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2. Zavoral Mining and Reclamation Project-Determination of Adequacy, Final Environmental Impact Statement (FEIS) � ' �..... .. �.��..� - � , 4^�y:5-.. � � t `� i.���°"��yi�k.�'���. �� Memo � � To: Mayor and City Council From: Anne Hurlburt,City Administrator Sherri Buss,City Planner Date: September 21,2012 for September 25,2012 Special City Council Meeting Re: Zavoral Mining and Reclamation Project Determination of Adequacy,Final Environmental Impact Statement(FEIS) The purpose of the September 28,2012 Special City Council meeting is to consider whether the Environmental Impact Statement(EIS)for the Zavoral Mining and Reclamation Project is"adequate." Attached for your review is a draft resolution adopting the Record of Decision,including findings of fact,conclusions and an order determining that the EIS is adequate. There are three criteria for determining whether the EIS is adequate,based on Minnesota Rules: • the EIS addresses the potentially significant issues and alternatives that were raised in the scoping document so that all significant issues for which information can reasonably be obtained have been analyzed; • the EIS provides responses to the substantive comments that were received during the draft EIS review concerning the issues raised in the scoping document;and • the EIS was prepared in compliance with the Environmental Policy Act. The Council should use these criteria to deteimine whether it finds the EIS to be adequate. Final EIS Process The City Council approved distribution of the Final EIS on August 8. Notice of availability of the FEIS was published in the EQB Monitor on Monday,August 20,2012 and a public comment period ran through Monday, September 10,2012. A total of 21 comment letters were submitted during this period. They were provided to the Council and are an attachment to the Record of Decision. After review of the comments, staff and consultants found the following: • Many of the comments were similar or identical to comments received on the Draft EIS. Responses to those comments were provided in the"comments and responses"section of the Final EIS. • Some comments concerned issues outside of the scope of the EIS. The EIS does not need to address issues that were not included in the Scoping Document. � � Some comments did not address the EIS or its adequacy,but concerned the future regulatory process that will occur after the environmental review has been completed(Tiller's pending CUP request). • There were two specific issues related to the adequacy of the EIS that require additional response: these concern 1)noise,specifically how it relates to the National Park Service's recommended standards and tourism,and 2)providing the background data that was gathered to complete the FEIS traffic analysis. Reponses to these two issues are summarized beginning on page 18 of the draft Record of Decision. The responses include additional mitigation to address noise, and a new Appendix F to be added to the FEIS that includes the traffic data requested in the comments. Staffbelieves that with the addition of this information that the EIS meets the adequacy criteria in Minnesota Rules. AECOM and City staff are prepared to discuss the issues raised in the comments and how they are addressed in the Final EIS with the Council at the meeting on September 25. Alternatives for City Council Action At the September 25 meeting the City Council may: 1. Adopt the resolution adopting the Record of Decision,finding the EIS to be adequate and thus ending the environmental review process. The city would have five days to notify all persons who received the FEIS of this action and a notice would be published in the EQB Monitor. The next step would be review of the Conditional Use Permit(CUP)for the project. If Tiller submits all of the info�nation needed to determine that the application is complete by October 5,the Pla�ining Commission could hold the public hearing at its November 7,2012 meeting. 2. Postpone action to a future date,if the Council needs additional information in order to make a decision. If this is the case,then the Council should be specific about what data is needed and set a date to continue its discussion. 3. Find that the EIS is inadequate.The Council would make this finding if it believes that tl�e Final EIS does not meet the three criteria identified above. MEQB Rules require that the City prepare an adequate EIS. "Denying"the FEIS or ending the process without preparing an adequate FEIS is not an option. If the Council finds the FEIS is inadequate,the City would have up to 60 days to prepare an adequate EIS. Therefore,in making such a finding,it would be very important for the Council to be specific about what is needed to make the EIS adequate. A revised EIS would need to be circulated in the same manner as the FEIS distributed in August. � Recommenda�on We recommend that the City Council adopt the Resolution approving the Record of Decision determining the FEIS for the Zavoral Mining and Reclamation Project to be adequate. Attachments: • Draft Resolution No. 09-25-12-01,with Attachments: o Record of Decision o Figure 1 (Project Location Map) o Attachment A1,Tabular List of Comments Received on Final EIS and Copies of All Comments o Attachment A2,Final EIS Additions ■ Revised Pages ES-42 and 5-4 ■ Appendix F: 2012 Traffic Analysis � CITY OF SCANDIA RESOLUTION NO. 09-25-12-01 ADOPTING RECORD OF DECISION IN THE MATER OF THE DETERMINATION OF ADEQUACY OF THE ENVIRONMENTAL IMPACT STATEMENT (EI5) FOR THE ZAVORAL MINE AND RECLAMATION PROJECT WHEREAS, the City of Scandia (City) was the Responsible Governmental Unit for preparation of an Environmental Impact Statement (EIS) for the proposed Zavoral Mine and Reclamation Project (Project)proposed by Tiller Corporation on a 114-acre site located in Sections 18 and 19, Township 32 North, Range 19 West in the City; and WHEREAS, on August 8, 2012 the Scandia City Council authorized distribution of a Final EIS; and WHEREAS,notice of availability of the Final EIS was published in the EQB Monitor on Monday, August 20, 2012, announcing the opportunity for public comment on the adequacy of the Final EIS for a period ending 4:00 p.m. on Monday, September 10,2012; and WHEREAS, the City received 21 comment letters in response to the notice published announcing the opportunity for public comment on the Final EIS; and WHEREAS, the Council has reviewed the comments received on the Final EIS, and has revised the Final EIS to provide additional information where needed to address the issues raised in the comments; and WHEREAS,the Council and has found that the Final EIS is adequate as provided by the Minnesota Environmental Quality Board(MEQB) Rules (Section 4410.2800 Subp. 4.) and that it A. addresses the potentially significant issues and alternatives raised in scoping so that all significant issues for which information can reasonably be obtained have been analyzed; B. provides responses to the substantive comments received during the draft EIS review concerning issues raised in scoping; and C. was prepared in compliance with the Environmental Policy Act (Minnesota Statutes, chapter 116D) and the rules; and WHEREAS a Record of Decision including findings of fact, conclusions of law and an order determining the EIS to be adequate has been prepared as required by MEQB Rules; Resolution No.: 09-25-12-01 Page 2 of 2 ' NOW,THEREFORE,BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA,WASHINGTON COUNTY,MINNESOTA,that it hereby adopts the Record of Decision in the matter of the Zavoral Mine and Reclamation Project, attached as "Exhibit A"to this Resolution. FURTHER,BE IT RESOLVED that the City shall notify all persons receiving copies of the Final EIS of this decision, and that notice of this decision shall be published in the EQB Monitor on October 15, 2012. Adopted by the Scandia City Council this 25th day of September, 2012. Randall Simonson, Mayor ATTEST: Kristina Handt, Administrator/Clerk :�flt, �; �_,. .