Banning and rock quarry reach mining tax dispute settlement
A Banning City Council agreement with Robertson's Ready Mix is� expected to resolve pending lawsuits mostly tied to a mining tax� imposed two years ago.
The council approved a memorandum of understanding Tuesday, Aug. 23,� with little discussion.
"It was a long and arduous process to get to this point, " said City� Manager Michael Rock, who called the agreement a major achievement.� The settlement of claims resolves four lawsuits filed by Robertson's� related to a 2014 ballot measure that led to the tax.
A fifth lawsuit is on hold pending eventual city review of plans to� add a concrete batch plant to the company's quarry operation.
The settlement of claims will bring the city 25 cents per ton of� mining materials taken from Robertson's operation at the northeast� corner of the city off Hathaway Street.
The mining tax would replace the voter approved 80 cents per ton.
Robertson's officials have told the city the tax was affecting the� company's ability to compete for business and could lead to a shut� down. No one from the company spoke at the council meeting.
There also would be a 15 cents per cubic yard rebate to the city for� every cubic yard of ready mix concrete poured for construction within� the city limit, and sales tax generated by concrete sales.
The memorandum of understanding will be formalized by an ordinance� that will be presented to the council at a later date.
Voters approved Measure J in November 2014 that called for Robertson's� to pay 80 cents per ton on materials mined at the company's quarry.
The fee was applicable to any mining operation in the city, but the� only such business in the city is Robertson's.
The agreement is expected to generate about $400,000 in annual revenue� for the city, according to a city staff report.
Under the voter approved rate, Robertson's had paid at least $800,000� under protest, according to court records.
The site has an estimated 15-20 years more of expected use. After site� reclamation, Robertson's agreed to give 25 percent of the site for� public use. The mining property is on about 186 acres, according to� court records.
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