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HomeMy WebLinkAbout20103071.tiff At City of 11r' Thornton December 22, 2010 Ms. Vicky Sprague, Office Manager Office of Board of County of Commissioners Weld County 915 10th Street P.O. Box 758 Greeley, CO 80632 RE: City of Thornton Farm Property Management Update Dear Ms. Sprague: Attached for the Weld County Board of County Commissioners' review is the City of Thornton's 2010 Annual Farm Management Operations Report, which summarizes certain land management activities on Thornton's Weld County farm properties during 2010. Thornton representatives will be available to meet with the Commissioners in 2011 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 Hunt 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 MLCR vvuCctiuv ca ; P) 7-lna,,3ooZa)J, CA, mm, ( 96,w2 SO�L , VickyS Cornm C\Documents and Seangstdmorrow\Local Setbngs Temporary Internet FileelContent Oueook\eC9KILNO2010 Weld County Cover Letter doc la cis io 2010-3071 Ak �c City of Thornton i1 Annual Farm Management Operations Report Prepared for the Weld County Board of County Commissioners December 22, 2010 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 25 years, Thornton has contributed over $8.5 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 15,985 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 45 houses at a cost of$372,000. Thornton will continue with this project over the next few years as budget allows. Thornton uses local contractors and vendors for this Program. • In 2010, there were 7,187 acres included in Thornton's Revegetation Program in Weld County; to date, 1,763 acres have been certified as fully revegetated by the Natural Resources Conservation Service. • Thornton's 2010 Revegetation Program successfully continued the process of converting formerly irrigated land to native grasses by seeding, re-seeding, inter-seeding, mowing, and weed management. • The remaining 8,798 acres in Weld County are still in irrigated agriculture and are leased to local farmers. Page 2 of 11 W elE Lounly 2010 FINAL Ooce 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 2010 operations and activities in Weld County. Since 1986, Thornton has operated a local Farm Management Office in Ault. 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 native grasses 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 $6 million on its Farm Management operations, which includes activities ranging from tree trimming, to plumbing and electrical repairs, to culvert replacements. In 2010 alone, Thornton spent almost $1 million on its Farm Management operations, in most cases with local Weld and Larimer County vendors. 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 $194,315 per year to adjust for changes in property values and the local tax schedule. For the twenty-five years Thornton has owned property in Weld County, it has contributed over $8.5 million to the local economy through a combination of its Farm Management Operations and voluntary payments in lieu of taxes. Page]0111 W e10 County$010 FINAL Loco In addition, 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 recently acquired three Thornton farms to improve their operation. Since 2003, Thornton has leased 37,900 acre feet of water to the Central Colorado Water Conservancy District (Groundwater Management Subdistrict and Well Augmentation Subdistrict) 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 (35 acre feet) and the Town of LaSalle (128 acre feet) for operation of their municipal augmentation plans. In 2003, Thornton arranged a lease of water to the Platte River Power Authority 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 2010 Farm Management Operations Farm Management Office Move During the summer of 2010, the City of Thornton moved its office from 111 South 2nd Avenue, Ault, to the old Highland Middle School building located at 215 South 1st Avenue, Ault. The City rents the space from the Weld County RE-9 School District, which provides the District with revenue from an otherwise under-utilized facility. Thornton upgraded the HVAC system and made other improvements to the building. This partnership between Thornton and the District has worked well; the new office offers better accessibility to Thornton's tenants, vendors, customers and the general public. All other contact information remains the same. Revegetation Protect Thornton currently owns 104 farms on approximately 15,985 acres in Weld County, of which 8,798 acres are still farmed. To date, a total of 7,187 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. As of 2010, 1,763 acres in Weld County have been accepted, or certified, 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. Since 2006, all revegetation contractors and vendors have been from the local community in Weld County. Since 2006, Thornton has spent well over $1 million with these local vendors on its revegetation project. Page 4 o111 Weld County 2010 FINAL noex 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. This procedure maintains the health of the pasture grass, and avoids potential damage from overgrazing. Due to timely amounts of moisture during the spring of 2010, over 3,000 tons of grass was harvested from Thornton's revegetated farms. This equates to over 5,000 bales of grass that were harvested and sold to local cattle and sheep producers. Thornton's current plans are to complete revegetation and obtain NRCS certification on a total of approximately 8,000 acres in Weld County by 2015. The remainder of the farms in 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 1200 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 Irrigated Farms Approximately 8,798 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 2010: Crop Percent Shell Corn (used for flour, cattle feed) 34% Wheat (used for flour) 18% Alfalfa (used for cattle feed) 16% Silage Corn (used for cattle feed) 14% Sugar Beets (used for sugar) 6% Pinto Beans (human consumption) 5% Onions (human consumption) 5% Sunflowers (seeds-human consumption) 2% 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 Page 50111 Weld County 2010 FINAL Roca pride in their homes , and generally stay in the houses for over 5 years. The City has tenants who have been leasing houses from Thornton since 1986 , as well as long-term tenants who have moved from one Thornton farm house to another to meet their space needs . 