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Home My WebLink About06. Valley Greens Proposal for Kiewit propertyCentral Contra Costa Sanitary District October 18, 2016 TO: REAL ESTATE ENVIRONMENTAL AND PLANNING COMMITTEE VIA: ROGER S. BAILEY, GENERAL MANAGER JEAN MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Jir _Ai. to FROM: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER SUBJECT: VALLEY GREENS PROPOSAL FOR KIEWIT PROPERTY Abhinav Goswami of Valley Greens requested leasing one acre of the Kiewit property to start up a greenhouse farm with a long-term goal of leasing the remaining 8.7 acres over the next three to seven years. Valley Greens is a start up business with approximately $200,000 of start up capital. The Business Proposal (attached) outlines construction of a 6000 square foot greenhouse to grow tomatoes within the community with 3-5 employees. After the first phase of the Business Plan is in production and provided a proof of concept, Mr. Goswami would look for additional investors to expand by adding modules to the greenhouse. Using recycled water, hydroponic farming and sustainable practices may be attractive to these future investors. On October 11, 2016, staff met to discuss permitting requirements of the techno agriculture farm with Mr. Goswami, LaShun Cross, Principal Planner for Contra Costa County and Rich Seithel Chief of Annexations and Economic Stimulus Program for Contra Costa County. Farming on the Kiewit property is subject to a land -use permit, as it is zoned heavy industrial. The Coco San Sustainable Farm received its land use permit for the western 14.8 acres, which allows greenhouse farming and limited open crop farming, due to the proximity of Buchanan Field Airport. The County indicated that a modification to the existing land use permit would be necessary for Valley Greens, with a timetable of 3-6 months. Conditions from the previous land -use permit simplify the process if the activities are similar. Valley Greens has an aggressive timetable with hopes of starting production in 2017. It requires negotiation of a lease with the District, submittal of a land use permit application and building permit for greenhouse. Though Mr. Goswami is unavailable for the October 25th REEP Committee meeting, staff would like input and direction on whether to proceed with this proposal. Attached Supporting Document: 1. Valley Greens Business Proposal • Abhinav Goswarni (203) 428 7829 Valley Greens Valley Greens LLC September 12, 2016 Fresh Vegetables from Greenhouse Page 1 of 16 valleygreens. erg Abhinav Goswami (203) 428 7829 Challenges of Our Farmers Valley Greens LLC September 12, 2016 No matter how much progress we make in nano -technology, astronomy or quantum physics but food is one of the most important component for the sustainability of life on this planet. Growing grains and vegetables has always been one of the key activities since ages in every society across the globe. Farmers have played a key role in making quality food available to growing population using tools and methods applicable to a particular geography, environmental conditions and industrial improvements of the time. Constantly increasing population, changing weather patterns and limited rains specially in Bay Area have stressed traditional farmers in and around Silicon Valley to cope up with the demands and they are finding it hard to meet the basic supply thresholds of previous years. Various data sources and organization like California Tomato Growers Association and others suggest that there is consistent decrease in cultivation area for green vegetables and other crops due to reduced accessibility of water in the area. Decrease in Tomato Crop Production (Central Valley) County Acreage in 2015 Acreage in 2016 % Change Reduced Tons Fresno Merced Sacramento San Joaquin Yolo 89,900 28,300 4,200 34,400 38,500 80,800 22,000 2,400 23,500 37,500 Page 2 of 16 - 10.1% -22.3% - 42.9% -31.7% 455,000 315,000 90,000 545,000 50,000 valley9reens.org Abhinav Goswami (203) 428 7829 Valley Greens LLC September 12, 2010 To deal with the stressed situations and limited natural resources like water to grow enough quality food to meet the increasing demand has created an opportunity to innovate and develop farming practices which can not only produce same or more food from similar or less resources besides being sustainable and scalable. While there are various scattered technical