The Banking Development Process
Bank Development Process
SUMMARY
Diversified Habitats working in conjunction with the U.S. Army Corps of Engineers and other public agencies develops wetland mitigation sites that are acceptable to the Corps. Wetland credits from the bank are exchanged for wetland impacts at other development sites. Credits are granted by the Corps for wetland creation and enhancement. Development plans are reviewed by the agencies and the public. A final revised plan incorporating the input is then developed and final approval obtained by the Corps. The Corps may allow credits to be allocated from the site on a limited basis prior to plan approval provided deed restrictions, water and a construction bond is obtained for the site. Construction normally begins immediately following plan approval. Credits are then allocated as the project meets its enhancement objectives. Project monitoring and maintenance continues for a five year period. At the end of five years (sooner if the site meets its objectives earlier) the site is transferred to The Nature Conservancy (TNC) for perpetual maintenance. At the time of final transfer an endowment may be granted to TNC to maintain the project in perpetuity.
Diversified Habitats is responsible for developing the site plans and documents, gaining Corps approval, constructing wetland improvements, reporting to the Corps and administering the sale and financial transactions of the bank.
WETLAND MITIGATION PROCESS SUMMARY
- Diversified Habitats working in conjunction with the U.S. Army Corps of Engineers and other public agencies develops wetland mitigation sites. DH operates the only private wetland bank in Utah and one of only a few in the US. Wetland credits from the bank are exchanged for wetland impacts at other development sites.
- Credits are granted by the Corps for creation of new wetlands and enhancement of existing wetlands.Credits are created in advance or concurrently with the impacts and avoid typical project delays that occur while attempting to determine appropriate compensation. Credits are then sold to developers that need to impact wetlands on development sites.
- At the end of the initial monitoring period the site will be transferred to The Nature Conservancy (TNC) or other conservation agency for perpetual maintenance. At the time of final transfer an endowment may be granted to maintain the project as wetlands in perpetuity.
- The service area for the mitigation bank provided is Davis, Salt Lake, Weber, Box Elder and Tooele Counties. Wetland credits are currently available in the mudflat/playa, emergent marsh and wet meadow wetland types. The mitigation sites are located in Syracuse, Davis County and Salt Lake County near Great Salt Lake. Credits at the first 56 acre site are completely sold out. Currently, credits are being developed to mitigate over 140 acres of wetlands.
- The mitigation bank creates the opportunity to develop a comprehensive plan for one large, more easily managed mitigation site. The process of permit review is expedited for the applicant once compliance with regulations has been established. By use of the bank the permit process is streamlined for both the Corps and the permittee.
- The overall wetland values at the mitigation site are improved by joining a large block of land along Great Salt Lake that will receive heavier wildlife use than current isolated wetlands.
- DH assumes all permit responsibility for maintenance and management of the wetland mitigation site and the permittee has no further obligation.
WETLAND MITIGATION BANK DEVELOPMENT PROCESS
Diversified Habitats (DH) creates and enhances wetlands under the terms of the Memorandum of Agreement between DH, US Army Corps of Engineers (COE), US Environmental Protection Agency, US Fish and Wildlife Service and Utah Division of Wildlife Resources. The purpose of these projects is to provide wetland compensation for unavoidable losses of wetlands in Davis, Salt Lake, Weber, Box Elder and Tooele Counties. The mitigation sites are located in Salt Lake and Davis Counties adjacent to Great Salt Lake and other wetland preserves. The sites provide in-kind mitigation as compensation for the loss of wetlands at development sites. The determination of areas eligible for mitigation at the bank site is made by the US Army Corps of Engineers under Section 404(b)(1) guidelines of the Clean Water Act. Areas eligible for mitigation usually consist of small (less than 3 acres) isolated wetlands with low values for wildlife, water quality and aesthetics. The mitigation bank does not eliminate or modify the requirement of the applicant to consider alternatives for avoiding and minimizing impacts on site.
Compensatory mitigation is defined as off-site acquisition, creation, restoration, enhancement and maintenance of wetlands at sites approved by COE for the express purpose of compensating for unavoidable wetland losses associated with development actions. The bank serves to offset losses caused by activities that otherwise comply with federal, state and local requirements.
The goals of the mitigation bank are to:- Allow for mitigation of unavoidable impacts to wetlands.
- Create the opportunity to develop a comprehensive plan for several projects with minor impacts to wetlands.
- Create the opportunity for one large, more easily managed mitigation site.
- Expedite permit review once compliance with regulations has been established and avoidance and minimization of impacts has been addressed.
- Provide effective compensation for development activities by creating a functionally intact mitigation site subject to consensus approval by COE, interested agencies and the public.
- The mitigation sites developed by DH include 56 and 48 acre sites in Davis County and 148 acres in Salt Lake County all located near Great Salt Lake. The sites include uplands as well as some areas of high quality wetlands and wetlands that have been degraded. The development plans include restoration of degraded wetlands, improvement of upland areas, creation of new wetland areas and enhancement of existing wetlands within the project site. Wildlife use of the site may have been limited in the past by livestock grazing and poor water distribution. The sites are an integral part of the wetland ecosystem located on the eastern and southern shores of Great Salt Lake.
MITIGATION SITE IMPROVEMENTS
Construction on the mitigation sites consists of improving the water distribution systems, fencing to limit livestock grazing and establishing a permanent water supply. Water for the projects is provided by existing water rights for the property. The projects are designed to provide a high degree of stability to the restored wetland while minimizing long-term maintenance and management requirements.
Wildlife investigations are completed by a Wildlife Biologist to evaluate the existing and future wildlife values at the site. Credits are established based on the improvement of the wetland functions and values at the site. These credits are allocated to those requiring off-site mitigation.
WETLAND MANAGEMENT
Management and maintenance responsibility for the sites is by DH until the improvements on the site are established. DH is assisted in management by the Mitigation Bank Review Team (MBRT) consisting of a representative from COE, EPA, Utah Division of Wildlife Resources and US Fish and Wildlife Service. All management decisions are subject to ultimate approval by COE.
The land developed for the wetland mitigation site is transferred to TNC following site establishment and allocation of wetland credits. All agreements related to site management, water use and long term maintenance are transferred to TNC.
WETLAND MONITORING
Monitoring is conducted on the projects for a period of five years from the date of approval. At the end of five years, a monitoring report is prepared to determine if additional measures and/or monitoring is required. The purpose of monitoring is to ensure that the project is meeting management objectives and that required maintenance is conducted to enable long term success of the projects. DH monitors the projects for proper water distribution, vegetation establishment, weed invasion, wildlife, and maintenance of the installed structures.
MITIGATION CREDIT AND ACCOUNTING
DH provides to the Corps a map identifying areas of the site allocated, total credits allocated, credits remaining and wetland type for each project approved for off-site mitigation that is permitted into the mitigation bank site. The site map and summary includes all credits allocated to date. An annual report including a summary map, credits allocated, wetland types and credits remaining will be submitted to COE with the annual site report.
FINANCIAL ASSURANCE
DH posts a performance bond naming COE as beneficiary in an amount sufficient to cover the costs of site construction, annual monitoring, maintenance and water costs for a period of five years.
HABITAT UNITS
The review of the site and determination of the credits available for sale is made by a site evaluation conducted by a wildlife biologist. This specialist determines the increase in habitat units based on improvements at the mitigation site. A habitat unit is a wildlife usage equivalent that compares the current and expected future condition of the site. DH then exchanges equivalent habitat units with those requiring mitigation.
For more Information Contact Jim Paraskeva or Mike Brodsky at (801)281-2225