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 . In 2010 , Thornton performed substantial repairs on ten houses under this program . The types of repairs were wide-ranging , and included significant foundation improvements on two properties , painting of siding , and site drainage improvements. To date , approximately $372,000 has been spent under this repair program . Thornton plans to continue on the repair schedule by performing work on twelve to fourteen houses per year, depending on budget considerations . Repairs under this program are completed by local vendors. The following pictures are an example of the major repairs performed on Thornton homes in 2010 : ili, , , .. , , l- t' 1, . • vI 7.t, ♦!► £ Mr'. -' et) r , II r .� ..4 -=1 4 Farm #61 -15 Located at the south west corner of Hwy 14 and WCR 33 Foundation repairs to stabilize the home . Picture taken during repair. Page 6 of 11 Weld County 2010 FINAL docx • I . • • Farm #61 - 15-- same house after repairs completed in fall of 2010. —a_ f '11 J a. t - • �,.• Farm #61 - 15 . Interior of house prior to foundation repair. Page 7 of 11 Weld County 2010 FINAL.docx t i1 11 I I I I - I -- Farm #61 - 15 . Same wall after repair and foundation fixed . Status of Farms 8 , 19 , and 118-25 In 2006 and 2007 , wind storms caused erosion and blowing dust on three of Thornton's revegetated farms (Farms 8, 19 , and 118-25). Following is an update on the efforts to re-establish grasses on these farms . Farm #8 is located east of Pierce and on the north side of WCR 90 at WCR 43 (SE '/4 of Sec 21 T8 R65 and W 1/2 of the SW 'A of Sec 22 T8N R65W) . The native grasses are well established on this property, and weeds are controlled with limited chemical application . The east side of this farm has now been certified as a revegetated farm by the NRCS . The west side still has a few acres that have not filled in with grass to meet the NRCS standards. Thornton anticipates that the grass in this area will continue to fill in , and is hopeful that the whole farm will become certified in 2011 . .1111011 _ - , tratairAi t Farm #8 , Fall 2010 . Looking east from the west side of the property WCR 90 &43 . (SE1 /4 Sec21 T8 R65 and W1 /2 SW1 /4 Sec22 T8N R65W) Page 8 of 11 Weld County 2010 FINAL.docx 1 I r `.• • q • • Farm #8 , Fall 2010 Northeast corner of WCR 90 & 43 just north of the house looking south . Farm #19 is located on the northeast corner of Weld County roads 37 & 88 (SW 1/4 Sec 30 T8 R65). A 2009 fall inspection of the farm concluded that the grass had not fully established . Thornton inter-seeded the farm in the spring of 2010 , and Thornton will continue to monitor its progress in 2011 . )1"Ir: cAs. Farm #19—Fall of 2010. Looking east just on the north side of WCR 88 and east of WCR 37 . Page 9 of 11 Weld County 2010 FINAL door Farm #118-25 is located on the northwest corner of Weld County roads 37 & 88 (SE 1/4 Sec 25 T8 R66 ). While there are portions of this farm where the grass is fully established , there are other portions where the grass is too thin for certification by the NRCS . Thornton will continue to monitor the grass, and will perform chemical weed control in 2011 . . .►.., ,t• _ : i. Mil+ I. .. IS # ., ti,�y�,. r, ' .fit;, ' ,' ,+ � •- �y1r •-.+�t�. aI „i •' y ' Y. a ri."c#42..-- d.�-,,,- .."16,4.4r7` ' ~~ '';.4y'� will 'ln,Qc vI 4~l, ,1i:li zt tap.:„..- 4r I--- �4c • • *>1l 1 ._ {� - I { ..rise ;-' `•.. -''o.-• �:�, �' • l - ~. .yi ••ter• 1'r. - - _ "' _Air , - 7' -r • ryl - -...t.-- r /' k _ b4-% r.� A `% • '� . Arts'. • 1'' ece it t• 11 + } it ✓.S .. 4'. •` J '1.y+'r'Y� l. . '� I_ _ I1 .•i • ld � 4,01" rl f} 3•\• ' . . s •',1 �_ • • • 1 e ' - .Y. La _ a`: •.��►�i_•_ Il ,�a� • ,.�' M III • Farm #118-25. Fall 2010 Looking north from Weld County Road 88 just west of Weld County Road 37 . 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 on a yearly and a farm-by-farm basis accordingly. Page 10 of 11 Weld County 2010 FINAL docx 'Manton Northern Project Revegetation Program Weld County Through SepSomber 2010 Thornton Northern Project Revegetation r///i CS� Last updated 9/15/2010 lido fl psd r agar Partial Sesieraln' Tool Hevegt;ao+ Pirral 414i Covered *RCS(flea NORTH - SS as } 1 a M Z } 4 ma r P— ,ft • 0 e re 0 air was La.al Oa 4-4* i. \ «J'7 a fr W < ? !' Pierc tray ,Nil w r w «.w J a a pm a r! w Si is • a OMfJr MIA gu NI a sons F:; • `. a l .... Oa 11 at al a h ilk Ili 1 Mi r' ^ !r4 s IS a', MI w awl ese rs 'Nw, Hin • M n ! $ «i r/ III w IS HWY 14 no It HS II - - -- - IM ^ w WAS r • t ,cu./. 1! r4, w w is n l — .M �� war aAcreage Status for TNP VN9Id Carty Farms as of September 2010 r w M 3.t 85 Total acreage of Weld County TNP farms. 15.885 Weld County TNP leased farm acreage: 8,798 a as Weld Carty TNP NRCS certiled acreage: 1.763 Weld County TNP Acreage in Revegetatlon Program. 7,187 Wes t►i.. 0040S 1.6 24 3.2 _ lcrla.pts.eM OMerec.er Hello