What Self-Storage Developers Need to Know About Building on a Wetlands SiteWhat Self-Storage Developers Need to Know About Building on a Wetlands Site

Prime real estate for self-storage development has become scarce in many markets due to economic factors and increased competition. When you factor in the presence of wetlands, which can often be a deal-breaker, the options become still more limited.

Many self-storage developers will pass on sites with wetlands to avoid dealing with the additional steps required. However, there are ways to ensure a smooth, successful project. The following insight will help you navigate the process.

Identifying Wetlands on a Parcel

While the National Wetlands Inventory database can help you identify parcels that contain wetlands, you shouldn’t rely solely on this information, as it may be outdated. “Boots on the ground” research is crucial before entering a contract to purchase land for a self-storage development or any other construction project.

For a site to qualify as wetlands, it must meet three criteria:

If your initial due diligence shows no wetlands, but you notice pooling water or saturated soil on the parcel, you need to dig further. Hire a local environmental consultant with expertise in land classification. They’ll use the 1987 Corps of Engineers Wetlands Delineation Manual and Regional Supplements to assess the site and provide a report for use during the permitting process if the self-storage project moves forward.

Related:A Quick Market-Evaluation Guide for Self-Storage Developers

Wetlands Permitting and Protection

Wetlands are regulated under Section 404 of the Clean Water Act by the Environmental Protection Agency and U.S. Army Corps of Engineers. It requires that a permit be obtained from the Corps for placing dredged or fill material into “waters of the United States, including wetlands.” Some states, like Florida, may have additional permitting requirements.

It’s crucial to work with your engineering team to understand potential impacts. After an environmental consultant assesses the land, conduct a wetlands delineation to accurately mark the boundaries on your site plan. This should be done during favorable weather conditions, as recent high moisture levels can distort boundaries. Additionally, local wetland setbacks may apply, so consult with a civil engineer who understands the local and federal requirements.

Each self-storage development may have different permitting needs, so hold a pre-application meeting with the municipality to understand the process. The best time for this is during due diligence, after the delineation. During the meeting, the municipality will outline the steps to permit a wetlands project, often directing you to the U.S. Army Corps of Engineers. This step can add several months to the timeline, Knowing about this potential delay before closing on the property can help you set realistic timelines.

The permitting process typically involves purchasing credits from wetland-mitigation banks, which preserve, enhance, restore or create wetlands to offset the impact on similar ecosystems. Fees for these credits are typically charged per acre, ranging from $10,000 to $100,000 in some coastal areas.

If you don't have a specific site plan at the time of closing, it’s wise to obtain a Jurisdictional Determination from the Army Corps of Engineers. This involves reviewing and delineating the boundaries, as outlined earlier, and is valid for five years upon approval. This is particularly useful if you’re purchasing a property with expansion potential and the possibility of developing adjacent wetlands in the future.

Finally, to prevent stormwater runoff from your self-storage development from contaminating nearby bodies of water or other wetlands, implement a Stormwater Pollution Prevention Plan (SWPPP). This document will outline the prevention measures you plan to take during construction. You can even hire a third-party SWPPP inspector to help you avoid fines for stormwater-related disturbances. Municipalities and the Corps may also require additional landscaping with native species to improve buffer zones.

Progress on Wetlands Is Possible

Developing self-storage in or near wetlands may require additional steps during the permitting process. It’s important to be aware of potential challenges before closing on a property and include local experts early who understand the local requirements in the process.

While developing on a wetlands site can be challenging, a thorough understanding of the permitting and mitigation process can help ensure a smooth and successful project. By conducting due diligence, working closely with consultants and engineers, and understanding local and federal regulations, you can navigate the complexities. The keys are proactive planning, timely consultations and careful management of the development timeline. With the right expertise and a clear strategy, your self-storage project can proceed with minimal delays and maximum compliance.

Zach Gumper is the pre-construction manager for Spartan Construction Management LLC, a Golden, Colorado-based self-storage development firm that offers construction, design, due-diligence and project-entitlement services. Before breaking ground on a project, Gumper drives development efforts with design consultants and major subcontract buyouts including value engineering, schedule, cost and risk management. He has five years of experience in industrial and commercial general contracting, previously working at manufacturing plants and power plants. You can reach him at [email protected].