Note: The following is not a verbatim transcript of the Zoning Hearing Board meeting; it is simply one person’s summary of the major points made by those involved in the hearing process.  For that reason, quotation marks are not used unless a direct quote was recorded.  For information about obtaining an official ZHB transcript, contact the New Hanover Township office.

The meeting began with Mr. Harris, attorney for Gibraltar Rock, mentioning that the Silvis (Gibraltar Rock, Inc.) had purchased the Latshaw property bordering the proposed quarry.

Harris then continued the stirring testimony of Mr. Alan K. Stagg. Stagg was offered as an expert witness on “Economic Geology.” He is President/CEO of “Stagg Resource Consultants.”

NOTE: Harris and his witnesses use two terms that need to be identified. He refers to "The Township Plan". The Township Plan refers to the fact that the area in question, (the 163+ acres in New Hanover Township) is zoned both HI (heavy industrial) and LI (light industrial). According to Pennsylvania regulations, a quarry is allowed in HI but not in LI.  Gibraltar Rock wants the LI to be changed to HI so that they can quarry the entire 163+ acres economically. When he says "The DEP Plan," he is using the acronym for the Department of Environmental Protection (DEP). He does this to make us all think that his plan is approved by the DEP. It is not. He is assuming that if New Hanover allows the exception (changing LI to HI) then the DEP will approve the quarry.  When he says "The DEP Plan" he is really saying the "Gibraltar Rock Plan" or the John and Larry Silvi Plan". Don't be fooled by the misnomer "DEP Plan"---the DEP has not given its approval on these plans.

Over the next three (3) hours Stagg went into excruciating detail into an economic analysis of production and sales of stone, asphalt, and concrete.  His entire testimony was based on the supposition that the Silvis could not operate a quarry in the area designated in the "Township Plan". 

He began by discussing that he evaluated the property and its potential by looking at a number of factors including per capita income, county rating, industries, and potential market for the stone, asphalt, and concrete.  He explained that there is a market in Montgomery county, Southern Berks, Western Buck, and Chester, and far Eastern Lancaster.  He said that the Silvis could potentially be competitive in these areas.

He went on to explain that the rock and concrete have a low value, plus it can't be profitably shipped very far (25-50 miles). For the remaining three hours Harris walked him through how he calculated all of his data. Stagg said that his calculations were based on the fact that the quarry would take 100,000 tons the first year of operation (2004), 300,000 the second year (2005) and then 500,000 from 2006 through the projected life of the quarry.  

Stagg explained how he did an economic assessment. He said he had X assumptions:

• That the quarry would begin operation January 1, 2004.

• That the first year would see the development of the berm and the site's surface would be prepared. 

• That initial stone crushing would be done by portable crusher.

• That they would only obtain 100,000 tons the first year and increase to 200,000 the second year.

Stagg then went on to explain that his assessment model included the following factors:

• Production

• Sales

• Selling prices

• working capital

• production costs

• capital expenditures

• depreciation

• financing

The Bottom Line

Again, he explained in brutal detail the process, factors, and calculations involved in each of the above factors. The bottom line of his entire three hours of testimony can be summarized by saying that the if the quarry is allowed to operate in the area presently designated by the New Hanover Township as High Industrial (HI) that the Silvis would NOT be able to turn a profit. But, that if the Zoning Hearing Board allows their exception (allowing them to mine the Low Industrial (LI) area as well) that they would be able to turn a very reasonable profit.  Also, if they can only mine the HI, the life of the quarry is approximately 14 years, but if they obtain the exception the life increases to well over 50 years.

The meeting finally ended.

The next meetings will be January 15 AND 16, 2002.

See Also:
Summary of the previous meeting (October 31, 2002)