater distribution of traffic. No improvements to these intersections have been identified, but if required, will be the responsibility of the applicant. Wetlands Mining activity completed and proposed impacts existing wetlands on the site. A portion of the approximately 4 acres of mitigation will occur on site, with approximately 1 acre to occur off site, in the form of wetland banking credit purchase. Reclamation plan The reclamation plan is identical to the original 2004 approval. The finished perception will be 40 acres of open water, with water depths varying between 2 to 30 feet. Planning Commission Discussion The Planning Commission reviewed the application at their May 13, 2008 meeting. The Commissioners had no concerns with the proposal, but had some questions regarding the wetland banking purchase. Public Comment The adjacent property owner, Roger Schmidt was in attendance, noted that he and the applicant axe nearing an agreement fox the wetland banking purchase. No other comments were received in support ox opposition to the Conditional Use Permit. Attachments • Letter of Credit amount breakdown • Staff Repart to Planning Commission dated May 13, 2008. Action Motion by Second by _ Vote Follow Up S:\PLANNING MAIN\Case Files\COP\CO 0&08 Bebeau\CC staff report 5-19-08 CU 08-0S.doc ~~ ~~ ` u oeu ' ', I I u i i j I _ _ _ -- ~ _.L_. I I I~_ \ r r __ .16N.~IIJG PI r -~ City of El -.-~ River Location Map Case Number: CU 08-08 BEBEAU Private Drives ~ N Wetland impacts Impacted in 2004: Mitigation ratio: Mitigation amount Mitigation area on site Mitigation area off site Mitigation amount for on site mobilization costs Mitigation amount, off site 85,294.00 2:1 170,588.00 116,684.00 53,904.00 $ 39,270.36 10% of mitigation amount $ 3,927.04 $43,560 per acre ($1.0 per sq ft) $ 53,904.00 Letter of Credit amount $ 97,101.40 Ctty of El .~... REQUEST FOR ACTION River To Plannin Commission Item Number 5.4 Agenda Section Meeting Date Prepared by Plannin Items Ma 13, 2008 erem Barnhart, Plannin Mana ex Item Description Reviewed by Request by Jason Bebeau for a Conditional Use Permit fox Mineral Excavation, Public Hearing case CU 08-08 Reviewed by Action Requested Staff supports a Plam~ing Commission recommendation of approval of the Conditional use Pernut request, with the following conditions: 1. All conditions of the 2005 Conditional use Permit shall apply. 2. A written agreement between Schuxer and the applicant shall be provided, verifying the land bank purchase agreement, which shall be provided prior to mining operations. 3. A letter of shall be provided to guarantee the completion of the reclamation plan. Background/Discussion A Conditional Use Permit for rnitung was issued in 2004 fox the subject property; however, mining operations ceased, expiring the Conditional Use Permit The 2008 application is largely a copy of the original, although the application is reviewed based on 2008 requirements. Financial Impact None Attachments • Location Map • Applicant's Narrative • Applicants proposed haul roads • Staff comment letter dated Apri17, 2008 • Original Conditional Use Permit General Information Case File: CU OA-OA Page 2 ]~ Mpg Condi[irnal Use Permit Applicant Jason Bebeau 60 Day Rule The application has been deemed complete as of April 7, 2008. The Ci must take action b une 7, 2008 Requested Action Conditional Use Permit approval Location and Size Appxoxanately 60.23 acres north of 219s` Avenue, east of Hwy 169. Location Existing Use Land Use Plan Designation Current Zoning Subject Property Mrnrng Commercial Reserve CRT/ ME North Rural Residential Commercial Reserve CRT/ ME South Rural Residential Commercial Reserve CRT/ ME East Rural Residential 2008 Rural Residential A-1 / ME West Rural Residential Commercial Reserve CRT/ ME Overview The applicant received a Conditional Use Permit in 2004 (CU 04-21). Mining licenses were received for 2005, 2006, and Honing activity was occurring those years. No license was applied fox in 2007, and no mining activity occurred, therefore the Conditional Use Permit expired. Jason Bebeau, of J & B Mining, is requesting Conditional Use Permit approval to manage a gravel/ peat mining operation on his property, legally described as: South Half of the Northeast Quarter of the Northeast Quarter (S '/z of NE 1/a of NE '/a), Section 10 and Northwest Quarter of the Northwest Quarter (NW '/a of NW '/a), Section 11, all in Township 33, Range 26, Sherburne County, Minnesota. The mining pxoposai includes a proposal to mine approximately 39 acres out of the 60 acre site. Approximately 1,190,000 cubic yards of materials axe proposed to be mined, about 1/3 of this consists of peat. The proposal includes a desire to excavate approximately 40 feet below ground water using a dragline. While the subject property was not included in the original 1994 Environmental Impact Statement (EIS) on Mineral Excavation, an Environmental Assessment Worksheet (EAW) has been completed; which the City Council made a negative dedaxadon regarding the need for an EIS at their September 7, 2004 meeting. i~1v~t G imia rvi~...,.'