HomeMy WebLinkAboutPC Agenda 05-07-2014 Workshop, PT 5 Olympic Crossroads Report
Report on the Olympic Crossroads Meeting
6/26/2012
Report prepared by:
Laura Lewis – Director, WSU Extension Jefferson County
Drew Katz – Affiliate, WSU Extension Jefferson County
Date:
August 3, 2012
2
TABLE OF CONTENTS
Page #
SECTION 1: INTRODUCTION………………………………………...……………...3
Purpose and Background of the Report.………………….……………………...3
Summary of Findings…………………………....………………………………...3
SECTION 2: FINDINGS………….………………...……………………...……………4
Key Issues…………….………………...……………...…………………………...4
Need for Dry and Cold Storage Space….…………….………………...…….4
Wholesale Purchasing and Distribution ………………...…………………....5
No Community Interest in Retail……………………………………………..6
Animal Slaughter and Meat Processing………………………………………7
Value Added Production……………………………………………………...8
Visibility………………………………………………………………………8
SECTION 3: CONCLUSION…………………………………………………………...9
Next Steps………………………………………………...……………………..….9
CONTACT INFORMATION………………………………………………………….11
APPENDIX A - Attendance List from Olympic Crossroads Meeting………………12
APPENDIX B - Courtesy Ford Building Schematic and Property Summary….......12
3
SECTION 1: INTRODUCTION
Purpose and Background of the Report
The purpose of this report is to share the findings from the Olympic Crossroads Food
Hub Meeting held on 6/26/2012. The meeting was hosted by WSU Extension Jefferson
County and the JWJ Group, and attended by over 20 community stakeholders (see
Appendix A).
The old Courtesy Ford building and surrounding property located at the intersection of
SR 19 & SR 20 in Jefferson County is owned by the JWJ Group and has been available
for lease or sale for the past several years. The JWJ Group approached WSU Extension
during the winter of 2012 to see if they had any interest in occupying the building. While
the space did not suit the needs of the Extension office, it was suggested that it could be
an ideal location for a food aggregation hub. The JWJ Group became interested in this
idea and asked WSU Extension to assist them in convening food and farm stakeholders to
determine the interest of the community in the property, with the goal of a lease
agreement for part or all of the building space.
Therefore, the aim of the meeting was to (1) convene local and regional food and farm
stakeholders whom WSU Extension had previously identified as having distribution,
storage, processing or other aggregation needs/interests; (2) facilitate a discussion on the
suitability of the Courtesy Ford building as a potential site to address the above
mentioned needs and interests; and (3) identify and propose appropriate next steps based
on the findings from the meeting.
To promote a participatory discussion amongst stakeholders, WSU Extension staff
facilitated a group brainstorming session during the meeting. Notes were taken during
the session to capture all of the information shared and discussed amongst stakeholders,
and then synthesized by WSU Extension staff into key issues, which are presented in
Section 2 of this report.
Summary of Findings
The brainstorming session uncovered a myriad of issues related to the storage and
distribution needs and interests of stakeholders, as well as their opinions on the Courtesy
Ford building as a potential site as an aggregation hub for local and regional food
systems. The key issues that emerged from the meeting are summarized below:
● For those producers and retailers present at the meeting, access to improved
storage, especially cold storage, was the biggest and most pressing need.
● The Courtesy Ford building has both strengths and weakness as a potential food
aggregation hub. Strengths include the layout, design, and location of the
building, which are conducive to accommodating the storage and distribution of
large volumes of certain agricultural goods, equipment, and other materials.
Technical and regulatory issues, such as the zoning status and lack of access to
4
public water, are perceived weaknesses of the property as they pose obstacles to
engaging in activities like meat processing and wholesale distribution onsite.
● There is little to no community interest in developing a retail outlet that sells
locally and regionally produced agriculture goods at the Courtesy Ford building.
● There is inadequate quantitative data to justify community investment in and the
development of infrastructure, such cold and freezer storage, meat processing
facilities, and commercial kitchens, at the Courtesy Ford building. It was
concurred that more information about producer production volumes (both actual
and potential), specific infrastructure needs, and marketing priorities needs to be
compiled in order to inform thorough economic analyses on the feasibility of
developing such infrastructure in Jefferson County.
