>> Councilmember Harris: all
right, welcome to to budget and
finance, I'm your committee
chair, rusconi's r reggie harris
joined today with me committee
vice chair, councilmember
cramerding, councilmember anna
albi and jeffreys, vice mayor
kearney councilmember owens,
parks and. I don't believe we
have any public comment and on
zoom. From the developmental
disabilities o DR. Dudas, and
law, our clerk is rob either
kneel I. And we have a couple
presentations.
That we'll take up
then we will take up the items
and then we will make a movement
to go no executive
into executive session
at the conclusion of the meeting
and we'll talk about that at the
end. With that, we have our
favorite topic here in the city
of cincinnati, biochar, so we're
joined today we have jason
barron with us and director
kroner and crystal courtney
division manager of natural
resources. Welcome. Come on
up. We also see jon harmon in
his new role supporting biochar
replication and decked out in
park swag. All right. Welcome.
>> good afternoon, CHAIRMAN
Harris, committee. We're happy
to come here today to talk about
biochar. We talked about did
individually with many of you
and here last year for our
budget presentation where we did
a science experiment how it
retains water as opposed dirt.
We're here to give a update on
the project and a item you will
be considering to give an ad
advance from the energy
revolving loan fund that we
would use as part the capital
stack for that. Where we're at
is at the FEBRUARY park board
meeting. Park board voted to
move forward with the project
and purchase the equipment. All
told the start up project is
about $2.9 million. About 1.7
of that is the equipment. Much
of which we'll be able to get
tax credits back in the form of
direct pay, which director
kroner will walk us through. We
are considering about 8 $50,000
as a advance to use as part of
the capital stack and that will
be refunded through these tax
credits that are part of the
inflation reduction act. We are
in the process of we are signing
up a mechanical engineer that
will help us design it's
facility and how it ties into
water and nursery, that's where
the site will go. And the
reason we get do claim tax
credits it will take water
nursery off the grid, using the
hoot from the biochar machine to
create energy. We spend about
$40,000 a year on energy that we
will be able to save and produce
ourselves, which is exciting.
That's outside of even creating
biochar which is what we're here
to talk about today to give a
run down how that works. With
that I will pass things over to
my colleague here, division
manager of the division of
natural resources crystal
courtney.
>> it is a honor to join you
here today. I have spoken many
times about the status tree
canopy and the projects we're
working on. Just a brief
overview why cincinnati, why
now. So as you know, the
majority of our street trees are
planted in relatively small
areas and in pretty poor compart
pacted soil that's inn none
dated with salt and other refuse
from the streets. As an urban
forrester, arborist in this
industry we have becoming
looking to biochar as a solution
for some of that dee compaction
and soil improvement materials.
The it is pretty absorb dent to
build into our budget so we
started this project with an
idea around okay does this work?
And we started outed buy lotting
a couple sites using biochar.
And then soon thereafter got
into this whole bloomberg
philanthropies grant. The why
is really to improve the canopy,
the growth rates in the
survivability of street trees
and treats throughout the city.
We have initiatives build into
the green cincinnati plan and
within our own organization to
help meet canopy goals in low
income communities of color and
can by areas over the city
overall. We have a innovative
uli, we urban forestry program
and excited to put it to work in
our and streetscapes. In
addition we have been working at
the national to advance urban
forestry throats the united
states, last year being deemed a
van guard city leading it's
charge in urban forestry
initiatives tenablal level. I
will bringing in innovative
technology home will be a pilot
for the amazing work that our
city does for urban canopy ass
and we have opportunities with
the inflation reduction act and
through bloomberg
philanthropies. In 2015 stock
hold hole many sweden pie need
the first biochar facility.
That was a bloomberg challenge
grant and they put out a request
for proposals from municipals a
round the world for inn corp the
biochar into their city wood
waste mainingment. Since at
that time cincinnati was one of
ten cities in the world chosen
to complete the feasibility
study, we had a cohort of about
12 people from various entities
throughout the city, including
office of environment and
sustainability, university of
cincinnati, ground work ohio
river valley and local partners
in the urban ag field and soil
remediation field. So we put
forward this feasibility study,
our entire goal knowing that
this would be a city operation
was to make this essentially
revenue neutral. So we knew
that we needed to -- we knew how
much biochar we needed to
produce in order to take care of
trees that we're planting, but
then we multiplied that by how
much did what we need to produce
and sell in order to run this
operation, pay for every aspect
of it so that we're not having
to come back and ask for city
operational budgets to fund
this. We built our feasibility
study based upon that. When
which put that forward in 2022
we were one of 7 cities in the
world chosen, one of three in
the united states with our
county parts being minneapolis
and lincoln, tph
e n, have I
been working with those cities
cocreating what does this look
like in the united states, all
the permitting aspects that we
all have to go through and then
finally the machinery itself,
which means would be best suited
for this application that aren't
going to breakdown and are going
to essentially allow us to have
a seamless operation overall.
We have been collaborating, we
have monthly meeting with those
other cities. We have quarterly
meetings with the other six
entities throughout the world to
kind ever collaborate on what
these projects look like at a
international level. One of our
first major tasks was we're
urban foresters but this is new
technology so one of the first
things was a rfp for a operator.
So we are wrapping up phase 1 of
that contract, essentially
carbon margin invest was the
entity that was chosen, sam
dunlap is the owner of that
company. He's been helping us
build through everything from
putting out the rfp for
equipment to help with site
design, to building out
operations plan and business
plan for how do we bring in
enough revenue to pay for this
operation overall. This is a
slide that I why in ever biochar
presentation I give the it is
not a new technology. It has
been a round since the beginning
of of agriculture, it goes over
2000 years to what they are
finding now over 200 heck trays
of lad lap in south america
today where our original kind of
first nations were in
corporating this into the soil
to make the soil and amazon more
fertile for growing crops. The
slide, or the picture to the
right there is a very close up
show shot of what biochar looks
like. The way that this works
in the ground is it will,
because of its high beings
change, carbon I can structure
proper individuals a small home
for all of the beneficial micro
buy on the I can organisms in
the soil 20 live, thrive, so
that we have nutrients and water
holding capacity right thereon
site. This is essentially what
is helping to build that soil
struck sure so the trees are
then better able to survive
overall. So what does this
process look like?
