HomeMy WebLinkAbout810371.tiff RESOLUTION
RE: APPROVAL OF ENERGY/MINERAL IMPACT ASSISTANCE GRANT APPLICATION
CONCERNING THE ADOLPH COORS COMPANY COAL STRIP MINING OPERATION
AND AUTHORIZATION FOR THE CHAIRMAN TO SIGN THE SAME.
WHEREAS, the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home
Rule Charter, is vested with the authority of administering the
affairs of Weld County, Colorado, and
WHEREAS , an Energy/Mineral Impact Assistance Grant applica-
tion, to be sponsored by Weld County on behalf of the Adolph Coors
Company coal strip mining operation, has been presented to the
Board of County Commissioners, and
WHEREAS, the Impact Assistance funds total $905, 208 . 00 , and
WHEREAS, the Board of County Commissioners has studied said
application and deems it advisable to approve the same.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the Energy/Mineral Impact
Assistance Grant application concerning the Adolph Coors Company
coal strip mining operation be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board of County Commissioners
of Weld County, Colorado that the Chairman of the Board be, and
hereby is, authorized to sign said application.
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 29th day of
December, A. D. , 1980.
BOARD OF COUNTY COMMISSIONERS
ATTEST: iiiilw.01"...*vtitra WELD COUNTY, COLORADO
d
Weld County Clerk and Recorder E'. ///` C (Aye)
and Clerk to the Board C. W. Kir y, C airman
By:, LACIPeeL �� � NOT IN OFFICE DATE SIGNED (Aye)
Deputy Cou Clerk Leonard L. Roe,
I Pro-Tem
A VED AS TO FORM: C.,�s-r`a.a (Aye)
Norman Carlson
D
County Attorney NOT IN OFFICE DATE SIGNED (Aye)
Lydia Dunbar
(ABSENT)
June K. Steinmark
810371
910113
DATE PRESENTED: JANUARY 5, 1981
OFFICE OF FINANCE & ADMINISTRATION
" &p.3 y ry r - . ,:. PHONE (303)356-4000 EXT.218
P.O.BOX 758
GREELEY,COLORADO 80632
C.
COLORADO
December 30, 1980
Socio-Economic Impact Office
1313 Sherman Street, Room 518
Denver, CO 80203
ATTN: Steve Colby
Dear Mr. Colby:
Enclosed please find a tax credit application for impact assistance sponsored
by Weld County, Colorado on behalf of the Adolph Coors Company's coal strip
mining operation. As indicated in the application, the total project cost
was $905,208 of which Adolph Coors Company paid the entire amount for the
paving of Weld County roads 18 and 59 that are being impacted by the strip
mining operation.
In addition to the application, we have also submitted a copy of the annual
financial report from Weld County which can provide you with additional
financial and statistical data concerning Weld County and a recommendation
from a local impact committee concerning the priority of this project for
impact assistance funds. Maps of the project as referenced in the applica-
tion are also enclosed.
If you have any questions concerning the application or project, please do
not hesitate to contact the undersigned at 356-4000, Ext. 218. The contact
for this application for Adolph Coors Company is William Robie who can be
contacted at 277-1629.
V}'yt �lyyryo s /J
Donald D. den, Director
Finance and Administration
DDW/ch
Encl.
cc: Wiliam Robie, Adolph Coors Company
Application Number
Date Received:
Application for: Energy/Mineral
Impact Assistance
Submitted to: The Socio-Economic Impact Office •
1313 Sherman Street, Room 518
Denver, Colorado 80203
1. Applicant Agency:
Name Weld County, Colorado
Name of Contact Person Donald Warden
Telephone No. (303) 356-4000, Ext. 218
Address 915 10th Street
Greeley, Colorado 80631
2. Local Government Sponsor (if different than above) :
Name Weld County, Colorado
Name of Contact Person Donald Warden
Telephone No. (303) 356-4000, Ext. 218
Address 915 10th Street
Greeley, Colorado 80631
3. Project Title:
Paving Weld County Roads 18 and 59
4. Project Amount:
(a) Local Share 0*
(b) Federal Share -O-
(c) Industry Share -0- (Tax credit)
(d) Other (please identify source) -0-
(e) Impact Assistance Funds Tax credit $905,208
(f) Project Total
* Maintenance of road once constructed over the 20 years useful Life
-1-
_
St Project Description:
'Please use this section only for details directly related , ,
• to the_ project itself, such as:
• (a) Describe the project:
(b) What will the project do?
