Storey County Planning Department Storey County Courthouse 26 South B Street, PO Box 176, Virginia City, Nevada 89440 Phone 775-847-1144 Fax 775-847-0949 planning@storeycounty.org To: From: Meeting Date: Meeting Location: Staff Contact: File: Applicant: Property Owner: Property Location: Storey County Planning Commission Storey County Planning Department November 15, 2018 at 6:00 p.m. Storey County Courthouse, 26 S. B Street, Virginia City, Storey County, Nevada Kathy Canfield Special Use Permit Amendment File 2000-222-A-6-2018 Scott Jolcover on behalf of Comstock Mining, LLC Comstock Mining, LLC The general location of the land subject to this Special Use Permit (SUP) amendment is located approximately in Township 16 North, Range 20 East, Sections 1 and 12; and Township 16 North, Range 21 East, Sections 4, 5, 6, 7, 8, and 9 in the Mount Diablo Baseline and Meridian in Storey County, Nevada, and as illustrated in the Staff Report as Appendix A, titled Figure 3: SUP Number 2000-222-A-5 Boundary. Request: Special Use Permit Amendment 2000-222-A-6-2018 by applicant Scott Jolcover representing Comstock Mining, LLC. The applicant requests an amendment to Special Use Permit (SUP) Number 2000-222-A- 5 to modify Condition 1.2 from an affective period of 10 years to 20 years for surface and underground mining, processing, and ancillary uses in accordance with Storey County Code 17.92; the amendment also includes modifying Condition 8.5 regarding contributions toward historic preservation projects. The subject properties of the SUP are located in American Flat and Gold Hill approximately in Township 16 North, Range 20 East, Sections 1 and 12; and Township 16 North, Range 21 East, Sections 4, 5, 6, 7, 8, and 9 MDBM, Storey County, Nevada. 1. Proposed Project. The applicant is requesting the expiration date of the 2014 Special Use Permit be amended. The current Special Use Permit was given a ten year expiration date, expiring in the year 2025. The applicant has submitted this application to allow for a twenty year time period for the Special Use Permit, expiring in the year 2038. The twenty year time 1
period is consistent with Section 17.92.160.C (Mineral Exploration, Mining and Extraction) of the Storey County Zoning Code. All conditions of approval outlined in the 2000-222-A-5 will remain in effect with the exception of the expiration date stated in Condition of Approval 1.2 and Condition of Approval 8.5 Historic Area Preservation. In considering the request for the expiration date extension, staff reviewed the existing Special Use Permit and approached the Property Owner with a modification. Currently the permit requires a contribution to historic preservation projects within Virginia City, Gold Hill, American Flat and/or Silver City. Staff is proposing that condition be amended to remove Silver City from the list of appropriate locations. Silver City is not located within Storey County and is not a part of Storey County s jurisdiction. As the permit only applies to land within Storey County, the mitigation proposed for the project should also all be located within Storey County. The applicant has stated they find the change acceptable. This application only addresses modifying the time period and historic preservation conditions, no other portion of the Special Use Permit is being addressed at this time. 2. Background. The 2014 Special Use Permit had extensive discussions regarding the mining activities to take place at the site. The 2014 Special Use Permit has detailed monitoring and reporting requirements which the applicant has continued to complete and report progress to the Storey County Planning Commission. No issues have been identified and the applicant is complying with all conditions of approval identified in Special Use Permit 2000-222-A-5. 3. Condition Modifications. The following existing conditions of Special Use Permit 2000-222-A-5 are proposed to be amended as follows: 1.2 Expiration This SUP is effective for a period of 10 20 years commencing on the date of its approval and expiring on said date in the year 2025 2038. The SUP permit holder (Permit Holder) may submit an application to renew the SUP. The application for renewal must be submitted to the Planning Department no less than 30 days before the expiration of this SUP. The application shall be treated as a new SUP application and its approval or denial will be determined by the Board of County Commissioners with recommendation action by the Planning Commission. The approved SUP may contain additional conditions or modified conditions from those in the preceding SUP. 8.5 Historic Area Preservation The Permit Holder agrees to contribute at least one percent of annual Net- Smelter-Return (the gross payment on the sale of Dore less the cost of refining and related shipping) toward historic preservation and/or restoration projects within Virginia City, Gold Hill, and American Flat, Storey County., and/or Silver City. This condition shall apply only when the mine associated with this SUP is in active status. A Memorandum of Understanding (MOU) shall be developed between the Permit Holder and Storey County, as approved by the District Attorney s Office, for 2