So we generate a lot of wood
waste. We have about 30 yards
of wood chips a day, so if you
think about the big tree trucks
that are coming through, that's
two of those big tree trucks
every day and historically have
been piling that material up and
under utilized land within parks
property. We might use it for
mulching trees, in partnership
with compost with our composting
partners or urban ag partners
throughout the city. But
overall this waste is just kind
of accumulating and breaking
down. And so if you think about
how a tree grows to the process
of photo synthesis, as its
taking in cash bone dioxide it
is releasing oxygen back out
which is what is cooling the
temperatures around the trees
and store that's carbon within
its makeup. That's how you get
trunks and branches and leaves
and roots, that's all carbon.
So, as plant waste decomposes if
we were to pile it up, all that
carbon that a tree has
sequestered is released back
into the atmosphere as it
decomposes. Biochar does is
high heat, low oxygen in
hydrolysis, wood chips come in,
they are processed through the
machine, all the gasses and/or
began I can materials that are
built up within that are
released out, burned off, that
is part of the system, part of
the fuel that keeps that unit
running. At the end of the day
the final product is up to 830%
solid carbon. So what we will
come away with is that through
our six year pruning cycle,
through all the trees that are
pruned and removed throughout
the city, we'll be repurposed
into biochar holding up to 830%
of the carbon that those there's
and tree parts have sequestered
over their lifetime almost in
perpetuity. They are still
filing these in the amazon that
are 2000 years old. So the rest
dense time of biochar in the
soil is very long. So what
we'll be doing we're already, we
already have a preventive
maintenance cycle, pruning and
creating wood waste. We will
take it to the unit, converting
it into biochar, and then
reincorporating that into a
compost facility that park
parky's farm through great parks
of hamilton county. They
produce, they pay about $60,000
a year to have the manure there
taken off site. As we were
developing this project, they
were developing a composting
facility at their site. We said
let's match, you can't do is
take biochar and put it straight
into the soil because than
carbon will pull all the
material out of the so is, the
nutrients and moisture by
warming it before it is brings
the benefits to the treats and
roots. We will produce t at
that to parky's farm, mixes with
compost and that will be planted
back in the trees that we plant
throughout the city. Another
portion will be going out into
the industry for sales which
we'll get into a little more.
One element that I definitely
want to point out here when you
go through this sickle,
converting wood waste into
biochar you are also generating
exorbitant amount of heat and
that heat is what we're going to
be capturing in order to do
combined heat and power system
that jason alluded to which will
power the nursery. So this is
the step by step kind of process
that I just went through
receiving wood chips, bringing
it the shredder, shredder will
essentially take them and make
them into a uniform size as they
are going through the machine
they are processed in a similar
size, similar heat so that we
have a clean product at the end
of the day. And then we will be
essentially loading it into
super sacks and taking it to be
distributed for reuse within our
streetscapes, through that
compost mixing or distributing
specifically for sale as a raw
or for the unified fortified
product broad. Since 22 we have
been working through what does
this operation look like, what
does the cost us, how much do we
need to sell?
What is the current rate kind of
at the national level, what do
we think we can sell it for, as
well as any carbon crediting
opportunities that we MAY run
into. So just a break down on
some of the equipment that we
purchased so far. So this is a
image of the shredder, so again
the shredder will make the wood
chips into a even form size. It
the in springfield township.
The historically is where we
grew all the trees to forest
mount airy forest. And then in
the mid 20 teens we springfield
township and they have created
the preserve which is a awesome
new park, springfield township
operates and developed. It is
right next to it. Just north
west of this site but it's
nursery we have about six
greenhousers, we to krohn
conservatory and it is a great
operation. It was and that
cincinnati parks we have had it
forever. But it also is under
utilized. It has a ton of
potential. It hasn't been oning
at full steam since it's 830
real estates and we're
developing a lot of plans to
bring it back on line and ramp
up our own production this. One
of the things we're most excited
about is bring biochar out here.
You can see that road that the
two red lines that run from the
right side to left are two
potential access roads. We're
work with springfield township
about how to accept wardner
nursery from north bend road,
which is the road southwest to
northeast on that lower portion
or right hand side of the page.
We are work with them to work
through the process of
redeveloping this and get tag
back on line much that's going
smoothly. They are excited
about the potential for this
project. This is a schematic
drawing of what the operation
looks like as as can you see, I
don't know if my mouse shows up
there, it does not. But the box
in the middle of it with the
little circle on it, that is the
pie recall cyst unit and you can
see.
If you are moving from the south
part of the page to the north,
the already part to the top,
that is the wood chipper
outside, that will move north on
conveyor/belt to that first box
inside building a moving floor.
We'll load that up to run even
when we're not there and to
operate 24/7. And that will
slowly move the woods chips over
to a conveyor or belled belt
that will run through the unit
in the middle and split off to
bagging up the biochar for sales
and distribution or over to the
organic ran kin cycle which is
the machine that generates
power. A generator that uses
heat to generate and probes
electricity. We have a cool
individual owe about that if you
would like to see it. So what's
the revenue potential?
As can you guess, crystal
mentioned early on, we need this
to be revenue neutral at best.
It is something that takes away
from other parks priorities as
everybody knows revenue is not
growing throughout the city, tax
revenue we noticed to do more
with lessor produce more
revenue. We need to make enough
to cover costs. And step 2 is
there a possibility to create
additional revenue that we can
use to accomplish some of our
priorities throughout the park
system related to additional can
pee
tree canopy and reforesting our
forest. So about 80% of the
biochar is going to be available
for sale. About 15% of it will
be held back for use between us
and great parks. And this
partnership where we provide the
biochar, they provide the
manure, we combine the two at
about a 1-5 ratio and that will
be planted in tree wells with
our trees or in other projects
throughout our system. And
we're estimating high on that.