advancements in agricultural domain like drip irrigation systems, sensor based data collection to better understand the environmental conditions and growing methods like hydroponics, aquaponics or aeroponics to better manage water consumption, there are not many production facilities which have completely optimized food growing practices in Northern California. This project proposal is an attempt to establish a modern growing facility which would implement big data technologies, sensor data collection and cloud computing in conjunction with agricultural practices to optimize, collect and reuse water consumption to grow green vegetables. About Abhinav Goswami Abhinav has been a Data Scientist with MS in Statistics and worked with major corporation like Apple inc, Royal Bank of Scotland and GE, currently living in San Ramon California who grew up on a farm in a remote Indian village helping the family in growing grains and vegetables for over 20 years. His passion is to grow quality food with less dependency on nature and environment. He has dedicated his life for creating techno agricultural farms to cultivate food to meet future demands besides educate traditional farmers and young minds about growing food in changing environmental patterns. Page 3 of 16 valloygj-eensorg Abhinav Goswami (203) 428 7829 Valley Greens LLC September 12, 2016 Valley Greens TO. TOFLYER Research Phase: Most of the data points in this documents have been collected from available research articles and references from educational research facilities at Universities like UC Davis (http://qreenhouse.ucdavis.edu) or Controlled Environment Agricultural Center at the University of Arizona (http://ceac.arizona.edu) and similar other research facilities across the country. High level dollar numbers estimates are driven from the market listing of properties and quotations received from actual vendors. Table below classifies source of most of data points in this document: Table 1 (Source of Information) Information Type and Source of Information Land availability for agricultural purpose to setup Active listing on real estate websites, discussion controlled environment Greenhouse with agents and drive through of some of the listings in 40-50 miles radius of San Ramon, CA Greenhouse Structure Hydroponics Setup Cost, Nutrient Solutions Labor, Running Cost, Plant Volume psf, Fruit Production and potential sale price Plant Spacing and Fruit Production Timelines Detailed quotations from green house vendors like AgraTech, FarmTek and multiple phone calls to other vendors Quotations and phone calls to manufacturers Discussion with farmers currently growing in controlled environment green house facilities in close proximity of Bay Area Research articles from reputed Universities Page 4 of 16 vallygreens.qw Abhinav Goswami (203) 428 7829 Table 2 (One Time Infrastructure) Valley Greens LLC September 12, 2016 Land, Greenhouse and Infrastructure Costs Land Purchase (about 5 acre) Cost of Greenhouse Structure (1 acre to start) Hydroponics Setup (1 acre green house) Labor and Running Cost (mostly at setup) $250,000 (average $45-$55 thousand per acre) About $800,000 (generally $18-25 per sqft) Plumbing, Pumps, Electrical $250,000 Planting, Chemicals and Pickup $200,000 Total Cost for the project (Greenhouse on 1 acre land): $1,500,000 Table 3 (Crop Volume Estimates and Production - First Year) Topic/Item Details 1 Acre Land Area Length and Width Distance between each plant Number of Plants Per Row Total Rows (each row 3FT distance) Total Plants Per Plant Tomatoes Per Year Average Weight Per Tomato Total Crop Weight Sell at Greenhouse 43,560 SOFT 209 FT X 209 FT 9 inch or .75 FT 209 ÷ 0.75 = 278 plants per row 209 /3 = 69 Rows 278X69 = 19182 Plants 110-140 Count 0.25 - 0.30 Ibs 19182 X 120X0.25=575460lbs $.75 per Ibs = $402822 per year Total crop production = 575460 lbs per year to be sold at $402,822 per year at $O.75 per lbs Page 5 of 16 vaIIeyc, reen;s. Ma rc Abhinav Goswami (203) 428 7829 Valley Greens LLC September 12, 2016 Estimates Based on Actual Operations Table 4 (Crop Estimate Scenario) Topic/Item Most Conservative Actual - Operational Revised Estimates Farm for 1 acre 1 Acre Land Area Length and Width Distance between each plant Number of Plants Per Row Total Rows (each row 3FT distance) Total Plants Per Plant Tomatoes Weight Per Year Total Crop Weight Sell at Greenhouse 43,560 SQFT 209 FTX 209 FT 9 inch or .75 FT 