>l Case Pilo CU 0&OR Page 3 Aoolicable Regulations Conditional Use Permit J&B Mining Conditional Use Pemut The issuance of a Conditional Use Permit can be ordered only if the use at the ptoposed location: 7. Widl not endanger, injure or detrimentally affect the use and enjoyment of otherproperty in the immediate vicinity or the public health, safety, morals, comfort, convenience orgeneral welfare of the neighborhood or the city. 2. Will be consistent with the comprehensive plan. 3. Will not impede the normal and orderly development and improvement of surrounding vacant proper y. 4. Will be served adequately by and will not adversely affect essential public facik'ties and services including streets, police and fare protection, drainage, refuse disposal, water and sewer systems, parks and schools; and will not, fn particular, create traffic congestion or inte~rence with traffic on adjacent and neighboring public thoroughfares. 5. Will not involve uses, activities, processe ,materials, equipment and conditions of operation that will be detrimental to any persons arpmperty because of excessive traffic, noise, smoke, fumes, glare, odors, dust or vibrations. 6. Will not result In the destruction, lost ar damage of a natural, scenic or historic feature of major importance. 7. Will fully comply with all other requirzments of this Code, including any applicable requirements and standards for the issuance of a license or permit to establish and operate the proposed use in the city. If denial of such a pettnit should occur, it shall accompany recommendations ox determinations by findings ox a report stating how the proposed use does not comply with the standards set forth in Section 30-654. In the review of the standards fox CUP as outlined, it appears that the request is consistent with all of these standards, provided the conditions axe applied without reduction. Analysis The applicant wishes to begin training the property again, and is requesting approval of the original 2004 application. Main issues raised during the original review included transportation routes and wetland impacts. Transportation Transportation routes: Material excavated ox otherwise removed from the site will follow one of two paths to Highway 169. Trucks will access either 219`" or 217x'. A map of the proposed haul routes is attached. Wetland As part of the original review and approval, there were impacts ptoposed to 85,294 square feet of wetland. With mitigation ratio requirements at 2:1, 170,588 square feet (3.91 acxes)of wetlands were Case File: CU OR-OS Page 4 J~ ~g Conditional Usc Perrsuc required to be replaced (mitigated). All but 53,904 square feet were to be mitigated on the subject property. The balance (1.24 acres) is proposed to be mitigated on the adjacent Schuer land bank, not yet created. To guarantee that the mitigation is completed, Staff is recommending a letter of credit in an amount to complete the work and acquire additional property. This amount remains to be determined. Reclamation Plan The reclamation plan as approved in 2004 is not proposed to be changed, and indicates a plan to create a large open water/ wetland complex on the property. The entire eastern 40 acres will be water covered in varying depths, which may impede orderly location of surface roads and general development between 221" and Brook Road. Action Motion by _ Second by _ Vote Follow Up E~LE COPY March 27, 2008 Mr. Jeremy Barnhart Planning manager City of Elk River 13065 Orono Parkway Elk River, Minnesota 55330 ~l~TE ~'•~C~t'~~~ ----~%~~ ~-____ VIA MESSENGER RE: Conditional Use Permit Application Submittal and Variance Request, J & B Mining, 11349 219a' Street NW, Elk River, Minnesota (the Property). Dear Steve: Liesch Associates, Inc. (Liesch) is submitting this letter and accompanying Conditional Use Permit (CUP) Application submittal package (the Application} on behalf of Jason Bebeau (J & B Mining) for the above referenced Property, )figure 1 shows the location of the Property and Figare 2 shows the Existing Conditions, as of Apri12004. The following documerrts are included with this letter and complete the Application: 1. Completed CUP Appligtion signed by the applicant, including the application fee of $520.00 and consultant retainer fee of $1000.00; 2. 3. Plan Sheets 1 through 3: Existing Conditions Plan, Mining Area Grading Plan, Drainage and Restoration Plan prepared by Liesch Associates, Inc., dated May 27, 2004; 4. Storm Water Pollution Prevention Plan, Schmidt Gravel Mine, Elk River, Minnesota, prepared by Liesch Associates, Inc., dated May 2004; S. Labels for property owners within 350 feet of the Property. 