ITEM 4.3 Wetland Banking Creditsdo
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DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Public Works
City Engineer Wagner
March 12, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
Public Works
City Administrator / Finance Director Flaherty
4.3
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends that the City Council authorize City staff to enter into a Wetland Banking Credits
Purchase Agreement for the 85th Street and MacIver Avenue project not to exceed $250,000.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/J USTI FICATION:
The 85th Street and Maciver Avenue project will fill or adversely affect approximately 1.25 acres of wetland
along the 2+ miles of newly constructed street. The City must acquire by purchase wetland credits to
mitigate adverse effects. In order to meet the project timeline, the City must complete the wetland
applications at least 60 days prior to work starting. In order to meet the project timeline, the City must
complete the wetland applications at least 60 days prior to work starting. With a mid-May to early June
start of the project anticipated, the City must enter into an agreement to purchase needed wetland bank
credits very soon so that the wetland application review process can begin.
Approved BWSR wetland bank can be difficult to come by, and prices range drastically from around $1.50
up to $2.25 per square foot. City staff has been in discussions with a wetland broker who may have
wetland bank available early next week at around $1.50 per square foot. City staff would like to be able to
proceed with a purchase agreement if that becomes available.
Costs for wetland bank are State Aid eligible. Attached is a completed purchase agreement form indicating
the amount of bank required and the total amount based on $1.50 per square foot. City Attorney
MacArthur will provide for any necessary changes and approval prior to final execution. The Purchase
Agreement will be modified in accordance with Project and State Aid requirements and may be modified
for contingencies. The form Agreement is contingent upon final wetland mitigation approval and final
project approval and can be cancelled by the City in the event this project does not go forward.
SUPPORTING DOCUMENTS ATTACHED:
• Draft Purchase Agreement for BWSR approved Wetland Bank for 85th St/Maciver Ave Project
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to authorize the City Administrator to execute a Wetland Banking Credits Purchase Agreement for
the 85th Street and Maciver Avenue project, not to exceed $250,000.00, and further subject to the City
Attorney approval of the respective agreement.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund #403 — Municipal State Aid for Construction I Yes
The following is a sample of a possible Purchase Agreement for the sale of Wetland Banking Credits.
This Purchase Agreement does not necessarily cover all of the issues that would be important to Sellers
and Buyers, nor does it address the terms that would be appropriate for any particular transaction.
Sellers and Buyers should obtain the services of qualified legal counsel to adapt this Purchase Agreement
to meet their specific needs.
PURCHASE AGREEMENT
FOR
WETLAND BANKING CREDITS
THIS AGREEMENT is made this _13_ day of —March—, 2018_
Eric Trelstad (Seller) and
1. Seller agrees to sell to Buyer, and Buyer
(Credits) listed below:
(Buyer).
.ler, the wetland banking credits
2. Seller represents and warrants as follows:
a) The Credits are deposited in an account in the Minnesota Wetland Bank administered by the
Minnesota Board of Water and Soil Resources (BWSR) pursuant to Minn. Rules Chapter
8420.0700-.0760.
b) Seller owns the Credits and has the right to sell the Credits to Buyer.
85th Street Purchase Agreement Draft
Page 1 of 2
Credits to be Sold
Credit
Wetland Type/Plant Community Type
Cost per Credit
Credit Amounts
Subgroup
Type 2
Wet Meadow
$65,475
2.50 ac
Per Credit Withdrawal Fee by
Enter the Withdrawal Fee
Total
$163,687.50
Total
2.50
;BSA
for the BSA of the account:
Cost
Credits•
'
BSA 1 $520
BSA 6 $1,083
Vithdratival Fee x total credits)
BSA 2 $371
BSA 7 $1,992 $1,992'per credit
Withdrawal Feet
$4,980
BSA 3 $725
BSA 8 $2,577 Easement Stewardship Fee:
Easement.Stewardsh7 fee x total credits)
BSA 4 $1,412
BSA 9 $2,628 $302 per credit
Stewardship Fee:
$755
BSA 5 $685
BSA 10 ,$3,099
Total Fees:
$5,735
BWSR feepolicy:
l,ttn'/hvww.bwsrstateninais/Nvetiands/NvetlandbankinUfee and sales dataMetland Banking Fee Policy
Effective Junel 2017.odf
2. Seller represents and warrants as follows:
a) The Credits are deposited in an account in the Minnesota Wetland Bank administered by the
Minnesota Board of Water and Soil Resources (BWSR) pursuant to Minn. Rules Chapter
8420.0700-.0760.
b) Seller owns the Credits and has the right to sell the Credits to Buyer.
85th Street Purchase Agreement Draft
Page 1 of 2
3. Buyer will pay Seller a total of $J163,687.50` for the Credits, as follows:
a) $1,000_ as earnest money, to be paid when this Agreement is signed; and
b) The balance of $ 162,687.50 to be paid on the Closing Date listed below.
4. [® ] Buyer, [❑ ] Seller agrees to pay to a withdrawal fee c
based on the per credit fee of_$1,992_for Bank Service Area 7
on the per credit fee of $ 302 . At the Closing Date,, [®] Buyer,
for this amount, payable to the Board of Water and Soil Resources,
5. The closing of the purchase and sale shall occur on May 1
The Closing Date and location may be changed by written consent
balance of the purchase price, Seller will sign a fully executed Trar
provided by BWSR, provide a copy of the Transaction Form to Wi
the same to the BWSR alone with the check for the withdrawal fee
6. Buyer has applied or
regulatory authority) for approval of a r
impacted wetlands. If the LGU has not
Credits by the Closing Date, and no po,,
Seller in writing, then either Buyer or S
In this case, Seller shall return Buyer's
obligations under this
proceed with the sale on the
money as liquidated damages.
,735_ to the State of Minnesota
a stewardship fee of $_755_ based
Her will execute a check made out
2018_(Closing Date) at 10 AM—.
both parties. Upon payment of the
,tion Form to Withdraw Credits
Credits to the Buyer and forward
wardship fee.
:)f Otsego_ (Local Government Unit (LGU) or other
it plan utilizing the Credits as the means of replacing
the Buyer's application for a replacement plan utilizing the
of the Closing Date has been agreed to by Buyer and
may cancel this Agreement by giving written notice to the other.
.st money, and neither Buyer nor Seller shall have any further
'the LGU has approved the replacement plan and the Seller is ready to
Date, but Buyer fails to proceed, then the Seller may retain the earnest
(Signature of Seller) (Date)
Adam Flaherty
City Administrator
85th Street Purchase Agreement Draft
Page 2 of 2
(Date)