SECTION 2: FINDINGS
Key Issues
Need for Dry and Cold Storage
Food and farm stakeholders in Jefferson County have repeatedly expressed a need for
more and improved dry and cold storage facilities, and it is due in large part to this need
that WSU Extension organized the meeting. The brainstorming session confirmed that
access to adequate storage continues to pose a significant challenge, and also helped
clarify what some of the specific storage needs are for different stakeholders. The two
stakeholders that expressed the most interest in the topic of storage were local retailers
who source and sell regionally and locally produced food, and producers who have
insufficient infrastructure on their farms.
For retailers, the lack of cold storage space makes it difficult to purchase and store large
quantities of fresh produce, be it root crops from local farms or apples from Eastern
Washington. Retailers stressed that if they could purchase and store greater volumes of
fresh produce, they could provide a steadier supply of local and regional products to
customers at a more competitive price throughout the year. While the need for cold
storage is significantly greater, there is also substantial demand for dry storage space to
store less perishable crops, product overstock, and other materials.
For producers, storage needs are more diverse ranging from dry storage for holding bulk
quantities of farm inputs and materials, cold storage for harvested crops, and freezer
storage for meat products and value added goods (i.e. frozen berries). The ability to store
larger volumes of harvested crops in a temperature controlled facility would help
producers minimize losses in crop quality while they identify market channels. While
producers stated that having on farm storage is ideal, the costs associated with building
such infrastructure, especially cold and freezer storage, is often prohibitive. Furthermore,
producers stated that access to improved cold and dry storage facilities would create an
5
impetus for them to grow larger quantities of crops, especially if other aggregation
activities (i.e. wholesale distribution or value added production) were taking place onsite.
The layout, design, and location of the Courtesy Ford building make it a promising site
for a storage facility. Of the buildings 10,000 total square feet, approximately 5,000 sq. ft
is insulated and ventilated warehouse space (Appendix B). This space is located at the
back (east end) of the building, and can be easily accessed with a semi-trailer via three
bay doors and a loading aisle that runs the length of the building. Situated 5 miles from
both Port Townsend and Chimacum, the location of the property is considered to be
convenient for food and farm businesses that are either located in, or market to these
communities.
In its current condition, the warehouse space in the building is sufficient to meet
stakeholders’ dry storage needs. During the meeting the property owner shared a
schematic of how the warehouse space could be divided to accommodate multiple storage
“units”, including the rental cost on a per square foot basis (Appendix B). While there
was no group discussion on the property owner’s proposal, some stakeholders had the
opinion that the proposed unit size (20x30 ft) would be too big for most producers’
storage needs. Furthermore, stakeholders suggested that the installation of spatial dividers
(i.e. a chain link fence) would be helpful for delineating tenants space and goods, and that
access to a forklift for loading/unloading would be necessary. The property owner and
manager were receptive to these suggestions.
While there are no cold storage facilities in the building, the property manager did not
foresee there being any zoning or technical issues that would interfere with the
installation of this type of infrastructure. Rather, the biggest barrier was perceived to be
identifying a stakeholder who would be willing and capable of financing the construction
of cold storage infrastructure.
Wholesale Purchasing and Distribution
Producers and retailers at the meeting stated that if more dry and cold storage facilities
were available, opportunities to expand and make more efficient wholesale purchasing
and the distribution of local and regional agricultural goods would follow. While the
demand for fresh produce on behalf of local institutions, restaurants, and hotels is
growing in Jefferson County, the wide geographic dispersal of farms can make it
challenging for buyers to source and purchase goods directly from farmers. Similarly, it
can often be difficult for local producers to satisfy the requests and needs of smaller
buyers, as well as expensive and time consuming to coordinate deliveries to multiple sale
points. A storage facility that could also act as a distribution hub could make it easier and
more efficient for buyers and retailers to connect and do business.
While retailers were the most vocal about the benefits of wholesale purchasing, producers
also brainstormed about how it might be possible to collectively purchase and store
inputs and materials (i.e. poultry feed, fertilizers and packing crates) in bulk quantities.
Some producers in the area already do this, and access to improved storage facilities
6
could make collective buying more popular and cost effective for those involved. The
business of wholesale purchasing and distribution requires a tremendous amount of
organization and coordination, and would likely require either an existing retailer or
producer to operate such a distribution enterprise. While many stakeholders shared their
enthusiasm for there being more wholesale purchasing and distribution activities
occurring in Jefferson County, if and to what extent they would be willing to share
coordination responsibilities remains unclear.
