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HomeMy WebLinkAbout04/28/15A. C. -,A� NIVRHA Wheat Ridge Housing Authority Minutes of Meeting April 28, 2015 CALL THE MEETING TO ORDER The meeting was called to order at 4:00 p.m. by Chair Thomson in the Second Floor Conference Room of the Municipal Building, 7500 West 29` Avenue, Wheat Ridge, Colorado. ROLL CALL OF MEMBERS Authority Members Present Authority Members Absent: Thomas Abbott Chad Harr Tracy Langworthy Janice Thompson Jennifer Walter None Also Present: Lauren Mikulak, Senior Planner Kenneth Johnstone, Community Development Director Betty Maybin, Cornerstone Realty Larry Nelson, Cornerstone Realty Henry Wehrdt, JCHA Kim Waggoner, Recording Secretary APPROVAL OF MINUTES: February 24, 2015 It was moved by Mr. Abbott and seconded by Mr. Harr to approve the minutes of April 24, 2015 as amended. Motion approved 4-0. D. OFFICERS REPORTS There were no officers' reports. Housing Authority Minutes April 28, 2015 E. PUBLIC FORUM No one wished to speak. F. NEW BUSINESS G. OLD BUSINESS 1. Update on Single Family Homes Rehab and Sales Mr. Wehrdt stated the last invoice for 44`h Place was forwarded to Ms. Mikulak and the project is complete. He stated 50 homes had been rehabilitated through the program's duration. Jefferson County Housing Authority (JCHA) did the construction management on all but three. Ms. Langworthy arrived at 4:11 p.m. Ms. Thompson stated the Authority appreciates all that JCHA has done over the years. Mr. Nelson stated JCHA and Mr. Wehrdt made substantial contributions to the community. He provided a list of the 50 homes that were purchased and sold over the years. He stated it has been a great working relationship between the Authority and Cornerstone Realty. Ms. Langworthy stated the City is a better place due to the work with JCHA and Cornerstone Realty. Mr. Nelson stated the closing for 44h Place is scheduled for next week. Mr. Wehrdt, Mr. Nelson and Ms. Maybin left the meeting at 4:18 p.m. 2. Fruitdale School Ms. Mikulak summarized recent actions related to the Fruitdale RFI. She stated the Authority reviewed a preliminary proposal from Hartman Ely Investments (HEI) at the February meeting. At that time, the authority made a motion to allow a 60 -day exclusive period to allow HEI to provide a more refined proposal. The updated proposal was included in the agenda packet. HEI was present to explain the proposal. She introduced Jim Hartman. Mr. Hartman introduced his business partner Susan Ely. He stated they were both architects by training and they specialize in renovation of older buildings. Mr. Hartman introduced their proposal to reintroduce agricultural uses to the area and on the site and he introduced Sally Herbert, CEO of Altius Farms. Housing Authority Minutes 2 April 28, 2015 Ms. Herbert gave her background and explained her passion for modern agricultural techniques. She explained the aeroponics technology that her company uses to grow plants in vertical containers within controlled greenhouse environments. There are three hundred farms using this technology model. Colorado is an agricultural state which currently imports 97% of its produce. Altius Farms has a focus on harvesting produce for restaurants and consumer sales. The company also has educational and training programs that benefit veterans and children. Mr. Hartman stated he had a personal connection with Temple Buell and met him many years ago. He explained that the Fruitdale site doesn't lend itself to many land uses due to the small size of site, the modest size of the building, and the location within Wheat Ridge; but an agricultural use is feasible. The facility will include solar power if possible. The site must include an educational component and this concept will satisfy the requirement. The redevelopment can be phased which lowers risk. Mr. Hartman stated that Fruitdale could be a great redevelopment on the 44`h Avenue corridor. Mr. Abbott addressed HEI and Ms. Herbert and said he appreciated that they we not afraid of the condition of the building. He said he liked the proposal. District IV has a strong agricultural presence. Ms. Langworthy asked if they had seen the Fruitdale Subarea Plan. The orchard area district was lost over time to housing developments. The proposed orchard on the site complements the area's history. Mr. Hartman stated there would be community outreach as he would like the community to buy into the redevelopment ideas on the site. Chair Thompson spoke of the history of the apple orchards by Kullerstrand Elementary. Historically, the area also included celery growing. Mr. Hartman stated that the first phase of development would be start growing in the front of the site to create interest. Phase two would include renovation of the cafeteria and gym to allow for more vertical tower gardens indoors and the creation of a classroom for the educational operation. It could be called the Wheat Ridge Agricultural School. Phase three would include exterior greenhouses located in the front and back of the site. Future phases would be determined after the opening of the Gold Line as the market may dictate the uses; housing may be considered at that time. Ms. Ely stated the exterior of the school would be cleaned up during the second phase including removing the boards from the windows. Mr. Hartman stated a land swap with the school district for the rear parcel is a vital part of the plan. Greenhouses in this area are necessary to make the project financially viable. He provided a detailed budget and proforma which was confidential and very Housing Authority Minutes 3 April 28, 2015 preliminary. He stated there was a contingency in the budget. The revenue comes primarily from fine dining restaurants that would pay Altius Farms for fresh greens. Ms. Herbert stated that restaurants are willing to pay a premium for the greens as they need local and reliable sources. Altius can do custom seasonal growing. She said Altius has met with five local restaurants and they are eager for this service. The growing cycle is 21 days so the greenhouses can adapt to buyers' needs. Mr. Hartman stated the challenges in the next step. HEI will need more time to complete their due diligence, refine the proforma, and confirm the land swap with the school district. Altius Farms needs to complete a project in Stapleton before the Wheat Ridge project can start. Mr. Hartman agreed to Chair Thompson's suggestion that the facility include "Fruitdale" in the name. There was some discussion about the