� �, ,�s��,' � ���"� ° t � � �y�.� �� �� � °�ra � �,,���� �< ���. �'" 4 r �� ��.: 4 t'.;.-. .��:��, �;� t' �� � ��; � �4, €�� r� �.,, ��� � Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN CITY OF SCANDIA RECORD OF DECISION IN THE MATTER�F THE DETERMINATION ADEQUACY OF THE ENVIRONMENTAL IMPACT STATEMENT(EIS)FOR THE ZAVORAL MINE AND RECLAMATION FINDINGS OF FACT PROJECT CONCLUSIONS OF LAW SCANDIA,MINNESOTA AND ORDER The matter captioi�ed above came before the City of Scandia("the City")for decision on September 25, 2012. After affording all interested parties the opportunity to present infornnation orally and in writing during the EIS process, after reviewing the Draft and Final Environmental Impact Statements, and considering all of the evidence in the records, files and proceedings herein,the Scandia City Council,being fully advised, hereby makes the following Findings of Fact, Conclusions of Law,and Order: FINDINGS OF FACT I. Project Description 1. The Tiller Corporation, Inc. (Tiller)proposes to operate a gravel mine on the site of a dormant gravel mine ui the City. The 114-acre site (Zavaral Site) is located along St. Croix Trail North(State Trunk Highway [TH] 95), a State Scenic Byway,near its intersection with TH 97. Tiller proposes to mine and reclaim 64 acres of the 114-acre Zavoral Site(location shown on Figure 1, attached). Of the 64 acres proposed for mining and reclamation, SS acres are located on portions of the site that were previously disturbed by mining. A previously un-mined 9-acre area is also included in the area proposed for mining. The site is located along the Lower St. Croix National Scenic Riverway as designated under the Wild and Scenic Rivers Act (Public Law 92-542 as amended; 16 U.S.C. 1271-1287}and Minnesota Statute 103F.351. Portions of the Zavoral Site are located within the St. Croix River District Zone and scenic easement. Tiller proposes to conduct reclamation activities on about 4 acres of the previously mined area located within the St. Croix River District Zone and scenic easement. The area proposed for mining is located outside the St. Cro�River District and scenic easement. Tiller plans to extract gravel at the Zavoral Site, load it into tnzcks and transport it. The mined material would be transported primarily to the Scandia Mine site located between Lofton Avenue and Manning Trail,just north of 218�'Street in the City of Scandia. Some of the material mined at the Zavoral Site znay also be transported directly to construction project sites or other facilities for use and/or processing. The material from the Zavoral Site would be combined with material mined at the Scandia Mine to meet the specified gradations of znarketable aggregate pxoduced at the Scandia Mine. Tiller plans to use the material from the Zavoral Site to replace 1 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN inaterial currently transported to the Scandia Mine from Franconia Township, Chisago County,Minnesota, and the Osceola, Wisconsin area. 2. The following pernuts and approvals would be required for the proposed project: JURISDICTION PERMITS AND APPROVALS State o Minnesota Minnesota Department . Access Permit(TP 1721} Of Trans ortation Minnesota Pollution • NPDES (National Pollution Distcharge Elimination Control Agency System)/SDS (State Disposal System) general permit for stormwater discharges association with construction activities{MNR100001) • NPDES/SDS general permit for construction sand and gravel facilities(MNG490000) • Air Emissions Permit Minnesota Department • Endangered Species Take Permit(if Butternut trees of Natural Resources are reclassified from Special Concern to Endan ered Local Governnzent CiTy of Scandia • Conditional Use Permit—Mining Operation • Annual erating Permit Carnelian-Marine • Permit for Stormwater Management St. Croix Watershed District II. History and Need for an EIS 3. Tiller submitted an application for a Conditional Use Permit(CUP)to the City on November 25,2008 for the Zavoral Mine and Reclamation Project. Tiller submitted an Environmental Assessment Worksheet(EA'V�with the CUP application,to meet the requirements of the City's Mining Ordinance(Ordinance No. 103) and State rules. Tiller prepared the EAW per Minn. R.4410.4300. The City was the Responsible Government Unit(RGU)for the EAW. 4. The site is located witiun the Agriculture (AG) Zoning District in the City's 2020 Coinprehensive Plan(adopted October 20, 1988), a�id the Zoning Map and Development Code that were consistent with the 2020 Comprehensive Plan. These were the current Compzehensive Plan and zoning regulations at the time that Tiller submitted the CUP application. 5. On March 3, 2009,the Scandia City Council approved the Findings of Fact and Record of Decision for the Zavoral Mine and Reclamation Project EAW that concluded that an Environmental Impact Statement(EIS) was needed to determine the project's potential for significant environmental impacts. 2 Zavorai Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN 6. The EAW Record of Decision noted that the City received a large number of comment letters from agencies and individuals thai identified over a dozen issues that were not adequately addressed in the EAW. Many of the identified issues related to the project's location and potential iznpacts to the St. Croix River,National Scenic Riverway, and other sensitive water and natural resources in the area near the Zavoral Site. 7. The Notice of Decision for the EAW was published in tlie EQl3 Monitor on March 23, 2009. The notice identified the City as the RGU for the EIS for the Zavoral Mine and Reclamation Project, pursuant to Minn. R. 4410.0500, Subpart I. 8. On Apri121,2009,the City approved a final Scoping Decision Document(SDD)for the EIS. In August 2049,the City hired a consuItant to complete the EIS. The City published a Notice of Intent to Prepare the EIS in the EQB Monitor•on September 7, 2009. The City provided the 2008 EAW, SDD,and all other related project documents to the public on its website. T'he City established a Project Advisory Committee(PAC) for the project in December,2009. 