Consent - Dan Schluender, City Engineer
Title
Title
Site 7 Wetland Credit Sale (0.7 Acres)
end
Executive Summary
Jim Reese and Cari Prately (the “Buyers”) are proposing a development project in the City of Hugo that has impacts to wetlands. The applicant has requested to purchase 0.7 acres of wetland credits from the Site 7 Wetland Bank that are necessary for the proposed project to meet permit requirements.
Background
The Buyers would like to purchase 0.7 acres of wetland credit from the City of Blaine (Site 7) Wetland Bank at a value of $2.50 per square foot. The cost of the wetland credit purchase is $76,230 based on the 0.7 acres. In addition, the Buyers will pay the City of Blaine’s withdrawal fee to BWSR for withdrawing the credits.
To date, the city has received 39.735 credits out of a possible 81 credits from the Site 7 Wetland Bank. The city receives these credits to sell when specific metrics regarding plant diversity and invasive species management are achieved in the wetland restoration projects currently underway in the Site 7 wetland.
The city’s Site 7 bank received a release of an additional 12 credits in August 2021 that are now available for sale. A breakdown of credit status, including the approval of the 0.7 credit purchase agreement to the Buyers, can be seen in the table below. If this agreement is approved tonight, the city will have 1.354 credits remaining for sale.
|
Total |
Sold |
In a Purchase Agreement |
Available |
|
39.735 |
27.3681 |
11.0129 |
1.354 |
Please note, when Site 7 Wetland Bank was created, the pro forma was based on the sale of wetland credits as a unit cost of $1.75-$2.00 per square foot. Currently credits are being sold at $2.50 per square foot.
Strategic Plan Relationship
The sale of wetland credits provides funding for the city to maintain its open spaces and trails meeting the well-maintained infrastructure goal of the strategic plan.
Board/Commission Review
The Natural Resource Conservation Board was made aware of the sale of the wetland credits via email, due to the timing of the request.
Financial Impact
If approved, $76,230 would be deposited into the Open Space Development Fund, pursuant to the City’s Capital Improvement Plan.
Public Outreach/Input
N/A
Staff Recommendation
Adopt the resolution.
Attachment List
Purchase Agreement
Body
BE IT RESOLVED by the Blaine City Council (the “Council”), as follows:
WHEREAS, it is one of the goals and purposes of the Council to sell credits to generate revenue to offset costs to maintain the city’s open spaces and trails; and
WHEREAS, the Buyers propose to impact wetlands through development in the City of Hugo; and
WHEREAS, the Buyers project has identified the need to acquire 0.7 acres of wetland credits and has indicated an interest in purchasing the City of Blaine wetland credits that are necessary for their project.
NOW, THEREFORE, BE IT RESOLVED, by the Blaine, Minnesota City Council, that the Mayor and City Manager are here by authorized to execute any and all agreements and documents required for the sale and transfer of 0.7 acres of City wetland credits to the Buyers project at a cost of $2.50 per square foot plus the City of Blaine’s out of pocket cost for withdrawing credits from the wetland bank.
PASSED by the Blaine City Council this 6th day of June, 2022.