Consider Plan for Potential Soil Import to the COR

As development of the COR was taking shape, the mass grading activities initiated by the former developer (RTC LLC) were not completed when the project went into foreclosure.  As it currently stands the project is approximately 300,000 cubic yards (CY) of material short to complete the original mass grading plan.  Whenever City projects are initiated the specifications always require that all excess material will be hauled to the COR for future use as opposed to allowing the contractor to assume ownership.  To date thousands of CY have been imported and stockpiled on the site, but we are still a long way away from balancing the project.  If we intend to sell property in a "pad ready" condition it would require the City to undertake the mass grading operations of a particular site(s), but if we plan to sell property as is, it would require the developer to evaluate the site and perform whatever improvements are necessary to implement the project.  My guess is that we may sell land under both scenarios, depending on the proposal(s) presented.

 

Last year staff reviewed the potential to solve two COR issues (wetland mitigation and a mass grading balance) simultaneously by investigating the opportunity to develop wetland mitigation on some vacant land adjacent to the newly constructed water tower #3 near Elmcrest Park.  There currently exists undeveloped land in this location, which was recently platted as ELMCREST SANCTUARY, that has a large wetland complex on portions of the site.  The property owner, Oakwood Land Development, inquired whether the City would be interested in acquiring the land, initiating a wetland creation project to enhance and expand the existing wetlands to create banking credits that could be used for the existing COR mitigation permit, and exporting excess soils from the site to the COR.  Due to the unknown nature of the constantly evolving COR development this matter was tabled pending quantification of final wetland impacts within the COR, evaluation of how much new wetland could be created on this undeveloped site, and cost considerations for implementing such a potential mitigation option.

 

Oakwood Land Development has decided that there may be a market for wetland credits, and is considering undertaking wetland creation on the ELMCREST SANCTUARY site.  They are currently evaluating the process to advance this project to determine whether such wetland creation and banking would be financially feasible.  They have submitted the attached letter requesting feedback on the City's level of interest to purchase excess material that will be generated as part of their project.  They are requesting that the City consider purchasing approximately 50,000 to 80,000 CY of suitable soils for import to the COR at an estimated cost of $6 per CY, which costs would include excavation, trucking, and compaction.  If this request seems reasonable and the City chooses to continue the dialogue on this matter there would need to be coordination between Oakwood and the City to determine a desired grading plan that could be implemented through this process.  Grading activities would require an Interim Use Permit with the City, independent of any other required permitting on behalf of the developer for their wetland banking creation (LRRWMO/WCA requirements).

 

Other sources of on-site material have been discussed to solve the soil shortage within the COR, including Lake Ramsey, and it is currently unknown how land will be subdivided and developed within the west side of this development so it may be premature to consider such a request at this time.  Oakwood is merely trying to guage the City's interest in such a partnership so they can fully evaluate their budget to determine whether their potential mitigation project is financially feasible.  Depending on development proposals that come forward in the near future for the COR, the timing may work out for the creation of "pad ready" sites that would fall in line with Oakwood's schedule (tentatively summer of this year).

The cost of import material to complete the mass grading activities of the original development plan were contemplated in the dashboard for the COR, with financing to come from future land sales.

Based upon discussion