9. Tiller originally proposed to use the existing Zavoral Site Well to obtain water for processing and gravel washing activities. The SDD identified potential ground water impacts as an issue for the EIS, and included analyses of the project's proposed water use and p�tential impacts. As the EIS analyses progressed,the Minnesota DNR identified that the water appropriation permit for the existing well on the site that Tiller proposed to use for processing and washing had expired. The existing muIti- ac�uifer well had been used as part of the previous mining activities on the site. The existing well accesses the Franconia-Ironton-Galesville Aquifer and the Mt. Simon Aquifer,to a total depth of 648 feet. The 1989 Minnesota Ground Water Act strictly limits new water use in the Mt. Simon-Hinckley Aquifer in metropolitan counties. Based on this information Tiller conducted additional analyses,and determined that using the existing well on the site at the levels required for processing and washing activities would require a significant investment to address Minnesota DNR water appzopriation permit requirements. Tiller also deternuned that the material mined at the Zavoral site could be utilized without processing at the Zavoral site. Instead,the material could be transported to the Scandia Mine,processed if needed, and combined with materials at that site to meet spec�cations,or transported directly to construction sites. 10. Tiller revised the project to eliminate all aggregate processing activities, including washing, at the Zavoral site. Any processing of material would be conducted at the Scandia Mu2e site. The revised project proposal significantly affected the EIS alternatives and the required analyses. Based on Tiller's proposed revised project, the City conducted a formal Scope Amendment Process, and approved a Revised Scoping Decision Document(RSDD)for the proposed project in January 2010. The RSDD was published in the EQ13 Monitor on February 8,2010. 3 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order � City of Scandia,MN 11. The RSDD identified the issues and alternatives that would be analyzed in the EIS, including the following: a. Land Use/Potential Environmental Hazards/Reclamation Plan and Economic Impacts of each alternative,particularly analysis of tl�e alternatives and proposed reclamation plan in relationship to sunounding area,and consultation and coordination with natural resource x�ianagement agencies on the reclamation plan. b. Covet�Types,particularly impacts to wetland cover types. c. Fish, Wildlife and Ecologically Sensitive Resources, including a biological assessznent,analysis of impacts and agency coordination. d. Physical Impacts on Water Resources,including mapping all resources, detezmination of impacts, and agency coordination. e. Water Use, including az�analysis of water use under the revised project proposed at both the Zavoral and Scandia Mine sites. f. Water-Related Land Use Management Districts,particularly an analysis of potential impacts to the St. Croix River District and National Scenic Riverway. g. Erosion and Sedimentation,including impacts to water resources in the area such as the St. Croix River, Zavorat Creek, seeps and wetlands. h. Surface Water Quality and Quantity, including impacts to groundwater and groundwater-dependent resources and surface waters. i. Geologic Hazards and Soil Conditions,including revising the analysis based on the revised project scope. j. Solid Waste,Hazardous Waste and Storage Tanks,including analysis and mitigation strategies related to groundwater and groundwater-dependent resources. k. Traffic, including impacts of each of the alternatives and impacts of hauling mined material to the Scandia Mine site. 1. Stationary Source Air Emissions, including analysis of fugitive dust sources and impacts to the St. Croix River. m. Odors,Nflise,Dust, including quantifying current conditions and impacts under each of the proposed alternatives. n. Visual Impacts,including viewshed analyses at key viewing areas. 4 Zavoral Mine and Reclamatiou Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN o. Compatibility with Plans and Land Use Regulations,including impacts to the Carnelian-Marine-St. Croix Watershed District and St. Croix Riverway Management Plans. p. Cumulative Impacts. 12. The EQB rules require that an EIS evaluation address at least one alternative from each of several alternative types,or provide a concise explanation of why an alternative from a particular alternative type is not evaluated. The alternatives types that were evaluated and those that were not evaluated in the Zavoral Mine and Reclaination Project EIS are described as follows: • Alternative#1: Proposed Project(Proposed Action}—Tiller's preferred proposal to mine and reclaun the Zavoral Site, and to transport material for processing and use to the Scandia Mine site. 64 acres would be mined and reclaimed, and 4 acres of the previously mined area would be reclaimed. Project duration proposed to be up to 10 years. • Alternative#2: No Build(No Action)—no mining and no reclamation of the Zavoral Site. • Alternative#3: Reduced Time Frame for Mining Activities{Modified Scale of Magnitude Alternative)—same activities as Alternative#1,with the site to be mined for a maximum of five years. o Subalternative#3A: The Project Advisozy Committee(PAC)identified this alternative, and requested that it be analyzed in the EIS. The alternative includes the same activities identified for Alternatives#1 and #3, but specifies that mining at the site be completed over approximateiy 150-working days within one year. • No Alternative Sites were included—Explanation: Off-site alten�atives do not meet the project purpose and need of making use of the significant aggregate resources that are found at the Zavoral Site. The site aiternatives are limited by the presence of the natural resources due to the following: (1)The needs of a mining project can only be met where mineral deposits exist, (2)where the deposits are under control of the Proposer,{3) where mining activities are permitted, and{4)where the mineral deposits can economically be mined, processed and sold. Although there may be gravel deposits at other locations, if they are not under control of the Proposer,are not located in an area where mining is permitted, and cannot be economically mined,processed, and sold,they do not met the purpose and need for the pro}ect. • No Technology Alternatives were included—Explanation: Best practicable technologies for the project activities will be utilized under all Alternatives#l,#3 and#3A. 5 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclvsions of Law and Order � City of Scandia,MN • No Modified Scale Alteriaatives were included—Explanation: The project scale was modified through the eliiniz�ation of processing and washing at the Zavoral Site, and the creation of the RSSD. The potential for modification of the project scale was aiso considered as part of the analysis of Alternatives#1 and#3. Analysis of a separate modified scale alternative was not needed. III. Draft Environmental Impact Statement 13. The Draft EIS (DEIS}was prepared in a manner consistent with EQB rules (Minn. Rules 4410.2300)arzd in accord with the revised scvping decision. The DEIS contained: a. A cover sheet identifying the RGU, the project title,the project location,the date of the public meeting on the DEIS, and tl�e date �or the end of the comment period. b. List of preparers. c. Table of contents. d. An executive summary which included a project overview, summary of DEIS alternatives,content,and the major findings,potential mitigation measures,areas of controversy, and issue to be resolved. The DEIS did not recommend a preferred alternative. e. A project ovezview including a project description,project purpose,its size, scope,proposed phasing,the revised mining proposal, and the need for the proposed project. f. A list of all known governmental permits and approvals required by the project. g. A description of the Project Advisory Committee (PAC) and its role in the EIS. h. A d'zscusszon of tb,e areas of controversy. i. A detailed description of the proposed project and alternatives, including a detailed discussion of reclamation and altemative approaches,and a discussion of current and proposed activities at the Scandaa Mine. j. A discussion of the alternatives that were considered. k. A discussion of the environmental, economic, employment and sociological impacts generated by the project. 