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Emerging wholesale marketplace opportunities in Denver Metro CO Fruit and Vegetable Growers Association Annual Meeting February 26, 2019 Denver, CO
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Panelists
• Laine Cidowski, Food Systems Administrator/Tristan Sanders, Program Manager, City and County of Denver
• Paige Cheney, Associate Buyer, City and County of Denver
• Adam Schlegel and Catherine Compitello, SunValley Eco District Wholesale Market Project
49% of Denver low and moderate income
neighborhoods lack convenient access to grocery stores
69.7% of DPS students qualify for free or
reduced priced lunch
1 in 4 children/youth in are food insecurity or
hungry
$7B per year industry
$312M in tax revenues
56,000+ workers in the Denver Food
System,10% of all Denver jobs
Economy Health Community More than 1 in 3 children in Denver are overweight or
obese
33.2% of Denver families consume <1 serving of fruits and vegetables per day
Obesity-related diseases cost Denver $284M per
year
Baseline Assessment
Outreach & Engagement
https://www.denvergov.org/foodplan
Vision Overview
https://www.denvergov.org/foodplan
PRIORITIES STRATEGIES
WINNABLE FOOD GOALS SUPPORTING INDICATORS
Vibrant
https://www.denvergov.org/foodplan
PRIORITIES Promote Denver as an epicenter for the regional food economy Support the creation, expansion, and success of food businesses in Denver Spur innovation and entrepreneurship across food and agriculture industries
Future Policy Options and Potential Food Policy Changes
Denver Sustainability Goals
Livewell Colorado – local purchasing incentive legislation
Denver Government Institutional Procurement Practices
Healthy Food for Denver Kids – Ballot Initiative 302
Good Food Purchasing Program
Sustainable Food Policy Council
Food Matters project
Food Action Plan
National Western Center
Sun Valley Public Market
Selected Denver and Surrounding Area Total and Local Spend on Food Procurement
Total Spend Local Spend Denver County Jail $ 3.5 M $1.5 M Boulder Valley School District
$ 3.5 M
Denver Public Schools $ 20.0 M $4.0 M Greeley-Evans Weld 6 $ 4.0 M $0.8 M University of Denver $ 3.3 M Regis $ 1.7 M $ 200 k Children’s Hospital $ 3.5 M $ 100 k Longmont United Centura (SAH, OrthoColorado)
$ 1.4 M $ 70 k
$ 40.9 M/year $ 6.7 M/year
Acquire at least 25% of food purchased through Denver’s municipal government supply chain from sources that are produced (grown or processed) entirely within CO.
Notes: This goal was not able to be tracked until 2016. Data does not include catering services.
2020 Sustainability Goals: Food – Government Operations
0%
5%
10%
15%
20%
25%
30%
35%
2016 2017 2018 2019 2020 (Goal)
% of Food Purchased From Sources Within Colorado 2020 Goal
Sustainable Food Policy Council Our mission is to influence policy that fosters food security for all community members and promotes a healthy, equitable, and sustainable local food system with consideration for economic vitality and environmental impact. 1. Promote and Oversee Progress on the Denver Food Vision and
Action Plan 2. Advise City on Food-Related Plans, Reports, and Programs 3. Provide Recommendations to the City on Regulations and Policies 4. Build public and political will to support innovation and positive
policy changes within the food system. Working on City Food Purchasing Mayoral Advisory Committee now…
The Good Food Purchasing Program Local Economies Support local family- and cooperatively owned, small and midsize agricultural and food processing operations. Environmental Sustainability Source from producers that reduce synthetic pesticides and fertilizers; protect natural resources, biodiversity; etc.
Valued Workforce Source from producers and vendors providing safe and healthy working conditions and fair compensation. Nutrition Make minimally-processed, health-promoting foods more available; reduce ingredients such as added sugars and saturated fat. Animal Welfare Source from producers that provide healthy and humane conditions for farm animals.
Local Food Purchasing Incentive - State
• Local School Food Purchasing Program (House Bill 19-1132) sponsored by Representatives Bri Buentello (D, Pueblo), Rob Pelton (R, Cheyenne Wells), and Sen. Don Coram (R, Montrose).
• Any Colorado public school participating in the National School Lunch Program is eligible for the program
• $0.05 cents/meal incentive for more than 2% local purchases • Grants for:
• Helping school districts with changing cooking practices, equipment etc.
