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December 27, 2012
Ms. Jenny VanEgdom, Administrative Coordinator
Office of Board of County of Commissioners
Weld County
1150 O Street
P.O. Box 758
Greeley, CO 80631
RE: City of Thornton Farm Property Management Update
Dear Ms. VanEgdom:
JAN P1
WELD COUNTY
COMMISSIONERS
Attached for the Weld County Board of County Commissioners' review is the City of
Thornton's 2012 Annual Farm Management Operations Report, which summarizes
certain land management activities on Thornton's Weld County farm properties during
2012.
Thornton representatives will be available to meet with the Commissioners in 2013
during the month of March to address questions from the report, or other issues of
interest. I will contact you after the first of the year to set a date for this meeting and
to establish an agenda.
Thornton is pleased to continue open communication with the Commissioners and
County staff throughout the year. Please feel free to contact me with any questions or
concerns at 720-977-6504.
Sincerely,
Emily t#Gnt
Water Resources Manager
EH/dm
cc: Bud Elliot, Deputy City Manager — Infrastructure
Mark Koleber, Water Supply Director
Scott Twombly, Real Estate Manager
Brian Foss, Farm Operations Administrator
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Annual Farm Management Operations Report
Prepared for the
Weld County Board of County Commissioners
December 27, 2012
Executive Summary
• Thornton acquired farm land and water rights in Weld County in 1985 for
its Thornton Northern Project water supply project.
• In the last 26 years, Thornton has contributed over $9.7 million to the local
Weld County economy through its Farm Management operations,
including Voluntary Payments in Lieu of Taxes to Weld County agencies,
and the use of local vendors on Thornton's Weld County projects and
operations.
• Thornton owns 104 farms on approximately 17,746 acres in Weld County.
• Thornton owns 77 farm houses in Weld County that are leased at market
rates.
• Thornton's Farm House Repair Program has, to date, addressed repair
needs on houses at a cost of $783,000. Thornton uses local contractors
and vendors for this Program.
• Thornton's 2012 Revegetation Program continued the process of
converting formerly irrigated land to native grasses by seeding, re-
seeding, inter -seeding, mowing, and weed management.
• In 2012, there were 6,941 acres included in Thornton's Revegetation
Program in Weld County. To date, 4,686 acres have been approved as
fully revegetated by the Natural Resources Conservation Service.
• The remaining 10,805 acres in Weld County are still associated with
irrigated agriculture and are leased to local farmers.
• Thornton reclaimed the former Buckeye Feedlot, which is just north of the
Town of Ault. This involved removing corals and cement ditches, filling in
pits on the site, and other clean-up activities to remove feedlot facilities.
Page 2 or 12
Weld County Final 12-27-12
Introduction
In 1985 and 1986, Thornton purchased over 20,000 acres of farms and
associated water rights in Weld and Larimer Counties. Thornton purchased the
assets for a water supply project known as the Thornton Northern Project (TNP).
Since Thornton's acquisitions of farms and water, Thornton has operated under a
good neighbor policy of working with farmers, residents, businesses and
governmental entities to effectively manage its properties and provide benefits to
the Larimer and Weld County communities. This annual report, which first began
in 2007, provides a summary of Thornton's 2012 operations and activities in
Weld County.
Thornton has operated a local Farm Management Office in Ault since 1986. The
function of the Farm Management Office is to oversee the operation, leasing,
management, and maintenance of Thornton's properties in Larimer and Weld
Counties. Thornton cash -leases many of its farms to local farmers, and several
farmers who originally sold farms to Thornton continue to lease farms from the
City. Other Thornton farms have been removed from irrigated agriculture, and
Thornton has converted, or is in the process of converting, these farms to native
vegetation. This conversion of farms from irrigated agriculture to a non -irrigated
use is required by the TNP Water Court Decree, and must be satisfactorily
accomplished before Thornton can deliver water to Thornton customers.
The Thornton Farm Management Office pro -actively manages Thornton's
properties and tenants, and responds to issues and concerns when they arise.
Since 1986, Thornton has spent a total of over $9.7 million on its Farm
Management operations, which includes activities ranging from tree trimming, to
plumbing and electrical repairs, to culvert replacements. In addition, since 1987,
Thornton has made voluntary payments in lieu of taxes to Weld County. Up until
2010, these annual payments were in the amount of $137,877. In 2010,
Thornton increased its voluntary payments to Weld County to adjust for changes
in property values and the local tax schedule. The 2012 voluntary payment was
$200,487.
Over the years, Thornton has partnered with local governmental entities and
businesses to enhance their operations. For example, Thornton sold land to the
Weld County RE -9 School District for expansion of the school campus in Ault and
construction of a new station for the Ault/Pierce Fire District. The City has also
worked with local agricultural producers to acquire land to improve their
operations. Fagerberg Produce expanded their onion processing facility onto
land acquired from Thornton and Longs Peak Dairy has acquired three Thornton
farms to improve their operation.