5200 SOFT 52FT X 100FT 24 inch bucket 209 ÷ 0.75 = 278 plants 50 plants per row 209 /3 = 69 Rows 30 rows 43,560 SQFT 209 FT X 209 FT 24 inch 278X69 = 19182 Plants 1500 Plants 12565 Plants 30 LBS (120 tomato of 0.25 LBS each) 70 lbs 70 lbs 19182 X30 = 575460 1500x70 = 105000 LBS 12565x70 = lbs 879550LBS @ $.75 per lbs = 105000 LBSx $2.25 = 879550x2.25 = $402822 per year $236250 per year $1978988 Data points in the actual operational farm column above are from the discussions to two farmers growing tomatoes in the environmentally controlled green houses in close proximity of Bay Area. We talked to one of the farm in Santa Rosa, CA to get their story into controlled environment growing and visited Cover Farm in Tuolumne,CA which is about 3 hours drive from San Ramon, CA. Page 6 of 16 vallevgreens.orig Abhinav Goswami (203) 428 7829 Growing Timeline (First Year) Valley Greens LLC September 12, 2016 Greenhouse and Hydroponics Setup (90 days) • Crop Planting starts in 4th month About 70-80 days to mature plants 1.1.110.P.I. I OW. Full Harvesting starts from 7th month to 10 0 3 Number of Months since project start 12 The project takes about 3 months to setup the greenhouse provided all building permits, water and power connections and and road accessibility have been predetermined. Once the greenhouse structure is constructed, it may take about 15 days to setup the hydroponics growing facility and test run the system without any plants. The planting starts in about 4th months since the project starts and take about a week. Plants would take about 70-80 days to mature and ready for production. First crop should be ready for Harvesting in about 28 -30th week since start. Once harvested, the crop is directly consumable by potential customers as it does not have to go through any processing cycle or storage in cold facilities. Multiphase Approach Given that initial setup cost is very high for this project and finding investors is one of the hardest and time taking process, we decided to go small but fast. The project is planed for 2 phases of which first phase is to get the first growing facility in about 50 miles of San Ramon on any unused land owned by private parties, unused city land or land owned by Alameda or Contra Costa county. We are exploring all such opportunities to lease lands from 1 acre to 20 acre which has water availability and electricity connectivity. Page 7 of 16 valley_greens, org Abhinav Goswami (203) 428 7829 Valley Greens !LC September 12, 2016 Phase 1: Focuses on first green house setup and get the operations started as soon as possible. We would like to setup a 6000-8000 SOFT green house in first phase which will help us generate actual data on the growing life cycle, challenges in producing fruits and environmental statistics like temperature variation, humidity, nutrient consumption. This data would be used to develop phase 2 of the project to generate funds to expand operations at larger scale. Phase 2: Likely to start in about 1 year of operations after we have collected enough data to understand most of the aspects of the green house growing challenges and opportunities. Potential Customers We are targeting local grocery stores like Nob Hill, Safeway, Grocery Outlet and asian food chains like 99 Ranch and restaurants looking for fresh vegetables. Phase 2 of the project would be focussed on developing relationships with national grocery chains like Costco or Whole Foods. Seed Funding To start small but quick, we have arranged about $200K from family/friends to setup the first green house and exploring any land with water and electricity access on long term lease. Page 8 of 16 valley_greens.org Abhinav Goswami (203) 428 7829 Valley Greens LLC September 12, 2016 Funding Requirements We are also exploring any funding opportunities like private investors or Government financing like SBA loans or Agricultural loans. Agricultural financing may take significant time but it's being explored as an option for phase 2 of the project if we would solve the land lease availability at reasonable terms. Table 5 (Land Purchase and Loan Requirement) Topic/Item Potential Land Purchase 20 Acre Listed for $440,000 Address: 12100 Platti Rd Tracy, CA 95304 10 Acre Listed for $399,000 Address: Naglee Rd Tracy, CA 95304 37 Acre Listed for $561,000 Address: 4359 California Ave Tracy CA 95304 Targeted Land 20 Acre for $440,000 Greenhouse and Hydroponics 5,500 SOFT estimated at $150,000 