Wetland Banking Should Take Off, Expert Says

Acosta said that communities such as Wayne County are now taking advantage of rules created by the Michigan Department of Environmental Quality that allow for the creation of a "wetland bank."Wetlands such as lakes and rivers, and marshes and swamps larger than five acres, are protected by the state.However, developers can ask for a permit to fill in wetlands if they create more, at a 2-1 or 3-1 ratio, said Acosta.

Using this ratio, it's difficult to replace wetlands on a large project, Acosta said. However, there is a law that allows "wetland banking," he said, which allows someone who creates wetlands to sell the "banked" wetland rights to a developer, Acosta said."Owners of a property can make a wetland and, absent of a specific request, put it in a bank [recognized by the MDEQ] for use later," he told GlobeSt.com.

Wayne County, which includes Detroit, is the only group Acosta said he knows that is actively banking away wetlands. The county has created eight wetlands in Hines Park, Acosta said, meaning that the county can now sell the credits to another developer.

"A developer can pay the party, such as Wayne, for the rights, allowing the ratio filling in of wetlands on a project property," Acosta said.In theory, a property owner could create wetlands, selling the credits to other developers nearby who want to fill in land.Acosta said it's too early to tell if this practice will be accepted by developers."It's a good idea in theory, we'll just have to see if it will work over time," Acosta said. He said none of his clients have used the process.