HomeMy WebLinkAbout20180042.tiff�� city of
Thornton
Infrastructure Maintenance Center
12450 Washington Street
Thornton, CO 80241-2405
December 14, 2017
Ms. Karla Ford, Office Manager
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 Karla:
Infrastructure Department
720-977-6600
FAX 720-977-6202
www.cityofthornton.net
Attached for the Weld County Board of County Commissioners' review is the city of
Thornton's 2017 Annual Farm Management Operations Report, which summarizes
certain land management activities on Thornton's Weld County farm properties during
2017.
Thornton representatives will be available to meet with the Commissioners in 2018
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/
cc: Brett Henry, Executive Director — Infrastructure
Mark Koleber, Water Project Director
Ed Lanyon, Senior Water Resources Administrator
Brian Foss, Farm Operations Administrator
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2018-0042
:� City of Thornton
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Annual Farm Management Operations Report
Prepared for the
Weld County Board of County Commissioners
December 14, 2017
Executive Summary
• Thornton acquired farm land and water rights in Weld and Larimer Counties in
1985 and 1986 as part of a water supply project.
• Since 1986, Thornton has contributed over $14 million to the local Weld and
Larimer County economies through its Farm Management operations, including
Voluntary Payments in Lieu of Taxes to Weld and Larimer County agencies, and
the use of local vendors on Thornton's projects and operations.
• Thornton owns 104 farms on approximately 17,161 acres in Weld County.
• In 2017, there were 6,941 acres included in Thornton's Revegetation Program in
Weld County, the same as 2016. To date, 6,033 acres have been approved as
established native grasslands by the Natural Resources Conservation Service.
Thornton's 2017 Revegetation Program successfully maintained these native
grasses with weed management, mechanical mowing, cutting, and baling.
• 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.
• Thornton currently owns 56 farm houses in Weld County, the majority of which
were leased to Weld County residents in 2017. To date, 19 houses have been
sold (seven in 2014, seven in 2015, four in 2016, and one in 2017). Many of the
remaining farm houses are not good candidates to be sold separately from the
farms, and Thornton is in the process of re-evaluating the farm house sales
program.
Thornton's Farm House Repair Program addresses repair needs on Thornton -
owned houses. Thornton uses local contractors and vendors for this program.
• In 2017, Thornton annexed 313 acres of its land into the Town of Ault and will use
a portion of this land for a new Farm Management Office location. Construction
on the new office will begin in 2018.
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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. 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 Weld and Larimer
County communities. This annual report provides a summary of Thornton's 2017
operations and activities in Weld County.
Since 1986, Thornton has operated a local Farm Management Office in Ault, and more
recently, Eaton. Thornton recently annexed 313 acres of its land into the Town of Ault
and will use a portion of this land for a new Farm Management Office location. The office
is scheduled to break ground in early 2018. The function of the Farm Management Office
is to oversee the operation, leasing, management, and maintenance of Thornton's
properties in Weld and Larimer Counties. Thornton cash -leases its farms to local farmers,
and several farmers who originally sold farms to Thornton continue to lease these 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 grass
vegetation. This conversion of farms from irrigated agriculture to a non -irrigated use is
required by Thornton's 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 over $14 million on its Farm Management operations, which include 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
and Larimer Counties. Since 2010, Thornton has adjusted its voluntary payments to the
counties to reflect changes in property values and the local tax schedule. The 2017
voluntary payment to Weld County taxing authorities was $257,073. Since 1987,
approximately $5,120,758 has been paid to Weld County taxing authorities.
Over the years, Thornton has partnered with local governmental entities and businesses
to enhance their operations. For example, Thornton sold land and the associated mineral
rights 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
Thornton is currently working with them to sell them a parcel to be used for employee
housing. Longs Peak Dairy has acquired three Thornton farms to improve their operation.
The city cooperated with the Colorado Department of Transportation for widening and
straightening of Highway 85 north of Ault to improve traffic safety.
Since 2003, Thornton has leased approximately 66,000 acre feet of water to the Central
Colorado Water Conservancy District (Groundwater Management Sub -district and Well
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Augmentation Sub -district) for operation of an augmentation plan for irrigation wells in
Weld County.
Thornton looks forward to its continued contribution to and cooperation with the Weld
County community.
Thornton's 2017 Farm Management Operations
Revegetation Proiect
Thornton currently owns 104 farms on approximately 17,161 acres in Weld County. To
date, a total of 6,941 acres in Weld County have been taken out of irrigated agricultural
production and have been or are in the process of being revegetated to native grasses.
Total approved revegetated acres by the Natural Resources Conservation Service
(NRCS) is 6,033 acres. This is the same number as 2016 as no new acres were certified
in 2017. An additional 788 acres of land in Larimer County are currently in Thornton's
revegetation program. Thornton implements its revegetation program in Weld and
Larimer Counties 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 Weld and Larimer County communities. Since 2006, Thornton has spent
over $2.6 million with these local vendors on its revegetation project. Attached is a current
map of the Thornton properties located in Weld County.
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 has been available to produce a
harvestable stand of grass. This procedure maintains the health of the pasture grass,
and avoids potential damage from overgrazing. Adequate moisture in 2017 allowed for
grass production on some Thornton land. There were approximately 3,000 bales from
Thornton's Weld County farms that were sold to local area cattle producers. Other farms
that did not receive adequate moisture were monitored to control weeds and pests.
