Agenda - 02-12-2008-2 - Laserfiche WebLink

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