10.f Scandia Mine wetland replacement application� J
SCANDIA
Staff Report
Date of Meeting: February 16, 2016
To: City Council
From: Neil Soltis, Administrator
Re: Scandia Mine Wetland Replacement Plan application
Background:
In 2015 the Washington Conservation District (WCD) determined that a previously identified
wetland (2,029 s.f.) had been impacted and Tiller has agreed to mitigate the wetland. WCD has
determined that mitigation of the wetland loss on the site is not practicable and there are not
wetland banking opportunities available in Washington County. Tiller has proposed to purchase
wetland bank credits at a ratio of 2.5 times the wetland acreage lost outside of the County
Issue:
Should the City approve the Notice of Determination allowing for Tiller to purchase wetland
bank credits?
Proposal Details:
A memo from Jed Chestnut of WCD has provided background information and recommends
approval of the replacement application.
Options:
1) Approve the application as presented
2) Make modifications to the conditions
3) Take no action on the application
Recommendation:
Option l - Approve the application as recommended by WCD
AS H I NGTON
ONSERVATION
1 STRICT
MEMORANDUM
TO: Scandia City Council
FROM: Jed Chesnut, Wetland Specialist
4-,3 HAS' WARD AVE N
0A KF)A1,17,, h9N 55128
t,5 1 330-8220 P110N F
651-330-7747 f FAX 1
WWW.MNWCD.ORG
DATE: February 12, 2016
RE: Scandia Mine Replacement Plan Application: Recommendation for approval
On January 14, 2016, Tiller Corporation (Tiller) submitted a replacement plan application to the City of
Scandia, Local Government Unit for administering the Wetland Conservation Act (WCA). The Scandia Mine
Replacement Plan Application requests approval to replace 2,029 square feet of previously impacted wetland
by purchasing 0.12 wetland bank credits at a replacement ratio of 2.5:1.
Tiller owns and operates the gravel mine previously known as the Dresel Gravel Mine which is now part of
the Scandia Mine. In 2015 it was determined that an area that had been identified in 2008 as being a Type 2
(Fresh Wet Meadow) wetland had been impacted from mining activities that occurred prior to 2008. Tiller
has agreed to mitigate for this pre-2008 impact.
There is a long history for the site and the subject wetland dating back to 1995. According to permit
documents in 2001, the mining operation planned on impacting the wetland and replacing for that impact at a
future date. The permit document references an approval in 1995 by Washington County (the mining
authority during that time period) for the impact and future replacement. The City of Scandia's 2008
Conditional Use Permit (City Resolution #05-20-08-02) references the requirement of Tiller to follow WCA
requirements for replacement of the subject wetland. Tiller is fulfilling this requirement by submitting the
Scandia Mine Replacement Plan Application.
The Washington Conservation District (WCD) recommends approval of the application based on the
following:
1. The wetland impact occurred in the past and a thorough review of permitting documentation for the
Dresel Gravel Mine indicates that the impact was previously planned as part of the mining operation with
mitigation (replacement) proposed to occur at a future date.
2. The applicant considered on -site mitigation. However, based on the existing land use, future mining
operations, possible future site conditions, and other factors, the purchase of wetland bank credits was
determined to be the preferred alternative. The WCD concurs with this determination.
3. Tiller is proposing to purchase wetland bank credits from account #1541 in Freeborn County. The
Wetland Conservation Act requires applicants to seek replacement in proximity to the site of impact as a
priority, but allows for replacement further away if no replacement options exist. Tiller has provided a
sequencing discussion on its efforts in locating suitable replacement credits in proximity to the impact
site, however suitable options do not exist. Therefore, the WCA allows for replacement in other areas
(outside of the Bank Service Area) at a higher replacement ratio as per MN Rule 8420.0522 Subpt. 4A.
Thus, Tiller is replacing at a 2.5:1 ratio.
4. Tiller's application is in compliance with the regulatory requirements of the Wetland Conservation Act.
Supervisors: Louise Smallidge - Bob Rosenquist - George Weyer o John Rheinberger - Jim Levitt
Minnesota Wetland Conservation Act
Notice of Decision
Local Government Unit (LGU) Address
City of Scandia 14727 2091h St N
Scandia, MN 55073
1. PROJECT INFORMATION
Applicant Name
Project Name
Date of
Application
Tiller Corporation
Scandia Mine
Application
Number
1/14/16
2016-004
® Attach site locator map.
Type of Decision:
❑ Wetland Boundary or Type ❑ No -Loss ❑ Exemption ❑ Sequencing
® Replacement Plan ❑ Banking Plan
l echnical Evaluation Panel t indmgs and Recommendation (it
❑ Approve ❑ Approve with conditions ❑ Deny
Summary (or attach):
2. LOCAL GOVERNMENT UNIT DECISION
Date of Decision: 2/16/16
❑ Approved ® Approved with conditions (include below) ❑ Denied
LGU Findings and Conclusions (attach additional sheets as necessary):
Tiller Corporation (Tiller) owns and operates an active gravel mine previously known as the Dresel
Gravel Mine and now part of the Scandia Mine, which is located east of Manning Trail, west of Lofton
Avenue and north of 218th Street in the City of Scandia. In 2015 it was determined that an area that had
been identified in 2008 as being a Type 2 (Fresh Wet Meadow) wetland had been impacted from mining
activities that occurred prior to 2008. Tiller agreed to mitigate for this pre-2008 impact.
