HomeMy WebLinkAbout2020-001 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 20-01
AUTHORIZING SALE OF WETLAND CREDITS
BL HOLDINGS, LLC
WHEREAS, The City has established a wetland bank to preserve and restore open space and to
mitigate the local impacts to wetlands associated with public and private development
improvements; and
WHEREAS, The City has received a request for the purchase of .7076 credits from the Wollan
Park Wetland Bank (BWSR Acct. 1601) in the amount of $72.43.18. and
WHEREAS, The City Council finds it is in the best interests of the City to make such credit
sale;
NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes that
staff is authorized to enter into a purchase agreement with BL Holdings, Inc., in the amount of
$72,434.18 for purchase of .7076 wetland credits.
BE IT FURTHER RESOLVED that BL Holdings, LLC shall be responsible for payment of the
withdrawal and stewardship fees associate with said transaction.
Adopted by the Council of the City of Lino Lakes this 13th day of January, 2020.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Lyden and was duly seconded by Council Member Ruhland and upon
vote being taken thereon, the following voted in favor thereof:
Lyden, Ruhland, Stoesz, Rafferty
The following voted against same:
none
e •11491-te
afferty, Mayor
ATTEST:
ne Bartell, Cit Clerk
CITY COUNCIL
AGENDA ITEM 6B
STAFF ORIGINATOR: Michael Grochala, Community Development Director
MEETING DATE: January 13, 2020
TOPIC: Consider Resolution No. 20-01, Approving Sale of Wetland Bank
Credits. Wollan Park
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is requesting City Council consideration to approve the sale of .7076 acres (30,823.06
Square Feet) of wetland bank credits.
BACKGROUND
The Wetland Conservation Act (WCA) requires replacement of any construction related
wetland impacts on a per square foot basis. Minnesota's wetland banking program includes
both private and state -sponsored wetland banks which have "credits" that are used to offset
(mitigate) authorized wetland impacts. The banks are subject to approval of both the Minnesota
Board of Water and Soil Resources (BWSR) and the Army Corps of Engineers (ACOE). The
City currently has two banks in place.
Bank No. 1122 (Otter Lake) is located east of I-35E and south of CSAH 14. 1.482 acres of
credit are available. This bank is not ACOE approved. Credits can only be used for wetland
impacts not under ACOE jurisdiction.
Bank No. 1601(Wollan Park) is located west of Lake Drive and north of Main Street. 5.12
acres of ACOE approved credit is currently available in this bank. The bank also includes an
additional 1.02 acres of non ACOE credit.
Credits from both these banks are available for sale on the open market, much like a real estate
transaction. Typically developers and/or government agencies, that have projects with wetland
impacts, purchase the credits to meet mitigation requirements.
The City prepared a Natural Resource Revolving Fund Plan in August of 2017. One of the
overall goals of the plan was the establishment of the wetland banks to serve as a funding
source to implement the City's greenway system and assist with economic development
projects. Proceeds from any sale are proposed to be used in the following way:
1. Repay establishment costs including restoration activities and monitoring.
2. 10% set aside for future maintenance of established banks.
3. New land acquisition and restoration.
Staff has received a request to purchase .7076 acres at a price of $72.434.18 ($2.35 per square
foot) from BL Holdings, LLC. The acquisition is intended to mitigate potential wetland
impacts related to a pending residential development in Lino Lakes along 20th Avenue. The
purchase agreement provides for the sale of credits subject to approval of the wetland
mitigation plan by the Rice Creek Watershed District and the Army Corps of Engineers.
Sale of the credits does not obligate the City to approve any development proposal.
RECOMMENDATION
Credit pricing fluctuates based on several factors including development activity. size of credit
acquisition, and credit availability. While the City has received several inquiries over the past
year we have not previously reached agreement on a sale price. This would be the first credit
sale from the Wollan Park bank. Sale of the credits will be used to reimburse the Surface
Water Management fund for bank establishment costs.
Staff is recommending approval of Resolution No. 20-01.
ATTACHMENTS
1. Resolution No 20-01