HomeMy WebLinkAboutItem 06.r
Date: March 18, 2019 Item No.
PURCHASE AGREEMENT WITH WETLAND CREDIT AGENCY FOR WETLAND
BANKING CREDITS FOR THE 202ND STREET (CSAH 50) RECONSTRUCTION PROJECT
Proposed Action
Staff recommends adoption of the following motion: Move to approve Purchase Agreement with
Wetland Credit Agency, LLC/Sorenson 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’ Local Road Wetland
Replacement Program (LRWRP) and an authorized wetland bank for impacts ineligible under
the LRWRP program. The Purchase Agreement with Wetland Credit Agency satisfies Wetland
Conservation Act requirements for wetland impacts ineligible under the LRWRP program.
Primary Issues to Consider
• The City is the lead agency for wetland permitting and mitigation. The County will
reimburse the City 55% of the costs; however, the City’s share may be capped at 25% of
eligible County Costs per the project’s Joint Powers Agreement.
• The City Council approved a Purchase Agreement with Mariska on October 15, 2018 –
Mariska has since voided the agreement. The Purchase Agreement with Wetland Credit
Agency replaces the voided Mariska Purchase Agreement and results in savings of $2,609
because of reduced unit rates.
Supporting Information
• Purchase Agreement
Financial Impact: $28,591.58 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
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Wetland Credit Agency, LLC w 12940 Overlook Road, Dayton, MN 55327 w 612-360-4700
V2.3_09-30-18
PURCHASE AGREEMENT
FOR WETLAND BANKING CREDITS
THIS AGREEMENT (Agreement) is made this 18th day of March, 2019 between the “Wetland
Credit Agency, LLC/Sorenson” (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:
CREDITS TO BE SOLD
Credit
Sub-
Group¹
Acres
Wetland
Circ. 39
Type²
Plant Community Type3 Cost per
Acre
Account
Number Total
A. -- -- -- -- -- --
B. -- -- -- -- -- --
C. 0.8696 4 deep marsh $30,000.00 1541 $26,088.00
D. -- -- -- -- -- --
E. -- -- -- -- -- --
Total 0.8696 $26,088.00
Check here if additional credit sub-groups are part of this account and are listed on an attachment to this document.
¹A separate credit sub-group shall be established for each wetland or wetland area that has different wetland characteristics.
²Circular 39 types: 1, 1L, 2, 3, 4, 5, 6, 7, 8, B, U.
3Wetland plant community type: shallow open water, deep marsh, shallow marsh, sedge meadow, fresh meadow, wet to wet-
mesic prairie, calcareous fen, open bog or coniferous bog, shrub-carr/alder thicket, hardwood swamp or coniferous swamp,
floodplain forest, seasonally flooded basin. See Wetland Plants and Plant Communities of Minnesota and Wisconsin (Eggers
and Reed, 1997) as modified by the Board of Water and Soil Resources, United States Army Corps of Engineers.
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.
3.Buyer will pay Seller a total of $26,088.00 for the Credits, as follows:
a)$0 as earnest money, to be paid when this Agreement is signed; and
b)The balance of $26,088.00 to be paid on or before the Closing Date listed below.
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Wetland Credit Agency, LLC w 12940 Overlook Road, Dayton, MN 55327 w 612-360-4700
V2.3_09-30-18
4. In addition to the Credit fees in paragraph 3, Buyer agrees to pay to Seller the Withdrawal Fee
and Easement Stewardship Fee totaling $2,503.58 for BWSR based upon the 2017 BWSR Fee Schedule
to be paid at closing. At closing, Seller will execute a check made out for this amount, payable to
BWSR.
5. The closing of the purchase and sale shall occur on or before April 12th, 2019 (Closing Date).
The Closing Date 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 for the Withdrawal of Credits
(Transaction Form) in the form specified by BWSR, and forward the same to BWSR along with a check
for the withdrawal fee.
6. Buyer shall apply to the appropriate Local Government Unit (LGU) and the US Army Corps of
Engineers for approval of a replacement plan utilizing the Credits as the means of replacing impacted
wetlands. If the Local Government Unit (LGU) and/or the US Army Corps of Engineers 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 and/or the US Army Corps of Engineers 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.
7. Buyer agrees that Agreement is not valid until a signed copy is provided to Seller. If Buyer has
not forwarded a signed copy to Seller within 14 days after date signed by Seller, Agreement is null and
void and neither Buyer nor Seller shall have any further obligations under this Agreement.
___________________________________ ___________________________________
(Signature of Seller) (Date) (Signature of Buyer) (Date)
03/13/2019