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Port Authority hears DNR acquisition update linked to SCR Solutions expansion
Summary
Staff told the Port Authority the Minnesota DNR has approved acquisition steps that could allow removal of an 8‑acre conservation easement behind SCR Solutions; the Port will commission DNR‑approved appraisals and return to the board with maps and valuation data before any land release or sale.
Clara, a Port Authority staff member, told the board the Minnesota Department of Natural Resources has progressed through internal approvals and is prepared to acquire land adjacent to DNR‑managed wetlands that would allow a conservation easement to be released on an 8‑acre parcel behind SCR Solutions.
The update matters because SCR Solutions, the company operating immediately adjacent to the easement, has signaled it intends to expand. "They likely would not do the same kind of purchase anymore," Clara said of the DNR's current posture, and she added the DNR will be "offering us market value for this property." Clara said the Port Authority will select a DNR‑approved appraiser to value the Port's parcel and separately commission an appraisal on the easement to determine the payoff needed to remove it.
The board was shown three map options that staff will provide to the DNR's surveyors so the agency can prepare legal descriptions and appraisals. Clara said the DNR has approval to acquire up to an 18‑acre area in addition to a broader 26‑acre section being discussed; the existing conservation easement in question covers 8 acres immediately behind the SCR site. Staff said the two appraisal streams will run in parallel: the DNR appraisal to set market price for land it will purchase, and the Port's appraisal of the easement value needed to clear the restriction.
Board members pressed staff on wetland limitations, access, lease overlap and revenue impacts. On wetlands, Clara said the DNR division handling the purchase does not, by itself, prescribe how a landowner may interact with a wetland; local wetland‑management provisions in the city code and a formal delineation determine where development is prohibited. Filling a wetland would require a separate DNR permitting process and payment, she said.
Several members sought clarity about a current lease to Ottertale Power that covers part of the larger parcel. Clara acknowledged the DNR is aware of existing leases and that boundary adjustments will be negotiated; she emphasized that any DNR purchase would be at market value and not a literal one‑for‑one land trade. She also told the board that the Port retains authority to decide whether to release any portion of its land and that staff will return with appraisals and mapped overlays showing where Ottertale's lease lies relative to DNR acquisition options.
A representative identifying himself as Mark and speaking for SCR Solutions said the company is growing rapidly and needs timely clarity on whether site prep can begin. "We're running 35 to 45% growth over last three years," he said, asking the Port to expedite maps and valuation so SCR can plan both short‑term rental space and longer‑term construction. Staff said a full decision will require the DNR appraisal, the Port's easement appraisal and maps; they estimated the easement payoff and related steps could unfold over the next several months.
No formal action was requested at the meeting; staff characterized this as an informational update and said they will return with appraisals, maps and a specific request once the DNR finalizes its legal descriptions.