6. Rewning; 7. EAW; 8. Environmental Spill Plan; Liesch submitted a Jurisdictional Wetland Identifigtion and Wetland Delineation for the subject property to the City of Elk River on May 17, 2004. A completed Part 1: Basic Application and Part 2: Replacement Plan Supplement Minnesota LocaUState/Federal Application Form for Water/9Vetland Projects, signed by the applicant; and accompanying Plan sheets are being submitLad by Anderson Engineering of M;nne~cnta, LLC under separate cover. Page 2 Background Information The Property is currently zoned agricultural and land use is idle with portions of the property containing wetlands. This is the first submittal from the property owner to the City of Elk River in an effort to have the Property rezoned and under a Conditional Use Permit for min of aggregate and peat resources: • Environmental Assessment 9Jorksheet (Draft), J & B Mining, Elk River, Minnesota, prepared by Liesch Associates, Inc., dated May 2004. • Stone Water Pollution Prevention Plan, J & B Mining, Elk River, Minnesota, prepared by Liesch Associates, Inc., dated May 2004. • Environmental Spill Plan, J & B Mining, Elk River, Minnesota, prepared by Liesch Associates, Inc., dated May 2004. • Plan Sheet 1 of 3 - EXtsting Conditions, Plan Sheet 2 of 3 - Mining Grading Plan, Plan Sheet 3 of 3 Drainage and Restoration Plan, J & B Mining, Elk River, M;nne_cnta, prepared by Liesch Associates, Inc., dated May 2004. Description of Proiect J & B Mining is proposing to mine approximately 41 acres of the 60 acre property with most of the mining to occur on the 40 acre parcel as shown on the mining and grading plan (Refer to Plan Sheet 2 of 3). Approximately 1,750,000 cubic yards of material will be removed as part of the proposed mining activities on the site. Mining of the property is proposed to connect with Phase 4 of the Schmidt Gravel Mine to the west at the north end of the 40 acre parcel. Shallow mining is also proposed within the wetland areas B, E and a portion of area A to obtain peat resources in these areas. The resulting restoration of these areas will involve the transformation of type 2 wetlands invaded by Reed Canary Grass into deeper water type 4 and 5 wetlands. A portion of wetland A on the 20 acre parcel will not be mined and restoration of this area will consist of vegetation restoration in an effort to remove the existing reed canary grass ami plant native species in this area. The deeper excavations within the minlrrg area as shown on the mining and grading plan will be restored as deeper water fisheries habitat with assistance proposed by the Minnesota Department of Natural Resources -Urban Fisheries Program. Test pits have been completed in the area of the proposed mining and the test pits indicate that soils in that area consist of poorly graded sand with silt and gravel and heroic peat. Water levels were not measured at the time of test pits however, one area was left open to observe water levels and it would appear that groundwater exists an approximate elevation of 945. On May 25s' and 26'~ soil boring were completed at locations throughout the proposed mining area. and soils observed in the test pits consisted primarily of poorly graded sand with silt and gravel with a few areas of lean clay or clayey sand encountered. No soil borings were completed at this tune to farther identify depth of peat resources in the proposed mining area. In conjunction with the soil borings at the site, three monitoring wells were installed on the property to better define the local water table elevation in the vicinity of the property. Documeptation of the soil borings, monitoring wells and recorded ground water observations to date for the proposed mining area and the Schmidt Phase 4 mining area are included with the submittal package. Additional ground water observations will be presented at the Page 3 June 8, 2004 WTEP meeting with water levels recorded in feet NGVD for four rounds of water level observations. Mining is proposed to be conducted to 45 feet below the water table or to an elevation of approximately 900 feet at the deepest point of mining. It is anticipated that the mining will uitimately result in approximately 10 acres of Type 5 wetland being created where there is currently type 2 wetland with reed canary grass making up the dominant vegetation (refer to Plan Sheet 2). In the process, one small wetland, Area C (0.43 acres -impact area 2) on the north side of the site, a portion of wetland Area B (1.10 acres -impact area 3) and a portion of wetland Area A (0.51 acres - impact area 1) are located within the proposed mining area and would be excavated (Impacted)- Anderson Engineering of Minnesota, LLC is ~~hmitting a wetland application and