6 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN 1. A summary of the potential mitigation measures proposed to avoid,minimize or mitigate for any adverse effects of the project. 14. Utilizing the information in the technical reports included in the DEIS Appendices, the DEIS analyzed the environmentai impacts of the proposed project(Alternative #1),two alternatives and one subalternative. The summary comparison of alternatives and impacts notes the following: a. The DEIS found that Alternatives#l,#3 and#3A would have similar impacts over the duration of the mining operation,but that the duration of many impacts would be shorter under Alternatives#3 and #3A than under Alternative#1. b. Alternatives#3 and#3A may have a reduced potential for major storm events and potential impacts to water resources than Alternative#1 due to the reduced timeframe. c. Under Alternative#3A, Tiller would not be able to comply with the City's current restriction on the use of County Road 1 (Lofton Avenue) access at the Scandia Mine during non-daylight hours. d. Under Alternative#3A, dust emission rates would be higher on a daily and annual basis than for Alternatives#1 and#3,though emissions would likely not exceed standards or affect surface waters and other natural resources around the site under Alternative#3A. e. Under Alternative#3A, noise levels are expected to be higher than under Alternatives#1 and#3 due to the larger number of trucks operating at the site, and noise impacts would extend over 12 hour-working days rather than 10-hour days proposed for Alternatives#1 and#3. f. The Zavoral Site would be reclaimed earlier undez Alternatives#3 and#3A than under Alternative#L g_ The DEIS found that No Build Alternative(Alternative#2)would generally result in no change from current conditions,and therefore would avoid the impacts identi�ed for Alternatives#1, #3 and#3A. No reclamation of the previously mined areas would occur. This alternative would not meet the purpose and need for the project. 15. The Scandia City Council authorized distribution of the DEIS on February 28, 2012. The authorization set a 60-day comment period for the DEIS. The DEIS was distributed to the mailinb list contained in the EQB Rules,to the proposer,the governmental units known to have permitted or approval over the project,and to persons requesting the DEIS. A notice of availability of the DEIS was published in the EQB Monitor�n March 19 2012, and a press release was published in area newspapers on March 7, 20i2. The City placed a copy of the DEIS on its website. 7 Zavoral Mine and Reclamation Project ETS Findings of Fact,Conclusions of Law and Order � City of Scandia,MN 16. The public notice and press release included a brief description of the project, information on the date,time and location of the public meeting,the date on which the public comment period would end, and the locations at which copies of the Draft EIS were available for review, including Scandia City Hall and local libraries. 17. The City held a public meeting to receive comments on the DETS on Apri13,2012 from 7:00 to 9:30 p.m. at the Scandia Community Center, 14727 209°i Street North in Scandia, Minnesota. The meeting was attended by the proposer, City Planning Commission, Council and staff,the project consultant, interested citizens, other interested parties, agencies, and the local media. The meeting was recorded via court reporter and a transcript is available upon request from the City. 18. During the comment period that ended oia May 18, 2012,the City received 15 verbal connments at the Apri13 public meeting and 66 written comments. The City prepared the Responses to Comments document that summarized the comments and responded to the comments. The Comments and Responses were included in the Final EIS. 19. The comments z'eceived during the public comment period address a wide range of topics, including concerns related to the project's relationship to the City's Comprehensive Plan and land use controls,the potential irnpacts of the project,the proposed reclamation plan and mitibation,relationship of the project to the St. Croix Scenic Riverway and otl�er adjacent resources, and the adequacy of the DEIS. 20. The alleged inadequacies in the DEIS expressed in the comments are summarized in the table below. 21. The Responses to Comments document(included in the Final EIS,August 8 2012) includes responses to the alleged EIS inadequacies. The responses provide supplemental inforination and corrections to address the inadequacies identified in the comments,or that explain how the EIS is adequate and satisfies the EIS rules. The City of Scandia finds that,in response to the alleged inadequacies,the EIS is adequate for the reasons set forth in the Responses to Comments documents. The specific responses to the alleged inadequacies are referenced and summarized in the table that follows: 8 Zavoral Mine and Reclamation Project EIS Findin�s of Fact,Conclusions of Law and Order City of Scandia,MN Alle ed�IS inade ua Ci res onse to alle ed inade uac Economic in�pacts,including local The potential economic impacts, including economy,businesses and tourism not local economy,businesses and tourism were quantified and addressed. quantified and addressed in the appropxiate sections of the DEIS. Section 4.3.6 of the DEIS quantifies the production ta��on aggregate material and taxes that would be paid by the project. Section 4.3.2 of the DEIS analyzed tourism impacts,particularly related to the St. Croix River and river corridor. The DEIS analysis found that the proposed mine would have no discernible impact on local tourism based oi�the following: • The local highways that handle tourisna-reiated traffic have sufficient reserve capacity to handle the change in traffic volume for seasonal traffic. Pexiods of congestion may be experienced during peak weekend travel times or on a holiday weekend, with or without the Project • The project will not be visible or audible from key tourism sites or visible from the Riverway. • Potential noise impacts on the Riverway do not exceed adopted State noise standards. • The potential project impacts to water resources, air quality,and other resources related to tourism and the local economy can be mitigated to avoid otential economic im acts. Iznpacts to property values analysis did The property value study meets industry not meet industry or provide the"hard standards. It was conducted by a Certified look"at unavoidable economic impacts Real Property Appraiser licensed in required by MEPA(Minnesota Minnesota and in conformance with the Code Environmental Policy Act). Praperty of Ethics and Standards of Professional impacts analysis had an inadequate Practice of the Appraisal Institute and scope, sample size,and did not use Professional Appraiser Practice in Minnesota. adequate comparable properties. The property values analysis utilized a one- mile radius,because the results of the analyses of other EIS itenns determined