06-09-2009 PC MINMEETING OF THE ELK RIVER PLANNING COMMISSION
HELD AT ELK RIVER CITY HALL
TUESDAY, JUNE 9, 2009
Members Present: Chair Scott, Commissioners Anderson, Ives, Staul and Westberg
Members Absent: Commissioner Lemke
Staff Present: Lori Johnson, City Administrator, Jeremy Barnhart, Planning Manger; Chris
Leeseberg, Park Planner, Rebecca Haug, Environmental Administrator;
Peter Beck, City Attorney; Debbie Huebner, Recording Secretary
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Planning Commission
was called to order at 6:30 p.m. by Chair Scott.
2. Consider 06/09/09 Planning Commission Agenda
MOVED BY COMMISSIONER STAUL AND SECONDED BY COMMISSIONER
WESTBERG TO APPROVE THE JUNE 9, 2009 PLANNING COMMISSION
AGENDA. MOTION CARRIED 5-0.
3.1. Consider 4/ 14/09 Planning Commission Minutes
MOVED BY COMMISSIONER IVES AND SECONDED BY COMMISSIONER
STAUL TO APPROVE THE APRIL 14, 2009 MINUTES. MOTION CARRIED 5-
0.
3.2. Consider 5/12/09 Planning Commission Minutes
MOVED BY COMMISSIONER STAUL AND SECONDED BY COMMISSIONER
WESTBERG TO APPROVE THE MAY 12, 2009 MINUTES. MOTION CARRIED
6-0.
Planning Commission Representative to Attend City Council Meeting
Commissioner Westberg will attend the June 15, 2009 City Council meeting.
5.1. Request by Knife River for Conditional Use Permit to Amend Existing Permit to Allow
Washing Operation, Public Hearing — Case No. CU 09-14
Rebecca Haug presented the staff report. Knife River wishes to amend their existing
conditional use permit to place a portable wash plant at the Ernest Toth site. She explained
how the wash plant water would be recycled and stored. Ms. Haug stated that noise levels
must meet EPA requirements and dust is covered in the MPCA permit. The request is
consistent with the Comprehensive Plan and drainage plan. Staff recommends approval of
the request with the condition that all comments in the memo dated June 4, 2009 from
Liesch Associates, Inc. shall be addressed.
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June 9, 2009
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Chair Scott opened the public hearing.
Page 2
Ron Klinker, representative for Knife River - Stated that the closest residence is 2,000 feet
east of the proposed wash site, and the next closest residence is 3,300 feet north. He
explained that the process involves recycling of the wash water, with additional water only
added as needed. Since the water draw is quite small, the impact on the water in the area is
minimal. He stated that they will respond to any problems immediately.
Eileen Schulz, 116612251h Avenue - asked if there would be any change in the hours of
operation with the wash site. Mr. Klinker stated no, the hours would remain the same as the
musing.
There being no other public continent, Chair Scott closed the public hearing.
MOTION BY COMMISSIONER IVES, SECONDED BY COMMISSIONER
WESTBERG TO RECOMMEND APPROVAL OF THE REQUEST BY KNIFE
RIVER FOR A CONDITIONAL USE PERMIT TO ALLOW GRAVEL
WASHING/PROCESSING OPERATIONS AT THE ERNEST TOTH MINING
SITE, WITH THE FOLLOWING CONDITION:
1. ALL COMMENTS FROM THE MEMO DATED JUNE 4, 2009 FROM MARK
OLSON, LIESCH ASSOCIATES, INC. SHALL BE ADDRESSED.
MOTION CARRIED 5-0.
5.2. Request by Q of Elk River for Ordinance Amendment to Land Use Regulations
Regarding Massage Therapy in the DT Downtown District, Public Hearing - Case No. OA
09-03
Chris Leeseberg presented the staff report. He noted that the City Council authorized staff
to prepare an ordinance amendment to remove therapeutic massage as a conditional use in
the Downtown District. Staff recommends approval of the amendment as proposed.
Chair Scott opened the public. There being no one to speak to this issue, Chair Scott closed
the public hearing.