replacement plan for the impacted wetlands under separate cover which outlines the on-site mitigation activities required to replace the impacted wetlands at the site. .Due to the elevation of the water table in the area of the project (approximately 944-945 fed, based on existing hydrogeologic data for the region and observations of the on-site monitoring wells) it is not believed that mining of the. property will significantly impact the existing wetlands on site. The results of the topographic survey mapping and observed water table elevations support the opinion that these wetlands Dave hydrology that is supported primarily by groundwater. In addition, the soil borings completed at the site did not indicate the presence of a significant low permeability soil layer that would lead to perched shallow water table conditions in the area_ ruing below the water table is proposed to be conducted using a drag line. No dewateriag will be conducted at the site at any time. Drainage from mining area will be directed to the open areas created during mining. (Refer to Play Sheet 3). J & B Mining wa71 apply for coverage under a National Pollirtant Discharge Elimination System {NPDES) Permit MNG490000 and a Storm Water Pollution Prevention Plan (SWPPP) has been prepared and is included with the CUP submittal package. As i~icated in the SWPPP, surf~e water ronoff and erosion cools are proposed to control surface water discharge off site. "~ proposed co~rnls will include installation of sib fence and/or vegetative buffers, hay bales, rig-rap Placemerrt m drainage ways. a~ P~ ~PanR replanement and seeding of completed mining areas. Silt fencelvegetative buffers, hay bales a~ rip- rap will be placed in areas deemed necessary during mining operations. The SWPPP also includes discussion of Best Management Practices (BMP's) to be utiliDed duuing miming operations. The mined gravel material will be hauled primarily to Elk River Bituminous located approximately '14-mile southwest of the Property using a private access mad. Mining operations be conducted between the hours of 7:00 AM ate 7:00 PM as required by the City of Ells River. Variance R~tnest In c~njundion with the Conditional Use permit application the applicant requests a variance to allow mining activities within five feet of the property line instead of 40 fed as required is Section 16 of the Sherburne County Zoning Ordinance. Slopes within the 40 foot area of the property line are proposed to be no greaten than 4:1. The reduced setback is requested to allow for connextim- of the open water area with that on the Schmidt Mining area tQ make open water area suitable for the p~mposed shared fisheries habitat that will cross the property line. The applicant believes that this Page 4 land use proposed in the variance will not result in hardship or adversely affect the health, safety or welfare for the surrounding Properties in the area which are zoned agricultural and mineral exhaction. The margins of the mining area are proposed to be restored as wetland buffer area upon completion of mining. If you have any questions or commerrts regarding the enclosed, please call me at (763) 489-3167 or Jason Bebeau, Site Manager at (612) 369-7183. Thauk you for your time and assistance with this ProJ~ Sincerely, LIESCH ASSOCIATES, INC. Warren Tuel, P.S.S. Soil Scienfist Enclosures Cc: Jason Bebeau - J & B Mining John Lichter - Liesch a.~a6u~m sunmu~t mvboeoa.ao~ .. ,Lgr~pgcgP~ ~,.,o~,~....~~,~.__.~,.,~ ,.,~._~~- -~ ~) ~ '~ ~~°}'~'~~- ~ln~.Pw~- .- ~~~, , s ,_.~.-_ _A ~. .. ,_ ii-.. ~ _._. _ _,. _ _ _ _~__ .:, A~...,,_ 1_.-.._.._ 13065 Orono Parkway Elk River, MN 55330 Apri17, 2008 Jason Bebeau 11349 219"' Avenue NW Elk Rivet, MN 55330 Re: Conditional use Petmit, Staff Comments Dear Mt. Bebeau: VIA EMAIL jasonbebeau@yahoo.com I have had an opportunity to review your application materials, submitted March 28`", and some additional information will be necessary to complete the review. I note that your application references your 2004 conditional use permit application fox the application materials, and you noted that nothing has changed in terms of proposal from the original request. Please confirm that you agree to all conditions outlined in the attached 2004 Conditional Use Permit, notably Section 10 (traffic), Section 11 (dust control), Section 12 (Hours of Operation), Section 17 (Groundwater protection measures). This 2004 Conditional use Permit will be a starting point far review by you and the City, and the City Council may make any changes it deems necessary. One issue remaining unresolved from the 2004 Conditional use Pexxnit is satisfaction of wetland mitigation requirements. The original Conditional Use Permit included a provision to purchase wetland credits from Schuex, plus provision of a letter of credit fox the wetland