A. Mitigation Performance Standards. Significant adverse impacts to environmentally sensitive area functions and values shall be mitigated. Mitigation actions shall be implemented in the preferred sequence identified in Section 16.10.150. Proposals which include less preferred and/or compensatory mitigation shall demonstrate that:

1. All feasible and reasonable measures will be taken to reduce impacts and losses to the environmentally sensitive area, or to avoid impacts where avoidance is required by these regulations; and

2. The restored, created or enhanced environmentally sensitive area or buffer will demonstrate similar functions, values and characteristics as the environmentally sensitive area or buffer area it replaces; and

3. In the case of wetlands, streams and critical habitat, no overall net loss will occur in wetland or stream functions and values.

B. Location and Timing of Mitigation.

1. Mitigation shall be provided on-site, unless on-site mitigation is not scientifically feasible due to physical features of the property. The burden of proof shall be on the applicant to demonstrate that mitigation cannot be provided on-site.

2. When mitigation cannot be provided on-site, mitigation shall be provided in the immediate vicinity of the permitted activity on property owned or controlled by the applicant, such as an easement; provided, such mitigation is beneficial to the environmentally sensitive area and associated resources.

3. In-kind mitigation shall be provided except when the applicant demonstrates, and the town concurs, that greater functional and habitat value can be achieved through out-of-kind mitigation.

4. Only when it is determined by the town that subsections (B)(1), (B)(2) and (B)(3) of this section are inappropriate and impractical shall off-site, out-of-kind mitigation be considered.

5. When wetland or stream mitigation is permitted by these regulations on-site or offsite, the mitigation project shall occur near an adequate water supply (river, stream, groundwater) with a hydrologic connection to the environmentally sensitive area to ensure successful development or restoration. The proposed restoration project shall demonstrate no adverse impacts to the hydrologic source.

6. Any agreed upon mitigation proposal shall be completed concurrently with project construction, unless a phased schedule, that assures completion prior to occupancy, has been approved by the town. Phased construction shall require bonding consistent with review and approval by the town.

7. Wetland acreage replacement ratios shall be as specified in subsection (C)(2) of this section.

8. Restored or created streams, where permitted by these regulations, shall be an equivalent or higher stream value or function than the altered stream.

C. Wetland Replacement Ratios.

1. Where wetland alterations are permitted by the town, the applicant shall restore or create areas of wetlands in order to compensate for wetland losses. Equivalent areas shall be determined according to acreage, function, type, location, timing factors and projected success of restoration or creation.

2. When creating or enhancing wetlands, the following acreage replacement ratios shall be used: