Fissure deepens between city, mining company

For years, a partnership between the city of Burnsville and Kraemer Mining has held the promise of spectacular development on 767 acres of land adjacent to the Minnesota River. Today, amid talk the process could begin as soon as 2012, a fissure in the once-solid relationship has led to a lawsuit, bad feelings and a halt in any meaningful progress in the project.

Specifically, Dave Edmunds, executive vice president and chief operating officer for Kraemer, questions recent actions by city staff members, as well as Mayor Elizabeth Kautz and City Council Member Dan Gustafson. Kautz countered by saying Kraemer has not acted in good faith.

In the latest salvo on Dec. 8, Kraemer withdrew an application for an amendment to the planning document that spelled out new boundaries of a proposed lake and the depth to which Kraemer can mine for limestone -- a key point of contention. It was withdrawn after the city requested the completion of an Environmental Assessment Worksheet (EAW), a broad environmental review of the area to be developed.

That comes on the heels of Kraemer dropping a lawsuit against the city for its attempt to limit the depth. The city would like gravel mining to stop at 600 feet above sea level, but Kraemer says it should be able to go as deep as 565 feet above sea level.

"There continues to be this heavy hand that wants to limit us or see us done,'' Edmunds said. "People are in a hurry; they want to jump right past all the mining and get to the development. Our point of view is manage the mining in a way that will allow the development to start.''

Kautz responded by saying the city is simply doing its due diligence.

Edmunds said he was stunned by the city's latest request (which could cost Kraemer as much as $100,000, he said), believing all major issues had been resolved.

"They removed the thing that triggered the lawsuit, the arbitrary condition on depth,'' Edmunds said. "It's like they have amnesia. Or they are rewriting history."

The depth question goes back to 1994, when the original planned unit development (PUD) was approved. Edmunds acknowledges there was talk of Kraemer stopping at 600 feet, but it was only part of the discussion.

"It was not in the PUD but it was in the documents," Kautz said. "In good faith, we thought that is what the depth would be."

Edmunds made it clear he believes Kautz is the driving force behind what he sees as uncalled for conditions by the city.

"Elizabeth is a smart woman," he said. "She's a visionary. She's in a hurry, she's impatient. A number of years ago we always used to envision ourselves as partners and friends. Now it seems like we are sitting on opposite sides of the table with competing interests.

"I think she was bothered by the fact we sued the city, but we only did what we had to do at that time."

Kautz said she was "floored" to hear of Edmunds' claims.

"I have a clear conscience and a clear heart,'' she said. "For me, the relationship is still there."

Gustafson said he is similarly confounded by Edmunds' problems with him. Edmunds wrote a letter to city officials asking that Gustafson be recused from further decisions related to Kraemer due to bias.

The letter followed the cancellation of an Oct. 6 City Council meeting while Gustafson was filling in for the mayor. The agenda included an item related to the Kraemer PUD amendment.

Gustafson said he canceled the meeting because he was sick. Later that evening, Edmunds ran into Gustafson at a Burnsville restaurant. Edmunds said Gustafson has made other offhand comments that led him to believe Gustafson had a bias against Kraemer.

Edmunds' response from the city was that the personal matter between the two men did not affect the council.

Gustafson brushed aside Edmunds' accusations.

"How would he know that? He hasn't come before us,'' Gustafson said of alleged bias. "They've given us a couple of PUDs and they have canceled them before they have gotten to us for discussion.''

Kautz said there is no ulterior motive to asking for the EAW, calling it standard procedure for a project of this magnitude. She cited a number of other examples.

"Anything that is going to be done in that area, with its proximity to the river, with its proximity to the fen, with the wildlife, it has to go through the process,'' Kautz said.

Kraemer hired Barr Engineering to determine how deep the mining could go without having a negative impact on the environment. The city was given a copy of the results, which found the quarry floor could be safely lowered to a depth of 565 feet above sea level. Edmunds says he feels that should be enough to quiet any concerns the city might have.

"It's a depth issue and there is a scientific report that supports our position,'' Edmunds said. "If you need to conduct an analysis, hire someone to do it. Why the need for an EAW?''

Despite the turmoil, Edmunds remains convinced an agreement will be reached that will allow the process to continue. But someone or something has to give.

"We're going to continue doing our business,'' Edmunds said. "We would like to resolve with them the question of depth because they continue to question it.

"We would like to amend the map to show where the lines should be for the future lake. If we can't get to that point, we'll just mine the land. It just doesn't make any sense to either one of us.''

Dean Spiros • 952-882-9203