that no impacts that affect ro ert value would occur outside 9 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order • City of Scandia,MN Alle ed EIS inade uac Ci res onse to alle ed inade uac that radius. The analysis used recent comparable property sales near operating gravel mines and similar facilities in Mirmesota. While the number of property transactions was relatively small due to the low level of housin�market activity in recent years, it was ai�adequate sample to determine potential impacts. The analysis includes the specific information and analyses required to meet the MEPA requirements. Property impacts analysis did not The BRKW analysis addressed factors that adequately address noise impacts. may be considered a negative impact on property values,including increased activity at the Site,noise, dust,traffic, and other factors that buyers considered in purchasing properties close to a gravel mining operation. The noise analysis (Section 4.15 of the DEIS) detennined that there would be a perceptible increase in noise levels at homes neaz the site, and that the impact may affect homes within '/4 mile of the tnine site. Within the '/4 mile area,the DEIS analysis states that up to 5% property value reduction may occur for properties that are sold during the time that the mine is operating,but that many factors other than the mine will also contribute to the values and potential sale prices of homes in the area. Sociological impacts, including noise, The DEIS analyzed each of the impacts health,public safety, quality of life, did identified on residents and recreation users. not include the perspective of recreation The DEIS recognizes that the operation of the users and local residents. Zavoral Mine would have some impacts, but as long as the mine is operated within the proposed project that was analyzed in the DEIS,implements the identified mitigation tneasures and reclaims the site,neither the negative nor positive impacts on recreation users or local residents identified through the DEIS anaiysis were determined to be significant impacts based on the criteria for defining"significant impacts"in Minn.R. 4410.1700. Potential displacement of wildlife. The DE1S analysis notes that wildlife at the Zavoral site would be temporarily displaced by roject impacts to habit,noise and related 10 Zavoral Mine and Reclamation Project EIS Fuidings of Fact,Conclusions of Law and Order City of Scandia, MN Alle ed EIS inade uac Ci res onse to alle ed inade uac impacts. Wildlife would most likely be displaced tetnporarily to similar habitats in adjacent areas to the north, east and south of the property. No threatened or endangered species would be impacted. The proposed reclamation plan will provide suitable habitat for displaced species after mining activities are com leted at the site. The Biological Survey was narxowly The DEIS considered direct and indirect prescribed, and largely focused on state- impacts to all wildlife in and near the Zavoral listed rare species on the Zavoral Site,and was not limited to endangered and property. By law,the DEIS should threatened species on the Zavoral Site. The include all ecologically sensitive analysis included impacts to surface water resources, and the affected area is not habitats within the site and downstream, limited to the Zavoral property. including the St. Croix River. The data collected for the red-shouldered hawk survey found no hawk territories in or adjacent to the site. The analysis concluded that wildlife on or around the Zavoral Site would most likely be displaced temporarily to similar habitats in adjacent areas to the north, east and south of the site. The proposed reclarnation plan will provide suitable habitat for displaced species after mining activities are completed at the site. Issues in July 21,2008 Natural Heritage The Final EIS was updated to address the Program letter retated to impacts to DNR natural Heritage Program comments Butternut trees, a species of Special regarding Butternut trees,a Species of Special Concern. Concern. The list of required permits was updated to include an Endangered Species Take Permit, if Butternut trees are reclassified from S ecial Concern to Endangered. Potential impacts to rare,threatened and Rare species surveys were completed for the endangered species on site and in species that the Minnesota DNR Natural adjacent areas, including mussel Heritage Program staff deterrriined to be at the populations in St. Croix River. site or that had the potential to be impacted by site activities. The water resource analysis completed for the Draft EIS did not identify any potential impacts to the St. Cro�River due to the proposed project. The water resource aualysis fownd that the best management practices that will be implenraented with the project would reduce pollutant loadings to Zavoral,Middle and South Creeks and the St. Croix River 11 Zavoral Mine and Iteclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN Alle ed EIS inade uac Ci res onse to alle ed inade uac compared to existing conditions. Based on this analysis,there was no need to survey the mussel o ulations in the St. Croix River. Impacts resulting fiom habitat The responses to the coinments on the Draft iragmentation and edge effects, EIS analyzed the potential habitat including noise and visual impacts on fragmentation that would occur during the wildlife. project. The existing area of"edge effects" on the site where the previously mined area meets existing woodla�id is 4,065.61ineal feet. After mining is camplete,the new edge would have a linear distance of 4,329.6 feet, an increase of only 264 feet(approximately 6%) over the current condition. Therefore the project would not significantly increase habitat fragmentation and edge effects at the site. As noted previously,the noise and visual impacts on wildlife wili likely cause temporary displacement of some wildlife to adjacent areas, but this is not a significant impact. Irnpacts to the enviromnental quality of The DETS analysis notes that the majority of the regzon and larger ecological context. the project site has had significant disturbance due to past minang. The DEIS analyzed and mapped the ecological context of the area, a�id identified the potential impacts of the project. The potential impacts identified were not determined to be significant impacts based on the criteria for defining "significant impacts" in Minn. R. 4410.1700. Impacts to waters near the site that feed The Draft EIS thoroughly analyzed the the St. Croix River. potential impacts to surface and ground waters at and near the site, including those that drain to the St. Croix River. T'he water resource analysis found that the best mana�ement practices that will be implemented with the project would reduce pollutant loadings to Zavoral,Middle and South Creeks(which drain to the St. Croix)and to the St. Croix River com ared to existing conditions. Impacts to St. Croix National Scenic Section 4.1.1.5 of the Draft EIS includes a Riverway and National Park, and detailed description of the public natural and MnDNR Regionally Significant recreational resources near the project area, Ecological Area. Fails to consider including the Lower St. Croix National Scenic special nature and designation of St. Riverway,the laws and regulations that Croix River and existin laws and overn the Riverwa , and the MnDNR 12 