MOTION BY ANDERSON, SECONDED BY WESTBERG TO RECOMMEND
APPROVAL OF THE ORDINANCE AMENDMENT REQUEST TO REMOVE
THERAPEUTIC MASSAGE AS A CONDITIONAL USE PERMIT IN THE
DOWNTOWN DISTRICT, CASE NO. OA 09-03. MOTION CARRIED 5-0.
5.3. Request byElk River Landfill, Inc. for Land Use Amendment to Change the Land Use of
Certain Property from Mining to Landfill, Public Hearing - Case No. LU 09-01
Rebecca Haug presented the staff report. She provided an overview and history of the
existing landfill. She also provided information regarding Waste Management's proposal to
expand, as detailed in her staff report to the Commission dated June 9, 2009.
Ms. Haug stated that although the Comprehensive Plan contemplates amendment, it also
states the plan should not be amended capriciously. A great deal of thought, time and
energy went into the creation of this Plan, and the same effort must go into any
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June 9, 2009
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Page 3
amendment. She continued by stating that in order to consider an amendment to the
Comprehensive Plan the following should be considered: 1) Is the project consistent with
the land use plan? 2) Does the project move Elk River towards its vision for the future? 3)
Is the project consistent with the policies contained in the Plan?
Ms. Haug stated that the issue is not with Waste Management and how they operate the
landfill. She noted that they have been a good corporate citizen and use state-of-the-art
technology. The issue is whether a significant expansion of this land use is consistent with
the Gty's policies and goals as reflected in the City's Comprehensive Plan.
Brad Scheib, Land Use Planner with Hoisington-Koegler — stated his firm was the primary
author of the City of Elk River's Comprehensive Plan in 2004. He stated that one of the
initiatives of the plan included working with the city last year to explore alternative land use
options for the gravel mining area. Their charge was to look land use and fiscal impacts
related to an expansion of the landfill. He reviewed direct and peripheral impacts
(peripheral representing 2,000 ft. from the landfill) with two scenarios: 1) the existing
landfill boundary, 2) landfill boundarywith the expansion. He stated that their assumptions
were based on the marketplace, similar projects in Elk River, property values, phasing of the
gravel mining and closing of the landfill in 2030. He stated that they came up with a model
to demonstrate economic impacts with each scenario, factoring in the information provided
the landfill and gravel mining companies. He stated that based on this information, they
project a possible $400 million differentiation in property tax revenues between 2009 and
2080, should the landfill expand. He stated the potential job loss differentiation was similar
to the tax base loss.
Ms. Haug introduced John Kellas, representing Waste Management. Mr. Kellas, Area
Manager, discussed benefits to the community provided bythe landfill. He stated that the
landfill was established in 1972, and was the first landfill in the state to install a synthetic
liner and leachate collection system. He stated that Waste Management took over in 1995.
He discussed the methane recoveryproject which is a joint project with Elk River Municipal
Utilities and Sherburne County, noting that the project received the EPA project of the year
award. Mr. Kellas noted that Waste Management submitted a full application, including the
conditional use permit request for the expansion, but that staff recommended the land use
amendment and rezoning be reviewed first. Mr. Kellas provided a diagram of the process
they have followed in planning for this expansion. He stated that they have gone through a
very extensive regulatory process including EAW (Environmental Assessment Worksheet),
EIS (Environmental Impact Statement), the MPCA, NPDES Permit, gas plant permits, Met
Council permits, as well as Sherburne County, and are now seeking city approval.
Mr. Kellas stated that Waste Management has spent $14 million paying vendors in the city of
Elk River over the last five years. This figure does not take into account indirect benefits to
the community such as patronizing local hotels, restaurants, and retail. He stated that their
payroll is $1 million/year and employees have a combined 175 years of services. He stated
that the average length of employment is 12 years and average employee salary is
$65,000/year. He stated that property taxes, gravel mining fees, and landfill fees total $1
million/year. Mr. Kellas explained that the methane power generating facility produces
green power for 7,500 homes and the number of engines will be increased from four to
twelve. He noted that Waste Management contributes $50,000 in local donations.