this purpose. (Note: The Permit Holder has in the past contributed financial and other resources to, and has otherwise been actively engaged in, historical preservation and restoration projects and efforts throughout the Comstock over the past several years, including in Virginia City, Gold Hill, Silver City (Lyon County), and American Flat. Accordingly, the Permit Holder collaborated with Storey County in developing and accepting this SUP condition. This SUP condition requiring partial Net-Smelter Revenues contribution is intended to be inclusive of, and not add to, the 1 percent royalties pledged in the past by the Permit Holder for this purpose). 4. Special Use Permit. A Special Use Permit was issued for this project in 2014. This request to amend the expiration date to allow for a 20-year time period for the activities described in the SUP 2000-222-A-5 is consistent with the Zoning Code Chapter 17.92, and to modify the location of where projects may be implemented associated with the Historic Area Preservation component. If approved, Conditions 1.2 and 8.5 would be modified and all other conditions of approval would remain in effect. The Special Use Permit only authorizes the uses and land area as described in the SUP 2000-222-A-5. Any changes to land area or activities would require separate review. If this amended Special Use Permit request is denied, the two conditions of approval requested to be modified would not occur. The Special Use Permit 2000-222-A-5 remains in effect as was approved in 2014. This Special Use Permit does not address any other portions of SUP 2000-222-A-5 other than the two requested modified conditions of approval. 5 Compatibility and Compliance. The proposed modifications to conditions of approval 1.2 and 8.5 are consistent with the Zoning Code and Master Plan. The extension of time does not alter what was approved with the original 2014 2000-222-A-5 Special Use Permit with the exception of the two conditions that are a part of this application. All descriptions of activities and areas of land, along with monitoring and reporting of activities, remain the same. 6. Findings of Fact A. Motion for approval. The following Findings of Fact are evident with regard to the requested special use permit when the recommended conditions of approval in Section 4, Recommended Conditions of Approval, are applied. (1) This approval is for Special Use Permit Amendment 2000-222-A-6-2018, a request by applicant Scott Jolcover representing Comstock Mining, LLC. The applicant requests an amendment to Special Use Permit (SUP) Number 2000-222-A- 5 to modify Condition 1.2 from an affective period of 10 years to 20 years for surface and underground mining, processing, and ancillary uses in accordance with Storey County Code 17.92; the amendment also includes modifying Condition 8.5 regarding contributions toward historic preservation projects. The subject properties of the SUP are located in American Flat and Gold Hill approximately in Township 16 North, Range 20 East, Sections 1 and 12; 3
and Township 16 North, Range 21 East, Sections 4, 5, 6, 7, 8, and 9 MDBM, Storey County, Nevada. (2) The Amended Special Use Permit 2000-222-A-6-2018 conforms to the 2016 Storey County Master Plan for the Gold Hill planning area in which the subject property is located. (3) Granting of the Amended Special Use Permit 2000-222-A-6-2018 altering the permit expiration and the historic preservation area conditions, with the conditions of approval listed in this report, will not under the circumstances of the particular case adversely affect to a material degree the health or safety of persons/property in the neighborhood of the subject property and will not be materially detrimental to the public welfare or materially injurious to property improvements in the neighborhood or area of the subject property. (5) The Amended Special Use Permit 2000-222-A-6-2018 altering the permit expiration and the historic preservation area conditions will not impose substantial adverse impacts or safety hazards on the abutting properties or the surrounding area, and it will comply with all federal, state and county regulations. (6) The conditions under the Amended Special Use Permit 2000-222-A-6-2018 altering the permit expiration and the historic preservation area conditions do not conflict with the minimum requirements in the Storey County Zoning Ordinance. (7) Certain mineral and surface property rights exist across the county and the Zoning Ordinance serves to protect those rights. The Zoning Ordinance also recognizes and serves to abide by the Mining Law of 1872 which provides mineral property owners the right to mine where the property is a mine patent pursuant to Title 30 of the United States Code Section 29, or an unpatented mining claim located pursuant to Section 23, as well as the right to milling and ancillary uses pursuant to Section 42(a). (8) The county has a diversified economy including agriculture, commercial, industrial, tourism, recreation, and mining. Permitted uses under these categories are found to be economically and socially beneficial to the county, directly and indirectly, when they are appropriately regulated so that they do not cause substantial adverse impacts to adjacent uses and are not detrimental to the health, safety, and general welfare of citizens, property owners, scholars, and businesses in the county. (9) The provisions of the Zoning Ordinance serve to address and mitigate potential adverse impacts that mining and related activities may have on the natural and historic environment and adjacent land uses (e.g., residential, commercial, tourism, etc )as they now exist or as they may in the future be developed as a result of the implementation of the provisions and policies of the county master 4
