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e The wetland area on Spectra-Physics' property comprises two separate areas: the Ash Forest (a highly rated wetland) on the western portion of the property, and a grassy wetland on the eastern portion of the property. Mr. Croteau said the fill permit for the site proposes filling the wetland on the eastern side of the property and preserving the Ash Forest. Mr. Croteau said there is a statute requiring that there be no net loss of wetlands, so if the fill application is successful, replacement of the wetlands will occur in an area as close to Spectra-Physics as possible. In addition, mitigation must occur on a non-wetland area, so property will have to be purchased for this purpose. Mr. Croteau said the City will begin working on the Comprehensive Wetlands Management Plan (CWMP) this year when the Spectra-Physics project is complete. He said the study will be a functional plan that will help provide an early identification of wetlands, identify the relative value and functions of wetlands, and recommendations about which of the identified wetlands should be preserved and which should be filled. Mr. Croteau said the study would also make recommendations about replacing those industrially-zoned lands that are to be preserved as wetlands. In addition, staff would like to develop a comprehensive plan for mitigation of filled wetlands. Mr. Croteau said staff will need resources for the development of this plan during the upcoming budget period. Mr. Rutan said he would like the City to take a look at all the possible options and develop a distinct legislative plan for dealing with wetlands issues. He said this could range from refusing to comply with State and e Federal legislation, to proposing changes in the law, to developing a comprehensive plan to meet existing regulations. Mr. Gleason stressed that in order to be effective in analyzing options and focussing staff efforts, it would be important to conduct some basic documentation work. Doug Eveleth, Business Assistance Team, said staff has been focusing much effort on helping Spectra-Physics deal with its wetland issues because Spectra-Physics is so important to the community. He said if Spectra-Physics is not able to expand its operation on site, the company may move out of the community. This could cost a total of 1,250 jobs. Mr. Eveleth said the City is applying for lottery funds to finance a portion of the costs associated with the mitigation site acquisition. If the application is successful, it will require that the City and Spectra-Physics incur debt, that the mitigation site be publicly owned, and that the total project costs be financed by 50 percent grant money and 50 percent loan. Mr. Eveleth said the Oregon Economic Department (OED) has an administrative rule that will not allow money to be spent on off-site public improvements. He said this poses a problem because the proposed mitigation site is not on property owned by Spectra-PhysiCS. He said the City has sent a statement to the OED supporting the off-site mitigation. The Attorney General is currently reviewing the case; if he decides in the City's favor, the City will receive the $120,000 grant. e MINUTES--Eugene City Council October 10, 1988 Page 3