About 50 miles northwest of Duluth, you’ll find Sax Zim Bog, a 147,000-acre wetland and ecological powerhouse globally recognized for its interconnected habitats. This vast natural area hosts peat bogs full of mosses and organic material – acting as natural sponges that retain water and absorb carbon – lush forests, and a network of rivers, all together creating a home for more than 200 bird species, including the Great Grey Owl and Boreal Chickadee, and a wild refuge for black bears and moose.
Nestled within this critical peatland and renowned bird habitat is a block of 12,000 acres of school trust lands, which Minnesota law directs the DNR to manage for revenue generation, through activities like timber harvesting or mineral leasing, for the state’s Permanent School Fund. Mixed in with the school trust lands are 6,000 acres of tax forfeit lands, owned by the DNR and managed by St. Louis County. The state holds title to these lands in trust to provide funds for local communities, schools, and community services.
However, Sax Zim Bog’s ecosystem services and conservation significance mean that the designated school trust and tax forfeit parcels there are largely inaccessible and unproductive for revenue generation for Minnesota’s public and charter schools and local communities.
This also meant that the DNR needed to find a solution to uphold Minnesota’s fiduciary responsibility to maximize the revenue potential for both trusts while ensuring the long-term conservation of Sax Zim Bog. In partnership with The Conservation Fund and St. Louis County, the DNR identified industrial timberlands with long-term revenue potential that the state could exchange for the school trust lands within Sax Zim Bog.
The Sax Zim Bog land exchange involved six separate transactions between the DNR and The Conservation Fund. The map shows the location of the lands received by each agency in the exchange.
Sax Zim exchange I and II
Photo Courtesy of The Conservation Fund | Jay Brittain
In 2013 and 2018, earlier phases of the land exchange were completed when The Conservation Fund traded 4,750.91 acres of previously acquired timberlands for 13,137.70 acres of ecologically rich bog lands owned by the state of Minnesota and managed by the DNR and St. Louis County. These bog lands and their thriving habitat will be transferred to Ecosystem Investment Partners for restoration and long-term stewardship as a wetland bank.
Sax Zim III
In February of 2026, the final phase of the land exchange was completed when The Conservation Fund conveyed 1,014 acres of acquired forestlands located in St. Louis County to the state, and the state traded 1,796 acres of school trust lands managed by the DNR.
The benefits of the land exchange
This multi-transactional land exchange, which received unanimous support from the Legislative Permanent School Fund Commission and was endorsed by the Environmental Law and Policy Center, carries many benefits for the state and our conservation partners. By trading lands at equal value, the DNR and its conservation partners ensure that:
World-renowned Sax-Zim Bog will be protected and the visitor experience will be enhanced
The school trust land portfolio will acquire industrial timberlands with greater long-term revenue potential
The tax forfeit land portfolio, held in trust by the state and managed by St. Louis County, will have a greater potential for revenue generation
Public lands will be consolidated, providing better habitat and increased access and recreational opportunities
Restoration of thousands of acres of wetlands will occur within the watershed as preferred
A wetland bank at Sax-Zim will relieve pressure to provide mitigation for Saint Louis County outside the watershed
The Sax Zim Bog improvement project is an excellent example of counties and DNR working together with conservation groups and private companies to protect and manage natural lands’ ecological and recreational benefits for generations.