With ample warehouse space, easy access, and a central location, the Courtesy Ford
building could be an ideal site to accommodate wholesale purchasing, storage, and
distribution activities. However, the zoning status of the property presents a potential
obstacle to using it for this purpose. According to Jefferson County zoning laws,
warehouse/wholesale distribution activities are prohibited from taking place on the
property. The County’s definition of what constitutes warehouse/wholesale activities is
vague, and whether or not individual tenants (i.e. producers/retailers) who are renting
storage space in the building and then selling produce directly to customers would be in
violation of the zoning code remains unclear. Further examination of the zoning code
with the County is necessary to understand if certain wholesale purchasing and
distribution activities can be conducted onsite, or, to determine the process by which the
community could request that the zoning code be amended.
Finally, while the general consensus at the meeting was that wholesale purchasing and
distribution would create new and attractive market opportunities in Jefferson County, it
is important to acknowledge that some stakeholders could see this as a threat. Many
producers in the region have developed business plans and marketing strategies around
capturing the premium value that is collected when engaging in direct sales (i.e. at
farmers markets, off the farm, to restaurants, etc). While the wholesale purchasing of
farm inputs and materials could ostensibly help local producers cut their costs, an
increase in the availability and volume of regional agricultural goods both into and within
Jefferson County could lower the value of such goods and thus decrease producers’
margin share in local markets.
No Community Interest in Retail
During the meeting it was made clear that there is little to no interest on behalf of the
food and farm community to use the building as a retail outlet. Due to the proximity of
existing retailers and farmers markets in the area, opening up an additional retail outlet
that specializes in selling locally produced agricultural goods was deemed a poor use of
the building. This sentiment seemed to be shared by all stakeholders in attendance, and
was particularly stressed by local retailers and producers.
Stakeholders’ disinterest in using the building as a retail outlet revealed a number of
important issues. First, it revealed that the owner’s initial proposal—to provide retail
incentives to those storing goods in the warehouse section of the building—was
unpopular. This proposal was influenced by the zoning code, which requires that retail
activities take place on-site if the building is occupied. While there are no stipulations on
7
what percentage of activities occurring on-site have to be retail to fulfill the zoning code,
a representative from the Department of Community Development (DCD) stressed that
the zoning code should be respected, and that it was the DCD’s expectation that retail
activities flourish on the property.
In order to overcome the incongruence between stakeholders’ storage and distribution
interests and the retail requirements of the property, co-occupancy of the building with
different types of actors was discussed. Fittingly, at the time of the meeting the JWJ
Group had already met with individuals and businesses from the cottage industry and
artist communities in Port Townsend who are interested in utilizing a portion of the
building as a showroom/retail space. While it was acknowledged that certain activities
related to storage and distribution (i.e. loading/unloading, operating machinery, washing,
etc) could be potentially disruptive to other tenants, those present at the meeting seemed
receptive and even excited about the prospect of sharing the space.
The idea of creating a place-based retail outlet based on a regional brand (i.e. “Made on
the Olympic Peninsula”) was briefly discussed as a promising business opportunity if
food and farm stakeholders and members of the artist community were to co-occupy the
building. There was general agreement that this type of retail model would work well
given the large diversity of talented artists in the region, combined with the property’s
exposure to the large volume of automobile traffic that passes by on SR 19 and 20,
especially during summer months. The questions of who would form or operate such a
business, what role occupants would have in its formation, and to what extent food and
farm stakeholders would be interested in selling their goods through such an outlet were
not addressed.
Animal Slaughter and Meat Processing
The lack of animal slaughter and meat processing facilities on the Olympic Peninsula
presents a significant challenge for livestock and poultry producers, as well as for
individuals who raise animals for their own consumption. Multiple actors at the meeting
discussed this need and asked the question of whether or not the Courtesy Ford building
could accommodate such slaughter and processing activities.
It was determined that developing a slaughter and meat processing facility onsite would
be challenging for a number of reasons and is a unlikely scenario, at least in the
foreseeable future. First, the property owner’s insistence that the building be occupied in
the coming months does not provide a long enough window to undertake the feasibility
studies needed to justify and build such a facility. Second, it is quite likely that animal
slaughter and meat processing activities would be disruptive to other businesses if the
building were to be co-occupied. Third, in order to engage in animal processing
activities, the current zoning status of the property would have to be amended.
Another idea related to meat processing that was proposed was to develop a butcher shop
and/or meat smoking facility onsite. While a local butcher shop wouldn’t directly
address producers’ need for a slaughterhouse and processing facility, it would provide an
8
opportunity to add value to their products locally which could then be sold fresh directly
out of the butcher shop and/or distributed to local and regional grocery stores. The
development of a butcher shop and smokehouse at the Courtesy Ford building is feasible
from a technical and infrastructure standpoint, however would probably only be
appropriate if there were other aggregation activities (i.e. storage, wholesale distribution)
already taking place onsite.