(c) Is this a complete project or a phase of a larger
(d) What'is the Budget Breakdown? `
Y ��, (e� If`design or feasibility work has been done,
•please=submit copies " -.. ,C'+ -r.. :�
t* Cf)"If the-project -indudes--construction of any
land please include a map indicating the site L.:
vhere,the`improvements--are--to-be' done; -L >
C8):_Other details 4" a v `
(a)- Coors' strap;lnine required, because of-coal hauling, the upgrading
of 2.68 mile`s""of existing public roads. The roads are Weld County
Road #18_from the center of Section 23, Township 2 North, Range
64 West to the intersection of Weld County Road #59, and upgrading
existing Weld County Road #59 from the intersection of Weld County
Road #18 North to theNorth line of Section 13 and 14, Township
2 North, Range 64 West.
(b) The roadway carries coal trucks from the proposed mine site 4 .
miles North of Keenesburg in addition to the local residential
traffic and traffic created by the town of Keenesburg dump at the
Northern edge of the proposed roadway improvement.
(c) This is a complete project.
(d) Actual costs were as follows:
Grading $238,373.68
Base course 156,416.58 _
Paving 347,540.00
Neighbor's Road - 12,864.97 _
Right—of—way 500.00
Turnouts 2,461.20
Shoulder work 2,944.15
Repaving 4,851.42
Water hauling 93,299.00
Engineering 2,663.00
Survey Work 16,250.00
Supervision 3,874.00
Contingency 23,170.00
$905,208.00
(e) Design work and project was completed by Coors. See attached.
(f) See maps submitted as attachments to this application.
(g) This work was accomplished by a contractor in conjunction with Coors
improvements on private property. The anticipated life of improve-
ments is 20 years, approximately the same life as the mine. Weld
County will maintain the roads after construction.
-2-
6'. Description of Need for the Project:
•
In this section, please describe those characteristics
and/or problems (current or projected) which the project
will address. Include here the connection the project
has with solving energy or mineral-related impact
problems.
Adolph Coors Company's strip mine drastically changed the service level of
2.68 miles of Weld County Road #18 and #59. Prior to the mine they served
3 residences, 3 farm units, and a small intermittently operated dump for
the town of Keenesburg. Average daily traffic count for Road #59 was 130
with an average percentage of heavy vehicles. During a 20 year life of the
mine', average traffic will be 260 vehicles with a high percentage of the
vehicles being coal hauling trucks. 105 hauling trucks per day from the
mining activities is anticipated, which equates to l truck every 14 minutes.
Weld County could\ not maintain a gravel road with the proposed type of _
traffic for 24 hours per day, 7 days a week. Heavy hauling of coal re-
quires a paved, all weather road. Dust pollution created by such a
hauling operation would have been far beyond tolerable levels for residents.
During calm weather dust clouds would have limited visibility to such a
point a traffic hazard would have resulted. Construction costs to develop
the road that will support the strip mine operations on Roads #18 and #59
were $905,208.
7. Describe the extent of energy industry assistance, involvement and
effort in your project area. Give specific examples of industry par-
ticipation. (This refers to overall industry assistance as well as
aid contributed to this particular project.)
The Adolph Coors Company provided survey work and engineering of the
roadway design of this project. As indicated in the budget of this project,
Adolph Coors Company has paid the entire amount of the project ($ 905,208 ) .
In addition, the Adolph Coors Company worke& with neighboring landowners
to improve access for farm equipment on said roadway, and in all cases,
developed safe driveways and accesses onto the roadway in light of the
increased hauling activity.
Adolph Coors Company has hired locally to staff the vast majority of the
positions being created by this mining activity in the area. In addition to
the assistance in the local area, one cannot lose sight of the fact that
the coal mine from this operation will be used to support the Adolph Coors
Company activities in the State of Colorado, which employs 8,000 people
in Colorado.
-3-
8: Financial Status of Applicant: _
(a) Assessed. Valuation $677,285,480
(b) Mill Levy 16.78 - 1980
(c) Total Mill Levy for Overlapping Jurisdictions
76.12
(d) Sales Tax Percent and Estimated Revenue No local 1% sales tax failed in 11/4/80 election.
(e) Water Tap and Investment Fees n/a
(f) Water User Charges n/a
(g) Sewer Tap and Investment Fees n/a
(h) Sewer User Charges n/a
(i) Other (please specify)
•
(j) Total Long-Term Debt (by type) none
(k) Statutory Debt Limit $10.86 million
(1) Annual Debt Service: 1979 -0- 1980 -0-
---1981 -0- 1982 -0- 1983 -0-
(m) Projected Capital Improvements Budget (please speci-
fy type of improvements; e.g. , water and sewer,
street improvements, etc.) New Construction
1979 $200,000
1980 150,000
1981 250,000
1982 275,000
1983 300,000
1984 330,000
1985 360,000
-4-
8. Financial Status of Applicant (continued) : .
(n) Indicate why the project cannot be funded from
local revenues.
