Admin Order 58-21-02-F -- Wetland Mitigation Bank Fees

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Exhibit B to Administrative Order No. 58-21-02-F Findings – Page 2 increased to the current amount of $62,540/credit over the last eight years. (c) The full costs of providing the service supported by the fee. Findings: The cost of providing credits for compensatory mitigation is based on several factors including the following:  Restoration Costs – calculated as the sum of all anticipated costs for a new mitigation bank including project design and engineering, construction, planting, wildlife hazard mitigation (due to proximity of the Eugene Airport), a portion of salaries funded by the mitigation bank, monitoring, reporting, and maintenance for up to eight years of project implementation.  Cost of Future Acquisition – to purchase additional property that will sustain our award- winning program into the future.  Long-Term stewardship costs – Thirty percent of Restoration Costs received from the sale of mitigation credits will be retained for future management of the Amazon Prairie Mitigation Bank.  Administrative Costs – for marketing, contracting, and program coordination. Cost Description Estimate Restoration Costs $4,280,682 Future Acquisition $1,625,000 Long-Term Management $1,284,205 Administrative Costs $718,989 TOTAL $7,908,876 The values in the above table were calculated using a formula provided by the Department of State Lands for determining credit prices. The draft Mitigation Bank Instrument submitted to the Department of State Lands and the Army Corps of Engineers in February 2020 provides an estimate of 94 mitigation credits to be generated by the Amazon Prairie Mitigation Bank. Detailed calculations for these estimates are retained in program files. The full cost per credit, based on the figures above is estimated to be $84,200.00. (d) The amounts charged by other comparable providers. Findings: DSL reports the average weighted statewide price per mitigation credit for FY 2017 as $97,340. The price per credit at the mitigation banks closest to Portland was about three times the price as elsewhere in the Willamette Valley. Mitigation banks located in the mid-Willamette Valley have set current per credit costs in the $80,000 to $85,000 range. In comparison, our current fee structure places the cost of mitigation credits at approximately $20,000 below the fees set by other mitigation banks in our region. In a best-case scenario our fee structure would be responsive to several factors including the costs outlined above plus regional market costs for credits.