It seems to be a “chicken or egg” scenario with mitigating wetlands in a local foreign trade zone.

While several Koochiching Economic Development Authority Board members indicated excitement to move forward in the process of mitigating wetlands in the FTZ near Ranier, officials involved in the process noted they may find hesitation by the U.S. Army Corps of Engineers if they try to move the process forward without a project.

However, during the November KEDA meeting, the board heard from Jim Theusch, a site selection expert who worked for Target Corps., who told the group they should get the site as close to ready for development as possible.

Having unmitigated wetlands is an impediment companies seeking a site may view negatively, Theusch said.

“This is another reason why development up here is hard,” KEDA Director Paul Nevanen said.

But Justin Berg, district technician for the county Soil and Water Conservation District, said in his experience the Corps wants to see what the land would be used for before approving mitigation.

Berg and Dave Serrano, of Arro of the North, discussed the acreage available for wetland credits. Thirteen acres are available at Dunnick Lake near Big Falls, and an additional approximate 72 acres are expected to be available through Bruce Hasbargen’s property near Clemetson in 2011.

Berg said the process for private landowners to make their acreage available for wetland credits is intimidating and often consultants are recommended to complete the paperwork.

Serrano explained that the white cedar initiatives the county has been investigating could also be used to replace wetlands in places like the foreign trade zone. However, one acre of wetlands would likely need to be replaced with about 8 acres of white cedar property, he said.

The process is also tricky because key staff at the Minnesota Board of Water and Soil Resources and the Army Corps have changed positions and the new relationship between local officials and the organizations needs to be nurtured. In addition, definitions of what can be included in wetland mitigation change, Serrano said, making it difficult to keep up with the process.

Berg said two 80-acre sites, or up to 20 acres of wetland credits, could be available through the white cedar program as early as next spring.

“The next step is to sit down with the Army Corps and work something out ... to have a complete application,” Serrano said.

The county will continue to administer the Wetland Conservation Act requirements for the area. The foreign trade zone was in October annexed into the city of Ranier. The area is managed by the KEDA and jointly owned by International Falls and Koochiching County.

Nevanen said that the initial target area is Lots 1-4 in the FTZ, leaving a “buffer” at the north and south side of the property, where the majority of wetlands are located.

Lots 1-4 include about 12 acres of wetlands to be mitigated, he explained.

Serrano said that if a project requiring mitigation came forward, the approval process could be completed in as little as 90 days.

County Commissioner Mike Hanson did some quick math and said that if costs for mitigating were at the low end of 30-cents per square foot, the project could total in excess of $200,000.

In addition to the FTZ, other projects, such as a relocation of the hospital and nursing home to Keenan Drive, may also be looking to mitigate wetlands in the county.

The discussion of wetland mitigation is part of an overall site-readiness plan by the KEDA to prepare the FTZ for potential development. The KEDA has also discussed bidding for rock blasting and crushing, as well as clearing and grubbing trees on the site.

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