Since 2003, Thornton has leased approximately 48,000 acre feet of water to the
Central Colorado Water Conservancy District (Groundwater Management Sub-
district and Well Augmentation Sub -district) for operation of an augmentation
plan for irrigation wells in Weld County. In addition, the City has provided
augmentation water to the Town of Pierce (61 acre feet) and the Town of LaSalle
(144 acre feet) for operation of their municipal augmentation plans.
Page J of 12
Weld Couldy Final 12-27-12
In 2003, Thornton arranged a lease of water to the Platte River Power Authority
(PRPA) from the Water Supply and Storage Company / Pierce Lateral system.
This lease not only provided much needed water for PRPA operations, but also
helped the Pierce Lateral farmers stay in business during a severe drought.
Thornton looks forward to its continued contribution to and cooperation with the
Weld County community.
Thornton's 2012 Farm Management Operations
Revegetation Project
Thornton currently owns 104 farms on approximately 17,746 acres in Weld
County, of which, 10,805 acres are still associated with irrigated farming
operations. To date, a total of 6,941 acres in Weld County have been taken out
of irrigated agriculture and have been or are in the process of being revegetated
to native grasses. Through 2012, 4,686 acres in Weld County have been
approved as revegetated by the Natural Resources Conservation Service
(NRCS). Thornton implements its revegetation program with contractors and
vendors that are selected through a bid process that is advertised locally. For
the past six years, all revegetation contractors and vendors have been from the
local community in Weld County. Since 2006, Thornton has spent over $1 million
with these local vendors on its revegetation project. Attached is a current map of
all of the Thornton properties located in Weld and Larimer Counties.
There is currently one grazing lease in place on the City's revegetated farms in
Weld County. This tenant works with Thornton to manage his cattle
appropriately to maintain the health of the pasture grass on the farm. Thornton
does not allow horse grazing on its properties, as in the past this activity led to
erosion problems.
The pasture grass on the other farms that have been revegetated is cut and
baled by Thornton vendors when adequate, natural moisture is available. This
procedure maintains the health of the pasture grass, and avoids potential
damage from overgrazing. Due to the lack of moisture during the spring of 2012,
no grass was cut or baled on Thornton's revegetated farms this year. However,
the fields were monitored for weed and pest control. Various farms were sprayed
to control weeds and/or grasshoppers.
The Water Supply and Storage (WSSC) water that was used to irrigate the farms
that have been revegetated continues to be used within the WSSC irrigation
system. Local farmers rent additional water to ensure that they will have enough
water to produce a crop. The Farm Management Office rents Thornton's excess
WSSC water to Thornton farmers as well as other farmers throughout the WSSC
system on an annual basis.
Thornton's current plans are to complete revegetation and obtain NRCS approval
on a total of 6,941 acres in Weld County by 2015. The remainder of the farms in
Page <M 12
weld county Final 12-27-12
Weld County will stay in irrigated agriculture until the water is needed for
municipal use in Thornton. It is currently estimated that additional conversions
from irrigated agriculture to native grasses will not be needed until approximately
2030, when blocks of approximately 1,200 acres will be taken out of irrigated
production every three or four years. This timeline is a planning estimate and is
subject to change to meet Thornton's water supply needs.
Thornton's revegetation program has resulted in the successful establishment of
a self-sustaining, dry -land cover on the farms that have been removed from
agricultural production. Each farm is unique, and the revegetation process is
highly dependent on natural moisture. Thornton evaluates and adjusts its
revegetation methods as needed on a yearly and a farm -by -farm basis.
Reveqetation Report
In 2011, Thornton developed a Revegetation Report to document the status and
progress of its Revegetation Program. This report includes detailed maps of
each of the Thornton owned farms enrolled in the Revegetation Program and
outlines tasks that were completed on specific farms and fields in the
Revegetation Program. Thornton staff completed GIS mapping, research on
legal boundaries, and analysis of aerial photography to assist in the development
of this report. As previously mentioned, this research and mapping has resulted
in the reconciliation of several acreage inaccuracies. The report is updated on
an annual basis and includes any new land being put in to the Revegetation
Program.
Thornton's Irrigated Farms
Approximately 10,805 acres of Thornton farms remain in agricultural production
in Weld County. These farms are leased to local farmers on a cash -lease basis
at market rates. Water from ditch company shares or wells is provided with the
leases for irrigated land. Thornton generally provides three-year leases to allow
farmers to adequately plan their operations. These farms had the following
approximate crop distribution in 2012:
Crop
Shell Corn (dairy and feedlot cattle feed)
Silage Corn (used for dairy/cattle feed)
Wheat (used for flour)
Alfalfa (used for dairy/cattle feed)
Sugar Beets (used for sugar)
Onions (human consumption)
Percent
36%
19%
18%
16%
6%
5%
Thornton's Residential Houses
Thornton leases 77 farm houses in Weld County. These houses are leased on
an annual basis. Rent is charged at market rates and is re-evaluated each year
based on local market conditions. Thornton's houses provide affordable housing
options for over 150 residents in Weld County. Thornton's house tenants take
pride in their homes, and generally stay in the houses over 5 years. The City has
tenants who have been leasing houses from Thornton since 1986, as well as
Page 5 of 12
Weld County Final 12-27-12
long-term tenants who have moved from one Thornton farm house to another to
meet their space needs.
