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February 11, 2007
A Bank Shot
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| (photo from Anthony Watts www.bidwellranchcam.com). After reading the last CNR article on Bidwell Ranch and a recent ER story about problems developing the west side of the airport I have some questions. The Bidwell Ranch Mitigation Bank is supposed to be a tool to protect a sensitive wetland community but still provide economic benefit. Every time I read about this topic I can't make heads or tails of the economics, and I wonder if anyone can. To begin with River Partners and the City haven't yet determined the "value" of the mitigation and conservation bank that Bidwell Ranch represents. It seems a little premature to gush over how great this idea is until you've made this determination. What if it has little value? Beyond that, River Partners in a recent press release says... River Partners notes that the project may help mitigate wetland impacts associated with City capital projects. If established, the mitigation bank could also streamline the environmental mitigation associated with local private development projects. “ We believe that this project provides an extraordinary opportunity to protect the environment and Chico’s open space, partially offset the costs of the property, and ease the regulatory burdens placed on local projects,” So is a mitigation bank, with unknown resources, supposed to protect the environment or ease regulatory burdens? Can it do both? Who will have their burdens eased, and by how much? Did supporters of not building in Bidwell Ranch expect it to be used to ease "regulatory burdens" elsewhere? |
| Some local politicians have argued that a primary benefit
of the Bidwell Ranch mitigation bank was to allow the City to develop the
west
side of the Chico Airport. This area may be used for light manufacturing,
and like many similarly zoned areas in Chico also has sensitive wetlands
associated with
it. But we recently learned (ER story) that the Federal Aviation Administration (FAA) is not so sure that an industrial park on the west side of the airport is a good idea. And Mayor Holcombe has asked California Senator Dianne Feinstein to arm wrestle with the Feds over the future use of that property. The FAA spokesman had this to say... "The city needs to show us that the land it wants to sell is no longer needed for aviation use and is therefore surplus. They have to provide us with a document supporting their case, which they have not yet done." Gregor said the city needs to prove many things, including why the land should be sold, why selling land is more advantageous to the airport than maintaining the land, explain the measurable benefit for the airport, and that the land no longer serves the purpose for which the airport initially obtained it. So we don't know the value of the mitigation bank and even if we did we can't use it for improving the airport until the federal bureaucracy gives us the go ahead (that should only take a week or two). Has the City identified any other "bank" customers beyond the taxpayer? Then consider recent statements that some 200 acres may still be rezoned and developed in conjunction with the fact that the mitigation credits may go to ease regulatory burdens on local developers. I have to wonder what the value of the mitigation bank is either economically or environmentally. I'm further confused by a lack of information about who will own the mitigation credits. In a 2005 River Partners proposal (now removed from the City web site) they were to be paid $1,000,000 to start the bank. I've heard the City would be paying millions-of-dollars for credits for the airport wetland mitigation. This leaves me to believe that River Partners would own the "bank" (otherwise aren't we just paying ourselves?). I've never seen anything that assures me that the "assets" of a Bidwell Ranch mitigation bank would be available only for local use. Could our banked wetlands be purchased by an out-of-town highest bidder? If so does any of that money come back to Chico? If the money does come back to the taxpayer what is the benefit of the taxpayer being the biggest bank customer (to develop the airport)? |
| Summary: Let's pretend I have a business
plan (I'm the City). And I go to the bank (that's the taxpayer). I
need to borrow a few million dollars. I can't tell the bank what assets
I have, because I haven't taken a look yet. I have a really good customer
lined up for the business, but it happens to be me. Oh, and currently I'm
not legally allowed to be the customer. But I assure you it's a really great business plan. I realize that River Partners and the City are working on some of these issues. But it seems like the decision to go forward has been made, without weighing other options. The choice shouldn't just be to build houses or create a mitigation bank. Bidwell Ranch represents 200-500 acres of usable public land. It could be a place for a BMX facility, aquatic center, equestrian competition facility, convention center, Park Department headquarters, sculpture garden, wildflower nursery, solar energy facilty, or simply un-fenced open land... The options are endless. Unfortunately I haven't heard any discussions along these lines. |
Posted by Lon at February 11, 2007 12:00 AM