Value Added Production
Value added production and branding were two topics that came up multiple times during
the brainstorming session. The conversion of raw agricultural products into value added,
shelf stable goods is an increasingly popular marketing approach for small farms, and
many producers in the region are already engaging in some type of value added
production. The value added production of raw agricultural goods often requires
compliance with state and federal health and food laws, and access to commercial kitchen
facilities and equipment. While some efforts have been made by the state of Washington
to relax certain regulations in an attempt to support smaller, “cottage” sized businesses,
access and use of a commercial kitchen facilities is still required to turn most raw farm
goods into value added products, especially when processing large quantities of goods.
The Courtesy Ford Building is a feasible site for developing a commercial kitchen,
however the cost to develop such a facility and the due diligence required to ensure that
septic and water utilities are compliant with state and federal regulations suggest that the
a commercial kitchen is something to be considered as a part of long-term vision rather
than an immediate opportunity. Additionally, feasibility studies done in partnership with
WSU Extension and other regional entities have shown that there is currently adequate
access to commercial kitchens in the area, and that the biggest impediment to their use
was the cost of renting space for periods of time. It is not clear that this impediment
would be overcome if additional commercial kitchen space were available at the Courtesy
Ford building.
Visibility
A recurring theme touched on by multiple stakeholders throughout the meeting was the
potential of the Courtesy Ford building to expose and make more visible the vibrant
regional agriculture community to the public. Situated at the junction of SR 19 and 20
where more than 18,000 cars pass daily, the property’s visibility and exposure is
impressive. While stakeholders struggled to put a finger on exactly how their own
businesses and the agricultural community at large could directly benefit from the
property’s visibility, a few visions did emerge. One entailed the development of a visitor
information center that by way of highlighting the rural heritage and culture of the region
would encourage people to engage in agro-tourism activities such as cidery tours, farm
visits, and farmers markets.
9
SECTION 3: CONCLUSION
Based on the findings from the meeting, it seems that a significant portion of the
Jefferson County food and farm community is enthusiastic about developing a regional
food aggregation hub. Stakeholders’ enthusiasm is driven by two primary perceptions;
(1) the development of a storage facility would address existing infrastructure needs and
challenges, especially for producers and retailers; and (2), a storage facility would
encourage regional food distribution, purchasing and other aggregation activities, which
in turn would provide new and attractive marketing opportunities for local stakeholders.
After the stakeholders toured the Courtesy Ford building and had the chance to discuss its
specifications with the property owner and manager, strengths and weaknesses related to
the suitability of the building as a storage facility and distribution hub emerged. The
layout and design of the building is particularly conducive to meeting stakeholders’ dry
storage needs, and while there are currently no cold storage facilities onsite, the existing
space could easily accommodate the installation of cold storage units. Another strength
of the building is its central location between Chimacum and Port Townsend, and its
visibility to passing traffic on SR 19 and 20. Furthermore, stakeholders acknowledged
that the property owner’s demonstrated interest to work closely with the food and farm
community and willingness to accommodate their specific needs made the idea of
occupying the building appealing.
The weaknesses of the building are primarily linked to regulatory and technical issues.
The property’s zoning status requires that retail activities take place onsite and prohibits
certain wholesale/warehouse distribution activities, which poses a potential challenge to
developing the building into a food aggregation hub. The lack of access to public water
and the need to upgrade the current septic system would likely prohibit occupants from
being able to wash produce and dispose of any unsold produce onsite. While these
regulatory and technical issues can be overcome, they will require a significant amount of
time and capital investment. Finally, while the property owner is enthusiastic about
working with the food and farm community, his insistence to rent out the property in the
short term (1-2 months) presents a significant challenge, especially given that the busiest
time of the year for most food and farm business is imminent.
Next Steps
Based on the findings from the meeting as well as follow up conversations with
numerous stakeholders, WSU Extension has identified two courses of action for
addressing the interests and needs of the community:
Specific to the Courtesy Ford Building/Property
1. Share this report with all stakeholders present at the meeting, as well as all
interested food and farm stakeholders in Jefferson, Kitsap and Clallam Counties.
2. Convene a meeting between the JWJ Group and stakeholders who have expressed
interest in renting out warehouse space to negotiate rental terms and conditions.
10
If the current interest isn’t adequate to rent out the entire warehouse space, WSU
Extension will continue to assist the JWJ Group advertise the opportunity to the
greater food and farm community.