We're not totally sure we can
use even the 15% that we
produce, but again we always try
to estimate high where you want
to over performance estimate low
where we're worried about
underperforming. So 85% for
sale. Additionally this is
going to be available for
eligible for carbon credits.
Essentially we'll be able to
sell carbon credits for the heat
that we're producing and energy
that we're producing that will
be a funding stream or revenue
stream as well. And then our
hope is that we're going to
produce revenue that will be
flood, to use in other parts of
the system. We're currently
estimating that in year 1 we'll
be about 45% success rate on
creating biochar. This
obviously if we run this 24/7,
there is a maximum output. But
whether it is how much wood
chips do we produce throughout
our system, we want to estimate
low on that how successful we're
at keeping it going 24/7, will
there be down time, working out
kings and in kinks and 67%
success rate and hoping by year
3 we're close to 930% of the max
output that we put out every
year. In year 1 a little built
of a deficit in what it costs to
run this versus what we think
question make. About a
50,000-dollar gap in year 1, the
start up years with some
troubles. $400,000 to operate
this in year one. Raising over
time as everything does, so
we're building in increases but
we think as as quickly by year
two this will be making revenue
of about $200,000 in year 2 and
as much and 3 hounds that will
be revenue positive if we're
able to hit those production
targets. So, again, it is not
often that a city starts up a
business we think this will have
a real benefit for our bottom
line and when you look at the
most important piece is going to
make our trees grow quicker and
healthier and more success full
name. You look at what it can
do to help parks achieve some of
its goals throughout the system,
then the other piece is all that
biochar we sell that will make
revenue it will also go to make
healthier trees, better crops,
better landscapes elsewhere as
well. We're paid about the
potential. We had some
preliminary discussion was some
whole sale operator that are
very interested in this and are
kind of like, when are you going
to start producing?
But there is a market for this.
I know from talking to the vice
mayor that it is not as ease toy
find it at lowes and you would
like it to be but we would like
to provide some large scale
wholesalers that product that
they will then bag and reuse in
other ways. So, how had we use
the 15%?
Like crystal mentioned, we will
send to parky's farm where they
are creating this compost
facility, 1 bye biochar to 5
manure effectstively which
creates that night row gin rich
planting element that allows the
tree to be successful. We use
about 8/10 of a cubic yard per
tree and great parks will use it
in their trees as well. So next
steps, like I said we're work
with springfield township to
make sure everything is up and
running for this. We're fine
lieding our contract with the
mechanical engineer that will
help us design this property.
We're -- and then we're work
with carbon harvest on
finalizing and continuing to
test and study the operations
plan, the business plan. It is
our hope that if everything goes
right with this we will be able
to begin construction on the
facility as early as this spring
and by the first quarter we'll
be producing biochar and
starting to see this benefit.
And that lines up relate if I
havely well with great parks
compost facility they are
working to develop right now as
well. So we will have time for
questions at the end, but next
up is the inflation reduction
act, which is what we're talking
about days the advance.
>> happy earth day to the
committee. I want to commend
parks from building this from a
seedling of an idea to a full
fledged vision business
operation. It is been a amazing
development. Alongside what I
consider to be one of the
innovative climate solutions the
city is working o I want to
present to you what I thinks a
innovative financial tools that
is help making this possible.
So to set the stage, I want to
remind folks of some of the key
changes made by the inflation
reduction act. This is the
largest climate investment in
human history. Some of it is
available via grants which we're
pursuing. The the bulk, tax
credits, tax credits for clean
energy, energy efficiency.
Historically city government and
not profit evennity at this
times have had to partner with
for profit entities to capture
tax credits because we don't
have tax burden. One of the key
stipulations of inflation
reduction act which is direct
pay which makes all of those tax
credits available to entities
like us as cash back on our
investments. Thanks, crystal.
There are a whole variety of
clean energy solutions that are
being incentivized through the
inflation reduction act. They
are outlined on the slides. I
want to zoom in on combined heat
and power. This allows the
project to move from a simple
processor into a net zero city
facility by implementing
combined heat pow are, taking
advantage of the inflation
reduction act and getting all
that money back. But there is a
cost premium to get there. And
so many projects have that up
front capital premium where the
dollars just aren't available.
So we don't install solar, we
don't go the beings interest
mile. The tile want to talk to
you about provides that advanced
funding. Before we get there,
next slide, please. Beyond just
cash back, the availability of
different types of tax credits
has expanded drastically. So,
you have a default 30% renewable
energy credit that comes back to
us, but then there are
additional credits if at the
time cited on a brown field,
additional credits if it is
american made product,
additional credits if it
benefits a low income community.
So these different layers of tax
credits can stack up to 60-07%
back on these investments.
clean energy on sale we have
never seen before. So in
partnership with direct
developmental disabilities'
director or oes has been working
to create a revolving energy
loan fund. This fund is.
Seed funded with $2 million of
our green cincinnati plan
implementation money. The
concepts here is when we have a
project like the biochar
processor that has this
financing gap that can be filled
by direct pay, but you need
those dollars up front. This
fund can advance the money to
the project, make the project
happen, with the understanding
that when the direct pay it
replenishings this fund. It
makes this projects happen,
capture, maximize the benefit
from the federal government and
do it over and over again in
perpetuity. This project and
what is before you today is a
consideration of a
850,000-dollar allocation to the
biochar project, to get them to
the finish line with the
understanding between parks and
the fund that when the dollars
are returned they are come back
to this account. I want to
point out that this is one of
many projects across the city
that can take advantage of these
types of funds, take advantage
of these fed ran incentives,
outlined a variety here as we
think about deferred maintenance
and investments in our capital
infrastructure, this revolving
loan fund can help our
renovation of facility x also
add solar, add battery back up,
take our facilities to net zero,
reduce, eliminate our ongoing
utility operation expenses. I
want to splenoma this works but
also wet your apparent type for
future projects appetite for
future projects.
