Owners Have New Plan for Lake Powell

By Desiree Parker Friday, July 08, 2011

Residents around Lake Powell who have been hoping to restore the waterway will need to wait quite a bit longer, but a plan is in the works that might accomplish that goal.

Since the dam that created Lake Powell breached in 2006, the lake has remained partially drained and trees, shrubs and invasive species have been growing along the remaining muddy area. The approximately 50 residents who live on the waterway have been trying to get the lake restored so they can again have waterfront property, most recently petitioning the county to buy Lake Powell and offering to tax themselves at a higher rate in order to defray the associated costs. A majority of the Board of Supervisors wasn’t keen on taking on responsibility for the lake, though.

The lake owners have been mulling over their options, most recently trying unsuccessfully to create a wetlands mitigation bank around the property.

Mitigation banks are used to help developers who need to find ways to reduce nutrient pollution caused by new developments; a developer can buy credits from a mitigation bank (a pristine area that scrubs out pollutants) to offset that impact.

The Army Corps of Engineers didn’t like the idea of repairing the dam and flooding the now-naturalized area, and they were concerned about keeping the area safe from future floods. They rejected the mitigation bank idea last fall, but granted the applicants a permit extension until March 18, 2012, to repair the dam.

Property owners adjacent to Lake Powell didn’t like the mitigation bank idea for several reasons, including the concern that it would mean the lake would remain unfilled and continue to keep their property value low (read that story here).

County Administrator Robert Middaugh reported to the Board of Supervisors in late January that the six lake owners were in negotiations with the Chesapeake Bay Nutrient Land trust (CBNLT) and the Timmons Group to acquire the property for restoration, which would keep the county from having to make any financial investment.

According to CBNLT Managing Partner Brent Fults, his company is very interested in working to repair the dam, restore the lake and create a nutrient bank similar to the Cranston’s Mill nutrient bank that the company recently completed in James City County. He hasn’t heard from the lake owners about their plans yet.

Nutrient offset facilities (nutrient banks) are similar to mitigation banks but they’re governed by slightly different laws, one of which was only recently passed and established the nutrient bank market, according to Fults.

Cranston's Mill Pond will create up to 750 pounds of phosphorous offsets, he says as an example of what to expect, and currently offsets can run between $28,000 and $30,000 per pound. To repair the Lake Powell dam would cost about $1.6 million and more than that to operate and maintain, he says.

CBNLT offered to finance the dam repair and manage the nutrient bank for Lake Powell, but the owners decided to work with the Timmons Group instead.

The Timmons Group can also finance the dam repair and manage the program, according to the company’s owner, Andrew Gould.

Gould says his company met with the dam owners and came to an agreement to look into the viability of restoring the lake and setting up a nutrient bank as a joint venture.

The Timmons Group is in the first phase of the process, which is “to see whether there is the right market in the area,” according to Gould. He aims to focus on getting local governments to purchase the credits.

“If we feel confident the market exists, we’ll move forward,” he says. The next step would be to start the permitting process that would involve the Army Corps of Engineers again, as well as the county.

When asked whether lake access would be made available to adjacent property owners if the dam were repaired, Gould says he would defer to the property owners, but he understands there may be some liability issues should homeowners get access.

As for a timeframe for completion, residents can expect a wait. “This will not happen in six months or twelve months – it’ll take longer than that,” Gould says.

Jamestown Supervisor John McGlennon, who has been working with nearby homeowners and the lake owners to resolve the issue over the years, says, “I hope that they will get this completed in a timely fashion. The ecological benefit is what we’re all aiming for.”