Sand mine mum on Arcadia request, gets payroll loan
A sand mine company that has not responded to the city of Arcadia’s request for a new reclamation proposal received a federal payroll protection loan in 2020 though its operations likely ended in 2019 or earlier.
According to several federal-loan tracking sites, CSI Sands Wisconsin, which operated a frack sand mine on Thompson Valley Road, received a $356,035 loan May 29, 2020 to save 17 jobs at the site. The loans were part of a federal program to help businesses survive shutdowns during the pandemic.
While it was not possible to determine exactly when the mine stopped operations, it was likely in 2019 or earlier, several officials familiar with the mine said. The mine and equipment were put up for auction in September 2020, and some of the property was sold, according to the county’s treasurer. Neither CSI Sands Wisconsin nor the auction company responded to requests for comment.
In addition to the loan, which data from the U.S. Office of Personnel Management indicates has not been repaid, CSI Sands Wisconsin owes Trempealeau County $301,329 for two years of unpaid property taxes and the city of Arcadia $46,530 for one year of personal property taxes.
County treasurer Laurie Halama said notice was given to CSI Sands Wisconsin in September 2020 that it had two years to pay the back taxes or face foreclosure. She said a portion of the mine was sold in 2020, and some county taxes were paid from those proceeds.
Meanwhile the city of Arcadia has not received a response from the company regarding the city’s request it either increase the money set-aside for mine reclamation to $2 million or create a new reclamation plan, according to city administrator Chad Hawkins.
The mine site, according to city engineers, has 40-foot-tall cliffs that would preclude the residential development that was initially proposed for the reclaimed mine property. CSI Sands has set aside $722,000 for reclamation but earlier this year told the city the work could be done for $250,000.