The Weld County Home Rule Charter places a 5% property tax revenue limitation
on the County, but yet at the samee -time the County has over 550 paved miles
and 2,690 gravel miles of road to maintain. With inflation drastically
impacting the cost of road maintenance and construction due to the rising
cost of petroleum products, such as diesel fuel and asphalt, the resource
capacity of the road & bridge program has been adversely impacted. To y com-
plicate the above problem, Weld County is experiencing approximatel a 3%
(CONTINUED ON ATTACHED SHEET)
(o) If project will require ongoing operational
funds, how does applicant intend to procure their
revenues? _ _. _
Maintenance of County Roads #18 and 1159 that were paved for this project
will be accommodated through the regular operating budget-of- the-Road &
Bridge Fund. -
9. Energy or Mineral Impact:
(a) List the energy or mineral development projects
currently impacting the applicant.
(b) List any 'proposed or expected energy/mineral
development (include details such as size, dates,
employees, location, -timetable, source of informa—
tion) .
(c) Indicate the current and projected number of-energy-
related employees residing in the project area and
source-of the data. - ---
(a) The most significant projects affecting Weld County to date are
related to oil and gas production. The impacts are felt throughout
the region as a whole, however, and are not found exclusively in a
community or neighborhood condition.
Gravel and sand extraction throughout the County-creates a similar
pattern as does oil and gas production. In each case, the only
measurable impacts of significant proportion-ate-on-the County's road
system.
(b) Proposed or expected development anticipated is as follows:
1. Eagle Surface Coal Mine. The site is located adjacent to I-25
in southwestern Weld County. It is expected -to produce approximately
1.8 million tons over an eight (8) year life, and require approxi-
mately 15 employees (data listed prepared by the mining company) .
(CONTINUED ON ATTACHED SHEET)
-5- -
8. Financial Status of Applicant (Continued) :
(n) Indicate why the project cannot be funded from
local revenues. (CONTINUED FROM PAGE 6) .
growth rate each year. In order to accommodate the highest priority road &
bridge programs, Weld County has developed a 5 year plan of critical pro-
jects that did not include this project because of it's relationship to
overall County road & bridge priorities. A sales tax of 1% for County
roads and bridges failed at the November 4, 1980 election in Weld County.
9. Energy or Mineral Impact (CONTINUED FROM PAGE 6) :
2. Coors Surface Coal Mine. The site is located 5 miles north of
Keenesburg in southcentral Weld County. It is expected to pro-
duce 11 to 12 million tons over a 20 to 25 year life, and require
35 to 40 employees (data listed prepared by the mining company) .
3. In-situ uranium leach mining. The proposed location is in north
central Weld around the Reota area. Because final plans are not
yet prepared, it is only assumed (based on discussions with the
possible developers) that the intended activities will involve
several thousand acres, require approximately 50 employees, and
have a duration of 20 - 25 years.
4. Continued oil and gas development throughout the County is expected
for at least 20 additional years.
5. Sand and gravel operations are anticipated to continue along the
prime flood deposit resources for an indefinite period of time.
Unless construction activities have a dramatic surge or decline,
no rapid change in numbers of sites is expected.
Of the above expected activities, only the Coors and uranium mining
applications appear to harbor expected impacts: those impacts
appear to relate to neighborhood or local problems related to access
and transportation.
(c) The projected number of employees expected for Coors' mine, as presented
by the company, is 35 to 50. It is difficult to project the number
of energy related employees now living in the project area.
In reliance upon Colorado Division of Employment numbers for Area 7,
active job applications for mining related positions, this fiscal
year (as published June 31, 1979), are but a small percentage of total
Job applications.
As this area has a low employment rate, and as a low percentage of the
available work force is seeking employment or is qualified for employ-
ment in mining, it is probable a small in-migration of employees can
be expected as a result of the proposed mine.
-5a-
10. Current population of applicant/sponsor and source of this data:
Weld County's population is 122,000 based on the 1980 preliminary census
data. The preliminary census indicates a 1980 population of 550 for
Keenesburg (the closest incorporated town to the project) .
11. Project population and the source of this projection:
Based on the Larimer-Weld Regional Land Use Alternative Analysis, popu-
lation projected to 2000 is as follows:
1985 1990 1995 2000
Weld County 161,595 185-,970 208,200 225,000
Keenesburg 800 800 1,300 1,300
12. Indicate the coordination with the local impact team. Has the
project been prioritized by the local team and other planning
agencies?
Local impact team prioritized project as highest priority in July, 1979.
They indicate a high priority for severance tax credit. (See letter) .
13. Briefly describe any other features of the project or community
which make it particularly appropriate for receipt of impact funds:
Unlike other energy or mineral related projects within Weld County, the Coors
request places a singularly dramatic impact on an isolated neighborhood.
