Agenda - Council - 07/24/1984 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I Case #1: R~quest By Rubber Research Elastomerics, Inc. To Seek Cxty Support For Proposed Project To Recycle Whole Scrap Tires: Mr. Ed Welsh - Minnesota Solid Waste Board - Mr. Welsh was present to speak on the subject of Minnesota solid waste grants (see Attachment I). Mr. Welsh also noted that with respect to the grants, the Board will give consideration to joint efforts between local units of government outside the Metro area. Commissioner Fults inquired as to the interest rates on the loans. Mr. Welsh replied that the interest rate would be the same as what the State is charged when the GO bonds are sold; the interest rate fluctuates; he does not know the current rate; bonds sold 18 months ago were at 8.67%. Mr. Stark - President of Rubber Research Elasomerics, Inc. - The company has been in existence for 22 years in Minneapolis. The company has discovered a unique way to utilize scrap rubber, primarily tires, by putting the scrap rubber through a several stage process that reduces the rubber to a 30 mesh power which they call 'tire cycle'. Use of ground rubber has been limited to 5-8%; tire cycle useage is 50-100%. The company sells tire cyle back to the rubber industry for $.25-$.30/pound. The facility would recyle 60,000,000 pounds of tires per year; all rubber and fiber would be utilized, extracted metal would be sold; only electrical energy is used in the processing; there are no by-products and trash. The 60,000,000 pounds is 1/3 of the tire tonage generated in the State yearly. Twenty to thirty million pounds of end product would be used within the State. The facility would employ about 40 people. Representative Ernie Larsen - Was present to speak on the subject of a bill passed in the last legislative session regarding waste tire collection and processing. Mr. Larsen passed a photo around showing the tire dump in Andover where there is currently 8-12 million tires. Attachment II to these minutes is a copy of the subject bill. Mr. Larsen surm~arized what the bill does: 1. $117,000 set aside for establishing rules of waste tire collection; 2. Requests funds to do an incineration study and perform test burns; 3. Requested and received $52,000 for waste tire recycling rules; 4. Requests funds to be used to encourage recycling education; 5. Established a $4.00 fee on initial vehicle registration and each subsequent transfer of a vehicle in the State to be used for financing. With regards to incineration of tires, Mr. Larsen stated that he does not feel that burning is the only method of disposal and utilization of old tires; figures quoted by Mr. Stark regarding the amount of scrap tires his company would process ar? small in comparison to the amount of scrap tires generated zn the State annually. Mr. Larsen stated that Wisconsin is utilizing heat generated from tire burning to produce steam power at a paper manufacturing plant; this plant is looking to expand and if so could easily go through 120-150 tons of scrap tires per day. EDC/July 11, 1984 Page 2 of 5