• Growers for GAP/GHG certifications training on selling to schools • Building capacity for local processing • Growers/Growers associations to communicate with schools on
benefits of local
Institutional Procurement Practices - Healthcare
Colorado Healthy Hospital Compact • 4 programs: Healthier Food, Healthier Beverages, Marketing and Breastfeeding
Healthy Food in Healthcare Pledge • Kaiser Permanente, including: 37 facilities in CA, CO, GA, HI, OH, OR, WA • Grand River Medical Center, CO • Littleton Adventist Hospital, CO • Parker Adventist Hospital, CO
Healthcare Without Harm • Children's Hospital, Denver Health Medical Center, Boulder Community Health, Yampa Valley Medical Center,
etc. • Hospital leadership teams – focus on healthy foods, regenerative agriculture with Savory Institute, local
purchasing pilot
Healthier Hospitals Initiative • Delta County Memorial Hospital, University of Colorado Health - North - Medical Center of the Rockies, CHI -
Littleton Adventist Hospital, CHI - Centura - Saint Francis Medical Center - CO Springs, University of Colorado Health - North - Poudre Valley Hospital, CHI - Alegent Creighton - Memorial Hospital – Schuyler, Mt. San Rafael Hospital, Parker Adventist Hospital
Healthy Food for Denver Kids
What: The Healthy Food for Denver Kids (Ballot Initiative 302) proposed to increase sales and use taxes by $11.2 million dollars annually. Sales and use tax is in the amount of 0.073% and can be used for healthy food and food-based education to Denver’s kids. The funding should be aimed primarily at low income and at-risk youth, and the funding should be distributed through a Denver Food Commission made up of non-profit and government volunteer appointees.
Timeframe: January 1, 2019 through December 31, 2029
Purpose of the Funds:
• Help Denver’s kids (primarily low income or at-risk) have year-round access to up to 3 meals and healthy snacks/day
• Hands-on experimental education and public health programs about farming, gardening, cooking, home economics, and healthy eating
• Preferential procurement of food from Colorado farms, ranches, and food manufactures
• Organizations must conduct a majority of their activities within the city and county of Denver, and principally benefit the city
• Funds must go to non-profits, or agencies of local governments, including Denver Public Schools
DENVER PUBLIC MARKET IN THE 1909 STADIUM ARENA
December 2018
1909 STADIUM ARENA: ORIGINAL CONDITION
“A Public Market is a year-round, carefully crafted, intentional and diverse medley of owner-operated shops, stalls and/or “daytables”. Public Markets exist to fulfill a public purpose, showcase a community’s unique character and culture while serving its everyday shopping needs.”
- Aaron Zaretsky, Public Market Development
WHAT IS A PUBLIC MARKET?
Public markets typically have three characteristics: (1) public goals, (2) are located in and/or create a public space in the community, and (3) are made up of locally owned, independent businesses operated by their owners.
- Ford Foundation
BEIJING TORONTO
SYDNEY, AUSTRALIA
SAO PAOLO BRAZIL
MILWAUKEE, WI
BOSTON, MA
CLEVELAND, OH
PORTLAND, ME
New Staff: Connecting Farmers & Institutional Buyers
• Local food purchasing policy development – including integrating producers more fully into the conversation
• Documenting metro Denver market needs • Prices • Quantities • Attributes
• Planning and implementing January 2020 Denver Food Summit to present new/emerging market opportunities to producers
• What would be helpful to you (data, specs, research)?
Laine Cidlowski
• Food Systems Administrator, Denver Department of Public Health and Environment
• 720-865-5357 • [email protected]
City and County of Denver Purchasing Overview
$0-$10,000: Open Market
$10,000-$50,000: Informal Bid
$50,000+: Formal Bid
RFP: Technical and Price
evaluated
Purchasing Overview
Local Food Goals
• Goal to acquire at least 25 percent of food purchased through its supply chain from sources that are grown or processed entirely within Colorado, by 2020.
Local Food Definition
“Food” as used here includes both food and beverages, e.g. milk, juice, soda, etc. • Total dollar value of all locally grown or processed food • Food is deemed “grown” in Colorado if the farm, ranch or orchard on which the food is grown is located in Colorado. • Food is deemed “processed” in Colorado if the plant at which processing takes place is located in Colorado.
City of Denver Needs
Internal Departments
Jails
Head Start
CONTINUOUS IMPROVEMENT
• One- Time Bids, no
contracts
• Multiple Vendor Contracts
• Weekly/Monthly Bids
• Increase spot buys
• Increase local buys to 25%
Questions or Clarifications
DENVER PUBLIC MARKET
FOOD LOVERS DESTINATION THE ISSUE:
Denver is the only city of the largest 35 in US without a public market Public Markets in Seattle, Cleveland, Detroit, Pittsburgh and beyond are #1 tourist attraction Anthony Bourdains Travel Tip #1: Head straight to the central market. “You see what’s for sale, you see what’s in season, you see the fundamental color palette of a cuisine. You really get a sense of what a culture loves most dear.”