Mr. Kellas suggested that instead of the annual city clean up event, Waste Management
could mail out a free coupon twice a year to each resident to drop off their items at the
landfill. He noted they are continually working to expand the number of items that can be
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disposed of at the site. He stated that there is a large wetland behind their facility and that
they are working with Wildlife Habitat Council to preserve the area. He noted that the
Environmental Learning Center has been very successful and have given manytours. He
noted that the environmental learning center is the only one in North America. He stated
that Waste Management supports the Energy City statement by providing the city with green
power. Mr. Kellas stated that information is available on the EPA website, tracking 500
projects/companies that use landfill gas. He felt this was an opportunityto attract
businesses and jobs to the area.
Mr. Kellas provided a slide presentation of the project and the proposed progression of
development. He concluded by stating that Waste Management feels that the project meets
the city's goals.
John Shardlow, of Bonestroo, representing Waste Management — provided his credentials
in the planning and zoning field. He stated that he has assisted over 100 cites and counties
in developing their comprehensive plans; he has provided planning and zoning training to
elected and appointed officials for 29 years, and has been a land use/planning consultant
with the City of Burnsville throughout that time. He noted that the City of Burnsville has
three landfills. Mr. Shardlow discussed elements that must be considered in an amendment
to a comprehensive plan. He discussed compatibility of the miring and landfill operations.
He stated that the current plan guides the expansion for mining and that does not change
and the only change is in the end use. He stated that he has discussed aesthetics with staff
and that this issue will be looked at in the conditional use permit discussions.
Mr. Shardlow stated that his firm was contracted by the State of Minnesota to prepare the
Environmental Impact Statement for the landfill expansion project. He stated that a
number of end use plans are available, and examples can be found around the country. He
stated that the City has not shown any interest in anything other than passive recreation for
the site. Mr. Shardlow noted that the city's zoning map dated March 30, 2009 labeled the
area south of the existing landfill as Elk River Landfill. He stated that the expansion area is
expected to be completed in 2033 and reclaimed as open space. Tiller has stated that if the
expansion is not approved, they will not start mining this area for approximately40 years.
He stated that the city would lose approximately $663,000 (6 cents/ton) in landfill tax and
$14.9 million in property taxes (2010 — 2015). He stated that if the expansion does not
happen, only $242,000 in property taxes would be generated between 2010 and 2030.
Mr. Shardlow provided a comparison of revenues generated byMedtronics, Best Buy and
the Elk River Landfill over a 30-year period
He concluded that there would be a substantial loss of revenues to the city without the
expansion, and he could not think of another use that would have the same benefit to the
city.
Mr. Shardlow stated that the only way to grow a business is to expand. He noted that the
Ruprecht appraisal states that the expansion would not have a significant impact on property
values. He discussed HKGi's report and questioned which studies were used and where they
could be found. Mr. Shardlow stated that they feel Mr. Scheib's report makes a lot of
assumptions and they question the accuracy of those assumptions.
Mr. Shardlow stated that the staff report he received on Friday prior to this evening's
meeting contained new information and there was not sufficient time to get their questions
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answered. He reviewed questions provided in a letter form and distributed to staff and the
Planning Commission.
Mr. Shardlow stated that the City of Burnsville has a market value of $6.7 billion. He noted
that Burnsville Center is only 3 miles from a landfill and 2 miles from the heart of the city.
He stated he has never heard any adverse comments about the landfills from a developer.
Mr. Shardlow stated that Mr. Scheib does not identify the studies he used in making his
assumptions and is anxious to hear answers to his questions. He asked how HKGi can
predict the level of revenue loss, given the information from Tiller on their plans. He stated
that they have fundamentally different views that Mr. Scheib on the impacts of the
expansion, and questioned if his assumptions are accurate.
Mr. Shardlow stated that there are various waste -to -energy projects happening around the
world. He stated that it may not be unreasonable to imagine there could be a wayto convert
waste to clean energy by the year 2080.
Chair Scott opened the public hearing. Chair Scott encouraged members of the
Commission to utilize the expertise of the CityAttorneyand City Administrator in helping
them through the process. He asked that comments be focused on the land use and
financial impacts, and the city as a whole.
Stephen Rohlf, 11282 188th Avenue, Elk River - stated he was in favor of the expansion.
