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Agenda - 02-12-2008-2
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Agenda - 02-12-2008-2
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2/12/2008
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Agenda
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Minutes - 20080212
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\Board of County Commissioners\Minutes - Approved\2000's\2008
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developers should avoid any situation that would require borrowing money to purchase or <br />lease a commercial site. Experiences at earlier projects have shown that loans most likely <br />cannot be repaid with future grant funds, and' mortgage payments will significantly drain <br />project income from client use fees that would otherwise be spent on project operations <br />including utilities and payroll. A "free" building, even one requiring significant <br />renovations and upgrades; is preferable to an acquisition that might cost the project <br />several hundred thousand dollars. <br />Almost any site chosen for this project will require significant renovations and upgrades. <br />Installation of floor drains and HVAC systems, construction of food grade walls and <br />ceilings, and plumbing and' electrical upgrades are among the most common site <br />improvements needed. Site~renovation, even more than equipment acquisition and <br />installation, will likely be the most expensive single investment the project will make. <br />That said, a site that has been recently used for a commercial purpose and that meets <br />current building and safety codes can cost much less to renovate than a very old building <br />that has sat idle for a long period of time. Unforeseen renovation costs, such as replacing <br />a worn-out roof, rewiring the entire electrical system, or building handicap accessible <br />entrances and bathrooms, can quickly derail a project's budget projections. <br />Utilities <br />Large regional shared-use facilities must have access to modern commercial-grade <br />utilities, including sewer lines, three-phase electricity, potable water, and (preferably) <br />natural gas. High speed Internet access will make a facility much more effective in <br />assisting clients for marketing or researching technical issues surrounding production. <br />Many key pieces of equipment, including ranges and boilers, work best on natural gas. <br />While gas lines are not an absolute necessity, they are preferable to powering many <br />pieces of equipment on electricity or propane and can help reduce ongoing utility costs. <br />Floor Plan <br />A regional facility such as the one contemplated in this research will require not less than <br />7,500 square feet of usable heated space, and ideally would have not less than 10,000 <br />square feet. At least two-thirds of the space will be needed for production areas and <br />storage. Many projects significantly underestimate the amount of cold and dry storage <br />space needed, and must resort to facility expansions shortly after opening for business. <br />Short of acquiring a fully developed FDA food processing space, the project will be best <br />served by acquiring a well built commercial building with strong floors, high ceilings, <br />and lots of open space. An effective development strategy is commonly referred to as the <br />"kitchen in a box" development, where FDA production rooms (kitchens) are built <br />entirely within an existing open commercial space such as a former warehouse or factory <br />floor. The four production rooms at Blue Ridge Food Ventures in Asheville, for example, <br />were built inside an existing 7,000 sq.ft. room that had served as the main research and <br />development factory of a former textile mill. <br />37 <br />
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