DPM SOLUTION: Create a true public market, celebrating our regions rich cultural heritage and diversity Establish a “must see” destination for locals and tourists
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• Convenient proximity to I-70 & I-25, core of CBD, easy access to Lightrail, Federal, and 6th Avenue
• Culturally diverse community that is poised for regenerative development
• High community focus on employment, training, entrepreneurial and food incubation
• Strong existing partnerships in public and private sectors
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Elitch Gardens Redevelopment Meow Wolf Mile High Stadium Development Denver Public Market Sun Valley Eco District
Recommission existing Steam Plant - Iconic “Tate Modern” Building - 65,000 SQFT ground floor space
- 40,000 SQFT Public Hall; 25,000 SQFT Event and Makers Hall - 2nd Floor Office, Commissary, Entrepreneur Center
Planned Build: Produce & Protein Processing Center - 100,000 SQFT custom built, USDA aggregation, processing,
and distribution center
Planned Build: “Producers Alley” - 50,000 SQFT custom built facility to house small to mid scale:
Dairy, Specialty Meats, 2nds Market, Seafood, Spirits
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As with any ecosystem, it’s the array of components that create synergy and cohesion essential to its life. For the Denver Public Market, farmers, processors, distributors, retailers, and food entrepreneurs will work side by side bringing together all parts of the food system from harvest to consumer. These businesses all rely on each other. Through this collaboration we’re creating a model that’s good for people, planet, and profit. Certain components stand economically strong on their own, some the guidance and education to create cohesion, all brought together through a great public hall.
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This Photo by Unknown Author is licensed under CC BY-SA-NC
This Photo by Unknown Author is licensed under CC BY-SA
GREAT PUBLIC HALL 40,000 SQFT with over 50+ curated food stalls:
Fresh fruits & vegetables Seafood, Chicken, Beef, Lamb stalls Bakeries & Pastries Specialty food (Olives, Honeys, & more) Prepared Foods Wine, Beer & Libations
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This Photo by Unknown Author is licensed under CC BY-SA
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30,000 SQFT of Flexible Space
1 Dedicated 15,000 SQFT with over 30 stalls geared at arts, crafts and individual maker components
2 Moveable stall space to open up for large or small events
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25,000 SQFT dedicated to innovation and operations for emerging & existing businesses
10,000 SQFT commissary kitchen to enable food entrepreneurs dedicated, certified space for food production
Catering kitchen for event center
10,000 SQFT of commercial office space geared at food businesses, from restaurant to farm
5,000 SQFT center focused on developing tomorrows food business: OED facilities, DEH, touch down desks, conference and small speaker rooms
PRODUCE & PROTEIN CENTERS
100,000 SQFT to production center
70,000 SQFT dedicated to produce
Facilities include: Receiving and Distribution Docks Cold (including frozen) & Dry Storage Produce processing line Washing, Chopping, Bagging, Canning, Preserving IQF (individual quick freezing) Facility USDA certified animal processing facility, enabling breakdown of previously slaughtered animals
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PRODUCERS ALLEY
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40,000 SQFT split between established
and growing food producers
Individual 5,000 to 10,000 SQFT site users from: • Fruition Farms Creamery • Women’s Bean Project • Seattle Fish Company • XYZ Brewery/Distillery • Waste Farmers Soil
Production • … and more
This Photo by Unknown Author is licensed under CC BY-ND
Produce ColoPac Growers Organic To Market From The Farmer Rocky Mountain Farmers Union CO Fruits & Vegetable Assoc
Protein Western Daughters Savory Institute Pasture Provisions Seattle Fish Company
Community Partners LiveWell Colorado Denver Botanic Gardens Office of Economic Development Slow Foods Colorado Impact Finance Kaiser Permanente Square Root Noble Grains Good Food 100 Greenway Foundation Historic Denver
Events & Catering Hobnob Events Two Parts Big Wonderful Catering By Design Catered Concepts Footers Catering
Public Market Boulder County’s Farmers Market Pearl Street Farmers Market Colorado Fresh Markets Colorado Proud Boston Public Market
Producers Alley Fruition Dairy Tamburello Productions Stanley Marketplace UpDig Food Maven
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PHASE 1: TEAM &
PLAN
Team Denver Public Market
Adam Schlegel, Executive Director
Catherine Compitello, Senior Advisor
Community Partner Sun Valley EcoDistrict
Real Estate Consultant Susan Powers, Urban Ventures, LLC
Shannon Cox Baker, Urban Ventures, LLC
Architects SAR
Plan & Key Deliverables Complete thorough business plan with accompanying in-depth financials Complete community needs assessment, secure strategic partners
Complete thorough site assessment and feasibility, develop conceptual design
Complete land and steam plant acquisition
Secure development capital
Timeline: April 2019 – December 2019
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We want to hear from you!
• Are you excited about any of these opportunities?
• Do you think a wholesale market place in Denver would help your business?
• Are there any infrastructure gaps?
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We are establishing a farmer and rancher metro market opportunities committee!
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