restoration. Please verify the acres of wetland disrupted, (from 2004) and the amount of wetlands to be mitigated on site. Please provide a written estimate of costs to perform this work once mining has been completed (including mobilization, plant materials/ seed). Once verified, this number will be used to establish a letter of credit amount to protect the City from costs to mitigate the wetland, and be included in the new Conditional Use Permit (Section 9 d). Phone: 763.635.1000 Fax: 763.635.1090 www.ci.el k-river.mn.us Please do not hesitate to contact me should you have any questions, I can be reached at (763) 635-1034. Sincerely, L /~, Jeremy Barnhart Planning Manager, AICP Enc: 2004 CUP Phone: 763.635.1000 Fax: 763.635.1090 www.ci.el k-river.mn. us Office of the County Recorder Sherburne County; MN STATE OF MINNESOTA COUNTY OF SHERBURIVE CITY OF ELK RIVER In the matter of: J & B Mining Request: Conditional Use Permit for Mineral Excavation (Case No. CU 04-21) Jason Bebeau, Owner CONDITIONAL USE ORDER GRANTING CONDITIONAL USE The above entitled matter came to be heard before the City Council on the 20th day of September, 2004, on a petition for a Conditional Use pursuant to the City of Elk River Zoning Ordinance, for the following described property: The South Half of the Northeast Quarter of the Northeast Quarter of Section 10, Township 33, Range 26, Sherburne County, Minnesota, AND The Northwest Quarter of the Northwest Quarter of Section 11, Township 33, Range 26, Sherburne County, Minnesota. IT IS ORDERED that a Conditional Use be granted as upon the following conditions or reasons: See Attached Agreement for Issuance of Conditional Use Permit for Mineral Excavation Doc. No. 570095 Certified filed and/or recorded on 11-22-2004 at 08:00 Michelle Ashe, County Recorder ByDeputy Fee: $ 20.00 CITY OF ELK RIVER CITY COUNCIL DATED this 20th day of September, 2D04. STATE OF MINNESOTA ) COUNTY OF SHERBURNE) ss. CITY OF ELK RIVER OFFICE OF CITY PLANNING AND ZONING ELK RIVER I, Michele McPherson, Director of Planning for the City of Elk River with and in for said City, do hereby certify that I have compared the foregoing copy and Order granting a Conditional Use with the original record thereof preserved in my office, and have found the same to be a true transcript of the whole thereof. If the proposed work described in a conditional use permit has not been substantially completed within two (2) years after its date of issuance, the pemut shall expire and become void except that the Council may, following recommendations of the Planning Commission, extend the permit for an additional period determined by the council on the receipt of a request for a permit extension prior to its expiration. A Conditional Use pemut authorizes only the tue specified in the permit an¢ shall expire if, for any reason, the authorized use ceases for more than one (I) year. of Planning IN TESTIMONY Minneso a, m the County , zaoa. DRAFTED BY: City of Elk River Elk River, Minnesota 55330 DEBORAH KAY HUEBNEfI NOTARY PUBLIC -MINNESOTA L'ti ~-mmission Expires Jan.31. 2005 :'^~~ ~~' V~IIEREOF, I have hereunto subscribed my hand at F~1 t River, of Sherburne, in the Gity of Elk River, on the ~ day of Signed bGGefole me a NOTARY PUBLIC this ~ O day of ~ , 2004. 5:\PLANNING\Case Files\2004\CU 0421 I & B Muting\Recording doc.doc CITY OF ELg RIVER AGREEMENT FOR ISSUANCE OF CONDITIONAL USE PERMIT FOR MINERAL EXCAVATION THIS AGREEMENT', made and entered into this ~ day of2004, by and between the CITY OF ELK RIVER, a municipal corporation organized under the laws of the State of Minnesota (City), and J & B Mining, Inc., a Minnesota corporation, hereinafter referred to as (Operator); WITNESSETH: WI~REAS, Operator has made application to Ciry for approval of a conditional use pernut to operate a gravel mini a operation within the City on property legally described as follows: South Half of the Northeast Quarter of the Northeast Quarter (S 'h of NE '/a of NE '/a), Section 10 and Northwest Quarter of the Northwest Quarter (NW '/a of NW'/a), Section 11, all in Township 33, Range 26, Sherburne County, Minnesota. (the Property); and WHEREAS, the City of Elk River Planning Commission and City Council have held hearings on Operator's request for a conditional use pemut, at which hearings all citizens of the Ciry of Elk River and other interested parties have had the opportunity to be heard on the application; and WHEREAS, the City Council by motion adopted September 20, 2004, approved a conditional use permit for the operation of a gravel mining operation (the Operation) on the Property, subject to certain conditions, including that Operator enter into a conditional use permit agreement with City so as to fully comply with the City's Mineral Excavation, Zoning, and other applicable ordinances; and