Continual, large vehicle traffic volumes are expected to occur to public
roads in the area necessitating a planned approach to mitigate impacts. The
most appropriate transportation route involves approximately two and one-half
(21) miles of public road.
This project is unique in that it is (1) a necessary element to allow the
energy development; (2) required total redevelopment of the road; and
(3) forced a tremendous and distorted expense to a small geographic portion
of the County.
(CONTINUED ON ATTACHED SHEET)
TA -
APPLICA:NT'/-S SIGNATURE*
CHAIRMAN
BOARD OF COUNTY COMMISSIONERS
TITLE AND OFFICE
December 29, 1980
DATE
*Application must be signed by the presiding elected official of the
applicant or sponsoring agency.
-6-
13. Briefly describe any other features of the project or community which make
it particularly appropriate for receipt of impact funds (CONTINUED FROM
PAGE 7) :
Road and Bridge revenue derived from the mine is estimated to be $7,500
annually, which would take 64 years for the County to recoupe front end
costs created by the mine if funds are not received from Coors and the
State Impact Program. However, it is estimated that $7,500,000 in severance
taxes will be paid to the State of Colorado during the life of the mine,
which make the project appropriate for receipt of impact funds as a severance
tax credit since Coors paid for the project in the amount of $ 905,208.
-6a-
OFFICE OF BOARD OF COUNTY COMMISSIONERS
PHONE 130313564000 EXT.200
P.O.BOX 758
GREELEY,COLORADO 80631
k
COLORADO
December 16, 1980
Socio-Economic Impact Office
1313 Sherman Street , Room 518
Denver, Colorado 80203
Dear Sirs :
The Local Impact Assistance Committee that made the
attached endorsement and recommendation regarding the
paving of 2. 68 miles of Weld County Roads 18 and 59
continues to support it as a high priority project for
severance tax credits from the Impact Assistance Funds.
The Adolph Coors Company has undertaken the task of
upgrading the roads, entirely at their expense, to
alleviate the impact of the coal mining operation in the
immediate area.
We commend the actions of Adolph Coors Company to
date and support its request for severance tax credits
as submitted in an application to your office .
Sincerely,
KiLnqa.4 -Rot,
Leonard Roe
Local Impact Assistance Committee
Member and County Commissioner
LLR:DDW: rjk
ENDORSEMENT AND RECOMMENDATION .
OF
LOCAL IMPACT ASSISTANCE COMMITTEE
Based upon an analysis of the impact, of the Adolph
Coors Company coal-mining operation, the proposed project of
paving 2 . 68 miles of Weld County Roads 18 and 59 has been
determined to be the highest priority project in the area
for a funding request to the Impact Assistance Program. The
project is unique in that it is (1) a necessary element to
allow the energy development ; (2) requires total redevelopment
of 2 . 68 miles of roads ; and (3) forces a tremendous and
distorted expense to a small geographical portion of the
county.
Therefore, the Local Impact Assistance Committee
unanimously endorses the request for .funds to pave 2 . 68
miles of Weld County Roads 18 and 59 from the Impact Assist-
ance Program to alleviate the impact of the coal-mining
operation in the immediate area.-
Signed this date : July , ,r , 1979 .
_
£ € t2 lciL0£_
C C 23 I C / /9
i
I
K _ 980,
4845 7G/ - --
!
� 4,0 25 3O
4;:3 <
M1 ,
S _ 3 /
+�J�4
..p '
II
4 ' 'r, 4853 t 48'4
�A
� ..� �Q, �',�� .)h winch*
`< t
\V'y ' V
145,,) e887� � 3'I4A3o
e
Di . ,
/o �1 1C 7 ,
f
11)2
98 /
- I .
v iO 1c`,
bl o G E
' r �a
Q y J
`lv ,
• r;T)/
i9
l ,
C,_ {Q
f
4
27 ` S O
1
I
i
OFFICE OF FINANCE & ADMINISTRATION
c , ;;i` • x PHONE 13031 3564000 EXT.216
, P.O.BOX 758
GREELEY,COLORADO 80632
WI 1 k •
COLORADO
December 30, 1980
William Robie
Adolph Coors Company
Property Administration
Golden, CO 80401
Dear Mr. Robie:
Enclosed please find a copy of the impact assistance grant submitted by Weld
County to the State of Colorado for the tax credit for the paving of Weld
County roads 18 and 59. We appreciate your assistance and the assistance
of Sonja Grevillius in the preparation of the grant application. If you
have any questions concerning the grant application or the project, please
do not hesitate to contact me at 356-4000, Ext. 218.
In discussions with the Socio-Economic Impact Office of the State of Colo-
rado they indicated that in February they will be having a meeting of
their committee to discuss the project and they should make some decision
as to whether or not the State will participate by granting a tax credit.
flus[,arden, Director
Finance and Administration
DDW/ch
Encl.
Hello