Loan Required $400,000 (Land Purchase $200,000 + $150,000 Greenhouse growing facility) + $50,000 (Misc like Nutrients, Labour, Insurance etc) Setup Time Approximate 3 months to Setup the facility and place plants in the system. Harvesting starts about 90 days after the crop setup Crop Production 50,000 LBS for first 6 month then 100,000LBS per year Running Cost Estimates $30,000 per year ( $3,000 Nutrients + $2,500 Electricity + $4,500 Water charges + $20,000 part time labour charges) Approximate Crop Sale $75,000 First Year and approximate $150,000 every year thereafter Page 9 of 16 vallevgaens.org Abhinav Goswami (203) 428 7829 Operational Milestones 1) Greenhouse Installation : About 3 month Valley Greens LLC septernber 12, 2016 2) Crop Platform Installation : About 2-3 weeks 3) Crop Cultivation (after 80-90 days of planting) Page 10 of 16 voll€Tgreens.org Abhinav Goswami (203) 428 7829 Valley Greens LLC September 12, 2016 4) Crop Cultivation and Marketing Page 11 of 16 valieygreens.org Abhinav Goswami (203) 428 7829 Appendix Valley Greens LLC September 12, 2016 Water availability for traditional crops in decreasing. Farmers have to be innovative and use methods to grow same of more from given resources. CDEC (California Data Exchange Center) Department of Water Resources Water reservoirs at lower levels compared to historical averages "ritio r.,•-•tocc • Like s h asta Central valley Project Storage: ac re feet Capacar 4.5SWI acre -fee: Water Source: Sacramento River 41COCC621011 51.71.10. ICA11110.1.2... .046203% • :-410 irtsibe,• -'41C41-4 Pine Rat Lake • ' Z'ititc • Page 12 of 16 pitak *OW MIN Am MI 2010 211 2012 2014 vollp_ygreens.ore Abhinav Goswami (203) 428 7829 It's too Hot and Dry Too http://droughtmonitoriuni.edu U.S. Drought Monitor 11[ ... I. tk : • S ' 1 e.....„,Fg........t,,_ r -1 - . .., ' ( . I .1 • July i9 2016 PAIIfJ1IIITj 1441 2f, XIV AJ(DT A Alai, k .111,04 ,C% PS, nt.c610. 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PF, Sin 7' Pr+ 7 1 714 NIM417-12 Me -04-19 1.21 E-5.7€ 90.313 737 /a.15 21.C4 3 Montlie Ago Start of Calendar Year C.03 10�O( S7.33 E7.55 69..C7 44.1N1 20154249 DO -D4 D1 -D4 Vaiiey Greens LLC 132-D4 September 12, 2016 D3-04 C 4 a .t 1 t4 Start oliditater Year 2215-4101S Ofie Year Aipo NH -417.21 C 14 Mite air %I re2.241 T 1 .CA 1 4MAX I I I I 54 4 Rfi 5 f 35 , Page 13 of 16 vajLeyQrerisTQg, • Abhinav Goswami (203) 428 7829 Valley Greens LLC September 12, 2016 Agricultural Business Funding Trends See Full Report At: https://relearch.agfunder.com/20161 AgFunder-Agtech-Investing-Report-Midyear-2016.pdf AN N UAL F I NAt.1 C rC22010-Z016* (FRaIECTED) 6 4 14.,4,= mr i• '111' romarrarr mei aka*. *art ;1C,A Sian gag 1 60 W.4* 9.S rafigt.dit Fr le *H'*1'v4 blot t araitrat garnparort ammirarra, *airs st.41 kataaar. ••••.kail ,...,4.1' VOSS r CM MB Oil 1111 DEAL VOLJME API) AC- VITY 3Y SU 3SECTOR F�1 : 10,71.4IS dia1.10 1C4, L e 4.10 op de ra▪ : iirocuitry &A.& ram 4,4 r 04, ▪ dsi., *tug .4411, 11111111g.if aarg grg, C dialtormalL, it to laIND7112,21 011 ng iwar 117111 III Mrs t4111K 104 ••• *at IL .ar ogi cw wt.,. 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SUBSECTIC Fl rtitrj 1•041 11.1 iv* l4sP t 4#4 V11 ' rg • ...r4r, 4r.nr.t.••••• vnele Intel kp. rmr . : rat d 01,41 ad, -ar4 Ilir▪ draor t. •rs ,tg, 'K. 1 ',Air..., • 1C17.4 )17r1 'kVC4 EVC1141f s 1,is sa ✓ .A11 Vie .10 .0111 1,10( fier.,34Erttu rOrnt "me tp iss▪ e.,d, !: „ tr.ra ,,td• I I, Pi, 1.00,4,1 .411',/t X ri,b, II/1 ratleall Jaz' "tit It4 f7-,,4ir SC =144 1,2111 t mix '44 . 1.0, OW Kt All 'WAN .111, Oirl,",are .it WAX I le -V. Na. *11 Oats c.hiseigkalr+ 14,0,1111,11,4'41, 1,41 Page 14 of 16 - vallevcireens.org Abhinav Goswami (203) 428 7829 Valley Greens LLC September 12, 2016 U.S. T • o Retail Market Se mentation Retail Tomato Dollars What we need to do? Ret 11 Tomato Volum (lbs) Invest in agricultural technologies to optimize water usage. Use big data and sensor technology to capture data throughout the growing cycle and develop statistical models to estimate water usage. Recycle every drop unused and reserve for future crops. Grow vertical to control cost of growing per acre. Page 15 of 16 0.11ey9reens.orc Abhinav Goswami (203) 428 7829 Proposed Night View of the Greenhouse Valley Greens LLC September 12, 2016 Page 16 of 16 yegy_greens.irc Thee Solar Lig "The Dry House" clear span truss greenhouses by: AGRA kz: GREENHOUSE MANUFACTURERS The Solar Light is well known for