The area of impacted wetland within the Scandia Mine is 2,029 square feet. To mitigate for this impact
Tiller is purchasing equivalent wetland credits from bank account #1541 at a ratio of 2.5:1 since the
wetland bank is outside of the bank service area of the impacted wetland.
Area of Impact = 2,029 square feet
Required replacement (2.5:1) = 5,072.5 square feet = 0.12 acres
The application to impact 2,029 square feet of Wetland I and to provide replacement via the purchase of
0.12 wetland credits (2.5:1 replacement ratio) is conditionally approved: see "Credit Withdrawal"
condition below.
BWSR Forms 7-1-10 Page 1 of 3
For Replacement Plans using credits from the State Wetland Bank:
Bank Account #
Bank Service Area
County
Credits Approved for
1541
8
Freeborn
Withdrawal (sq. ft. or nearest .01
acre)
0.12
Replacement Plan Approval Conditions. In addition to any conditions specified by the LGU, the
approval of a Wetland Replacement Plan is conditional upon the following:
❑ Financial Assurance: For project -specific replacement that is not in -advance, a financial
assurance specified by the LGU must be submitted to the LGU in accordance with MN Rule
8420.0522, Subp. 9 (List amount and type in LGU Findings).
❑ Deed Recording: For project -specific replacement, evidence must be provided to the LGU that
the BWSR "Declaration of Restrictions and Covenants" and "Consent to Replacement Wetland"
forms have been filed with the county recorder's office in which the replacement wetland is located.
® Credit Withdrawal: For replacement consisting of wetland bank credits, confirmation that
BWSR has withdrawn the credits from the state wetland bank as specified in the approved
replacement plan.
Wetlands may not be impacted until all applicable conditions have been met!
LGU Authorized Signature:
Signing and mailing of this completed form to the appropriate recipients in accordance with 8420.0255,
Subp. 5 provides notice that a decision was made by the LGU under the Wetland Conservation Act as
specified above. If additional details on the decision exist, they have been provided to the landowner and
are available from the LGU upon request.
Name
Title
Signature
Date
Phone Number and E-mail
THIS DECISION ONLY APPLIES TO THE MINNESOTA WETLAND CONSERVATION ACT.
Additional approvals or permits from local, state, and federal agencies may be required. Check with all
appropriate authorities before commencing work in or near wetlands.
Applicants proceed at their own risk if work authorized by this decision is started before the time period
for appeal (30 days) has expired. If this decision is reversed or revised under appeal, the applicant may be
responsible for restoring or replacing all wetland impacts.
This decision is valid for three years from the date of decision unless a longer period is advised by the
TEP and specified in this notice of decision.
3. APPEAL OF THIS DECISION
Pursuant to MN Rule 8420.0905, any appeal of this decision can only be commenced by mailing a
petition for appeal, including applicable fee, within thirty (30) calendar days of the date of the mailing of
this Notice to the following as indicated:
Check one:
❑ Appeal of an LGU staff decision. Send ® Appeal of LGU governing body decision. Send
petition and $ fee (if applicable) to: petition and $500 filing fee to:
Executive Director
Minnesota Board of Water and Soil Resources
520 Lafayette Road North
St. Paul, MN 55155
BWSR Forms 7-1-10 Page 2 of 3
4. LIST OF ADDRESSEES
® SWCD TEP member: Jed Chesnut
® BWSR TEP member: Ben Meyer
❑ LGU TEP member (if different than LGU Contact):
® DNR TEP member: Leslie Parris
❑ DNR Regional Office (if different than DNR TEP member)
® WD or WMO (if applicable): Jim Shaver, CMSCWD
® Applicant and Landowner (if different)
❑ Members of the public who requested notice:
® Corps of Engineers Project Manager
❑ BWSR Wetland Bank Coordinator (wetland bank plan decisions only)
5. MAILING INFORMATION
➢For a list of BWSR TEP representatives: www.bwsr.state.nm.us/aboutbwsr/workareas/WCA_areas.
);,,For a list of DNR TEP representatives: www.bwsr.state.mn.us/wetlands/wca/DNR TEP_contacts.pdf
➢Department of Natural Resources Regional Offices:
NW Region:
NE Region:
Central Region:
Southern Region:
Reg. Env. Assess. Ecol.
Reg. Env. Assess. Ecol.
Reg. Env. Assess. Ecol.
Reg. Env. Assess. Ecol.