WHEREAS, the City's Zoning Ordinance requires that a conditional use permit be issued and that a conditional use permit agreement for mineral excavation be entered into. NOW, THEREFORE, in consideration of the premises and the mutual promises and conditions hereinafter contained, it is hereby agreed as follows: 1.) Entire Agreement- Except as otherwise provided herein, this Agreement shall constitute the Conditional Use Permit for the Property and, to be executed by City and Operator, shall govern the parties rights, responsibilities, and obligations with respect to the operation, subject to the compliance by all parties with applicable city ordinances and state and federal laws. 2.) Warranty of Operator- Operator hereby warrants and represents to the City, as inducement to the City's entering into this agreement, that the Operator is the fee owner of the subject property or has a valid lease for the operation and the fee owner of the subject property shall also enter into this agreement. 3.) Conditions- The following general conditions shall apply to the Operation: (01) This Conditional Use Permit authorizes mineral excavation (gravel) from the Property. (02) All mineral excavation and processing operations on the property shall comply with the City's Mineral Excavation, Zoning and other applicable ordinances; with the terms of this Conditional Use Permit agreement and the license agreement to be executed by the City and Operator, with the City of Elk River's Environmental Impact Statement on Mineral Excavation; and with the application materials and plans submitted by the Operator, which plans and materials are the basis for the Cit}~s approval of the Conditional Use Permit. (03) The Operator shall orally notify the City of arty violations of this pernut within 24 hours and follow this with notification in writing within four (4) working days of the violation. The Operator shall notify the City annually in writing of the total area and amount of material mined and projected estimates of area and amount of material to be mined in the following year. This is to be done at time of license renewal. (04) The license shall be renewed annually and shall run from June 1~ through May 31~`. The annual license fee is that which is specified by the Elk River City Council at time of renewal. This license fee is not in lieu of gravel tax collected by the County, a portion of which the City receives. (05) Violations of this Conditional Use Permit may result in suspension or revocation. (O6) The City Building and Environmental Administrator and/or his/her agents shall be pernutted to inspect the Operation for compliance with the conditions of this pemut during normal hours of operation. (07) The City's approval of this Conditional Use Permit is subject to the approval of appropriate permits by other governmental agencies. (08) No explosives shall be allowed for this operation. (09) Reclamation a. Reclamation shall be implemented on an annual basis pursuant to the reclamation plans submitted by the Operator. Page 2 b. Each year a plan for that year's reclamation shall be approved by the Building and Environmental Admuustrator prior to issuance of the mineral excavation license. c. Upland reclamation shall include topsoil from the site being preserved and put back into place after mining and seeded as per the approved plans. The vegetation established for the reclamation must be maintained until it is self-sufficient. d. Wetland restoration shall be in compliance with the approved wetland mitigation plan. The Operator shall provide a letter of credit in favor of the City for wetland restoration in the amount of $37,500 (renewed yearly at time of licensing). Said letter of credit shall be in place prior to commencing the Operation. A formal wetland monitoring plan shall be submitted for Ciry approval one year after wetland restoration has been completed on the Property and the Schuer, Inc. site. The wetland letter of credit maybe released upon approval of the first year monitoring report, but monitoring shall continue for an additional 2 to 4 years after, as detemuned by city staff. The Operation shall only commence after that portion of the wetland mitigation covered by purchasing wetland credits is completed. e. Contours, finished grades, details of erosion control methods, and settling ponds, shall comply with the plans submitted and the City ordinance at the time of reclamation. Additional measures as determined by city staff maybe required. (10) Traffic a. Product mined as part of the Operation shall be hauled directly to the Schuer site or to Bauerly Bros.' existing access onto 225`h Ave. via easements and then west to US Tntnk Highway 169. No traffic will be allowed to go east on 225a' Avenue. Said easement shall be in place prior to commencing the Operation. b. In