>> and so that end when we were
here just a month or so ago for
our budget presentation,
councilmember walsh asked me
about kind of what our next
capital projects that we're
talking about. And we mentioned
the facility where we're
renovating that facility to
bring it back on line and make
it a world class center to
operate our eastern parks out
of. Part of that will be about
$400,000 that will go on top of
that building. As I mention it
had just a giant immediate metal
build that's has a huge roof on
it. It will produce more solar
than we need to that site. We
will put back into the grid or
how to use it on other city
facilities to pull that power
out of it. We will be able to
action sews these hopefully with
your assistance access this
revolving loan fund to help fund
that project. Lots of future
great work and great leadership
by director kroner and the team
at oes. And with that, we'll
take questions.
>> Councilmember Harris: thank
you very much. That's really
exciting work and the
possibilities. Colleagues,
councilmember jeffreys?
>> Councilmember Jeffreys: love
this stuff, and we were going
back and forth a little over
e-mail first, revolving fund
no-brainer, it is in my budget
priorities. It is the best
investment we could make as a
city because it replenishings it
self.
A little put services
announcement for that as we
approach budget season. There
were just one question and than
a couple comments. So to our
back and forth on this, the
revenue potential of 200 to 300
on a ongoing base I year 2, 3 is
awesome, that's amazing. And I
always wonder not to get ahead
of ourselves, but the whole how
I it adds up what could this be
in five years, what could it be
could we do ten biochars so that
$300,000 a year is 3 million?
, you know, like so I love your
perspective on that. Not to get
ahead of ourselves, but it is
just interesting for us to think
about because the return on the
investment is really substantial
while we're doing kind of good
for the environment. But it is
a smart financial given all our
budget challenges, a smart
financial decision. So any
perspective on that. And I have
one other question.
>> excellent question,
MR. CHAIRMAN, councilmember
jeffreys, I really appreciate
your ambition with this project.
I've trying not to go into debt.
But there is quite a bit of
potential here.
And one of the things we started
out with originally looking at
different technology and we
early on made the decision to go
with technology that could at
least produce enough biochar to
make us be net for sure even
with those conservative
estimates for production. I
think there will be a couple
different this that will govern
how much biochar we can make.
One will be how much wood waste
do we have to turn into biochar.
Thinks you learn when you become
parks director. I had no idea
the amount of wood waste we were
producing continually. Based
upon what we produce ourselves
throughout the park system we
are confident we can produce
through our estimates. But you
start to look at again baby
steps as this grows and as we
get better and better at it
could we be and we talked to
councilmember cramerding about
and councilmember owens, could
we divert wood waste from
landfills that could do not
biochar facility and used to
increase production?
Could we be the spot that
everybody takes their christmas
tree at the end of the year or
spot that everybody picks up
their christmas tree when the
city picks up christmas treats
think bring it to us and that
becomes that?
Could we be a spot currently
there are private companies that
are, that we hire sometimes to
do some of our too pruning and
tree maintenance work, they are
taking their wood waste some
where else and probably paying
rumpke or others to compost them
or to dispose of them. Could we
take that?
Maybe which charge lessor maybe
we just take it for free because
we know we can turn it into
biochar. There is a lot of
possibility here.
The other piece that is
important to talk about is that
what does a cubic yard of
biochar cost?
We know that if the vice mayor
was going to buy a bag of it at
lowes they are going to up
charge that a lot because now
you are down to a tiny amount.
We are currently just looking at
selling it in could you please i
can yards to wholesalers that's
the easiest for us to get out
the door. We don't have a
bagging facility or production,
we might get there but for right
now it is easiest to get it out
the door and let a actual
business deal with that. But we
don't know what the market will
be like for that. Currently
about the average is about $150
per cubic yard for biochar whole
sale. Can you find 250, $300 a
cubic yard. There's lot of
upside that we estimated low, we
used 125 to assume that maybe to
get our market going we had to
cut a deal like we'll give you a
thousand could you please I can
yards but discounted rate if you
take it off our hands. It could
be the opposite, it could be
that company and ab will give us
325, 345 because they are
looking for that product. There
is a lot of upside. That's just
what we can produce. We're
predicting question do about
45%, growing to about 65-730%
and settle in with this one
machine around 90% production
capacity. There is going to be
some downtown. But to your
point, could we buy a second
machine, expand this separation?
It will help our much waste
question get our hands-on and
the market for that. The scary
piece not scary but reality is
sooner or later if we're making
money a private business will
come in and try to do it cheaper
and different. We're trying not
to get too far ahead 6
ourselves. If we can produce
enough for us to cover our
operations and make our trees
awesome, that's enough for us to
want to get into. And if we can
do other things to help inn
croft invest in our parks
invests and we're excited to see
where it goes we're hopeful
there is some upside here.
>> Councilmember Jeffreys:
carbon credits, you want to talk
about how many there are, how
that works, how this helps?
>> so I got some notes here, let
necessity see. It is a market
that I don't understand super
well and sam from our team can
get you more information on t.
But my understand they are
offset credits and me work the
carbon that we're saving other
companies are able to buy and to
use. That -- they are bought,
there's multiplier on how much
you offset and a multiply are
for that and that relates to a
market. It is kind of sold on
an exchange, almost like the
stock market. And he's done a
tremendous amount of research
into how does that market work,
what are the rates?
Do we have to pay a percentage
of that?
It is almost like a transaction
fee on a credit card, we have to
pay that to the system. We're
estimating only getting we're
doing the same thing we're
estimate that's we will have
some slippage, we won't be super
successful at it. We're
estimating about 50% realization
of those credits in year 1 and
hopingably year 2 and 3 we move
that up so that we'll be able to
sell on the market. That will
be determined based upon what is
the rate for, what is the going
rate for those credits at the
time that we take them to market
to sell them. But it is also
could be a tremendous
partnership on or about
sponsorship opportunity, right?
so all of the marriage or
companies that you are meet with
the headquarters of all day long
I for a host of different
things, many of them probably
sat on the future commissions.
They have varia climate goals
and things they trying to
achieve. They are going to
market to buy carbon credits
elsewhere. They might carbon
credits that are produced in
arizona arizona or columbus.
