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WETLAND MITIGATION BANK AGREEMENT AND PROPOSED ACCEPTANCE OF REAL ESTATE DONATION
Department(s): Department of Resource Management
Vendor: HGS, LLC D/B/A RES Environmental Operating Company, LLC, Bellaire, Texas
Request: Authorization for the Forest Preserves of Cook County (the “Forest Preserves”) to enter into and execute
Good(s) or Service(s): Agreement for HGS, LLC to develop, manage and maintain a wetland mitigation bank on Forest Preserves property in unincorporated Cook County near Sauk Village, and authorization for the Forest Preserves to accept donated property from HGS, LLC with a corresponding deed restriction or similar instrument.
Contract Value: Not to exceed $10,000.00 in miscellaneous real estate fees, such as closing costs.
Contract Period: From date of execution until Mitigation Bank Closeout as determined by the appropriate federal authorities (the Forest Preserves will assume long-term maintenance responsibilities thereafter).
Estimated Fiscal Impact: Not to Exceed $10,000.00. After Mitigation Bank Closeout, the Forest Preserves expects to receive approximately $260,000.00 via a fund established by HGS, LLC and held by the Forest Preserves or a third-party fiduciary for the long-term management, maintenance, and stewardship of the mitigation site.
Accounts: Professional Services 51034.520830; Real Estate Capital Outlay 51006.560010; and all future Professional Services accounts
Contract Number(s): N/A
Concurrences: The Chief Financial Officer has approved this item. Final agreement is subject to legal review and approval.
District(s): 6
Summary: HGS, LLC (“HGS”) is a subsidiary of Resource Environmental Solutions, which provides comprehensive ecological restoration and water resource solutions, serving public and private sector clients with full-delivery, land-based projects that build and sustain natural resiliency in ecosystems. HGS has rights to purchase an approximately (±) 71.7 acre parcel directly adjacent to Forest Preserves property located at Torrence Avenue and Sauk Trail Road near Sauk Village (the “Donation Parcel”). HGS seeks to develop a wetland mitigation bank utilizing all or a portion of this property together with approximately (±) 32.9 acres of Forest Preserves land, subject to the approval of the applicable federal agencies. Upon acquisition of the Donation Parcel and federal approval with respect to the mitigation bank, HGS will conduct ecological restoration of wetlands within the boundaries of the mitigation bank site, as approved by the Forest Preserves. This ecological restoration will benefit wildlife and restore native vegetation. HGS will also sell credits from the wetland mitigation bank to third parties.
Upon approval of the wetland mitigation bank plan, the Donation Parcel owned by HGS will then be donated to the Forest Preserves. Per federal regulations, the Forest Preserves will then be required to record a deed to the donated property that includes a declaration of a restrictive covenant, a deed restriction or a similar instrument restricting use of the property in accordance with the federally-approved Mitigation Banking Instrument and Plan. After Closeout of the Mitigation Bank, the Forest Preserves will then serve as the long-term steward of the mitigation site, which will include the Donation Parcel. The Donation Parcel is more fully described in the legal description included in related Board Item No. 25-0007. The acquisition of the Donation Parcel would advance the goals of the Forest Preserves’ Southeast Cook County Land Acquisition Plan, Next Century Conservation Plan, and Acquisition and Disposition of Land Position Paper.
The area of the wetland mitigation bank is expected to total approximately (±) 104 acres, which will be restored by HGS at no direct cost to the Forest Preserves. Upon successful completion of all performance standards for a period of at least seven (7) years and the official Closeout of the Mitigation Bank, the Forest Preserves will assume long-term maintenance and stewardship responsibilities for the mitigation site with the support of a monetary fund established by HGS on behalf of the Forest Preserves and held by the Forest Preserves or a third-party fiduciary. If the federal authorities require a third-party fiduciary to hold these long-term maintenance funds per the approved Mitigation Plan, the Forest Preserves will bring the details of any such agreement before the Board for approval.