the case that the referenced options for hauling cease to be available, an alternative haul route shall require review and approval by the City through the conditional use permit process. The Operation shall cease until an acceptable alternative haul route is approved. (11) Dust Control a. A permit from MICA regarding air emissions shall be obtained when required and particulate emission standards shall be met by the Operation. This permit and all other correspondence between the Operator and MPCA shall be copied to the City. Page 3 b. All equipment shall be located as to reduce dust to adjacent properties. c. A water truck shall be on site at all times when tniniug activities are taking place to control dust as necessary. Chemicals shall not be used for dust control. d. The City reserves the right to require additional measures to be taken, if warranted by dust problems, including but not limited to reducing stock pile heights. (12) Hours of Operation All mineral excavation, processing, and sales activities shall be conducted between the normal hours of 7:00 a.m. to 7:00 p.m., Monday through Saturday, except the hours may be extended by the Building and Environmental Admuustrator for special cases. (13) Noise a. As deemed necessary by city staff, noise from screening and crushing associated with this Operation shall be controlled by equipment location on site, the erection of sound barriers, the placement of stockpiles, and the type of equipment used. b. Noise levels associated with this Operation shall at no time exceed State standards. c. The City reserves the right to require additional measures be taken, if warranted by noise. (14) Li tin Lighting from the Operation shall be directed away from adjacent residential property. Glare, whether directed or reflected as different from general illumination, shall not be visible beyond the limits of the immediate site. All sources of artificial light shall be so fixed, directed, designed, or sized that the minimum subtotal of their illumination shall not increase the level of the illumination on nearby residential property by more than .1 foot candles in or within twenty-five (25) feet of a dwelling, or more than .5 foot candles on atry part of the adjacent property. (15) Debris The piling, storing, or keeping of old machinery, junk, debris, or abandoned motor vehicles, shall be prohibited on this site, with the exception that reusable parts maybe stored on the mineral excavation site provided that it is Page 4 in a location that cannot be viewed from adjacent properties or is totally screened. (16) (17) Vibration Mining activities shall not cause excessive vibration off site. If excessive vibration becomes an issue, the Ciry reserves the right to take appropriate measures to alleviate the problem. Groundwater Protection Measures a. The Operator shall file with the City an Environmernal Spill Plan and a Storm Water Pollution Prevention Plan. The Operator shall adhere to these plans in the event there is a spill. b. The Operator shall provide the Fire Department with a copy of their flammable or hazardous materials. c. Refueling shall take place only at designated locations. d. All incidences that have the potential to adversely affect groundwater, including but not limited to spills, shall be verbally reported to the Ciry within 24 hours. This verbal notification shall be followed up in writing within four (4) working days. e. The appropriate storm water permits (NPDES) shall be obtained by the Operator from MPCA and copied to the City. f. Prior to commencing mining, the monitoring well located at the site shall be monitored for diesel range organics (DRO), pH, temperature and conductivity to establish baseline data. The reference parameters shall be monitored a minimum of once each mining season thereafter. In the event of a spill, the City may require additional testing events, parameters and monitoring wells, as well as the cessation of operations until the spill is deemed clean by the City. g. Gravel washing operations and dewatering are prohibited at this site and will require an amendment to this permit to be allowed in the future. h. Except for minor repairs, maintenance of vehicles and equipment shall take place in the shop at the Elk River Bituminous site. The Operator shall have an approved hazardous waste license for this facility and properly dispose of all waste. i. Rip Rap and a vegetative buffer to remove nutrients shall be established on the outlet end of the ditch on the site. Page 5 The Operator shall provide the City updated groundwater data as it becomes available. k. The proposed wetland restoration plan is based on the premise that the groundwater level incurred is not a perch water table. If information to the contrary is discovered, the Operation shall cease until new mining