He stated he had 22 years experience working for the City of Elk River, and worked closely
with the land fill for 20 years and Waste Management for 10 years. He stated that not all
garbage can or should be burned and it needs to go somewhere. He stated that Elk River
Landfill voluntarily subjected themselves to be regulated bythe city in 1998. He explained
that the city understood the capacity of the current landfill was 30 - 50 years. Mr. Rohlf
stated that Waste Management was a tremendous corporate citizen and has contributed to
charitable local organizations in including the Boys & Girls Club. He stated that business is
environmentally sound and uses state-of-the-art technology. He noted that the landfill gas -
to -energy project was awarded the 1998 US. Environmental Protection Agency Project of
the Year.
Mr. Rohlf stated that the soils in this area are extremely stratified and porous. He explained
that a pre-existing landfill contamination problem took over a decade to figure out the
hydrology of the area, and it was found the contamination was moving toward Rice Lake.
He stated that Management has been doing the clean up, even though they were not
responsible for the contamination. He stated that he would be more confident that Waste
Management will complete the cleanup if they are allowed to continue operations, than if
they were closed. Mr. Rohlf stated that he did not want to see his garbage going to an
inferior landfill. He also did not agree with statements made bythe City's Economic
Development Director in her memo dated June 4, 200, stating that he did not foresee any
push for commercial development in this area for at least 20 - 30 years. He stated that as a
taxpayer, he would not want to see a loss of $.5 million/year in revenue to the citythrough
surcharge fees. He stated that the city would have to cut services or personnel.
Gary Sauer, Tiller Corporation - stated that Tiller has operated in Elk River for over 30
years. He questioned the process used to make the assumptions stated in the HKGi report,
and felt they were highly unrealistic. He stated that he is very aware of end use planning.
He stated that Tiller began mining in the Maple Grove area in 1940 and they began planning
the Arbor Lakes area in the 1980's. He stated that development began in the 1990's and that
less than one-third of the property has been developed. Mr. Sauer stated mining and
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June 9, 2009
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development will continue for 40 — 60 years. He stated that the end use planning was a
cooperative effort of the owners, citizens and city officials.
Mr. Sauer stated that HKGi's studies are based on the gravel mining being completed in
2030. He stated that if the expansion is approved, they will expedite mining of the
expansion area. If the expansion does not move forward, Tiller will not start mining in the
expansion area for 40 years. It would take approximately20 years to mine out the reserves,
so it will be approximately60 years or more before the property would be ready for
development. He stated he felt the city's consultant's projections were fabricated to shock
the Commission to a vote. Mr. Sauer stated that there a number of vendors that have high
wage jobs depending upon the project. He felt the consultant's $400 million figure for lost
revenues is unrealistic, as well as the statement that 2,000 jobs would be lost from this 100-
acre site. He stated there is no 100-acre site in Elk River that provides 2,000 jobs. He stated
that the process in Maple Grove was very open, but that has not been the case here. He
stated that it would have been nice to be asked what their plans were. He stated that the
focus of the study area was originally to have been the entire mining area, but somehow
staff chose to focus on this 100-acre site. He stated he felt that staff is attempting to push
the issue in a particular direction.
Bruce Weaver, 13625 320th Avenue (Livonia Township) - he supports the project as a
supervisor of a small business that depends on Waste Management. He stated that there
would be a significant impact to many small businesses if the expansion is not approved.
Shane Steinbrecher — He has operated a small roll -off business for 15 years and stated that
having landfill nearby keeps his costs down. He stated that landfill staff helps sort out
various materials he brings in so that they are disposed of properly. He noted he also
utilizes Tiller's business to recycle concrete. He felt that Elk River Landfill has a state of the
art operation and does everything they can to see that the environment is protected.
Jeff Vassar, Site Manager for Waste Management — stated he has been with Elk River
Landfill for many years. He stated that many jobs will be impacted if they are not able to
expand.
Ricky Solomen, Executive Director for the Boys and Girls Club — stated that 14 percent of
their budget comes from Waste Management, their number one fonder, and that they receive
a check from them every month.
Terry Morrell, 10752 173td Avenue NW — stated that his family company is transitioning to
their third generation. He stated that Waste Management is a good company to work for.