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN AIIe ed EIS inade uacy Ci res onse to alle ed inade uac regulations that govein the area. Regionally Sigtuficant Ecological Area. Appropriate sections of the EIS analyze the potential noise, air,water,visual quality, and economic impacts to these areas as a result of this project, and mitigation measures that would avoid,minimize or mitigation potential impacts to these areas. No significant irnpacts were identified that would impact the Riverway and Regionally Significant Ecolo ical Area. Cumulative impacts to the St. Croix The project's potential for cumulative impacts National Scenic Riverway. to all areas were analyzed in Section 4.17 of the Draft EIS. The section notes that no new gravel operations (other than the proposed project) or other development are proposed in the vicinity that would impact the St. Croix National Scenic Riverway. T'herefore no significant cumulative impacts were identified. Water well testing was not adequate. An extended punip test was completed of the Should test larger number of wells and well that would be utilized for the project. cumulative effect of Zavoral and The test was conducted for 4 hours and 20 Abrahamsen Nursery welis. minutes, and removed 172,600 gallons of water--17 rimes the ma�cimum daily potential groundwater use for the project,based on the Zavoral site well permit. The results of the test showed a sma111eve1 of drawdown at the Zavoral cabin well, and no draw downs on the other monitored wells that were part of the test This is consistent with expectations based on the geologic conditions that e�cist at the Site The test results indicate that no additional test of wells located further from the site than the test wells are needed to evaluate impacts. As is the standard practice for pump tests, measures were taken to avoid interference from other wells in the area, including the Abrahamson Well,which is more than 1 mile from the Zavoral site well. Given the geographic separation of the wells,the potential for cumulative effects from pumping is extremely small. The higher ievel of pumping that is permitted and occurring at the Abrahamson well would mask any im acts 13 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN Alle ed EIS inade uac Ci res onse to alle ed inade uac from the Zavoral well, at the pumping rates allowed b the Zavoral well ermit. Did not evaluate alternative sites. The Draft EIS included the rationale for not including alternative site evaluations. Off-site alterrzatives were not investigated because they do not meet the project purpose and need to use the significant aggregate resources that are found within the Zavoral mine site. Site alternatives for the project are limited to the presence of the resource; Iocations where the proposer has control of the site; locations where mining is allowed by the local ordinance, and where the resource can be economically extracted and utilized. Did not evaluate modified scale A n7odified scale alternative was evaluated alternative(alternative mine layout). during the EIS process. The original preferred alternative included processing of aggregate material at the site. The project was revised to eliminate processing at the site based on the significant investment that the proposer would have needed to make to obtain the water appropriation permit need for processing activities. Tl�erefore, the EIS evaluated a mod�ed scale alternative. Did not evaluate reclamation-only A reclamation-oniy alternative is not feasible alternative. because the only known source for funding reclamation is the mining activity. Inadequately addresses noise impacts The noise impact analysis followed standard given rural setting and proximity to St. procedures for evaluating noise impacts in Croix River. both rural and urban areas. The analysis urilized the adopted State of Minnesota noise standards to determine potential impacts. The state noise standards are adopted by reference in the City's Zor�.ing Ordinance, and are the only enforceable limits available to the City. Some comments suggested that the National Park Service(NPS)goals for noise levels on National Scenic Rivers be utilized as the standard,but the State of Minnesota has not adopted the NPS noise goals as regulations or standards, and therefore the NPS boals are not enforceable. The Ciry of Scandia cannot adopt more stringent noise standards than the State standards. Does not address noise and dust impacts The project area includes 64 acres. 55 acres 14 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN Alle ed EIS inade uac Ci res onse to alle ed inade uac due to tree removal. have heen previously mined. Trees will be removed from approximately 9 acres of the site that were previously not mined. Trees will be added with proposed benns and as part of the site reclamation. The limited t�ee removal and addition of trees on berms were considered in the EIS analyses. Air and dust impacts on water resouxces The Draft EIS includes an extensive and human health. evaluation of dust and noise impacis on human health in sections 4.14 and 4.15, and of the Fugitive Dust Control Plan and traffic plans submitted by the proposer. The analysis concluded that if the mitigation actions included in the EIS are implemented,the dust and noise impacts will a�ot exceed state standards. The Draft EIS recommends monitoring of air and noise at the mine site if the project is approved,and implementalion of the mitigation strategies included in the EIS. Calcium chlozide and other chemical Tiller is proposing to use a non-chloride impacts on ground water. product for dust control. This information has been added to the Final EIS. The only other chemicals that may be utilized at the site include limited amounts of fertilizers and herbicides that would be used in reclamation activities. The reclannation plan would include a list of potential products to be used, and standards for use that would avoid or minimize otential im acts. Low-frequency noise impacts. The noise analysis addressed the relationship of potential noise impacts to the noise standards adopted by the MPCA(MIv Rule 7030.0040) for low-frequency noise as well as other noise im acts. Noise impacts from back-up alarnis, Tiller indicaterl that broadband alanns (which idling trucks and dumping gravel into have lower levels of noise impacts than truck beds. typical back-up alarims) will be utilized on Tiller equipment at the site. The City may include other conditions to manage noise potent�al noise impacts if it approves a conditional use permit for the project, such as specifying operating hours and traffic patterns at the site that minimize inapacts. Traffic im acts�iid not rovide MnDOT's Traffic Im act Study Guidance 15 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN Alle ed EIS inade uac Ci res onse to alle ed inade uac adequate traffic counts and data, indicates that the items requested are not capacity analysis and crash analysis. necessary for analysis of most developments. Did not adequately analyze the traffic The projected hourly and daily traffic volurnes impacts of the alternatives. for the project are well below the tl�reshold discussed in the MnDOT Manual. However, the City supplemented the Draft EIS completed a level of service analysis for the intersection at TH 95 and TH 97 and additional crash data analysis in response to the comments. The additional