Could you imagine a partnership
where name your local company x
buys their carbon credits
exclusively through cincinnati
parks biochar project you get
the local partnership piece that
could make it really fun. We're
confident we'll sell them even
to company z in alabama or dba
dba, but there is
dba dba dba and we could
sell those credits lowingly that
will help them achieve their
goals as well.
>> one of the first tasks will
be a car bone analysis.
So how much carbon are we using
to produce it, how much carbon
does it take to get the material
from where it is produced to
where it ends up?
And then how much carbon are we
sequestering overall?
That lifecycle analysis is built
in the first year of the
operation, so as jason alluded
to sam with carbon harvest and
our team have been meet with
various broker even it advertise
to understand what does it look
likity international level and
the real deep dive what does
this look like at a city level.
I don't know that it has been
done before. So we'll be
piloting that whole field as
well.
>> Councilmember Harris: great.
Councilmember owens and then
PRESIDENT Pro tem parks.
>> Councilmember Owens: thank
you. And happy earth day right
back at you. To start at
cincinnati zoo and how they have
really looked at their
operations and made them the
most sustainable ever, seeing
this innovation at the city
that's what we're doing, taking
operational costs and applying
leveraging the I r a with that.
We're in the future right now.
And so thank you for positioning
parks to be able to pursue the
bloomberg philanthropy support
in this. You answered a lot of
questions, some of which are
around revenue. In terms of
equipment that needs to be
purchased, is it the pie recall
cyst?
How do you pronounce it?
Is that that equipment that
needs to be purchased.
>> that's what we sought
approval for from the park board
in FEBRUARY. We're under a
initiative called complete
solutions and they are
essentially package together a
whole project for us, shredder
convey evens, feed bins, pie
recall cyst and the o r c. So
the big make major part that
we're at right now is getting
into contract with a mechanical
engineer to tie all these
components into the site.
>> Councilmember Owens: as it
relates to tree canopy and being
able to plant trees and
healthier trees and all that, is
there an estimates on how quick
we can get there in
neighborhoods that need it the
most?
>> the goal is like I said we
will be producing biochar next
year. City projects you nerves
want to guess early an up and
running and we're rock he's
another that. Right?
We and the to see one of these
units live we had to drive tomo
m so tea it, a 9 hour, spent the
night, went and hung out a farm
and 9 hours back. In a day and
a half we were out and back awe
say amazing fath and got to see
it up close. And it helped us
decide this was the unit we
wanted because there's couple
different units we got to see
this live and in person it
worked well. Tet we met with
that farmer it would grow trees
twice as quick.
I wasn't
smitherman you are about that
but crystal has more scientific
knowledge. Estimated 44% better
tree canopy. When you become
parks degree a tree in the right
of way it has a 65% success
right, 35% of the trees plant in
the right of way are gone in a
year. I will walk by and see
new trees and walk back a couple
months later and see that tree
gone in walking around downtown
with my dog. Can you see for
all the reasons she talked
about, salt, small tree we will,
all the pressures urban life has
on these and in a tree well and
this much water. Biochar will
be able to hold that water in,
hold those nutrients in and make
that tree that much more
successful. So you will see
that benefit for from?
I biochar and making the tree
that much quick. Sometimes hear
from are citizens that want to
cut a tree down in front of
their house, one of our street
tries and we got really great
laws on the books that say you
can cut a tree down, crystal is
certify arborist they value it
and that's a thousand dollar
tree. Now buying a new tree of
the same isn't a thousand
dollars that has lived, 10, 15,
20 years and treat a tree
canopy, you can't get that back
until it grows, it needs at
least 2010 years to provide that
again. That's why we protect it
and that's why cincinnati as
such a great tree canopy because
we value them. That will speed
up this cycle when you cut down
a tree you start to get that
back quicker, healthier tree, it
starts to cool the city and
achieve our climate goals. So,
that's a long way of saying we
think we will take some time to
charge it with the manure from
greatly parks and I should just
say we have said it a couple, to
great parks has been a
tremendous partner it in. They
have put $3 million toward to
and a that awesome $300,000.
And biochar going in the ground
and this will make trees grow
quicker. Hopeful over 5-10
years and see a difference in
how quick they are growing and
how much tree canopy we are
getting.
>> and through partnerships with
uc we have professors that are
already kind of in line to begin
the research process to say like
what is the return on investing
in this technology and what are
we actually seeing in our
streetscapes.
>> Councilmember Parks: thank
you. Boy, this sounds exciting.
You know the collaboration,
working with great parks being
using the in a newer. You said
it would be, what 5-1?
will you kindly explain again
what a car bone credit is to me?
I just -- I'm not sure I
understand.
>>
>> can I try?
So you certainly heard many
organizations commit to carbon
neutrality. This can do that by
eliminating their own emissions
like we're doing by adding
solar, electrifying our fleet.
Or can you do that by purchasing
offsets. So rather than a
hundred percent elimination of
of your you can buy offsets that
help count down the total
emissions released. So there
are companies who don't have a
path way to achieving complete
carbon neutrality they look like
projects like this to purchase
carbon offsets to help them meet
their goals.
>> Councilmember Parks: is this
like solar energy?
>> solar energy does decarbon
eyes, it helps toward carbon
neutrality. So, they are of the
same mission but this is a
different type of project in
that it captures carbon. Soaks
it up and stories it in the
ground. Solar replaces cole
emissions so rather than burns
cool, coal without any carbon.
>> Councilmember Parks: got it.
Ohio long was this study?
How long did it take?
>> we started work on this when
I believe this pre dates me but
crystal started working on this
2021 when we found out about the
opportunity we were invited,
right, to be one of the cities
that applied for this through
this bloomberg philanthropies
grant and we were one of the 7
worldwide cities that got this
400,000-dollar grant that was
the seed money to get this
project started. And so we have
been working on it for at least
3 years, three plus years but we
have a lot to learn. We got a
lot more to learn about carbon
credits as we do the lifecycle
analysis as part of our year one
start up costs and then as we
dig into this we're going to be
study it from the beginning.
