HomeMy WebLinkAbout20170068.tiffA IsarCity of
rThornton
Infrastructure Maintenance Center
12450 W Rshingt ?n Street
Thornton, Co 80241-2405
December 22, 2016
Ms. Jenny Fuller, 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 Ms. Fuller:
infrastructure Department
720-977-6600
` ,--6600
FAX 720-977-6202.
www.cityofthomton.net
Attached for the Weld County Board of County Commissioners' review is the city of
Thornton's 2016 Annual Farm Management Operations Report, which summarizes
certain land management activities on Thornton's Weld County farm properties during
2016.
Thornton representatives will be available to meet with the Commissioners in 2017
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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2017-0068
'sic)? City of Thornton
Annual Farm Management Operations Report
Prepared for the
Weld County Board of County Commissioners
December 22, 2016
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 $13.3 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 2016, there were 6,941 acres included in Thornton's Revegetation Program in
Weld County, the same as 2015. To date, 6,033 acres have been approved as
established native grasslands by the Natural Resources Conservation Service.
Thornton's 2016 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 58 farm houses in Weld County, 57 of which were
leased to Weld County residents in 2016. Thornton is in the process of selling its
farm houses. To date, 18 houses have been sold (seven in 2014, seven in 2015,
and four in 2016).
• Thornton's Farm House Repair Program addresses repair needs on Thornton -
owned houses. Thornton uses local contractors and vendors for this program.
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 2016 operations and activities in Weld County.
Since 1986, Thornton has operated a local Farm Management Office in Ault, and more
recently, Eaton. Thornton is currently pursuing annexing 313 acres of its land into Ault
to use a portion of it for a more permanent Farm Management Office location. 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 $13.3 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 2016 voluntary payment to Weld County taxing authorities was
$256,167. Since 1987, approximately $4,863,685 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
proposed annexation into Ault includes a lot that could be used by Weld County RE -9
for a maintenance and storage facility. 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. The city cooperated with
the Colorado Department of Transportation for widening and straightening of Highway
85 north of Ault to improve traffic safety.
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Since 2003, Thornton has leased approximately 62,682 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.
Thornton looks forward to its continued contribution to and cooperation with the Weld
County community.
Thornton's 2016 Farm Management Operations
Revegetation Project
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 2015 as no new acres were
certified in 2016. 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 $2.2 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 2016 allowed for
grass production on some Thornton land. Just under 3,500 bales from Thornton's Weld
County farms 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.
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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 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.
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. The Farm Management Office maintains a
list of interested farmers and will rent the water on a first come, first serve basis.
Tenants of Thornton -owned farms have priority in renting this excess water. After those
requests have been fulfilled, then any water left is rented to other farmers throughout
the WSSC system.
The following are some pictures of certified grass fields and the bales that were sold in
2016, as well as a map of the revegetation program.
Farm #72E located on the southwest corner of CR 92 & 43
5
Farm #1 located _ on the southeast corner of CR 80 & 25
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Last updated 11/4/2016
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 2016:
Crop
Percent
S hell Corn (used for dairy/cattle feed)
S ilage Corn (used for dairy/cattle feed)
Wheat (used for flour)
Alfalfa (used for dairy/cattle feed)
S ugar Beets (used for sugar)
Onions (used for human consumption)
Thornton's Residential Houses
25%
30%
12%
22%
6%
5%
In 2016, of the 58 farm houses owned by Thornton in Weld County, 57 were leased.
These houses are leased on an annual basis. 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 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, eighteen houses have been sold, seven in 2014, seven in
2015, and four in 2016. One house is currently for sale and the city recently completed
the subdivisions of five additional houses, which created residential lots separate from
the farms making them eligible for sale in the future.
8
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
three different oil companies - Petroleum Development Corporation (PDC), Bayswater
Exploration, and Marathon Oil. In 2013, Marathon assigned its Thornton Leases to DJ
Resources. 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, and PDC have drilled 33 wells on Thornton and
adjacent properties under these leases. Bayswater is currently drilling six wells on a
Thornton Farm. 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.
Because drilling locations can impact development locations as well as building
envelopes, Thornton also worked closely with the Highland School District in providing
assistance in the development of the mineral assets they acquired from Thornton. In
working with the various oil and gas ownerships, as well as the drilling companies, both
Thornton and the School District will benefit from the oil and gas exploration taking
place on these parcels just to the west of Ault.
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 is
currently pursuing annexing 313 acres of its land into Ault to use a portion of it for a
more permanent Farm Management Office location. The annexation application has
been completed and was submitted to Ault in November 2016. The proposed
annexation into Ault includes a lot that could be used by Weld County RE -9 for a
maintenance and storage facility. Design is currently under way and construction is
scheduled to begin in 2017.
Thornton Water Project
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 planning, engineering and other staff from Timnath, Windsor, Greeley, Berthoud,
9
Johnstown, Milliken, Mead, Firestone, Frederick and Dacono, as well as Weld and
Larimer Counties. Thornton staff also participated in the stakeholder meetings
regarding Use by Special Review (USR) regulations for water pipelines in Weld County,
and has held a USR Permit Pre -Application meeting with Weld County staff regarding a
segment of the Thornton Water Project. Thornton also held four Open Houses in Weld
and Larimer Counties between mid -November and mid -December to inform the public
about the project, and to get information from property owners regarding possible
specific alignment locations for the project. 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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