WORKSHOP ITEM - Rebecca Haug, Water Resources Manager
Title
PRICE OF CREDITS FOR SITE 7
Background
Staff has been informed that the first 15% (approximately 12 acres) of the wetland credits at Site 7 in the Blaine Wetland Sanctuary should be available in the next month. Staff has received inquiries as to what price the credits will be sold at. The current market rate average is $1.85 per square foot, highest sold is $2.50 per square foot. Staff’s recommendation would be to sell the credits between $2.00 - $2.50 per square foot depending on the amount of credits being purchased, higher rate for less credits and lower rate for larger credit purchases. For example, the city could charge $2.50 per square foot for any purchase under 2 acres; $2.25 per square foot for any purchase between 2 - 5 acres; and $2.00 per square foot for anything over 5 acres. The market does fluctuate so prices may need to vary but these prices will be consistent with the expectation the city had of the bank bringing in approximately $7 million for the maintenance of the city’s Open Spaces.
The reasons for the recommendation for going a little higher than the average is because of the types of wetlands the city is restoring. The city’s wetland banks is also approved by the Army Corps of Engineers which is not always the case and warrants a higher price. With higher rates, the city will be able to pay back the $400,000 loan from the Economic Development Authority (EDA) sooner.
The NRCB made a recommendation on September 18, 2018 to the City Council to sell the credits between $2.00 - $2.50 per square foot depending on the amount of credits being purchased, higher rate for less credits and lower rate for large credit purchases making exceptions for credits purchased by a government agency to charge a lower than average rate.
Recommendation
Sell the credits between $2.00 - $2.50 per square foot depending on the amount of credits being purchased, higher rate for less credits and lower rate for large credit purchases making exceptions for credits purchased by a government agency to charge a lower than average rate.