Title
American Rescue Plan Act Phoenix Resilient Food System Programs - Enter into Agreement for Container Vertical Farm Project (Ordinance S-51116)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Homer Farms to disburse funds for the Container Vertical Farm Project. Further request to authorize the City Controller to disburse all funds related to this item. Funding is available through the City’s allocation of the American Rescue Plan Act (ARPA) federal funding and is in the Phoenix Resilient Food System category of the strategic plan. The additional aggregate expenditures included will not exceed $250,000.
Report
Summary
In response to the COVID-19 pandemic, the Office of Environmental Programs (OEP) developed a food assistance plan to address the food needs of vulnerable populations and communities impacted by COVID-19. The plan provides: 1) access to healthy foods for impacted populations; 2) infrastructure assistance regarding transportation and delivery with a focus on home delivery; 3) support for food banks, food pantries and community agencies; 4) support for increased local food production; and 5) business and employment opportunities throughout the food system spectrum.
Economic Development and Innovation - Container Vertical Farm Project
The Container Vertical Farm Project will create a sustainable and innovative urban agricultural system on municipal-owned land at 2644 W. Belmont Ave. This cutting-edge farm will utilize photovoltaics for power, implement water-saving techniques, and integrate an energy storage system. It will support local food distribution and provide workforce development training in controlled environment agriculture (CEA) to residents and businesses in disadvantaged census tracts within the City.
The total project funding available is $600,000 and is made possible from a collaboration of partners working on implementing projects that increase access to healthy food, encourage job creation, and incorporate sustainable practices, such as energy and water efficiency.
Funding sources are as follows:
- City of Phoenix (ARPA funds): $250,000
- Salt River Project (SRP): $300,000
- Arizona State University (ASU): $50,000
The City is allocating $250,000 for this pilot project, to be awarded through an ARPA Grant Agreement upon receipt of Phoenix City Council approval. The Phoenix Fire Department owns the land and has agreed to lease the land to Homer Farms for a three-year period with two, one-year extension options. OEP, Fire, and Real Estate are working collaboratively on the project. The project aims to address the pandemic's impact on urban agriculture, enhance access to healthy food for COVID-affected households, and promote the development and expansion of innovative farming systems like vertical farming throughout the City.
SRP is providing $300,000 for this pilot project, to be awarded directly from SRP. SRP is interested in fostering containerized vertical farming within the Phoenix Metropolitan area and promoting education and workforce development opportunities.
ASU is providing $50,000 for this pilot project to be awarded directly from ASU. ASU is interested in research and development opportunities to refine technical performance of vertical farming systems, to understand the role these systems can play in urban food production, and to identify education and training needs and opportunities.
The winning proposal was selected following criteria identified in the scope of work prepared by OEP, including the ability to complete the project work funded by the City by Nov. 30, 2024. Proposals were evaluated by a panel consisting of City staff and representatives from SRP and ASU, who recommended awarding the funds to Homer Farms. Homer Farms plans to construct a containerized vertical farm powered by photovoltaics and equipped with an energy storage system. Over three years, this farm will cultivate various crops, donating 20 percent of the produce to communities in need. It will also offer workforce development workshops on CEA to the local community, create one full-time and one part-time job, and provide healthy food to individuals and households impacted by COVID-19. The project also accelerates the transition and transformation of the local food system.
Procurement Information
Services may be procured, as needed, in accordance with Administrative Regulation 3.10 to implement and administer programs intended to prevent, prepare for, and respond to the COVID-19 pandemic.
Contract Term
The term of the agreement will begin on or about July 1, 2024, through Dec. 31, 2024.
Financial Impact
There is no impact to the General Fund. Funding is available through the City's allocation of ARPA funding to the Phoenix Resilient Food System Program by the ARPA Strategic Plan approved by the Mayor and Council.
The aggregate expenditures of this agreement will not exceed $250,000 for the Container Vertical Farm Project.
Concurrence/Previous Council Action
The City Council approved the ARPA Strategic Plan on June 8, 2021, and the ARPA Phoenix Resilient Food System allocation for the second tranche on June 7, 2022.
Location
The project is located at 2644 W. Belmont Ave.
Council District: 5
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays, Deputy City Manager Alan Stephenson, the Fire Department and the Office of Environmental Programs.