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HomeMy WebLinkAbout2020-009 Council ResolutionCITY OF LINO LAKES RESOLUTION NO. 20-09 AUTHORIZING SALE OF WETLAND CREDITS FENWAY LAND CO. 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 .7752 credits from the Otter Lake Wetland Bank (BWSR Acct. 1122) in the amount of $62,470.26, and WHEREAS, The City has received a request for the purchase of .3062 credits from the Wollan Park Wetland Bank (BWSR Acct. 1601) in the amount of $31,344.47, 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 Fenway Land Co., in the amount of $93,914.74 for purchase of 1.0814 acres of wetland credit. The price may be adjusted to reflect the final approved credit amount determined by the RCWD and ACOE. BE IT FURTHER RESOLVED that Fenway Land Co., shall be responsible for payment of the withdrawal and stewardship fees associated with said transaction. Adopted by the Council of the City of Lino Lakes this 27th day of January, 2020. The motion for the adoption of the foregoing resolution was introduced by Council Member Stoesz and was duly seconded by Council Member LydE,n and upon vote being taken thereon, the following voted in favor thereof: Stoesz, Lyden, Rafferty The following voted against same: none (Absent — Ruhland) ATTEST: Ju is e Bartell, Ci , Cler CITY COUNCIL AGENDA ITEM 6D STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: January 27, 2020 TOPIC: Consider Resolution No. 20-09, Approving Sale of Wetland Bank Credits, Fenway Land Co. VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council consideration to approve the sale of .7752 acres of wetland credit from bank 1122 (Otter Lake) and .3062 acres of wetland credit from bank 1601 (Wollan Park) for a total purchase price of $93,814.74. 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. Staff has received a request to purchase wetland credits from Fenway Land Co. The acquisition is intended to mitigate potential wetland impacts related to a pending residential development in a neighboring city. 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. The buyer is requesting purchase of .7752 acre credits from this bank at the price of $1.85 square foot ($62,470.26). The buyer is requesting purchase of .3062 acre credits at $2.35 a square foot ($31,344.47). ACOE certified credits have a higher value in the market which addresses the $.50 square foot price difference. RECOMMENDATION This would be the first credit sale from the Otter Lake bank and second from Wollan Park. Sale of the credits will be used to reimburse the Surface Water Management fund for bank establishment costs. With this sale the city will be close to recouping its initial investment in the wetland banks. Staff anticipates adjusting the price for future sales upward. Staff is recommending approval of Resolution No. 20-09. ATTACHMENTS 1. Resolution No 20-09 2. Bank Location Map •11.1a .111.1 Lino Lakes Existing Wetland Bank -�, Figure 5: Existing Wetland Bank Locations Natural Resources RevolvingFund Plan N 0 1 T Y ;''"""�qy;t:` O F A INQL� KES City of Lino Lakes Miles I� f� VL.I 1 inch = 1 miles