This is, you know, a hundred
percent of pilot project. This
is saying there is nothing like
this comprehensive strategy in
the midwest. We want to
innovative and lead the way on
this and get this up and
running. This will be
educational and we're be
learning and study it the whole
time we're doing it. So we hope
to replicate this for other city
gloves, we hope to replicate
this for other even for private
industry because ultimate goal
is healthier tries, capturing
that carbon, making sure that
the wood waste that's produced
from storm or from other cutting
down of the trees, make sure
that's not just left to
decompose but is instead getting
sequestered and returned to the
ground and deemed beneficial.
>> Councilmember Parks: that's
so cool. And who are the other
two cities?
>> minneapolis and lincoln
necessity net zero net
lincoln.
>> Councilmember Parks: the
trees will grow faster, what
about the roots?
>> that's why they are growing
fast, it improves the soil
texture and water holding
capacity which will allot root
system to grow more expo then
alley and absorb more nutrients
and water as it grows. So what
you see above should be at least
equal to what you see below root
wise. And one of the biggest
issues that trees run into
especially in a urban
environment it come amount
pacted poor quality low
nutrients soil.
>> we were here a year ago for
budget presentation and had that
picture of biochar and that
picture of dirt we were able to
pour almost a entire pitch into
that biochar. It won't hold
that much because it will have
some manure in it but it will
hold that much more water,
whether he it rains it rains the
water all a hits that dirt and
runs off and enters the storm
system or it dries up real quick
because it is that compacted
dirt t dirt and doesn't got to
the bottom. This will hold more
water for longer periods of time
which means the tree will have
access to that walter monday and
continue to grow.
>> we're only looking at it from
a tremendous perspective because
that's our business, but the
applications for biochar do
extend to storm water cleaning,
prevention, offset, there is a
whole other world in which if we
were msd present this we would
be do it storm water water
holding capacity. We can
increase biochar into a concrete
as an adtive that the
possibilities are really endless
as far as the applications.
Essentially straight today than
carbon when a bring the a filter
it is running through a car bone
filter. So this essential the
same thing only we're charging
the carbon with the any trientes
and incorporating it into the
ground. It could have other
applications for other entities
in the city.
>> Councilmember Harris: lots of
opportunity. We'll conclude
therewith councilmember anna
albi and then jeffreys.
>> first I was going to ask you
on touch on that use for storm
water management and amiable you
were able to touch on that. In
terms of a quickly you know with
the wood waste usual mentions
wood waste, city does yard waste
collection is there any way to
use what residents are producing
for this or does it have to be
strictly wood?
>> there is a lot that goes into
that and another thing that
we'll study we start with the
woofed we'd whoa know how much
debris or outside come
contamination is in that and it
should be relatively pure. One
of the things making sure that
that we produce unique or not
unique a consistent type of wood
chip that's why we have this
fancy shredder that we will be
used to get the wood chips. And
go us throat system and end
product to have some consistency
to it. But you also want and be
consistent as you don't throwing
the system up. Forty-five
proper decks year and 08% it is
those contaminants or out if a
piece of metal in our wood that
could brick the machine and now
you are down for a day or two
and bringing in a cop to fix it.
If it has like a bunch of grass
clippings, they just purpose
burn off loading it in with not
much tree but a whole lot of
other yard waste that's just
burning off right away. And so
our hope is to start we're going
to do what we bring 23 because
we know how much leafy it is, we
know what, we can control what
we put into the bin. As we move
forward though we do think there
is a tun of opportunity to maybe
take ought christmas trees.
That easy to tell there is no
bulks on there, we start to
have, but we have to educate
here is our tree debris, leaf
debris, yard waste debris, tree
debris or maybe we'll need a
interim facility where we'll
sort it and have like system
which I don't know how it would
work where we can eliminate out.
But we could get there. But we
don't know for sure. That's
kind of like councilmember
jeffreys asked a lot of
questions about what's the big
end 6 of the this?
You can start to see a lot of
uses for it but we'll start with
the yard waste or tree waste we
have and then get better at it
and learn more.
>> I appreciate that, I could
see partnership with other
nearby municipalities, also
partnering with you especially
if we feel like we need more
wood waste. I want to finish
with this. It is cool to see a
green solution that also makes
economical sense. So very
excited to be investing in
something that's green and good
for the environment and also
makes money.
>> Councilmember Cramerding:
thank you, MR. CHAIRMAN. As we
talk about removing honeysuckle
one of our most predominant
invasives. Will honeysuckle be
considered part of the wood
waste stream, can we put it in
the facility?
>> yes, most of the honeysuckle
we're chip ago long roadways and
things like that, we're not
going to be necessarily pulling
the honeysuckle out forest to
chip it. We don't want to add
to the stress of our operations
because we're already producing
enough un. They have outfits
where can you fake them into the
field, a smaller air burn e
burners and we have piloted a
couple of those and partnership
with ground work and carbon
harvest so the opportunity turns
are there but it is also good to
leave that material in the
forest to allow it to break
down.
>> Councilmember Cramerding:
including honeysuckle?
>> once it is cut.
>> one of the, it n point one of
the cool things about this is
that as we replant in the
forest, a we remove the honey
sickle it is strangled out what
should be there. As we
replanned trees on the right of
way we want to plant a tree
that's a income inch to inch and
a half thick. Before that it is
more susceptible to death. In
the forest we can plant much
smaller trees, those trees we
planted with biochar and they
will grow quick, not just trees
but under store, under brush all
that will start to grow much
quicker and will reforest these
areas we're clearing out that
much quicker.
>> Councilmember Cramerding:
with the biochar we can plant a
more diverse array of trees?
I know that beech trees have
been hit with global warm along
hickory are slow grower, os we
can plant more diverse array
with the biochar?
>> absolutely, and honestly
relation to what jason was
talking about growing whips,
small trees, we will have
biochar facility there, we will
line them out essentially be
already, we are already
collecting native seed from
trees, we're starting to grow
them in the greenhouse, but this
would allow to us ramp up that
production. That's would be
then planted within the forest
itself. Yeah.
