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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.
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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.
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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
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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.
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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.
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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.
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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
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April 28, 2015