previous proposal from the Wheat Ridge Education Center for the Cultural Arts and discussion of whether they had proposed and funding streams or revenue sources. Mr. Johnstone stated that fundamentally, a purchaser or developer needs to be able to provide proforma with realistic revenue streams in order for the sale of the property to be a viable transaction; this had not been provided with the arts application. Chair Thompson suggested HEI investigate the irrigation rights and the operating well on site. Mr. Harr asked HEI about the funding gap in the proforma. Mr. Hartman stated they would look for grant opportunities and interested benefactors. The land swap with the school would allow for more revenue from additional greenhouses. Chair Thompson asked for an agreement that the property would revert back to the Authority if the plan was not successful. Ms. Mikulak stated a performance clause could be included in the purchase and sale agreement when the sale is negotiated in the future. Mr. Hartman stated he was open to such restriction. He is not in interested in flipping or scraping the property. He asked for some flexibility in terms of site usage as they continue to refine their proposal. Ms. Langworthy stated she was impressed with the plan even though reuse of the building was not the first priority. The agricultural plan is tied to the roots of the community. Housing Authority Minutes 4 April 28, 2015 Mr. Abbott asked for more details about the educational component. Ms. Herbert explained that Altius would like to have classroom space for trainings. Their Operation Victory Garden model includes the training of veterans in agricultural practices. Chair Thompson inquired about parking and asked if produce will be sold to the public or just to restaurants. Ms. Herbert stated a market analysis has not been done to determine if it would be sold to the public as well as to restaurants. The facility would have five to six employees and minimal parking needs. Ms. Mikulak stated from a zoning standpoint, parking could be accommodated on site or an adjacent property. Employee parking can be located in the back. Ms. Herbert stated a retail store front could be placed on the property that would direct the community into a pick-up area and parking. In response to Mr. Harr's inquiry, Ms. Herbert stated the greenhouses would be a 12 -hour operation from 6:00 a.m. to 6:00 p.m. with deliveries from 11:00 a.m. to 2:00 p.m. The greenhouses would never include marijuana. Mr. Johnstone asked if greenhouses would be illuminated at night. Ms. Herbert replied that there are no plans to utilize supplemental lighting for the grow operation. There will be emergency lighting and some outdoor lighting for security purposes. Their intention is to utilize radiant floor heat and natural ventilation for the greenhouses along with an evaporative cooling system. The site will be a non-GMO, pesticide -free site. The water will need to be tested. Augmented light will be needed in the gymnasium for the growing of herbs and greens. Mr. Harr inquired about the number of facilities that Altius Farms operates. Ms. Herbert stated this would be the second in Colorado. Their goal is to have five sites in Colorado by 2018. She stated they like the agricultural roots of Wheat Ridge and this is a good location for the second site. She said Altius Farms has a large corporate investor that is interested in the second site. Mr. Harr inquired about the timeline. Ms. Herbert stated the goal is to break ground at the Stapleton location in late August and be operational by the end of 2015. The planning of the second site in Wheat Ridge can occur after Stapleton is complete. Housing Authority Minutes 5 April 28, 2015 Mr. Hartman indicated HEI would like to close in March 2016 and greenhouse operations could begin mid -year. There was a short discussion about urban agriculture in Wheat Ridge. Chair Thompson asked about the proposal to include the City or WRHA as a minority owner. Mr. Johnstone indicated that the logistics or liability of this proposal has not been discussed further. There have been some preliminary discussions with the City Manager in regard to waiving fees. Mr. Hartman explained that this ownership structure was proposed to reduce property tax liability which is assumed to be zero in the proforma. Ms. Langworthy stated the citywide BDZ may be an option at the discretion of City Council. The property zoning was discussed. Ms. Mikulak stated the land swap with Jefferson County School is a critical element of the proposal. A pre -application meeting and discussion with City Council will be required. These have not yet occurred but would take place during the next due diligence period. There was some discussion about an appropriate time frame for a more detailed proposal and proforma to be presented. Mr. Hartman suggested they could provide more refined information by August or September. This would be contingent upon feedback from a variety of parties, including the school district, zoning, and the fire department. Mr. Hartman said there are other groups who could be tenants on the property if Altius Farms is unable to commit to the site for any reason. Ms. Herbert expressed her interest in expanding the operation onto the property to the west if that was viable in the future. It was moved by Ms. Langworthy and seconded by Mr. Abbott to provide an exclusive extended due diligence period to HEI with a report back in September 2015. Motion carried 5-0. Craig Horlacher 10720 W. 45`h Ave. Mr. Horlacher stated he liked that the proposal was not a high school. His concerns about lighting and parking were addressed. Housing Authority Minutes 6 April 28, 2015 Chair Thompson thanked HEI and Ms. Herbert for the presentation. There was some discussion about previous agricultural uses and the ditch on the property. Ms. Mikulak stated she would provide ditch information to HEI. Mr. Hartman, Ms. Ely, and Ms. Herbert left the meeting at 5:42 p.m. H. OTHER Ms. Thompson was voted Chair. Mr. Harr was voted Vice Chair. There was some discussion about recognizing Larry Nelson and Betty Maybin of Cornerstone Realty and Henry Wehrdt of JCHA for their contributions and efforts of the housing program over the past years. 1. ADJOURNMENT It was moved by Ms. Langworthy and seconded by Mr. Harr to adjourn the meeting at 5:52 p.m. Motion carried 5-0. Next meeting is scheduled for May 26, 2015. anice Thompson, Chai t""'f4^A4 Imo,,It&-, &+i�,r, 0tA�,11w Housing Authority Minutes 7 April 28, 2015