>> Vice Mayor Kearney: I was
just telling you I wanted some,
that's was it.
>> Councilmember Harris: and
PRESIDENT Pro tem parks, did
you, I didn't mean to cut your
questions short. I did not.
Okay. I, you know, I did not
know that we had such an
interest in arbor are you and/or
bore it pursues on this dais.
I'm impressed by the depth of
the questions that my colleagues
have asked. It is really cool.
It is really cool. Thank you so
much.
>> thank you.
>> Councilmember Harris: all
right. 616 race street, you're
up.
>> good afternoon and to the
members of the committee. We
have prepared a presentation for
served 616 race street
investigatement agreement. This
item 2 on the agenda. Today I'm
joined by MR. Adam gelter with
3cdc, along with MR. Patel with
the keystone development group.
Adam, take it away.
>> we had a chance to connect
with most of you, MR. CHAIRMAN,
members, thank you for having.
I had a chance to connect with
most of you on this project and
we're excited to be here.
It has been a long road for 3cdc
and keystone to get to this
point. The building we're
talking about, it is actually 2
buildings at 616 race street
race street we purchased these
properties the land lease for
these properties from
MR. Chopping who operated for a
long time congress inc. Store
and this space it was closing
that store. And really want to
make sure this is a important
piece of the overall convention
district and with the hoe tells
both keystone group and others
have developed north of here on
race street. I want to make
this a seamless district. And
this block in particular has
some challenges with vacancies
and uses that weren't adding
productive things to the
downtown vibrancy. And so we
purchased this without a plan
for it, other than to get
control. And we demolished the
facade that was put offer the
original historic building, did
all the interior abate and
looked at a number ever
different uses for this space
over the past 3 or 4 years as we
have been working on this. And
this map shows you in the
context of the convention center
district where this property
sits and again the connection to
those hotels, but ultimately the
connection to over-the-rhine
which is one of our strongest
assets here in cincinnati. But
that district to get to our
visitors to have a seem less
walk up there from the
convention center. So here is
the building that I MAY
remember. And again we took off
that facade and found a pretty
spectacular building on the
other side. But I think once
the keystone group restores it
and even would have more
excitingly the original building
had 6 stories, there was a fire
at some point and they
demolished the upper two floors.
And so the plan is to bring
those floors back to the
building and restore the entire
facade to original historic
plan. So, I think that we have
a exciting opportunity. I will
let MR. Patel talk about it.
But we are looking at a
hospitality use that's because
the way the shape their building
was originally a store it is
just too deep for the typical
resilience use. We tried office
and don't and hospitality is the
best plan. And we've got a good
plan together to make this an
exciting property.
>> thank you, adam. Thank you
to the committee for having us
today, spending your time with
us. Keystone hotel group which
have 9 hoe tells, 8 are in
cincinnati area.
We have a fairly young portfolio
of hotels, about 4 or 500 rooms
or less than 48 months old. And
so we're pretty aggressive about
building new product primarily
in the marriott and hilton
branded hotels. Had this
particular project is proposing
on 616 race. Just down the road
catty-corner from our town place
suites particular purdahed on
seventh and race. We completed
that project in 2001, shortly
after the pandemic and we
witnessed this building being
demolished or bought and demoed,
so we were excited to pursue it.
And or primary focus for want
toking pursue this complex
project is the fact that the
city and county are building the
renovation of the convention
center and the convention hotel.
We think that investment will
spark more visitors to the area.
Happy to answer any questions.
>> so after this presentation,
we have included on page 4 of
the transmittal our proposed
incentive. We have 25 years net
52% project tif. This will put
in for the cps pilot along with
vtica. There is sbe and wbe
goals than 10 and we do s ask
that we recommend the approval
of this ordinance. It is
necessary from the emergency
perspective to facilitate the
financial closing which is
expected this week so that
construction can commence at the
earliest possible time. It is
also worth noting this project
has received historic tax
credits and they are working
through some additional
financing that also has
accelerated the schedule.
>> Councilmember Harris:
fantastic. I'm stunned that at
some point someone decided to
cover up that gorgeous facade
with that, wow, so that's really
exciting to go back to the
original facade. Okay. Great.
Sounds like a great project,
needed project. Councilmember
walsh?
>> Councilmember Walsh: thank
you, MR. CHAIRMAN, I think this
is a fantastic project. The
main question that I have and I
think it is for you MR. Gelter,
although any of you can address
this. We see a lot of buildings
that exist throughout the city
that are one or two stories and
I have often thought, we need to
do things like this. We need to
add on top of them, go higher
but keep the original first and
second floors, can you elaborate
on what it takes to do this and
why we don't see more of that
and ifs possible to see more of
this?
>> you know, you really have to
take a case by case it is upon
possible and things that are
limiting on some building are
the foundation of the building,
structure of the building.
Because this had floors
previously, it can support the
weight of these additional
floors without too much rework.
I think there are other cases
where that is the case as well
where the building is strong
enough to support it as its.
Whether you get to make it a
little challenging the bigger
the building the more likely the
foundation that is exist are not
going to support those extra
floors. But us talked about one
or two story buildings,
typically it is not super
difficult to add height to those
buildings, which I know as we're
looking at dennity in our city
is a important thing that we can
and should be looking at.
>> Councilmember Harris: great
question. Vice mayor?
>> Vice Mayor Kearney: we talked
about this in planning
commission but I wanted to talk
about your inn cluing goals and
mbe, sbe, all that.
>> I mean I think as we look at
this, you know, even though it
is I think technically not in
the convention district as per
the convention center plan. We
view it as that and we want to
feet meet those same goals. I
think we and keystone has had
some real success in their
project in oakley with there are
inclusion goals and meeting
annex seeding those and we have
every expectation that we're
going to do the same here.
We have a woman own architecture
firm that's leading the team for
them. And so I think we'll have
a strong position to beat those
aggressive goals.
>> Councilmember Jeffreys:
MR. CHAIRMAN?
