Council funds for wetlands credit aid East Flower Lane housing plan

The Worthington City Council on Tuesday committed funds to reimburse the developer of the new apartments planned for Flower Lane for the required purchase of wetland credits.

Kuepers Architects and Builders intends to build a market rate rental housing development in which the first phase includes two 38-unit apartment buildings, with future plans for three additional buildings. The firm undertook a wetland delineation study of the project site that determined that approximately 1.11 acres planned for building and roadway sites are classified as Type 1, 2 or 3 wetlands. Mitigation of the wetlands may be accomplished by buying wetland credits on the basis of two credit acres for each wetland acre. 

The estimated cost for 2.22 acres of wetland credits is $155,400 plus engineering and administrative fees. The city council established a Spending Plan in December 2022 by transferring $2,329,478 of unobligated TIF 7 funds to the plan. Funds in the Spending Plan are authorized to provide assistance to private housing development. The Spending Plan currently has $1,000,000 in uncommitted funds that may be directed to assist Kuepers and the city in mitigating the wetlands identified.

Council members on Tuesday unanimously approved committing Spending Plan funds to reimburse the developer for wetland mitigation in both the building and right-of-way sites. The estimated cost is $155,400 plus reimbursable expenses. 

In other council Tuesday pertaining to East Flower Lane, the council approved plans and specifications for the East Flower Lane Street and Utility Improvement Project and authorized the advertisement for bids. Bids will be received until 2 p.m. June 18 and brought forward for consideration of award at the June 23 council meeting.

Among other Tuesday business, the council approved the appointment of Craig Stock to a first three-year term on the Planning Commission. It also approved the appointment of Brian Larsen to a three-year-term on the Airport Advisory Board, and Andrew Dorsey to fill the unexpired term of Chad Jaycox on that same board.

Additionally, council members authorized the signing an extension for a loan agreement related to financing improvements to the municipal wastewater treatment plant.

The city and Minnesota Public Facilities Authority first entered into the loan agreement in August 2021. The agreement made up to $30,322,821 available at 1% interest for a 20-year term. Under the terms of the agreement, all project related expenses incurred prior to June 30, 2025, were eligible for reimbursement from loan proceeds. 

Worthington Public Utilities staff was recently contacted by PFA staff inquiring whether Worthington was interested in extending the current June 30, 2025, deadline for eligible expenses to June 30, 2026. This extension would not have any impact on the loan maturity date of Aug. 20, 2041.

The council Tuesday also approved a grant agreement following the awarding of $1 million in Active Transportation (AT) funding from the State of Minnesota for the East Okabena Lake Trail Project. Also approved was a $50,000 purchase agreement for land at 2221 Oxford St. that will accommodate the city's Service Drive/Service Road Utility and Street Improvement Project.