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1 <br /> <br />ECONOMIC DEVELOPMENT ADVISORY COMMITTEE <br />AGENDA ITEM 3B <br /> <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br /> <br />EDAC MEETING DATE: February 6, 2020 <br /> <br />TOPIC : Wetland Bank Credits <br /> <br />BACKGROUND <br /> <br />The Wetland Conservation Act (WCA) requires replacement of any construction related wetland <br />impacts on a per square foot basis. Minnesota's wetland banking program includes both private <br />and state-sponsored wetland banks which have "credits" that are used to offset (mitigate) <br />authorized wetland impacts. The banks are subject to approval of both the Minnesota Board of <br />Water and Soil Resources (BWSR) and the Army Corps of Engineers (ACOE). The City <br />currently has two banks in place. <br /> <br />Bank No. 1122 (Otter Lake) is located east of I-35E and south of CSAH 14. 1.482 acres of <br />credit are available. This bank is not ACOE approved. Credits can only be used for wetland <br />impacts not under ACOE jurisdiction. <br /> <br />Bank No. 1601(Wollan Park) is located west of Lake Drive and north of Main Street. 5.12 acres <br />of ACOE approved credit is currently available in this bank. The bank also includes an <br />additional 1.02 acres of non ACOE credit. <br /> <br />Credits from both these banks are available for sale on the open market, much like a real estate <br />transaction. Typically developers and/or government agencies, that have projects with wetland <br />impacts, purchase the credits to meet mitigation requirements. <br /> <br />The City prepared a Natural Resource Revolving Fund Plan in August of 2017. One of the <br />overall goals of the plan was the establishment of the wetland banks to serve as a funding source <br />to implement the City’s greenway system and assist with economic development projects. <br />Proceeds from any sale are proposed to be used in the following way: <br /> <br />1. Repay establishment costs including restoration activities and monitoring. <br />2. 10% set aside for future maintenance of established banks. <br />3. New land acquisition and restoration. <br /> <br />The City Council has approved two sales in 2020 totaling 1.789 acres for approximately <br />$167,000. These sales have allowed us to recoup our initial investment costs and begin <br />searching for additional bank sites. <br /> <br />Staff is promoting the availability of credits as an economic development tool to aid with new <br />commercial/industrial projects within Lino. Current sale prices have been 1.85 square foot for