Parks and Recreation System Master Plan Update (2016) parks_and_recreation_system_master_plan_update_oct | Page 186

Wetland Mitigation Banking
In situations where a proposed development will result in unavoidable impacts to
wetlands subject to federal or state regulation, the regulatory agency (e.g., US Army Corps of
Engineers) may permit the development on condition that the developer create, restore, or
enhance replacement wetlands on or off the site. A “mitigation bank” is an emerging
mechanism whereby a developer is granted “compensation credits” by the regulatory agency
for creation, enhancement, restoration, or preservation of wetlands at a designated site in order
to mitigate wetlands impact at another site resulting from the proposed development. For
example, a developer may propose to fill a wetland for a new construction project. The
regulatory agency determines that as a condition of approval the developer must mitigate the
wetlands impact by creating, restoring or enhancing a specified acreage of wetlands. The
developer fulfills this requirement by buying mitigation credits from an approved mitigation
bank operated by a public agency or private organization or individual.
Research published by the Environmental Law Institute in 1993 identified 46 existing
and 64 proposed mitigation banks in 33 states.⁵ Kentucky was not one of the states listed with
existing or proposed mitigation banks.
It is conceivable that wetland mitigation banking could be used as a strategy for
protecting wetlands as part of Jefferson County’s open space network. The most obvious
opportunity is in the “Slack-water Flats” where the County might coordinate a program
designating a significant wetland or wetland areas as a mitigation bank. Developers proposing to
fill more marginal wetlands could receive compensation credits by preserving, restoring, and/or
enhancing wetlands in the mitigation bank area, thus implementing a portion of the system of
protected open spaces.
2016 Status
The Louisville/Jefferson County Environmental Trust (described in more detail below)
now holds three wetlands properties that were required by regulatory agencies to be protected
as part of a development approval. All three of these properties occur in the “Slackwater Flats”
area which was once a huge system of wetlands that has now been mostly drained, filled and
developed.
B3. Other Implementation Opportunities
Non-profit Organizations and Land Trusts
The 1995 Plan noted that non-profit organizations could play a significant role in the
implementation and maintenance of the parks and open space system. The Plan suggested that
a county-wide land trust could operate as a public-purpose nonprofit corporation, eligible to
receive tax deductible donations. The organization would solicit donations of money, land, and
easements, identify priority parcels for preservation and acquisition, organize fund raising
activities, and contribute to raising open space issues in the public consciousness. Land trusts
are often in a better position than government agencies to negotiate discreetly for land
Parks and Recreation S