He noted that Waste Management partnered with a local church to help resolve large soil
contamination issues, so that the project could move forward. He stated that Waste
Management provides local jobs and is involved in the community.
Richard Toth, property owner — stated that his family owns the land to the southeast and is
in favor of the expansion.
Deb Walters, representative for Elk River Landfill, Inc./Waste Management — stated that
she has been the District Manager for Waste Management for the 12 years. She asked that
the Commission recommend approval of the expansion.
Charles Schuldt, 12600 Ridgewood Drive — stated that he disagreed with the expansion in
the past, but has changed his opinion somewhat. His concern was with the impact of the
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June 9, 2009
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Page 7
heavy truck traffic due to the mining and refuse haulers on Proctor Road. He felt
improvements for the roads should be assessed to the mining companies and the landfill.
He stated that he felt Waste Management was a good company, but should be accountable
for maintenance of Proctor.
Tom Schulz, 1611 Highway 169 - stated that he lives across from the landfill and owns 500
acres. He also is an employee of Elk River Landfill. He stated he has lived there for 30 years
and has never had an issue with the landfill.
Maureen Griffiths, 20760 York Street - stated that she has been a resident of Elk River for
16 years and is employed by Elk River Landfill. She stated that the company provides
opportunities for growth. She stated that she has served on the board of the Energy City
Commission, and enjoys teaching children about recycling and respecting the environment
in the learning center. She stated that there are a large number of direct and indirect
employees, as well as temporary labor that would be impacted if the expansion is not
approved. She stated that Elk River Landfill is a good company to grow with, and that they
are a good neighbor and good citizen.
There being no further public comment, Chair Scott closed the public hearing.
Commissioner Anderson stated that he was uneasy with the conflict between the reports by
the City's consultant and Waste Management's consultant. He stated that he felt it would be
in Tiller's best interest to expedite the mineral extraction. He stated he had concerns with
reclaiming 99 acres for recreation. He stated that there were many more options for
redevelopment of mining property versus landfill. He stated he had great concerns with the
visual impact of landfill at the entrance to the city. Commissioner Anderson stated that he
possibly could support a carefully written conditional use permit.
Commissioner Westberg stated he concurred with Commissioner Anderson regarding the
visual impact. He stated that the Comprehensive Plan does address the image element. He
stated that he felt Waste Management presented a good case, regarding the City's Energy
City goals. He stated that he felt buffers would be needed for any development around the
landfill site. He stated that issues in the letter from Waste Management received this evening
need to be looked at further. He noted that no one spoke in opposition of the request.
Chair Scott stated he also had concerns that the assumptions of the two consultants who
have very similar occupations were so different. He stated he would like to see consensus
on the assumptions, and some effort to provide facts to support them.
Commissioner Staul stated that all comments received this evening were in favor of the
request and asked who was notified of the public hearing. He stated he would like more
information.
Chair Scott stated that surrounding property owners were notified of the public hearing.
Ms. Haug provided a map of the area which was sent public hearing notices regarding the
request.
Commissioner Ives stated he had concerns with the timeliness of new information and felt
more time may be needed to provide a response to Waste Management's questions
presented in the letter this evening.
City Attorney Peter Beck stated that potential impacts may be decades out and there is
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June 9, 2009
Page 8
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certainly room for differences of opinion. He stated that for the most part, he did not
disagree with most of what was presented tonight. He felt there could be differences in
assumptions. Mr. Beck stated that he did not feel a landfill was quite the benefit that was
portrayed by Waste Management, and has not heard of any communities offering tax
increment financing assistance to get a landfill. He noted that staff has always said there are
pluses and minuses with this project. He stated that if the Commission would like, staff
could take a look at the letter from Waste Management and respond to it. He stated that the
Planning Commission needs to act on this issue no later than June 23, 2009 in order to stay
on the 120-day schedule for City Council action. Mr. Beck explained that there is always a
crunch to send out the staff report on Friday prior to a meeting and there was no attempt to
blind side Waste Management; that is simplythe process. He stated that there is some time
built into the schedule for the Planning Commission to further review the application by
scheduling a special meeting on June 23rd. He noted that he did not feel the Commission
will see agreement between the two parties, and that there is room for differences in
opinion.
