Land exchanges safeguard economic land assets and protect a pristine natural area
Written by Mollie Gudim, Communications Specialist
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.
Decades earlier, the Paulsons bought this unique tract of land, which juxtaposes maple-basswood forest and grassland ecosystems, as a place for the family to immerse themselves in the calming sights, sounds, and smells of nature. For years, they enjoyed walking beneath the trees rustling in the wind, listening to the trill of birdsong, and watching sunlight glint off nearby ponds and lakes. When Beva Paulson passed away, her family wanted their land to go to the state where it would be protected, host biological research, remain a sanctuary for birds and wildlife, and welcome new generations of families who enjoy spending time outdoors.
Nestled within this critical peatland and renowned bird habitat is a block of 12,000 acres of school trust lands, which Minnesota’s Constitution 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 taxing districts, 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 taxing districts.
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.
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.
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.
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. There’s an overall reduction in ownership boundary fragmentation resulting in more effective management and increased access to public recreational spaces. The Conservation Fund benefits by restoring hydrology to wetlands owned by the state and provides development of a needed wetland mitigation bank in the area.
Ultimately, these land exchanges will safeguard the state’s economic land assets for the Permanent School Fund and Sax Zim Bog will remain a pristine natural area that is a popular stopover for migratory birds, home to several wildlife species, and a bucket-list item for outdoor adventurers worldwide.
Learn more about the DNR's Land Exchange Program online.