The plan for the road would have taken it through 80 to 100 acres of wetlands.
The remaining six acres of wetlands was given to the town to extend the existing park.
Currently, the corps says 758 acres of wetlands will be destroyed.
There are an additional 170 million acres of wetlands in Alaska.
The plan also includes money for the Government to help restore 100,000 acres of wetlands a year by 2005.
In the last five years, the state had lost 609 acres of wetlands to development.
However, up to 2,800 acres of important wetlands could be affected by construction work at the Michigan site.
It is estimated that 300,000 to 500,000 acres of wetlands are disappearing each year.
However, the agency's most recent status report states that we are still losing about 300,000 acres of wetlands a year.
The pilot program would cover nine states and restore about 50,000 acres of wetlands.