HomeMy WebLinkAboutItem 06.l
Date: October 15, 2018 Item No.
PURCHASE AGREEMENT WITH MARISKA FOR WETLAND BANKING CREDITS
AS PART OF THE 202ND STREET (CSAH 50) RECONSTRUCTION PROJECT
Proposed Action
Staff recommends adoption of the following motion: Move to approve Purchase Agreement with
Thomas and Patricia Mariska for wetland banking credits required with the construction of
County State Aid Highway 50 (202nd Street) from Holyoke Avenue to Cedar Avenue, City Project
15-12.
Overview
The City and County are partnering to reconstruct/widen 202nd Street from Holyoke Avenue to
Cedar Avenue to a 2-lane divided highway to alleviate congestion, make safety improvements
and provide for increasing traffic levels.
The improvements will result in 1.57 acres of permanent wetland impacts and 0.19 acres of
temporary impacts. Wetland mitigation is proposed through a combination of credits from the
Board of Water and Soil Resources (BWSR) Local Road Wetland Replacement Program
(LRWRP) and the purchase of credits via an approved Wetland Bank for impacts not eligible for
the LRWRP program. The Purchase Agreement with Mariska satisfies the City’s requirements
under the Wetland Conservation Act for wetland impacts not eligible for the LRWRP program.
Primary Issues to Consider
• The City is the lead agency for wetland permitting and mitigation required with the
improvements. The County will reimburse the City 55% of the mitigation costs; however,
the City’s share may be capped at 25% of eligible County Costs, consistent with the
approved Joint Powers Agreement for the project.
Supporting Information
• Purchase Agreement
Financial Impact: $31,200.38 Budgeted: Y☒ N☐ Source: State Aid
Related Documents: Joint Powers Agreement (Dakota Contract No. C0029096)
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Alex Jordan, Assistant City Engineer
Page 1 of 3
BWSR Example Purchase Agreement
Updated July 14, 2017
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 _25th_ day of _September_, 2018_ between
Thomas and Patricia Mariska (Seller) and _City of Lakeville_ (Buyer).
1. Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, the wetland banking credits
(Credits) listed below:
2. Seller represents and warrants as follows:
Credits to be Sold
Credit
Subgroup Wetland Type/Plant Community Type Cost per Credit Credit Amounts
B Sedge Meadow 33,000 0.4348
A Shrub Carr 33,000 0.4348
2,503.58
Per Credit Withdrawal Fee by
BSA Enter the Withdrawal Fee
for the BSA of the account:
Total
Cost: 28,696.80 Total
Credits: 0.8696
BSA 1 $520 BSA 6 $1,083 (Withdrawal Fee x total credits)
BSA 2 $371 BSA 7 $1,992 2577 Withdrawal Fee: 2,240.96
BSA 3 $725 BSA 8 $2,577 Easement Stewardship Fee: (Easement Stewardship fee x total credits)
BSA 4 $1,412 BSA 9 $2,628 $302 per credit Stewardship Fee: 262.62
BSA 5 $685 BSA 10 $3,099 Total Fees: 2503.58
BWSR fee policy: http://www.bwsr.state.mn.us/wetlands/wetlandbanking/fee_and_sales_data/Wetland_Banking_Fee_Policy_Effective_June1_2017.pdf
Page 2 of 3
BWSR Example Purchase Agreement
Updated July 14, 2017
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.
3. Buyer will pay Seller a total of $_28,696.80_ for the Credits, as follows:
a) $_1,000.00_ as earnest money, to be paid when this Agreement is signed; and
b) The balance of $_27,696.80_ to be paid on the Closing Date listed below.
4. [ ] Buyer, [ ] Seller agrees to pay to a withdrawal fee of $_2,503.58_ to the State of Minnesota
based on the per credit fee of __2,577.00_for Bank Service Area _8_ and a stewardship fee of $_262.62__
based on the per credit fee of $_302.00__. At the Closing Date, [] Buyer, [ ] Seller will execute a check
made out for this amount, payable to the Board of Water and Soil Resources.
5. The closing of the purchase and sale shall occur on _January 15, 2019_(Closing Date) at Lakeville
City Hall. The Closing Date and location may be changed by written consent of both parties. Upon payment
of the balance of the purchase price, Seller will sign a fully executed Transaction Form to Withdraw Credits
provided by BWSR, provide a copy of the Transaction Form to Withdraw Credits to the Buyer and forward
the same to the BWSR along with the check for the withdrawal fee and stewardship fee.
6. Buyer has applied or will apply to _City of Lakeville_ (Local Government Unit (LGU) or other
regulatory authority) for approval of a replacement plan utilizing the Credits as the means of replacing
impacted wetlands. If the LGU has not approved the Buyer’s application for a replacement plan utilizing the
Credits by the Closing Date, and no postponement of the Closing Date has been agreed to by Buyer and
Seller in writing, then either Buyer or Seller may cancel this Agreement by giving written notice to the other.
In this case, Seller shall return Buyer’s earnest money, and neither Buyer nor Seller shall have any further
obligations under this Agreement. If the LGU has approved the replacement plan and the Seller is ready to
proceed with the sale on the Closing Date, but Buyer fails to proceed, then the Seller may retain the earnest
money as liquidated damages.
Page 3 of 3
BWSR Example Purchase Agreement
Updated July 14, 2017
___________________________________
(Signature of Seller) (Date)
___________________________________
(Signature of Buyer) (Date)
___________________________________
(Signature of Buyer) (Date)