and restoration plans are submitted and approved by the city. (18) Siena¢e Signage for the operation shall be that which is permitted for an industrial operation in a medium industrial zone, with the exception that billboards are not allowed. (19) Fencine All cut faces with slopes greater than 3 to 1 shall be fenced on the high sides to provide a clear wanting of the potential danger until properly sloped. (20) Oakwilt Cutting of trees between April 15 and July 15 is prohibited. The Operator shall take other measures deemed appropriate by the Sherburne County Forester to control oakwilt, such as, but not limited to: debarking or destroying fallen diseased trees prior to April 15, not leaning roots exposed and avoiding mechanical damage on remaining trees. (21) BlandinQ's Turtles Department of Natural Resources flyers with an illustration of a Blanding's Tuttle shall be distributed to all site workers. If observed, turtles in i*.~*n~nent danger shall be removed to a safe location and turtles not in danger shall be left undisturbed. All construction areas shall be surrotmded by silt fence to keep turtles from entering and no wetlands shall be altered as a result of the work authorized in this permit. (22) Other Permits The Operator shall obtain all state and federal permits appropriate to their operation and file copies of said permits with the City. Page 6 4.) General Provisions- (Ol) Permits- Operator agrees to comply with all of the provisions hereof and agrees to save and hold the City harmless from any and all claims or actions arising from the operations of the Operator on the Property. (02) Binding Effect- The terms and provisions hereof shall be binding upon, and inure to the benefit of the heirs, representatives, successors, and assigns of the parties hereto and shall be binding upon all future owners of all or any part of the Operation and shall be deemed covenants rnnn~ng with the land. 'T'his Agreement shall be placed of record so as to give notice hereof to subsequent purchasers and encumbrances of all or any part of the Property, and all recording fees, if any, shall be paid by the Operator. (03) Severable- In the event that arty portion of this Agreement shall be held invalid for arty reason, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. (04) Waiver- Arty waiver, whether express or implied, by any party of a breach of any provision of this Agreement will not operate as or be construed to be a waiver of any subsequent breach of this Agreement. (OS) Notices- All notices and demands specified herein shall be deemed appropriately and timely given when delivered personally or deposited in the United States mail to the addresses hereinafter set forth by certified mail (return receipt requested). The addresses of the parties hereto are as follows until changed by written notice given as above: If to the Ciry at: Ciry of Elk River ATIN: Building & Environmental Adm. 13065 Orono Parkway Elk River, Minnesota 55330 If to the Operator at: J & B Mining, Inc. ATTN: Jason Bebeau 21310 Brook Road NE Elk River, Minnesota 55330 (06) Incorporation by Reference- All plans, special provisions, proposals and specifications, submitted pursuant to this Agreement shall be and hereby are made a part of this Agreement by reference as fully as if set forth herein in full. Page 7 IN WITNESS WHEREOF, the City and Operator have caused this Agreement to be duly executed on the day and year first above written. CITY OF ELK RIVER OPERATOR/FEE OWNER: J & B Mining, Inc. By: By: Its: May Its: ~~~,{~ ~-- , r~..y~c.c~.c'L By: Its: City Clerk STATE OF MINNESOTA ss. COUNTY OF SHERBURNE e foregoing instrument was acknowledged before me this ~~day of ,t~Gyyz(~~ , 2004, by Stephanie A. Klinzuig, the Mayor of THE CITY OF ELK RIVER, a Minnesota municipal corporation, on behalf of the corporation. }G~ICL,~~' Y~G~ ~GtiD'~Zvc~ Notary Public DEBORAH KAY HUEBNEI~ NOTARY PUBLIC-MINNESOTA q! ;,,,,;- M} Commission Ezpires Jan 31.2005 ti Page 8 STATE OF MINNESOTA COUNTY OF SHERBURNE ss. The~f"oregoing instrument was acknowledged before me this ~~day of ~iA21~~,- 2004, by Joan Schmidt, City Clerk of THE CITY OF ELK RIVER, a Minnesota municipal corporation, on behalf of the corporation. DEBORAH KAY HUEENER a NOTARY PUBLIC-MINNESOTA ,,,: My CommissionE~iresJan,31,2005 STATE OF MINNESOTA ss. COUNTY OF Notary Public The foregoing instrument was a nowledged befo e me this ~ day of ~, 2004, by /~e ,the [y~(J-n.t~c..~ of J & B ~ ' g, Inc. a Mumesota corporation, on behalf of the corporation, fee owner of a portion of the subject property and Operator on the subject property. DEBORAH KAY HUEENER ` NOTARY PUBLIC-MINNESOTA My Commission E~iroaJan.31, 2005 Notary Public This instrument was drafted by: City of Elk River Building and Environmental Dept. 13065 Orono Parkway Elk River, MN 55330 Page 9