House Repair Program
In 2009. Thornton began a comprehensive Farm House Repair Program. All of
the Thornton -owned houses were inspected by a local contracting company, and
an inventory of major repairs for each house was generated. In 2009, high
priority repairs were performed on 34 houses. Thornton then prioritized the
remaining repairs and developed a schedule and criteria for completion. The
types of repairs were wide-ranging, and included significant foundation
improvements on two properties, painting of siding, and site drainage
improvements. During 2012, 14 houses received repairs consisting of new roofs,
new paint, siding, structural repairs and site grading as well as interior repairs
such as painting, sheet rock repair. windows and flooring. To date;
approximately $783,000 has been spent under this repair program. Repairs
under this program are completed by local vendors.
The following pictures are examples of major repairs performed on Thomton
homes in 2012:
Before and after photos of Farm #50 located west of Ault on Hwy 14
Painting. window replacement. new roof and exterior/interior repairs
s
Farm #79 -Weld County roads 37 & 881/2 mile east of intersection
New paint, windows exteriorlinterior repairs
4
Fire Department Training
The City of Thornton also cooperates with the local fire departments for training
opportunities using existing, but non -livable structures, for real life fire and rescue
situations. In 2012, two structures were used in the training of volunteers for the
Ault/Pierce Fire District. These training sessions provide invaluable experiences
to the local firefighters who. in turn. provide protection to the local citizens.
Residential Property Marijuana Issue
A house owned by the City and occupied by a tenant was found to be growing
marijuana in a garden area, and the incident was reported to Weld County
Sheriff's Office and The Metro Drug Task Force. The City notified the tenant of
the Federal Law prohibiting the cultivation of marijuana for either medical or
recreational purposes and requested that he comply. The tenant vacated the
house prior to the end of 2012. The City has modified its Residential Lease to
specifically prohibit the cultivation of marijuana.
Status of Farms 8. 19. and 118-25
In 2006 and 2007, wind storms caused significant erosion and blowing dust on
three of Thornton's revegetated farms (Farms 8, 19, and 118-25). In addition to
damage caused to Thornton properties by the dust storms, adjacent land owners
experienced damage to their property. Thornton worked with its neighbors who
were impacted to mitigate the damage in accordance with their requests.
Thornton also took measures on its own property to improve the conditions,
including ripping the soil and implementing weed control. As a result, no further
erosion on these properties has occurred.
4,„„
4,14: ttttt
Buckeye Feedlot
The Buckeye Feedlot, located one half mile north of the Town of Ault, has been
out of operation for several years and was in need of several costly
improvements in order to stay in compliance with Health Department regulations.
Because of the high cost of improvements, lack of interest in leasing the feedlot,
and close proximity to a residential area. it was decided to remove the feedlot
and revegetate the property. In 2012. the corrals, cement feed bunks, waterers,
alley ways and some of the supporting outbuildings were removed
Approximately 11 acres of feedlot ground were cleaned and are now ready for
revegetation. All usable material was either recycled or moved to other Thornton
farms to be used again. The cement from the site was ground and then hauled
to various Thornton -owned farms and used as gravel for roads and yards. Below
are some pictures of the various stages of clean up of the feedlot:
Hiuh Park Fire (Poudre Canyon'
During the summer of 2012. a large forest fire occurred in the Poudre Canyon,
called the High Park Fire. The water runoff from the bum area entered the
Poudre River and caused some municipalities such as the City of Greeley. the
City of Ft. Collins and the North Weld Water District to adjust their water supply
operations. Irrigation companies such as WSSC, the Larimer and Weld Irrigation
Company. and the North Poudre Irrigation Company were also impacted by ash
and silt run off. however, water supplies to the farmers in these systems were
maintained. The primary impact from the fire was the increased maintenance
required to keep the water flowing. Silt and ash plugged ditches, trashfweed
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racks, culverts and irrigation systems. Overall, most farm tenants in the WSSC
system were not significantly impacted, as most of the debris was removed at the
beginning of the system. Continued monitoring of the area will take place
throughout the winter months. Spring run off from the melting snow may cause
more silting and ash issues early in the 2013 irrigation season.
Page 11 of 12
Weld County Final 12-27-12
Thornton Northern Project Revegetation L% sAtt
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