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Elk Rii>er Planning Conmtission <br />June 22, 2009 <br />Page 2 <br />Our Mining Plans <br />Currently, tine have our hot mix asphalt plant located on the subject property. We supply <br />aggregate materials for this plant from our pit north of the Landfill in Livonia. The mining <br />activit}~ on the subject property has been low the last five years and if the landfill does not <br />expand our activity on the subject property will remain tow. However, there are high quality <br />aggregate reserves on the subject property which represent approximately 20 years of reserves. <br />If the landfill does not expand, our intent would be to continue to mine in Livonia and after <br />concluding our activities to the north, we would begin. more intense mining of the subject <br />property. The Livonia reserves represent 35 to 50 years of aggregate reserves. Assuming the <br />landfill does not expand, meaningful mining of the subject property will not begin until <br />approximately 2050 (2010 plus ~40 years). As mentioned above, the subject property has <br />approximately 20 years of reserves. Under this mining plan, the subject property will not be <br />considered developable until 2070 (2050 start date for intense mining plus --20 years). <br />Obviously, the HKGi study`s assumption of development beginning in the 2050 timeframe <br />with a 4% absorption rate is simply erroneous as are the results of the financial modeling. <br />once again, if we had been consulted we believe their studies may have proved sounder. We <br />are unsure why staff did not allow the consultant to meet with us to discuss our mining plans. <br />However, if the landfill expands, our mining plans will be significantly different. The landfill <br />requires access to the airspace provided by the subject property at an accelerated rate. To <br />accommodate their requirements we will expedite our mining of the subject property through a <br />combination of re-orienting our Livonia mining operation and exporting material from Elk River <br />to our other facilities the currently receive material Erom other markets. This will have the <br />effect of compressing the timefxame which active mining takes place in this area of Elk River. <br />We believe this compression is desirable and may allow adjacent properties to develop earlier <br />in concert with Elk River Landfill's business park plan. <br />We reviewed the above plans with the Planning Commission on June 9, 2UO9 and we had <br />subsequent discussions with staff on June 16, 2009 offering to meet with staff and HKGi so <br />everyone would have a clear understanding of our mining plans, development plans and <br />timing. At the last Planning Commission meeting of June 9, 2009, staff was directed by the <br />Commission to review the HKGi findings and reconcile the questions raised during the public <br />hearing. On June 19, 2009 we received staff's written report to the Planning Commission. <br />Once again it does not appear that our mining plans are accurately reflected in the findings, <br />and thus we find the conclusions, particularly the financial modeling, to be without merit. <br />Our Perspective on Development Opportunities in Elk River <br />The subject property is slightly more than 100 acres. The gravel mining dist~•ict is 3,500 acres. <br />We believe that there are ample opportunities along the Highway 169 corridor far the types of <br />extensive development potential which is described in the HKGi report. However, the future <br />