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HomeMy WebLinkAbout03.19.86 Special Council Minutes 165 MINUTES COUNCIL AND PLANNING COMMISSION JOINT SPECIAL MEETING MARCH 19, 1986 1. Mayor Akin called the meeting to order Present: Akin, Kelly, Mayer, Orr, Sprute. Absent: None. Also Present: at 7:30 P.M. Administrator Thompson, Attorney Gorgos, Planner Tooker, EDC Director Robert Williamson. 2. The purpose of the meeting was to conduct joint public hearings on the proposed beef processing facility by AVID, Inc. 3. Mayor Akin gave a brief introduction and then opened the public hearing at 7:30 P.M. 4. Ray Whitmore, president of AVID, Inc stated that he wished to work with the community in order to find a home for his facility. Mr. Whitmore explained that the facility would use the most modern technology. Mr. Whitmore listed the benefits to Farmington and Minnesota which would result from the facility. Mr. Whitmore added that Farmington was chosen as a site location because of its proximity to the World Trade Center. Mr. Whitmore introduced the following individuals associated with the project: Ron Yeates, Koch Manufacturing; Don Anderson, Chief Construction; Cy Hare, Financial Director; Dwain Danerd, Alloy Engineering. 5. Planner Tooker gave a brief description of the site plan, citing the building locations, roads, parking, landscaping and proximity to the County garage and T.H. 1150. 6. The hearing was opened for general questions and comments: Frank Formisano: Would you explain the wastewater treatment system. Ron Yeats: The process uses an electro chemical process which removes toxic wastes from the effluent in the form of a sludge. The sludge is then processed to remove the protein. Frank Formisano: How will odors be removed? Harold Refson: The plant will use a scrubber system developed by QUAD which oxidizes the odors using sodium hypochlorite. Frank Formisano: What happens to the effluent from the scrubbers? Harold Refson: Its discharged into the wastewater treatment system. Frank Formisano: Will permits be required? Mayor Akin: He'll be required to obtain all necessary permits. Earl Cook: What type of cattle do you intend to slaughter? Ray Whitmore: All types of cattle - depending on our contracts. Earl Cook: Do you have any contracts? Ray Whitmore: Not yet. Earl Cook: How many kills per day. Ray Whitmore: 500 to 600. Earl Cook: You should only need 60 to 70 employees for that number of kills. Also, a lot of meat packing plants are closing because of lack of cattle. 166 Ray Whitmore: I stand by my figures. Jim White: Why did you choose Farmington? Ray Whitmore: Farmington suited our needs because of its proximity to rural Minnesota and the World Trade Center. Mayor Akin: Also, Farmington is one of the few cities in the Metro Area eligible for FmHA funding. Jim White: Won't Farmington loose 40% of the property taxes to Fiscal Disparities? Mayor Akin: It is my intention to request that this project be exempted from the Fiscal Disparities pool and that the 40% be used for highway improvements and promotion of agriculture. Debbie Benedict: What did the City officials find out in Kansas City? Robert Williamson: We inspected the waste treatment process and it appears to be feasible. We did not view an actual packing plant. Tom Angell: Why wasn't an actual packing plant inspected? Robert Williamson: Because there is no plant that uses all the proposed tech- nology. Mr. Whitmore indicated that a tour of a packing plant would be detri- mental. The trip to Dubuque was most helpful because it demonstrated that most odors could be eliminated from the rendering process. The odor at the plant was insignificant. Len Novitzki: Is it feasible for this plant to succeed? Are the risks worth the benefits? I feel there could be a better location. Mayor Akin: There is no doubt that there will be some odors. But, Farmington is an ag related town. I have heard criticisms in the past that "The City Council drove another business out of town." It appears that the people want to turn down the plant. JIm White: I am in favor of business, but not at any cost. Gordy Broske: My house in on #50 and I am concerned about odors. Sharon Broske: How many AVID, Inc executives will live in Farmington? Ray Whitmore: We feel that a majority of workers will come from this area. I would like to move here. Frank Formisano: Were there odors present at the Dubuque plant? Robert Williamson: There were a certain amount of odors but they were minimal. Frank Formisano: I would like to see an odor free plant. Are there any guarantees that the system will meet the City's requirements? Ray Whimore: I have never stated that the plant will be odor free. We will try to minimize the odors. Mary Goetz: Will the scrubber be noisy? Will noise come from the holding pens? How often will trucks be unloading? Ray Whitmore: holding pens. The scubber will not make any noise. We will not feed in the Trucks will arrive daily, but I don't know at what times. Earl Cook: Will you use City water or your own? Ray Whitmore: We are planning to pump our own. Earl Cook: Will pens be enclosed or open? Ray Whitmore: Enclosed. 167 Earl Cook: How will you prevent the pens from freezing in the winter? Ray Whitmore: I am confident that we can solve that problem. Ken Meyer: Will you be feeding cattle? Ray Whitmore: No. Ken Meyer: capacity. It is my understanding that the Empire treatment plant is near Will it handle the packing plant? Mayor Akin: expanded. Kathy Christensen: I live in Westview and I have never had an odor problem from the surrounding farms. Every industry has certain problems associated with them. You have to weigh the good against the bad rather than just looking at the negatives. The Empire treatment plant is presently in the process of being Sonny Grove: Will the plant affect the water table? Bill Sachs: I presently pump 33,000 gallons an hour irrigating my farm and it does not affect my domestic water supply. Bev Neilen: Are you going to import cattle? Ray Whitmore: The cattle will mainly come from Minnesota. Bev Neilen: Are you going