it's value in high volume production facilities. It is the best house for valuable crop production and is used extensively for propagation, research & development, educa- tion, and retail installations. — Why a Solar Light Greenhouse? Today's greenhouse must be a high-tech plant production facility. Precision control and effi- ciency are required to produce a better quality product in a shorter amount of time. Growers must have an advantage over foreign competition. This can only be accomplished by produc- ing a better quality product and by getting the most possible out of the greenhouse. The Solar Light has room and the strength to take ad- vantage of all the labor and energy saving innovations on the market: Energy curtains, watering booms, light- ing, heating, vent equipment, benching, and transporta- tion systems, any combination of which may be needed to optimize the space and labor available. VVidths of 18', 24', 30', 36', 42', and 50'. Eave heights of 8', 10', 12', 14'. Other widths and eave heights are available upon request. Design loads of 10# live to 50#+ snow are available for IBC, CBC, and UBC in agricultural or commercial/retail. Large gutter connected Solar Lights have enough space to move people, product, and carts through, a big labor and time savings. The Solar Light Greenhouse is perfect for Hydroponic Growing systems. The Solar Light is as beautiful as it is functional. Here a house has been retrofitted to fit into an elegant resort setting. am. as,M The Solar Light is used extensively for plant processing and head houses: Located on the island of Anguilla, in the British West In- dies, this Solar Light has withstood over 125mph winds with no damage to the structure. MI I 6:12 Roof Pitch The advantage of the Solar Light 6:12 peak is threefold. -6.12 Roof pitch causes the condensation that forms on the inside of the roof panels to run down the panels rather than drip onto the crop. -Increased air mass in the roof keeps the temperature inside the greenhouse cooler in the summer and more stable all year. -Tall peak makes the Solar Light roof vent very effective at venting the hot air out of the greenhouse. HOT AIR EXITS PHOTAIR EXITS COOL AIR IN The Solar Light is the "dry house" 001.. AIR DISPLACES IOT AIR Built-in Condensation Control We call it the dry house because the condensation does not drip like other greenhouse designs where condensation control was not in- corporated into the design. The Solar Light roof system collects condensation from the inside of the roof and channels it outside the greenhouse, not on your plants. The purlins have a specially formed channel to collect the condensation. From there, the water drops to the special "v" in the top chord and travels down and into the gutter. SINGLE OR DOUBLE 54' ROOF VENT OPTIONAL 12' AIX WU WM RIDGE MALIN . • - COOL AIR LN ,—TOP CHORD KNEEERAGE 4Di4SQ SIDE WALL COLUMN -• BOTTOM CHORD STEEL TUE WEBS ire-ERioRCOUJIVIcl TOP OF FINISHED GRADE. Agra Tech, Inc. "Best he the Wrest" Agra Tech has been voted "Best in the West' by commercial greenhouse operators in all 6 categories surveyed: • Value for dollars spent • Technical Competence • Innovation in design • Knowledge of sales personnel • Overall reputation • Service This is why 7 of the top 10 and 43 of the top 100 growers use Agra Tech products. And, with 35 years experience building and supplying greenhouses, Agra Tech has formed solid relationships with the most desirable vendors in the industry. Take advantage this experience and buying power. Equipment and Accessories to Complete your Growing System Structures: Greenhouses, Head Houses, Research Facilities, Retractable Roof Structures, Shade houses, Soil Storage, Screen Covers, Tunnels, and more. Benching: Rolling, Stationary, Caster, and Tray benches with Ex- panded metal or Ebb & flow tops, for production, retail, or research. Water Booms Crop Transport Installation Control Systems: Ridder USA, MicroGrow, Argus Computers. Natural Ventilation: Roof vents, wall vents, Roll up Walls, Drop walls. stt Fan & Pad cooling: Acme Engineering Heating: Unit heaters to boilers for overhead, bench top or under bench heating. Hot air or hot water. Coverings: Poly, Polycarbonate or Acrylic. Corrugated, Twin walled, Triple walled. Painted Sheet Metal. Curtains: Interior or Exterior. 2131 Piedmont Way, Pittsburg, CA 94565 Phone: (877) 432-3336 Fax: (925) 432-3521 Eniaisi:aeg•ratecha@garagtreactehmccho.com Web it