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HomeMy WebLinkAbout2017-10-26; Agricultural Conversion Mitigation Fee Committee Ad Hoc; ; Carltas Company – AGP 13-04(A) Request AGRICULTURAL CONVERSION MITIGATION FEE (ACMF) AD HOC CITIZENS ADVISORY COMMITTEE Staff Contact: Pam Drew, Associate Planner, Community & Economic Development 760-602-4644  pam.drew@carlsbadca.gov Agenda Item: #6 Subject: Carltas Company – AGP 13-04(A) Request Meeting Date: October 26, 2017 Exhibits: 6.1 Chris Calkins, President, Carltas Company, is requesting that the Committee recommend to the City Council the reallocation of $162,833.53 awarded for the Floral Trade Center Project (AGP 13- 04), to three different projects, as the construction of the Floral Trade has been delayed for various reasons. The three projects are: 1) installation of an automatic, sensor-controlled irrigation network and micro-sprinklers to more effectively irrigate and reduce overall water usage; 2) installation of an adjustable synthetic shade covering to reduce impacts from extreme heat; and 3) the acquisition of a generator and retrofit of two coolers for cut flowers and harvest food crops to provide adequate cooler capacity during harvest periods. One of the four categories for allowable uses for agricultural mitigation fees is for ancillary uses necessary for the continued production of agriculture in the city’s coastal zone. The three projects listed above are consistent with ancillary uses for improving agricultural operations. 6.2 2013 Grant Application (AGP 13-04) 6.3 2013 Agricultural Conversion Mitigation Fee Grant Funding Agreement (AGP 13-04) Carltas Company Request for Grant modification- Floral trade Center and Marketplace Project AGP 13-04—Floral Trade Center Improvements October 5, 2017 Pursuant to the recommendation of the advisory committee, the Carlsbad City Council approved a series of grants, directed at enhancing the long term sustainability of agriculture in the area designated for agriculture proximate to Cannon road. Carlsbad Ranch Company, the original grantee and a subsidiary of Carltas Company, has been merged with Carltas so this request and subsequent reports will be from Carltas. As previously reported, the project envisioned the addition of specialty food crops to the existing floral production, coupled with a series of facilities for distribution of onsite production, as well as the translation from farm to table products, in an environment analogous to the Flower Fields. In doing so, the project is intended to increase the value of the production, to enhance the access of the Carlsbad community and its visitors to the agricultural areas and experience, and to create a lively place for engagement with agricultural production. The project, now named North 40 Urban Farm, was introduced on our website at http://www.carlsbadnorth40.com. As we reported last year, we had held up proceeding with construction of the project as we worked to better align the mix of tenants and costs of infrastructure and operation. The issues presented are difficult and require some major redesign. We are requesting a reallocation of the AGP 13-04 ($162,833.53) from the Floral Trade Center Project to support 3 projects required for the field growing and post- harvest operations. We continue to experience delays in proceeding with the original project, and increasing needs for the flower growing and new food product post- harvest handling are more urgent. Modifying the grant to support the items listed below will accomplish similar objectives as the original elements in preserving the floral industry presence in Carlsbad, and enhance the food crop productivity and handling. Exhibit 6.1 The specific programs and the amount allocable to each are as follows: 1. Water Management for production. The costs and scarcity of water is a major challenge to the continued field production. We propose funding to reduce water usage by 15-20% by installing an automatic, sensor- controlled irrigation network based on Decagon Devices, Inc., PlantPoint Technology, along with a significant savings in labor now required for our manual irrigation system (project cost- $58,000). As a second part of this program we propose to install micro- sprinklers that will more effectively irrigate and reduce overall usage. The sprinklers required for initial installation for 40 acres will require funding for approximately $36,000 in materials. 2. Heat Impact management. Production of an early floral crop (produced for sale in the fall) with planting in early summer is crucial to the economic value of the crop, and its advantage from our location. However extreme heat often encountered for 1-3 weeks from mid-August to Mid- September have repeatedly prevented production success. We have tested a system utilizing an adjustable shade covering using AG70 (a woven synthetic) as a means of mitigating the impact. We propose to install a system for 10 acres of production that will have an adjustable shade structure. (project cost-$25,000) 3. Cooler for cut flowers and harvested food crops. We have had limited facilities to store cut flowers and harvested food crops, with a concomitant impact on inventory which we can deliver for sale. We propose to refit 2 containers and acquire a generator which will provide for adequate cooler capacity during harvest periods. (project estimated cost-$50,000) The aggregate for these projects ($169,000) exceeds the original grant, and additional costs for labor are not included. However as with the earlier grant (which was less than the full project cost) we propose to fund any costs above the grant award. All projects will be completed by June 30, 2018. Exhibit 6.2 Exhibit 6.3