plan, Title 17, and any other plan, program, map or ordinance adopted or under consideration, pursuant to an official notice by the county or other governmental agency having jurisdiction to guide growth and development. B. Motion for denial. Should a motion be made to deny the Special Use Permit request, the following findings with explanation why should be included in that motion. (1) This denial is for Special Use Permit Amendment 2000-222-A-6-2018, a request by applicant Scott Jolcover representing Comstock Mining, LLC. The applicant requests an amendment to Special Use Permit (SUP) Number 2000-222-A- 5 to modify Condition 1.2 from an affective period of 10 years to 20 years for surface and underground mining, processing, and ancillary uses in accordance with Storey County Code 17.92; the amendment also includes modifying Condition 8.5 regarding contributions toward historic preservation projects. The subject properties of the SUP are located in American Flat and Gold Hill approximately in Township 16 North, Range 20 East, Sections 1 and 12; and Township 16 North, Range 21 East, Sections 4, 5, 6, 7, 8, and 9 MDBM, Storey County, Nevada. (2) The conditions under the Amended Special Use Permit 2000-222-A-6-2018 conflicts with the minimum requirements in the Storey County Zoning Ordinance. (3) The conditions under the Amended Special Use Permit 2000-222-A-6-2018 do not adequately mitigate potential adverse impacts on surrounding uses or protect against potential safety hazards for surrounding use. 7. Recommended Conditions of Approval. The following conditions will be amended as shown. The remaining conditions of the prior Special Use Permit (SUP 2000-222-A-5) will remain unchanged and will be incorporated into SUP 2000-222-A-6-2018. 1.2. Expiration (modified Condition 1.2 of SUP 2000-22-A-5). This SUP is effective for a period of 20 years commencing on the date of its approval and expiring on said date in the year 2038. The SUP permit holder (Permit Holder) may submit an application to renew the SUP. The application for renewal must be submitted to the Planning Department no less than 30 days before the expiration of this SUP. The application shall be treated as a new SUP application and its approval or denial will be determined by the Board of County Commissioners with action by the Planning Commission. The approved SUP may contain additional conditions or modified conditions from those in the preceding SUP. 8.5 Historic Area Preservation (modified condition 8.5 of SUP 2000-222-A-5). The Permit Holder agrees to contribute at least one percent of annual Net- Smelter-Return (the gross payment on the sale of Dore less the cost of refining and related shipping) toward historic preservation and/or restoration projects within Virginia City, Gold Hill, and American Flat, Storey County. This condition shall 5
8. Public Comment apply only when the mine associated with this SUP is in active status. A Memorandum of Understanding (MOU) shall be developed between the Permit Holder and Storey County, as approved by the District Attorney s Office, for this purpose. (Note: The Permit Holder has in the past contributed financial and other resources to, and has otherwise been actively engaged in, historical preservation and restoration projects and efforts throughout the Comstock over the past several years, including in Virginia City, Gold Hill, Silver City (Lyon County), and American Flat. Accordingly, the Permit Holder collaborated with Storey County in developing and accepting this SUP condition. This SUP condition requiring partial Net-Smelter Revenues contribution is intended to be inclusive of, and not add to, the 1 percent royalties pledged in the past by the Permit Holder for this purpose). As of November 9, 2018, Staff has not received any comments from the public. 9. Power of the Board & Planning Commission At the conclusion of the hearing, the Planning Commission must take such action thereon as it deems warranted under the circumstances and announce and record its action by formal resolution, and such resolution must recite the findings of the Planning Commission upon which it bases its decision. The decision of the Planning Commission in the matter of granting the Amended Special Use Permit is advisory only to the Board of County Commissioners and that governing body must consider the report and recommendation and must make such a decision thereon as it deems warranted. 10. Proposed Motions This section contains two motions from which to choose. The motion for approval is recommended by staff in accordance with the Findings of Fact under Section 3.A of this report. Those findings should be made part of the approval motion. A motion for denial may be made and that motion should cite one or more of the findings shown in Section 3.B. Other findings of fact determined appropriate by the Planning Commission should be made part of either motion. A. Recommended motion for approval In accordance with the recommendation by staff, the Findings of Fact under Section 6.A of this report, and other findings deemed appropriate by the Planning Commission, and in compliance with the conditions of approval, I (planning commissioner), recommend approval of Special Use Permit Amendment 2000-222-A-6-2018, an amendment to Special Use Permit (SUP) Number 2000-222-A- 5 to modify Condition 1.2 from an affective period of 10 years to 20 years for surface and underground mining, processing, and ancillary uses in accordance with Storey County Code 17.92 and modifying Condition 8.5 regarding contributions toward historic preservation projects. The subject properties of the SUP are located in American Flat and Gold Hill approximately in 6
Township 16 North, Range 20 East, Sections 1 and 12; and Township 16 North, Range 21 East, Sections 4, 5, 6, 7, 8, and 9 MDBM, Storey County, Nevada. B. Alternative motion for denial Against the recommendation by staff, but in accordance with the Findings of Fact under Section 6.B of this report, and other findings deemed appropriate by the Planning Commission, I (planning commissioner), recommend denial of Special Use Permit Amendment 2000-222-A-6-2018, an amendment to Special Use Permit (SUP) Number 2000-222-A- 5 to modify Condition 1.2 from an affective period of 10 years to 20 years for surface and underground mining, processing, and ancillary uses in accordance with Storey County Code 17.92 and modifying Condition 8.5 regarding contributions toward historic preservation projects. The subject properties of the SUP are located in American Flat and Gold Hill approximately in Township 16 North, Range 20 East, Sections 1 and 12; and Township 16 North, Range 21 East, Sections 4, 5, 6, 7, 8, and 9 MDBM, Storey County, Nevada. 7
Appendix A 8
Appendix B Special Use Permit 2000-222-A-5 9