Div. Ecol. Resources
Div. Ecol. Resources
Div. Ecol. Resources
Div. Ecol. Resources
2115 Birchmont Beach Rd.
1201 E. Hwy. 2
1200 Warner Road
261 Hwy. 15 South
NE
Grand Rapids, MN 55744
St. Paul, MN 55106
New Ulm, MN 56073
Bemidji, MN 56601
For a map of DNR Administrative Regions, see: hLtp://files.dnr.state.mn.us/aboutdnr/dnr re ig ons.pdf
);,For a list of Corps of Project Managers: www.pLvp.usace.LrLny.mil/regulatory/default.asp?pageid=687
or send to:
US Army Corps of Engineers
St. Paul District, ATTN: OP-R
180 Fifth St. East, Suite 700
St. Paul, MN 55101-1678
➢For Wetland Bank Plan applications, also send a copy of the application to:
Minnesota Board of Water and Soil Resources
Wetland Bank Coordinator
520 Lafayette Road North
St. Paul, MN 55155
6. ATTACHMENTS
In addition to the site locator map, list any other attachments:
® Figure 5 - Wetland Delineation Map
® Purchase Agreement for Wetland Banking Credits - Wetland Credit Agency
El
BWSR Forms 7-1-10 Page 3 of 3
4W
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Wetland
Ot
Impact
Location
a
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Key to Features Tiller Corporation
Dresel Gravel Mine
Proj ect A rea Scandia, MINI 0 60 0 1 2 0 C',
NW 2015 Wetland Replacement Plan
SESSEENEW---i Fee -
Roads Project Location Map
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40
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CREDIT AGENCY
PURCHASE AGREEMENT
FOR WETLAND BANDING CREDITS
'7 WS AGREEMENT (Agreement) is made this 7th day of January 2016 between the "Wetland Credit
Agency, L C/T rn and Mark Sorenson" (Seller) and "Tiller Corporation Inc." (Buyer).
Seller agrees to scil to Buyer, and Buyer aC,,rees to buy from Seller, the wetland banking credits
(Credits) listed below:
CREDITS TO RE SOLD
Credit
Wetland
Sub-
Acres
Ciro, 39
Plant Communivy TyW
Cost per ?acre
State Fees
Total
,Group'
Type.
i.l_ 12
2
4;C�ge Meadow
Q �y q�y
0,49` —00
2 384
q p pp
$3.09�',88
D.
'otals U. l 2 $3,896.88
LI.Qheck here if additional credit subtgiLoApLare part ofihis account and,are listed on an atiachm t to this document
1A separate credit sub -group shall be established for each wotland or wetland area that has different w elland cbaracteristirs.
2Circular 39 types: 1, 1L,. 2, 3, 4, 5, 6, 7, 81 B, U.
'Wetland plant comm unity type. shallow upet eater, deep marsh, shallow marsh. sedge rneadow, fresh meadow, wet to
wet-mesic prairie, calcareous fen, open bog or coniferous bog, shrub-carr alder thicket, hardwood swamp or coniferous
swarrip, floodplain forest, seasonally flooded basin.
I Seller represents and warrants as follows-
a) The Credits are deposited iia m account in the Minnesota Wetland Bank adanini tered by
the Minnesota Board of Water and. Sail Resources (BV4WSR) pursuant to Minn. Rules
Chapter 8420-0700-.0760.
b) The Credits are currently approved for wee under Section 404 of the Clean Water Act.
c) Seller owm the Credits and has the right to sell the Credits to Buyer.
Buyer will pay Seller a total of S3,659.04 for the Credits, as follows -
a) $0 as earnest money, to be paid when this Agreement is, signed; and
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Wetland Credit Agency, LLC + 12940 Overlook Rf ad. Dayton, MN 55327 • 612-360-4 i00
vl.3 Cr-1-11
b) The balance of $3fi59-04 to be paid on or before the Closing Date listed below.
4. In addition to the Credit fees in paragTaph 3, Buyer agrees to pay to Seller a withdrawal te of
$237.84 for the Minnesota Board of Water and So-41 Resources (BWSR) based on 6.5% of sale price to
be, paid at closing.
5. The closing of the purchase and sale shall occur oiR Or before March 31, 2016 (Closing Datc).
The Closing Date may be chmgcd by written consent of both parties, Upon payment of the balance of
the purchase price, Seller will sign a Cully executed Transacti on Form for Withdrawal of Wet] and
Credits from the Minneto Wetland Bank as specified by BWSR, provide a copy of the Application for
Withdrawal to the Buyer and forward the same to BWSR along with the withdrawal fee.
6. Buyer shall apply to the appropriate Local Government Unit (LGU,) and the US Army Corp-, of
Enginem for approval of a replacement plan utilizing the Credit,; as the means of replacing impacted
wetlands. If the 1,C3U, and/or the US Army Corps of Engineers has not approved the Buyer's application
for a replacement plan ufiMng the Credits by the Closing, Date, and no postponement of the Closing
Date has been agreed to by Buyer and Seller in writing, then either Buyer or Seller may cancel this
Agreement by giving wNritten not -lee to the other and this Agreement will become null and void.
Seller: Welland CTfedit Agency. L LC for Tim and Mark Sorenson — Amount #1541
By: -7
Date
Mu-ne: Erie'rrelstad
Its: Account Manager
Buyer: Tiller Corporation, Inc.
By:
Name:
Its: Vice President & COO
1-7-2015
Date
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Wefismd Credit Agency, LLC +
12940 Overlook R02d, Dayton, MN &5327 0 612-360-4700
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