3. Assist the JWJ Group to develop a master lease and management plan for the
building that is relevant to the needs and expectations of the food and farm
community.
4. With the support of the JWJ Group, communicate the needs, interests, and
expectations of the food and farm community to any potential co-occupants (i.e.
artists) of the building/property.
Specific to Regional Agricultural Development in Jefferson County
In addition to capturing information pertinent to the development of the Courtesy Ford
Building, a number of key issues and themes important to regional agriculture
development emerged from the brainstorming session. To ensure that these issues are
addressed, WSU Extension will facilitate and/or implement the following next steps:
1. Further Research and Data Collection: Work with community partners to collate
existing data pertinent to food system aggregation in Jefferson County, and carry
out further research to fill in information gaps as needed1. This includes looking
at historical data from the past ten years of feasibility studies done throughout the
Olympic and Kitsap Peninsulas.
2. Slaughter and Meat Processing: WSU Extension Jefferson County will work with
WSU Pullman and the Animal Science program to develop a meat
science/butcher internship program that would place recent college graduates in
communities that have need for cut and wrap services in addition to other
slaughter and meat processing activities. This has already been discussed with
WSU Clallam and San Juan County Extension Directors.
3. Infrastructure Needs: Continue to provide support and facilitate community
conversations about regional food system aggregation needs, interests, and
opportunities in Jefferson County. One of the goals of WSU Jefferson County
Extension is to bring actors together from various sectors to develop the
infrastructure and businesses needed to create a stable and resilient agricultural
economy on the Olympic Peninsula. The WSU Jefferson County office is
committed to participatory community engagement to facilitate sustainable, long-
term development in the region.
1
The Citizens for Local Food Group recently carried out a comprehensive Ag Survey of 60 producers in Jefferson County. The
purpose of the survey is to help identify more ways to connect local farmers with local consumers, and to determine what
infrastructure needs, if any, are required to encourage these connections. Once the data from this survey is collated (expected August
2012), WSU Extension will work together with CLF to determine the significance of the Ag Survey’s results relative to the key issues
raised in this report
11
CONTACT INFORMATION
Inquiries regarding the report:
● Laura Lewis – Director, WSU Extension Jefferson County
laura.lewis@wsu.edu
● Drew Katz – Affiliate, WSU Extension Jefferson County
dkatz12090@gmail.com
Inquiries regarding the Courtesy Ford Building:
● Jim Laughlin - Property Manager, Re-Max
jimlaughlin32@gmail.com
● Debra Purcell – Project Manager – JWJ Group
Deb@jwjgroup.com
12
APPENDIX A: Attendance List from Olympic Crossroads Meeting
Jesse Hopkins and John Gunning (Colinwood Farms), Mark Bowman (Craft3), Malcolm
Dorn (Chimacum Corner Farmstand), David and Charlotte Goldman (Quimper Grange),
Rob Story (Chimacum Corner Farmstand, All One Family Farm), Jim Laughlin (Re-
max), Linda Yakush (Pane d’Amore), Julie and Chuck Boggs (Puget Sound Meat Co-op,
Westbrook Angus), Austin Henry (Atlas Technologies), Deb Stinson (L2020, LION),
Judy Alexander (L2020, CLF), Sarah Spaeth (Jefferson Land Trust), Crystie Kisler
(Finnriver Farm, Olympic Culinary Loop), Carl Smith (Dept. of Community
Development), Al Latham (formerly Jefferson Conservation District), John Johnson and
Deb Purcell (JWJ Development Group), Patty McManus and Kia Armstrong (Nash’s
Organic Farm), Jared Keifer (Environmental and Water Health), Neil Howe (Sunfield
Farm), Al Carins ( Public Works), Robert Yourish (LION), Carol Baker, Ellen Sabina
(LandWorks Collaborative), Laura Lewis (WSU), Drew Katz (WSU)
APPENDIX B: Courtesy Ford Building Schematic and Property Summary
Building Schematic
13
Property Summary
Square Footage:
Entire Building: 10,000
Warehouse space: 5,000
Office space: 1,500
Retail space: 1,500
Proposed Rents*:
20’x30’ Warehouse “units” $300/month
5’x10’ Retail space for warehouse tenants $100/month
Parts/Office for office space with 2nd floor $800/month
*plus share of taxes, utilities and insurance
Other:
Land: Six acres useable; Two acres buffer and sewage disposal
Water: Well onsite to be replaced with PUD water with future development
Septic System: Adequate for 20-25 employees/users daily