Dec. 8—WATERTOWN — A wetlands issue that has delayed Renzi Foodservice's expansion project has apparently been resolved with the U.S. Army of Engineers.

But another wetlands issue still must be ironed out with the state Department of Environmental Conservation for the company's expansion in the City Center Industrial Park on South Bellew Avenue.

City Manager Kenneth A. Mix said Tuesday that the issue with the Army Corps of Engineers has been worked out regarding a tiny stream that runs through the project.

The Army Corps of Engineers has agreed the company can obtain a wetlands permit by using piping to preserve the stream, allowing construction of a parking lot associated with the project to proceed, Mr. Mix said.

While the Army Corps of Engineers issue has been resolved, the wetlands issue with the DEC has not, Mr. Mix said.

That issue involves a retention pond that would be created within 100 feet of the wetlands, Mr. Mix said. The 100 feet is considered an "adjacent area" — or a buffer zone — for the wetlands, Mr. Mix said.

The company's engineer working on the project has asked the city to intervene with the DEC on the issue.

"We've been asked to see what we can do," Mr. Mix said, adding that they plan to set up a meeting with the DEC about it.

The subject initially came up during Monday night's City Council meeting when Mayor Jeffrey M. Smith expressed frustration that the wetlands issue is holding up the project, jeopardizing dozens of new jobs and causing additional costs.

A month ago, company president John Renzi expressed his frustration that the wetlands issue has caused the project to be delayed several months and its cost to increase about $400,000.

The company originally planned to start construction this summer with that parking lot. The project also calls for a 38,176-square-foot expansion to create additional office and warehouse space.

Some of that construction on the parking lot began a few weeks ago but work has stopped until the DEC issue can be resolved, Mr. Mix said.

Last month, Mr. Renzi asked the Jefferson County Industrial Development Agency and the Watertown Local Development Corp., also known as the Watertown Trust, for financial assistance to offset the $400,000 cost increase.

Earlier this year, the Watertown Trust and the JCIDA relocated the industrial park's rail spur to help Renzi move forward with its expansion.

The changes in construction plans caused by the wetlands issues has also been affected by the country's supply chain problems, officials said. The project now requires 30-inch piping rather than two 12-inch pipes that were in the original plans to comply with the wetlands requirement. Delivery of the new piping has been delayed.

DEC officials defended its action, however.

According to a DEC statement, wetlands are valuable resources, necessary for flood control, surface and ground water protection, wildlife habitat, open space and water resources and are protected under the Freshwater Wetlands Act.

"After its review, DEC issued a letter of intent to deny the Freshwater Permit application for this project after determining the project is part of a wetland area and the expansion would significantly impact a wetland area as proposed," DEC said in the statement.

During Monday night's council meeting, Mayor Smith also asked council members to support a proposed $4 million second entrance that Renzi has requested for future expansion.

The company has said the second entrance is needed, citing increased truck traffic that enters and exits its facility.

Mayor Smith also said the second entrance is a public safety issue because emergency vehicles need better access into the industrial park.

On Monday night, council members agreed it's an issue that the City Council should consider when its new members take office Jan. 1.

Renzi employs more than 250 workers and plans to add 10 more each year while it completes a multiyear expansion.

The new parking lot would include 24 additional parking spaces for tractor-trailers, a 51-space parking lot for cars and an additional access drive onto South Bellew Avenue. Its fleet of trucks now park in two sections of the property.