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Home My WebLink About880155.tiff RESOLUTION RE: APPROVE APPLICATION FOR THE AGRICULTURAL PROCESSING FEASIBILITY GRANT PROGRAM AND AUTHORIZE CHAIRMAN TO SIGN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS , the Board has been presented with an Application for the Agricultural Processing Feasibility Grant Program, and WHEREAS, after review, the Board deems it advisable to approve said Application, a copy being attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Application for the Agricultural Processing Feasibility Grant Program be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is, authorized to sign said said Application. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 29th day of February, A.D. , 1988 . -+��1 n n�Zua/d 1�y( BOARD OF COUNTY COMMISSIONERS ATTEST: Y WE COUNTY,/� COLORADO Weld County Clerk and Recorder f` , G and Clerk to the Board 'Gene R. Brantner, Chairman \I ,� EXCUSED BY: C.W. Kirby, Pro-Tem Deputy County C erk / Y APPROVED AS TO FORM: J cqu 'ne J h so Gox! a ounty Attorney ' ' M � Frank amaguchi . ' 880155 APPLICATION For the Agricultural Processing Feasibility Grant Program 1. Applicant Local Government County of Weld Name of Contact Person Donald Warden Mailing Address Weld County P .O. Box 758 Greeley, CO 80632 Telephone Number 356-4000 (ext. 4218) 2 . Name/Title of Proposed Project RuBisCo Corporation' s Green Crop Fractionation (Protein Extraction) 3 . Location of Project Weld County 4 . Amount of grant funds requested $ 15 , 000 . 00 5 . Describe the processing facility which will be studied. In- clude information you may have on the type, amount, and source of raw material which will be processed and potential markets. Indicate whether the project will compete with similar process- ing facilities in the region. (Enclose additional information which is available on the project) . Grant funds will utilize processing equipment that has been used by RuBisCo Corporation in developing the basic protein extraction technology. This equipment has been used processing very small (5- 10 lb. ) batches of alfalfa. The purpose of this program is to operate this equipment on a continual basis ( 6 hours per day) during each testing day. The protein extracted from alfalfa will be marketed in competition with Casein. Casein is a protein derived from milk. Most of the Casein used in the United States is imported from New Zealand and Europe. The other products mentioned in the Executive Summary are also imported. There are no other such processing facilities in the United States. A business plan entitled "Leaf Nutrients" is enclosed. Dale McDonald, President of RuBisCo Corporation authored the business plan. Products described in the business plan are the products that RuBisCo Corporation is now developing. 880155 Page 2 6. Describe how the grant will be used. The grant will be used during April and May to demonstrate pilot production technologies developed by RuBisCo Corporation from August 1987 through February 1988 . The pilot demonstration (500 lbs per day) must precede larger scale production (10, 000 lbs. per hour) . If a small commercial leaf protein extraction facility is to operate in the summer of 1988 , we must do pilot work in the southern United States where growing alfalfa is available. The grant will primarily be used to help offset the hard expenses that will be incurred during the pre-production demonstration. 7 . Describe the impact the project will have on the community (i.e. , jobs, payroll, spin-off industries, etc. ) . The operation of a small leaf protein extraction facility will only employ twelve people while processing 700 acres of alfalfa . However, this facility (Phase III) is only designed to demonstrate the overall feasibility of what could become a major industry in Colorado. The small facility could create $1. 5 million in annual revenues . A full-scale process refinery could receive semi- concentrated raw material that could be produced in multiple county concentration plants in the western and midwestern United States. This refinery could create revenues in excess of $50 million and employ 75 people. The county concentration plants would require about 300 people. 8. To what degree has feasibility of this project already been investigated? (Include previous studies, financial backing, etc. ) . The President of RuBisCo Corporation formerly was the owner of Val- ley Dehydrating Company of Sterling, Colorado. He utilized tech- nology developed by the U.S.D.A. , Western Regional Research Center, Albany Company during the construction and operation of the first facility in the western hemisphere to separate the fiber from a green protein (55%) concentrate. Valley Dehydrating was sold to Atlantic Richfield Corporation (ARCO) in June, 1981. RuBisCo Cor- poration is further refining the green protein into its individual valuable components listed in the summary. Data collected from many institutions (worldwide) has been utilized in gaining the present technology. The President of RuBisCo has been involved in processing alfalfa since 1952 . He has been totally involved in leaf protein extrac- tion since 1979 . He has expended over $400, 000 of his own funds in these efforts. Colorado Venture Management, Inc. , the University of Arizona Research Corporation and other investors have con- tributed over $110, 000 to RuBisCo Corporation which has allowed the corporation to complete Phase I of its objectives. 880155 Page 3 9 . Describe who would operate the facility. Indicate their exper- ience in developing other processing or manufacturing facili- ties and/or experience with the agricultural commodity being processed. Dale R. McDonald, President of RuBisCo Corporation, will be operat- ing the protein extraction equipment. He will produce semi-refined protein solutions (approximately 20% dry matter) . His resume is found in the management section of the enclosed business plan. These solutions will be packed in ice and sent by air freight to Hauser Chemical Research (HCR) in Boulder, Colorado. HCR will ac- complish further purification of the protein and do final drying. HCR is described in their enclosed 1987 annual report. 10 . BUDGET INFORMATION. Indicate the amount of grant money and in-kind contribution to be spent on each function or activity. Activity Grant In-Kind or Cash a. Personnel $ 8, 000 $4 , 500 b. Travel 2, 500 c. Equipment 1, 000 (Modification) 500 Faroc Corp 1, 000 Amicon Corp. d. Supplies 500 (Alfalfa) 1, 000 HCR e. Contractual 2 , 000 Miekley & Assoc. f. Other 750 2 , 700 CVM (Phase III Feasibility & Funding Preparation) 1. Lab Fees 1, 500 2, 000 HCR 2 . Facility Rent 750 4 . Vehicle Rental 1, 300 TOTAL: $15, 000 $15, 000 Indicate below amount of funds contributed by public sources. 11. Please enclose a draft letter of agreement between local government and private enterprise, stipulating each party's responsibilities in fulfilling the contract. 12 . Please enclose letters of support from groups such as farm organizations, commodity groups, financial institutions, and/or local government advisory groups. 1:80155 Page 4 13 . Mail application to be received by March 1, 1988 to: Colorado Department of Agriculture c/o Laura Smith 406 State Services Building 1525 Sherman Street 1f Denver, Colorado 80203 YY Signed: Date: ylyt Applicant Chairman, Board of County Commissioners Title 880155 STATE OF COLORADO DEPARTMENT OF AGRICULTURE 1525 Sherman Street N +mss Denver,Colorado 80203 # iclaj +' (303)866-2811 •�''' *18764 Roy Romer Governor Peter R.Decker Commissioner Steven W. Horn Deputy Commissioner April 1, 1988 Donald Warden Weld County P.O. Box 758 Greeley, CO 80632 Dear Mr. Warden: The Colorado Department of Agriculture is pleased to announce that Weld County's grant application to study green crop fractionation has been approved for the full amount of $15,000. A contractual agreement between Weld County and the State of Colorado is currently being developed and will be mailed to you as soon as possible. Upon executing the contract, Weld County will receive a check for $7,500 within 30 days. The remaining $7,500 will be paid upon receipt and approval of the final report. We find your proposed study very interesting and look forward to working with you. Sincerely, C _ , li L Jim Rubingh Markets Administrator cc: Dale McDonald *Also filmed with Reports & Communications dated 4/4/88. 880155 Hello