WORKSHOP ITEM Bryan Schafer, Community Development Director
Title
CITY SALE OF WETLAND CREDITS TO BWSR
Background
BWSR (Board of Water and Soils Resources) acting as the agent for MnDOT has asked the City to sell fourteen (14) acres of wetland credits for mitigation at various state roadway projects in our region. The proposal made by BWSR would be to pay the City $1.25 per square foot ($54,450 per acre) for a total purchase price of $762,300. The credits would be purchased in the 1st quarter of 2018.
The $1.25 per square foot is quite a bit lower than the $1.80-$2.00 per square foot price of the EDA wetland credits that have been sold. The lower price proposed is based on the very large volume of credits (14 acres). Generally larger volume purchases have a lower per square foot sales price.
In order for the City to sell any credits in the 1st quarter of 2018 the credits would need to be borrowed from the EDA’s Branch 3 Wetland Bank. The EDA currently has just under 40 acres available. The City would replace the credits later in 2018 or early 2019 when the City’s Site 7 (Open Space) credits are available. Eventually up to 80 acres of credits will be generated by the Site 7 Bank
The money from the initial sale ($762,300) would be used by the City to off-set maintenance and future improvement costs in the City’s Blaine Wetland Sanctuary.
…Direction
Provide direction on whether the City is willing to
a) approve a large wetland credit sale to BWSR for $1.25 per square foot with withdrawal fees to be negotiated.
b) enter into an agreement with the EDA outlining how the 14 acres of credits will be borrowed and transferred between the two wetland banks.