to put this to a vote of the people? Administrator Thompson: There is no statutory authority for a referendum on this matter. Earl Cook: Where is the financing coming from? Mayor Akin: There are questions but most will come from FmHA and the Small Business Administration. The City will donate the land. The balance will be provided by the developer. Minnesota Agriculture Commissioner Jim Nichols: We need a meat packing facility in Minnesota. There is no doubt that it would help the economy. The facility appears feasible. I would not state that Farmington is the best place for the facility. Cattlemens Association President Darryl James: There is a big need for such a facility. We presently ship most of our beef 300 miles. Minnesota loses a lot of money from this. Pat Murphy: What will be produced from the facility? Ray Whitmore: Whatever our contracts call for, boxed beef, sausage, rendered products, protein supplements and possibly a tannery. Pat Murphy: You will hire mostly women and provide day care? Ray Whitmore: Yes. Pat Murphy: Why is the World Trade Center important? Ray Whitmore: We intend to market our product world wide. Pat Murphy: Why do you need 160 acres? Mayor Akin: The land owners do not wish to split the 160 acre parcel. I do not believe AVID, Inc needs 160 acres so it may be negotiable. Pat Murphy: I am very concerned about the Vermillion River. Mayor Akin: It has been made perfectly clear that no effluent or runoff from the holding pens is to reach the river. 168 Carol Sprute: I am excited about the prospect of a new business however I have the following concerns. As I understand it, all the technology does not exist in anyone plant at this time and therefore this plant would be sort of a guinea pig. Also, will the waste water treatment become the main industry with the packing plant as the secondary industry, which could attract un- desirable industry. The wastewater treatment plant should only treat the effluent from the packing plant. Also with the proximity of the packing plant to the floodplain, I hope that an extensive environment study is completed. Ray Whitmore: All the technology which has been demonstrated is in existence today, but they have not been combined in one facility. Mayor Akin: That is a good point about other industries using the waste treat- ment facility. Administrator Thompson: State regulations would require that an environmental impact statement be completed. Don Gamer: Will the contractor use local labor? Union labor? Don Anderson: We will work with local contractors and unions. Dennis Sullivan: What happens to the City funds if the company defaults? Mayor Akin: The City's obligation will be backed by a letter of credit provided by the developer. Sharon Broske: What type of construction? Don Anderson: It will be a prefab metal. Kathy Stang: Is this plant similar to the one in Windom? Ray Whitmore: The Windom plant is somewhat larger. Pam Wagner: How is the remaining 80 acres planned to be developed? Charles Tooker: The land is presently zoned 1-1. (Mr. Tooker listed the per- mitted uses and special exceptions for 1-1 zones.) John Richardson: Are you going to use Fail? Mayor Akin: There is no rail available to the site. Dick Orndorff: Will all cattle be purchased through a commission? Ray Whitmore: We will buy most through a commission, but we will also buy from individuals. Dick Orndorff: Who is AVID, Inc.? Ray Whitmore: AVID, Inc. stock is presently owned by my family and myself. Stock will be sold once the City has committed to the site. Dick Orndorff: Will there by any discharge into the river? Mayor Akin: No. Councilmember Orr: Have you had an independent feasibility report? Cy Hare: We have made inquiries and addressed financial concerns. A financial report will be made once they know the City's demands. Councilmember Kelly: I feel most of the wastewater problems were addressed in Kansas City, I do have a concern with surface runoff from the holding pens. Ray Whitmore: The pens will be scraped daily and washed down with 1800 water. Manure will be hauled away and spread. 169 Councilmember Sprute: How many trucks will arrive daily? Ray Whitmore: I don't know. It depends on our production. Councilmember Sprute: Where will the manure go? Ray Whitmore: It will probably be spread by farmers. Councilmember Sprute: Would you classify yourself as a wet or dry industry? Ray Whitmore: I don't know what a wet or dry industry is. Councilmember Sprute: I would classify your plant as a wet industry. We have problems with the water table right now. Will the water table be a problem with your water flows? Ray Whitmore: We will meet any engineering demands made by the City. Councilmember Sprute: Will the plant be odor free? Ray Whitmore: I have never indicated that the plant will be odor free. We will try to minimize the odor. Mayor Akin: At first I had a negative feeling towards the project. Now I feel that the Council should weigh the positive with the negative. I would reques.t that the Council review the information they have received along with any addi- tional information and be prepared to discuss it during the next regular meeting. Tom Angell: To date most information has been verbal, with very little put in writing. I would like to see artist renderings, site plans and reports addressing the City Code regulations. Ray Whitmore: Everything is available at City Hall. Ken Gerten: What sureties will we have to enforce any conditions placed on the project? Attorney Gorgos: The City could use a court injunction. 7. Mayor Akin continued the public hearing until April 7, 1986 at 7:30 P.M. at City Hall. 8. The Planning Commission closed its public hearing. It was the consensus that the Council would wait until the Planning Commission acted on the Special Exception before it made a decision. 9. Councilmember Sprute asked for a show of hands of people who were opposed to the plant. (Several hands were raised by no count was taken.) 10. Motion by Orr, second by Kelly to adjourn at 10:30 P.M. APIF, motion carried. Respectfully submitted, LT/mh Approved L//7/?rb