Court ruling adds to construction costs

by Don Davis

Forum Communications

Minnesota State Capitol

Bureau

ST. PAUL - Taxpayers in one Minnesota county alone could pay an additional $3 million because the U.S. Supreme Court added red tape to many construction projects.

No one has taken time to tally the total cost of the ruling that is delaying construction of all kinds - ranging from constructing new homes to laying pipelines to building docks to putting poles in the ground. But anyone who plans a project in anything from a sometimes-swampy area to Lake Superior could experience lengthy delays because of the ruling.

And delays mean higher costs, especially since construction costs are rising rapidly.

The U.S. Corps of Engineers' St. Paul office, which issues wetlands construction permits for Minnesota and parts of adjoining states, reports permit backlogs of up to a year. Nationwide, the corps is spending millions of dollars to hire people to administer the new program.

The price tag for one northeastern Minnesota county, St. Louis, is being used in Congress as a reason to pass a law getting rid of the court's new red tape.

"Our current best estimate is that this will add anywhere from four to six months to the process, more than doubling the current process at this time," St. Louis County Public Works Director Marcus Hall recently told a House committee. "And in northern states, this means a delay of our projects for a full construction season. With construction inflation running between 4 percent and 7 percent, this represents an annual cost of between $1 million and $2 million for St. Louis County each year."

St. Louis County's figures are higher than many because so much of the county is considered wetlands - 35 percent. But similar stories are popping up elsewhere.

The corps' St. Paul office reports a year backlog of permits for major projects such as pipelines and utility construction and up to a half year on more routine projects.

The high court and federal guidelines that followed essentially force the corps into a lengthy process of deciding, and documenting, whether the federal agency has jurisdiction over each project. Rules of whether a permit is issued have not changed; permits are required for most wetlands projects.

Marcus said for a planned 2008 road construction project, the corps will have to decide if it has jurisdiction over 36 separate places where the road crosses wetlands - rivers, swampy ground, etc. He said he would like to concede that the corps does have jurisdiction so he can move right to the permitting process.

The Minnesota Department of Transportation tries to avoid delays by applying for road construction permits early.

"Before the court decision... we built in an average of three to four months (to get permits); now they are telling us six months or more," MnDOT's Frank Pafko said. "We are telling our folks to send them in as fast as you can."

U.S. Rep. Jim Oberstar and other members of Congress are offering legislation to return the law to the way it was before the Supreme Court decision.

Legislation Oberstar, D-Minn., authored to expedite the permitting process will not result in overlooked environmental concerns, he said, claiming it simply would restore the "status quo."

"We have to restore the Clean Water Act to what it was before the court legislated it out of existence," he said.

Oberstar said new things like an 86-page instruction book are "increasing dramatically the processing times for clean water permits." The corps' St. Paul office used to process nearly 400 applications a month, he said, but with the new requirements can only handle 75.

Oberstar said his legislation has gained around 180 cosponsors in the House. He is working with the Senate, but did not say the bill would pass this year.

Don Davis is Forum Communication's Minnesota State Bureau Chief. State Capitol Bureau reporter Scott Wente contributed to this story.