analysis identified no significant poteantial impacts. Impacts of diesel truck emissions on air The Final EIS includes additional analysis of quality. the potential impact of diesel truck emissions. When the potential einissions trom diesel exhaust are added to the maa�imum ambient impact of the project identified in the Draft EIS,the total is less than the maXimum allowed by the US Environrnental Protection Ageilcy's national ambient air quality standard{NAAQS). Does not show the condition of the nnine The reclamation plan for the site is described pit after mining is completed. in Item 3.1.1.3 of the Draft EIS. The Draft EIS includes detailed plans that indicate the proposed elevation of the mine floor after mining is completed(Figures 5-10 in the Draft EIS),and the vegetative communities that will be used to reclaim the pit and the rern.aix�der of the riai.ne site. Light impacts were not adequately The City's Zoning Ordinance requires that addressed. any supplemental lighting at the project site be downcast and shielded to minimize the potential of light iinpacts. The proposer indicated that the only lighting that will be implemented at tlae site will be security lighting. The City will enforce its ordinance requirements if a permit is approved for the project. The City supplemented the DEIS with additional information regarding lighting re uirements. Does not include specific BMP's to The Draft EIS notes that the project would avoid or minimize impacts of thermal require several permits for the management of pollution and erosion and sedimentation erosion and sedimentation,including NPDES on Zavoral Creek. (National Pollution Discharge Elimination System)permits for stormwater discharges, construction, and gravel uarr ing facilities. 16 Zavoral Mine and Reclamation Project EIS Findings ofFact,Conclusions of Law and�rder City of Scandia,MN Alle ed EIS inade uac Ci res onse to alle ed inade aac The permits will require a Storm Water Pollution Prevention Plan(SWPPP). The draft SWPPP that Tiller prepared for the project that was reviewed for the Draft EIS includes a variety of BMP's (Best Manageinent Practices to avoid or nninimize pvllution, erosion and sedimentation. The MnDNR noted in its comments on the Draft EIS that"T'he potential for increased infiltration in the project area due to almost all post-miziing drainage being contained on site may actually cool the trout stream,as more flow in the stream will be from groundwater than surface water. It is probable that thermal im acts to the trout stream will be minimal." Water resource impacts not adequately Sections 4.4,4.6, and 4.10 of the Draft EIS addressed: map spring locations,water analyzed all waterways and wetlands between quality data from Middle and South the proposed Zavoral mining and reclamation Creek, impacts of pollutants on area and the St. Croix River. Agency receiving waters, impacts on vegetation comments(Washington Conservation of seeps. District)on the DEIS noted that"we believe that the DEIS has identified and addressed the potential impacts to tl�e wetlands, surface water resources, and natural plant conununities to enable the City's decision on these areas." EIS should include a specific list of The Draft EIS includes a specific list of mitigation measures agreed to by the mitigation measures that would avaid, mine operator and the City. minimize or mitigate for the impacts that may occur as a result of the project. State rules do not require that the proposer and City"agree" to a list of mitigation measures in th,e Final EIS. The City and other permitting agencies will use the list of mitigation measures identified in the Final EIS as they review the proposer's permit applications and develop conditions for the Conditional Use Permit and other re uired permits. IV. Final Environmental Impact Statement 22. The City prepared a Final EIS pursuant to the requirements in Minnesota Rules 4410.2700. Following review of the comments received on the Draft EIS,the City nnade some changes to the DEIS, as noted in the Final EIS. The City determined that the bulk of the information in the Draft EIS had not changed. Therefore a Final EIS 17 Zavora]Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN including supplemental information,revisions and responses to substantive comments was prepared, as required by Minnesota Rules 4410.2700,subpart 2. 23. The Final EIS was a packet that contained: a. A cover sheet identifying the RGU,proposer, and contact persons, an abstract, and the date by which comments on the Final EIS should be received. b. A table of contents. c. An introduction and summary. d. A section pxesenting cormment letters and responses to comments. 24. The City dist�ibuted copies of the�'inal EIS on Augltst 20,2012, in a manner consistent with Minnesota Rules 4410.2300, subp 3. The City provided copies to all persons receiving copies of the Draft EIS, all parties who submitted comments on the Draft EIS, and all persons requesting copies of the Final EIS. A copy of the Final EIS was posted on the City website, and copies were available at Scandia City Hall and at local libraries for review. 25. The notice of availability of the Final EIS was published in the EQB Monitor on August 20, 2012, and a press release was issued to newspapers in the Scandia area on August 9, 2012. These notices indicated the locations at which copies of the Final EIS were available for review and the date on which the comment period on the Final EIS were to expire (September 10,2012). 26. Twenty-one(21)comment letters and emails were submitted during the comment period that ended on September 10, 2012. A tabular list of the comments received and copies of all comments are included in Attachment A.1. Most of the comments duplicated comments that were made on the Draft EIS, and the City previously responded to those comments in the Final EIS. Many comments addressed issues related to Tiller's CUP application and the application process, and were not related to the adequacy of the EIS. However,two issues raised in the comments warranted further attention and are identified and responded to in the table below: 18 Zavoral Mine and Reclamation Project EIS �indings of Fact,Conclusions of Law and Order City of Scandia,MN Alleged Final EIS City response to alleged inadequacy inade uac Comment Letter#5-RLK, Commenter rec�uested that flie supporting Inc., Vernon Swing. documentation for the TH 97/TH 95 intersection Documentation is not analysis be provided. This supporting documentation is provided for attaehed(Attachment A.3)and included by reference as supplemental FEIS traffic Appendix F, which has been added to the FEIS. analysis. Corrunent Letter 18, Response to item 1). The potential economic impacts of National Park Service, the proposed project,including tourism impacts, were Christopher Stein, quantified and addressed in the appropriate sections of Superintendent, St. Croix the DEIS. Section 4.3.2 of the DEIS analyzed tourism National Scenic impacts,particularly related to the St. Croix River and Riverway. river corridor. The DE1S analysis found that the proposed mine would have no discernible impact on 1) Tlae rationale used local tourism based on the foilowui�: to conclude that the proposed mine • The local highways that handle tourism-related would have no traffic have sufficient reserve capacity to handle discer�aible impact the change in traffic