Corte Madera Marsh Restoration Project Update
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1 Corte Madera Marsh Restoration Project Update Building and Operating Committee Agenda Item No. 5 August 25, 2016 Photo credit: WRA
2 Background of Site acre parcel carved out of larger property acquired as part of the Larkspur Ferry Landing (LFT) construction. 2. Spoils from the LFT construction in the 1970s deposited on site. 3. Intended to use site as depository for subsequent dredge episodes but other areas were used. 4. Site un-used since that time. pg. 2
3 Outstanding Mitigation Requirements 1. US Army Corps requires District to create 3.5 acres of tidal marsh and 1.6 acres of seasonal wetlands. 2. In 2004, the District was ready to advance a construction project to perform the restoration but the Corps stated the design was not acceptable. 3. District re-evaluated the site and is developing a new project. pg. 3
4 Opportunities for Wetland and Endangered Species Mitigation 1. Instead of creating only 3.5 acres of tidal wetland, a much larger area may be restored. 2. This site was historically tidal marsh and was filled with bay dredge. 3. The topographic elevations within the site are within 0 to 2 feet needed to create tidal marsh and the cost to excavate down to tidal elevations is reasonable. 4. The District received concurrence from the Regional Water Quality Control Board that the soils are suitable for reuse on-site. 5. The restored site would be adjacent to the Corte Madera Ecological Reserve, which has occurrences of Ridgway s rail and Salt marsh harvest mouse, and these species would likely populate the restoration areas. 6. The restored site could also provide essential fish habitat. pg. 4
5 EXISTING SITE CONDITIONS LARKSPUR FERRY TERMINAL DISTRICT OWNED CORTE MADERA MARSH CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE OWNED CORTE MADERA ECOLOGICAL RESERVE (CMER) NORTHERN DRAINAGE CHANNEL EASTERN BERM CORTE MADERA ECOLOGICAL RESERVFE NORTHERN DRAINAGE CHANNEL EASTERN BERM CORTE MADERA ECOLOGICAL RESERVFE NORTHERN BERM SOUTHERN BERM NORTHERN BERM SOUTHERN BERM PROJECT AREA PROJECT AREA WESTERN BERM WESTERN BERM pg. 5
6 Easements and Implications PGE Access Easement PGE has general easement to pass across property to access their transmission lines The easement does not include a specific location The issue was disputed previously when the project was first proposed but not resolved PGE currently uses the southern and eastern berm to access board walks TOWN OF CORTE MADERA DRAINAGE EASEMENT 10 TOWN OF CORTE MADERA PUBLIC ACCESS EASEMENT Note : The PGE Access Easement for Power Lines does not have a specified location. The language of the easement requires access across the Districts property. Town of Corte Madera Public Access Easement Required by BCDC as a permit condition for the creation of the Larkspur Ferry Terminal Located along the southern and eastern berm Limited to 10 wide PGE Overhead Power Lines Town of Corte Madera Drainage Easement Includes northern drainage channel and a small restored tidal marsh Provides connectivity to the Town s storm water management facility Shorebird Marsh Pacific Telephone and Telegraph Easement Unclear who currently holds the easement Not anticipated to constrain the project Sonoma Marin Area Rapid Transit (SMART) Public Access Easement District has a public access easement along the old SMART line Provides public access connections to the project site TOWN OF CORTE MADERA DRAINAGE EASEMENT 10 WIDE PACIFIC TELEPHONE AND TELEGRAPH EASEMENT SMART PUBLIC ACCESS EASEMENT GRANTED TO THE DISTRICT pg. 6
7 Public Access Easement and Liabilities 1. Easement is limited to the southern and eastern berm. 2. Easement does not include the northern boundary of the site and does not include a loop trail. 3. Easement does not include the central areas. 4. District liabilities include: homeless encampments, fire, unauthorized use by dogs off leash, potential adverse effects on endangered species (Ridgway s rail and Salt marsh harvest mouse) District utilizes goats to control pampas grass and cut down grasses, which are a fire hazard Grassland fire attributed to homeless encampments Dogs off-leash have potential to harm Salt marsh harvest mice and Ridgway s rail pg. 7
8 Introduction to Mitigation Banking What is a Mitigation Bank? A property that has preserved and/or restored aquatic resources, sensitive species, and/or sensitive habitats with the intention of selling the ecological value of those resources, represented as credits, to permittees who impact similar resources nearby. Credits $$$ Photo credit: Ashley Zavagno pg. 8
9 What are credits? The unit of measurement used to quantify the functional uplift in the bank property s natural resources gained through restoration/preservation (in CA often 1 credit = 1 acre of preservation or reestablishment) Types and amount of credits are determined by resources protected/restored on the bank property, relative functional uplift of these resources, and agency negotiations pg. 9
10 What is a Single-user Mitigation Bank? Bank sponsor intends to use all mitigation credits to offset impacts from their own projects Bank value is in terms of costs saved Potentially faster timelines to bank entitlement due to fewer unknown factors which can lead to faster agency negotiations pg. 10
11 Benefits of a Single-user Mitigation Bank 1. Avoid credit availability and cost uncertainties - No Essential Fish Habitat Credits available in SF Bay - No tidal wetland bank credits currently available in North Bay - Tidal wetland bank credits in South Bay currently selling for approximately $825,000/credit-acre 2. Obtain mitigation at-cost instead of paying market costs for third party bank credits pg. 11