Thornton's current plans are to complete revegetation and obtain NRCS approval on a
total of 6,941 acres in Weld County by 2020. 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. 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 irrigated agricultural
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roduction. 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
The Water Supply and Storage Company (WSSC) water that was used to irrigate
Thornton's revegetated farms continues to be used within the WSSC irrigation system on
farms that are still in irrigated agriculture. Tenants of Thornton -owned farms have priority
in renting this surplus water. After those requests have been fulfilled, any remaining water
is rented to other farmers throughout the WSSC system on a first come, first serve basis.
The following are some pictures of certified grass fields that are a part of the Revegetation
Program as well as a map of the revegetation program.
Farm #61-26 located on CR 88, east of CR 45
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2017 Weld County Thornton Farm Management
Revegetation Map
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Active Revegetation
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Acreage Status for Weld County Farms as of October 2017
Approximate Acreage of Weld County Thornton Farms: 17.161
Weld County NRCS Established Acreage: 6.033
Weld County Total Acreage in Revegetation Program: 6.941
Thornton's Irrigated Farms
The Thornton farms that remain in irrigated agricultural production in Weld County 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 -2017:
Crop Percent
Shell Corn (used for dairy/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 (used for human consumption)
Thornton's Residential Houses
25%
30%
12%
22%
6%
5%
In 2017, of the 56 farm houses owned by Thornton in Weld County, most were leased.
These houses are leased on an annual basis. Thornton's houses provide affordable
housing options for residents in Weld County. Thornton's house tenants take pride in
their homes, and generally stay in the houses for over five 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.
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. The types of repairs are wide-ranging,
and include foundation improvements, site drainage improvements, new roofs, exterior
paint, siding, structural repairs and site grading as well as interior repairs such as painting,
and repairs to sheet rock, windows, and flooring. Repairs are completed by local vendors.
Sale of Thornton Houses
In 2013, Thornton began the process of selling some of the houses it owns in Weld and
Larimer Counties. To date, 19 houses have been sold, seven in 2014, seven in 2015, four
in 2016, and one in 2017. One house is currently for sale. Thornton is in the process of
re-evaluating the farmhouse sales program and will decide which, if any, farmhouses will
be platted and sold in the future.
Oil and Gas Leasing
During 2013 and 2014, Thornton experienced an increase in drilling activities for oil and
gas production on various farms. Leases were signed in late 2011 and early 2012 with
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three different oil companies - Petroleum Development Corporation (PDC), Bayswater
Exploration, and Marathon Oil. In 2013, Marathon assigned its Thornton leases to DJ
Resources. In 2017, DJ Resources assigned their remaining leases to Edge Energy II,
LLC. Another drilling company, Extraction Oil and Gas, signed additional leases during
2014. Depending upon the parcel, Thornton may own all or a portion of the minerals.
Extraction, Marathon/DJ/Edge, Bayswater, and PDC have drilled 39 wells on Thornton
and adjacent properties under these leases. Additional wells may be drilled on these
sites in the future. The recently drilled wells, and wells that are planned to be drilled in
the near future, are all horizontal wells and have been drilled from multi -well pad sites.
Some additional wells have been drilled on Thornton -owned Farms where the city doesn't
own any of the minerals. Between late 2016 and mid -2017, 21 of the existing leases
expired due to the term ending without the operators commencing drilling. Thornton is
currently not pursuing re -leasing these minerals.
Farm Management Office
The city of Thornton Farm Management Office rented office space from the Highland
School District from 2009 to 2014. Early in 2014, the Farm Management Office was
notified by the district that the building that housed the office space Thornton was renting
was part of a large construction project to improve and expand the district's facilities. As
a result, Thornton's lease would not be renewed. The city searched the Ault community
for a suitable substitute and also investigated the possibility of converting one of its
houses into office space. Neither of these options were viable, so the Farm Management
Office relocated to rented office space in Eaton. Thornton recently annexed 313 acres of
its land into Ault to use a portion of it for a more permanent Farm Management Office
location. The annexation is just north of the town limits: south of WCR 84, between WCR
33 and WCR 35. Design is currently under way and construction is scheduled to begin
in early 2018.
Thornton Water Proiect
Thornton continues to work with communities in Weld County that could be impacted by
the construction of the pipeline to deliver Thornton's WSSC share water to the
city. Thornton has identified a preferred pipeline corridor based on information and
feedback from Weld County residents, as well as planning, engineering and other staff
from Timnath, Windsor, Greeley, Berthoud, Johnstown, Milliken, Mead, Firestone,
Frederick and Dacono, and Weld and Larimer Counties. Thornton held four Open Houses
in Weld and Larimer Counties between mid -November and mid -December 2016 to inform
the public about the project, and to get information from property owners regarding
possible specific alignment locations for the project. Thornton has been in contact with
property owners along the preferred project corridor to acquire easements for the
project. These efforts have mainly been focused along Weld County Road 17, between
WCR 2 and WCR 32. Thornton staff has held a USR Permit Pre -Application meeting with
Weld County staff regarding this southern segment of the project, and continues to
coordinate with Weld County staff regarding the project. Thornton is also working with
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property owners within the towns of Johnstown and Windsor to construct the project to
minimize impacts to their development plans.
Thornton remains committed to an open, responsible, and collaborative approach to
locating and constructing the pipeline needed to deliver water to Thornton.
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