volum�e for seasonal traffic. on local tourism is Periods of congestion may be experienced flawed. during peak weekend travel times or on a holiday weekend, with or without the Project. • The project will not be visible or audible from key tourism sites or visible from the Riverway. • Potential noise impacts on the Riverway do not exceed adopted State noise standards. • 'I1ie potential project impacts to water resources, air quality, and other resources related to tourism and the local economy can be mitigated to avoid potential economic impacts. The City's Mining Ordinance permits mining only between 7 a.m. and 7 p.m. on weekdays. Mining is prohibited on weekends and holidays. Therefore, mining and associated noise and traffic impacts will not impact tourists and recreationists on the Riverway during the times of heavier tourism and recreational use. The City will also incorporate this mitigation measure into the Final EIS {Attachment A.2,revised pages ES 42 and 5-4 to address noise and traffic impacts durzng 19 .Zavoral Mine and Reclamation Pro,{ect EIS Findings of Fact,Conclusions of Law and Order City of Scandia, MN titnes of heavy totuism traffic: • Consider a condition for mine operation that the mine operate only between the hours of 7 a.m. 2) The EIS did not and Noon on Fridays apply the appropriate noise standards to the Response to Item 2}. Tn addition to comparina the Riverway projected noise analysis against Minnesota Rules,the EIS also completed a detailed analysis of the projected noise levels at multiple receptors along the St. Croix Riverway and the ambient noise levels as measured by the National Park Service (NPS)in the sumtner of 2011. The existin�environment along the St. Croix Riverway, as documented bv the NPS shows that the current noise levels are low, at a median LSo noise level of 39.4 dBA. Please note, the existing m�imum LSo noise levels are higher than the median. The maXimum noise level infornlation was not provided by the NPS. Since the maximum L50 noise levels were not discussed in the NPS report on the noise nlonitoring,the median was used for the ETS analysis. The NPS Final Covperatrve Management Plan ElSfor the Lower St. Croix National Seenic Riverway does not appiy the NPS 2006 Noise Management Policies to the Riverway. The Management Plan policies state that Noise levels would be consistentiv low. (emphasis added)." The detailed noise analvsis in the EIS showed that modeled L5o noise levels from the proposed Project on the St Croix Riverway would be 38.6 dBA and the total noise level proposed Proiect plus ambient woutd be 42.0 dBA. The noise levels from Phase 3 of the proposed mining plan were used in the analysis because this is the closest inining area to the St. Croix Riverway. This is ap�roximately the same noise level as would be expected in a Quiet office or quiet residential nei�hborhood e.�low naise Ievels. Therefore,the noise analysis showed that the sound levels from the proposed Project would remain low, although mining activities znay be audible on the St. Czoix Riverway. The mining noise may be audible due to the differences in frequencies of mining noise vs. other manmade noises and natural noises. Mining noise generall occurs at lower fre uencies than the other 20 Zavoral Mine and Reclamation Project E1S Findings of Fact,Conclusions of Law and Order City of Scandia,MN man-made noise (such as boat motors)and natural sounds that are current.ly experienced on the St. Croix River. Mitigation strategies proposed in the EIS to maintain low noise levels during mining operations include the following: • Construction of berms as part of the reclamation plan to provide shielding to reduce noise impacts to residents and the St. Croix River. • The city's ordinance currently prohibits mining operations from occuning on weekends or holidays,times of peak recreational and tourist activity in the Riverway and adjacent areas. Based on the NPS is concem about the potential for low levels of audible noise related to mining operations and its potential to impact recreational use of the river, some additional mitigation not related to noise standards could include additional restriction of the time and duration of noise from mining and trucking operations. The following mitigation measures have been incorporated in the final EIS (Attachment A.2-revised pages ES-42 and 5-4). • The City will consider a condition that the mine may operate only between the hours of 7 a.m_ and Noon on Fridays. This would also reduce the potential impact of the proposed Pzoject on recreational tr�c during that timeframe. • The City may require inspection of trucks and on-site equipment to deternune that mufflers are in good working order. V. Determination of Adequacy and Conclusions of Law 27. The City, as RGU for the Zavoral Mine and Reclatnation Project EIS, is the appropriate governmental unit for making a detennination of adequacy pursuant to Minn. R. 4410.2800. 21 Zavoral Mine and Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN 28. The Final EIS Responses to Corrunents responds to the substantive conlments received during the Draft EIS comment period,which was held from March 19, 2012 to May 19,2012. The Final EIS provided adequate responses to the substantive comments received during the Draft EIS review concerning issues raised in scoping(Attachment B). 29. The information presented in the Final EIS adequately addresses the issues identified in the Revised Scoping Decision Document adopted in Aprii 21,2009. 30. The proposed ac#ion is described in sufficient detail. 31. The EIS adequately analyzes significant environmental impacts. 32. The�IS adec�uately presents alteinatives to the proposed action and their impacts. 33. The EIS adequately presents methods by which all of the potential adverse environmental impacts can be mitigated. 34. The EIS adequately presents the economic, eznployment axzd sociological effects that cannot be avoided should the proposed action be implemented. 35. The public has had adequate opportunity to participate in the environmental review process and to provide comments. 36. The EIS has been developed in accordance with the procedures specified in Minn. Stat. ch 116D and Minn R.4410.0240 to Minn. R. 4410.6500. ORDER 37. The EIS for the proposed Zavoral Mine and Reclamation Project is adequate because it meets the criteria set forth in Minn. R. 4410.2800 and the requirements of Minn. Stat. ch. 116D,which require that it: a. Address the potentially significant issues and altema�ives raised in scoping so that all significant issues for which the information can be reasonably obtained have been analyzed; b. Provide responses to the substantive comments received during the draft EZS review concerning issues raised in the scoping process; and c. Was prepared in compliance with the procedures of the Minnesota Environmental Policy Act and Minn. R. 4410.0200 to 4410.6500. 38. Any findings of fact that are more properly deemed conclusions and any conclusions that are ruore properly deemed Findings of Fact are hereby adopted as such. 22 Zavoral Mine aud Reclamation Project EIS Findings of Fact,Conclusions of Law and Order City of Scandia,MN IT IS SO ORDERED Randa11 Simonson, Mayor City of Scandia Date ATTEST Kristina Handt Administrator/Clerk Date 23 1 1 5 � MINNE?SOTA _.� i � . i � --- _ Washington County . 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