12 Key Components of a Mitigation Bank Interagency Review Team (IRT) A group of agency representatives who review, comment upon, and ultimately approve a mitigation bank. Typical agencies involved in California include: pg. 12
13 Key Components of a Mitigation Bank Feasibility Study Initial investigation that assesses the biological, regulatory, and financial potential of a property to be developed into a mitigation bank Components that are often assessed: - Existing creditable natural resources (e.g. wetlands, waters, sensitive species) - Potential to restore creditable natural resources - Existing easements, encumbrances, etc. - Market supply and demand for mitigation credits in the region - Potential revenues/costs saved - Water/mineral rights - Potential water or soil contamination from past land uses pg. 13
14 Key Components of a Mitigation Bank Prospectus An initial document presented to the IRT that provides an overview of bank property location, resources, and constraints; conceptual restoration designs; and proposed service area(s) and credits with the purpose of achieving agency buy-in Bank Enabling Instrument (BEI) A legally binding document detailing the establishment, operation, monitoring, and management of the mitigation bank, as well as defining the legal roles and responsibilities of each involved party. pg. 14
15 Key Components of a Mitigation Bank Service Area Defined region surrounding the bank in which credits can be utilized as mitigation for permitted impacts pg. 15
16 What is the process for creating a mitigation bank? Feasibility Study Prospectus Draft Bank Enabling Instrument Final Bank Enabling Instrument Bank Approval CEQA and Permitting/First Credit Release Construction, Monitoring, Management, and Subsequent Credit Releases pg. 16
17 Financial Benefits of the Mitigation Bank Potential Credits Generated Tidal Wetland Credits Seasonal Wetland Credits Ridgway s Rail Salt Marsh Harvest Mouse Essential Fish Habitat 26.8 acres 3.8 acres 56.6 acres 56.6 acres 28.8 acres Note: credits estimates are based on one of several alternative designs that are being considered and the estimated credits have not yet been presented to the regulatory agencies for approval. pg. 17
18 Financial Benefits of the Mitigation Bank Credit Release Schedule Wetlands/Waters Credits 1. 15% - bank establishment 2. 25% - submittal of as-built drawings, 15% of endowment funded 3. 15% - year 2 performance standards met, 40% of Endowment funded 4. 15% - year 3 performance standards met, 70% of endowment funded 5. 15% - year 4 performance standards met, 100% of endowment funded 6. All remaining credits - year 5 performance standards met, submission of a verified Corps delineation Species/Habitat Preservation Credits 1. 15% - bank establishment 2. 25% - 15% of endowment funded 3. 15% - 40% of endowment funded 4. 15% - 70% of endowment funded 5. All remaining credits - 100% of endowment funded pg. 18
19 Financial Benefits of the Mitigation Bank Cost of Developing a Mitigation Bank Entitlement Costs Financial Securities (cashier s check or letter of credit only) Construction Security: 100% of construction costs Performance Security: 20% of the Construction Security or Endowment (whichever is larger) Interim Management Security : amount equal to the cost to implement the Interim Management Plan for 3 years Construction Costs Non-wasting Endowment Fund: covers the long-term management costs of the bank property (can be funded over time, but tied to credit release schedule) pg. 19
20 Financial Benefits of the Mitigation Bank Cost Savings Notes: 1. Estimates for savings, cost, and net savings are based on a preliminary design for the project. Estimates are also based on credit types and amounts, which has not yet been presented to and approved by the regulatory agencies. 2. Estimates are also based on credit types and amounts, which has not yet been presented to and approved by the regulatory agencies Estimates of net savings will be revised throughout the planning, design, and entitlement of the project so the District can make decisions about the project based in this information A detailed presentation and discussion of this information will be provided in a Feasibility Study for the Mitigation Bank, which is being prepared as part of this project This table contains financial information regarding the potential cost savings related to developing a mitigation Mitigation Bank. In this context, the District should note that WRA, Inc. makes no warranty or representation, expressed or implied, as to the completeness and accuracy of the financial information contained herein. The information herein is subject to errors, omissions, changes in price, and changes in economic, financial, or other conditions beyond the control of WRA, Inc. Any person reviewing the information herein acknowledges that he or she is engaging in his or her own independent due diligence investigation and shall hold harmless WRA, Inc., for any statements herein. pg. 20
21 Stakeholder and Public Outreach California Department of Fish and Wildlife (CDFW) Town of Corte Madera Inter-agency Review Team (IRT) Bay Area Conservation Development Commission (BCDC) Marin Audubon Society Public Outreach Program District plans on holding 2 public outreach workshops Provide background information for the project Introduce the restoration project Educate public on the extent and limitations of the existing public access easement Introduce the proposal to relocate and improve the public access easement Collect feedback from public pg. 21
22 Project Schedule Complete Alternatives Analysis and Coordinate with Agencies Complete Final Prospectus 7/11/2017 Complete Draft Bank Enabling Instrument 2/9/2018 Bank Entitlement Obtain Project Permits/First Credit Release 4/9/2018 6/1/2019 Complete Construction 12/15/ /4/2016 pg. 22
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