Mr. Beck stated that staff needs to correct a couple of statements made by Waste
Management, in particular regarding the land use map. He explained that that the land use
of the existing land fill has clearly been Landfill, and the land use of the expansion area has
been Mining. He also stated he would take strong exception to the comments from Tiller
that staff has a predetermined result in mind. He noted that Steve Rohlf, who spoke earlier,
was with the city for many years and worked with Waste Management, as did Rebecca Haug
and he. He stated they have had a great relationship with Waste Management. Mr. Beck
stated that he has never seen a staff position one way or the other on the issue. He stated
they have attempted to have the application analyzed including the one most important issue
— the amendment to the Comprehensive Plan. He stated that the city felt they needed to go
to an outside consultant to help staff, the Planning Comrnission and City Council in that
process. Mr. Beck stated there was not attempt to reach a conclusion, only to evaluate the
issues and potential benefits, pluses and minuses.
Mr. Beck stated that staff can look at the letter and ask Mr. Scheib to review the points that
have been made by Waste Management. He asked that Elk River Landfill make sure staff
receives copies of the PowerPoint slides so that they are part of the record. He stated that
the city is not looking to make this an adversarial situation. He stated that the city will try to
refine its analysis to see if it comes any closer to Waste Management's, but he did not feel
the Commission will see one single position. He stated this is simply because there is a lot
of speculation involved and the impacts are going to be decades from now.
Chair Scott asked if it is possible the city and Waste Management's assumptions could
potentially have more similarities, but that it is a matter of timing? Mr. Beck stated that
tuning is certainly a big part of the issue. He noted that something that was glossed over in
Waste Management's presentation was the fact that at least 90 acres will be completely
undevelopable and will generate no revenue, since it will be full of garbage. This is a direct
impact. Peripheral impacts include the 110 acres surrounding the site are up for speculation.
He stated it is ultimately up to the City Council made the call whether or not to amend the
Comprehensive Plan. He stated that the city has known for a long time that this portion of
the review would be fairly intensive from staff's point of view, and time has been budgeted
to continue working on the issue, if needed.
Chair Scott noted that this topic has generated significantly more data than other issues the
Planning Commission has reviewed. He suggested that the request be continued in order to
allow staff and the applicant time to review some of the background information used in
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formulating their respective assumptions, and also to give the Commission time to think
about what was presented this evening.
MOTION BY COMMISSIONER ANDERSON, SECONDED BY
COMMISSIONER IVES TO CONTINUE THE REQUEST BY ELK RIVER
LANDFILL, INC. FOR A LAND USE AMENDMENT TO CHANGE THE
LAND USE OF CERTAIN PROPERTY FROM MINING TO LANDFILL, CASE
NO. LU 09-01.
MOTION BY COMMISSIONER ANDERSON, SECONDED BY
COMMISSIONER IVES TO AMEND THE MOTION TO CONTINUE THE
REQUEST TO A SPECIAL PLANNING COMMISSION MEETING ON JUNE
23, 2009 AT 6:30 P.M.
MOTION CARRIED 5-0.
5.4. Request by Elk River LandfillInc for Rezoning to Change the Zoning from AI
Agricultural Conservation to SWF (Solid Waste Facility Public Hearing Case No ZC 09
01
MOTION BY COMMISSIONER ANDERSON, SECONDED BY
COMMISSIONER IVES TO POSTPONE THE REQUEST BY ELK RIVER
LANDFILL, INC. FOR A REZONING TO CHANGE THE ZONING FROM 1A
AGRICULTURAL CONSERVATION TO SWF SOLID WASTE FACILITY, CASE
NO. ZC 09-01, TO A SPECIAL PLANNING COMMISSION MEETING JUNE 23,
2009. MOTION CARRIED 5-0.
6. Ocher Business - None
7. Adjournment
There being no further business, MOVED BY COMMISSIONER STAUL TO
ADJOURN THE MEETING.
The meeting of the Elk River Planning Commission adjourned at 8:45 p.m.
Minutes prepared b bbie Huebner.
Tina Allard
City Clerk
Kevin Scott
Acting Chair