One quick question. Really
appreciate the comment of this
is enable convention center
planned development district. I
want to amplify this that is
really catalytic, so the fact
that we made that investment
yielded another investment. So
I think it is important for us
to keep in mind as we consider
future investments that can also
similarly be catalytic.
>> Councilmember Harris: agreed.
All right. Thank you very much.
All right. DR. Dudas, let's
jump into the agenda.
>> to the chair, item number 1
there this the biochar item from
the first presentation. This is
from the parks department as
well as from office of
environment and sustainability.
There are two funding sources
here being allocated to the
biochar replication facility
capital improvement program
project account. The first is
$500,000 of existing resources
in the urban tree canopy-gf
account that is existing
resources of $500,000 that will
be transferred. Additionally
$850,000 of existing funds in
the revolving energy loan fund
are also being transferred to
that same biochar replay
indication facility capital
accountment and this will enable
the city to take advantage of
the direct pay benefits as part
of the inflation reduction act.
>> Councilmember Harris: it is
quite clear with the engagement
that there is no objection with
moving item 1 for passage.
>> DR. Dudas: item number 2 is
the development agreement item
related to the second
presentation. This would
authorizes the execution of a
development agreement with 616
race street llc. Pertaining to
development and construction of
84281 square feet of commercial
space at 616 race street in the
central business district.
>> Councilmember Harris: I want
to, I you know without objection
we'll move item number 2 for
passage. I also want to
highlight I think that as we're
starting to talk about about
rivelment just thinking about
the number of buildings that we
have had that have been vacant
for decades and the challenges,
so not all buildings are
conducive to housing for a
number of just structural
reasons or business doesn't work
there. I think this is really
creative, expanding our capacity
for hotel rooms in this space.
And then the again the tools
that we have, this project tif
really enables e abling it to
get done. This is exciting
overall.
So item number 2 move for
average r passage.
>> DR. Dudas: to the chair, item
number 3 is a grand ordinance
for the cincinnati health
department, this would accept a
grant of $2,000 from the
american heart association. It
is designated for the health
department to participate in
ambulatory quality improvement
program, essential there would
enable the health department to
data share with the halter heart
association regarding the risk
of cardiovascular disease, death
and disability.
>> Councilmember Harris: that's
great. All right without
objection we'll move item number 3 for passage.
>> DR. Dudas: to the chair, item
number 4 this is also a grant
ordinance for the cincinnati
health department, this would be
a grant of up to $400,000 from
the ohio department of health.
These funds are earmarked for
expanding school based health
centers. And to would proper
additional equipment beings
supplies as well as furnishings
for waiting room, but there is
also a capital improvement
component which would enable the
construction ever a community
entrance that would be separate
from the school to provide
community access to the health
center.
>> Councilmember Harris:
fantastic. Without objection
we'll move item number 4
important passage.
>> DR. Dudas: to the chair, item
number 5 is a grand ordinance
for the office of environment
and sustainability. This is a
grant of up to $50,000 from the
bloomberg philanthropies youth
climate action fund. Funds
would be designated for programs
to assist youth to help design,
produce and oversee urgent
climate solutions.
>> Councilmember Harris: all
right, oes is on fire. All
right. Like not real fire
though, doing a good job.
That's earth day. All right,
without objection we'll move
item number 5 for passage. Item
number 6 we'll indefinite
postpone. Which brings us to 7
which is the b version of 6.
>> DR. Dudas: to the chair, item
number 7 is the b version of
number 6. It is a grant
ordinance for cincinnati police
department. This authorizing a
grant of up to $56,000 from the
ohio department of public safety
ohio traffic safety office. It
is the drive to succeed 2024
grant. This would allow cpd to
provide scholarships to eligible
students in the community for
driver education training. The
b version is required because
the grant amount increased. The
award is now for additional
$1,560.
>> Councilmember Harris: this is
much needed. Very excited about
this.
>> Councilmember Jeffreys: my
back of envelope math I think it
is about 130 kids or so that
will be able to have driver ed,
more the merrier.
>> Councilmember Owens: thank
you, that was going to be my
question, but also I mean we
probably all recognize after the
pandemic that people are driving
crazy. And also that, you know,
this doesn't exist in schools.
And so what a wonderful resource
this will be.
>> Councilmember Harris: yeah, I
appreciate the candor. Yes.
But we have had this
conversation before about the
relationship to access to
drivers education and we know
that the pandemic, so many young
people missed out on the
opportunity to get drivers
education, drivers, licenses,
lapse. A number of things
happened and so this education
piece around driving really is a
real component and addressing a
lot of our pedestrian safety
issues. This is timely and
relevant. Without objection
we'll move item number 7 for
passage.
>> DR. Dudas: to the chair, item
number 8 is a motion submitted
by council members johnson,
walsh, owens and jeffreys, this
questions that the
administration prepare a report
within 90 days related to the
pro's and con's of MR. Project
labor
projectlabor
of project laboragreements.
>> Councilmember Walsh: this a
straightforward motion. There
is a lot of conversations
publicly behind the scenes about
project labor agreements a a lot
of things are being said, pro
and con. And so we're simply
asking the administration to put
things on paper so we can get a
firm understanding as a council
ever what is being talked about
about plas instead of everybody
having a different view and
perspective of it. We had
conversation with looking into
this and putting a report
together.
>> Councilmember Harris: great.
Without objection we'll move
item number 8 for passage.
>> DR. Dudas: to the chair, item
number 9 is a motion sub notice
I had about councilmember walsh,
harris and parks, this motion
requests the administration
provide a report within 90 days
regarding the process of
replacing trees planted in the
right of way around the city
that have damaged adjacent
sidewalks and other private
property also looking at a
replacement time line for those
trees.
>> Councilmember Walsh: thank
you again, MR. CHAIRMAN, I don't
want to take credit for this. A
conversation that started last
year before my time on council.
There is a lot of trees planted
in tree wells that have caused
property damage to the sidewalks
and as the city comes through
and replaces them gets charged
back to the property own every.
This council has had discussions
about what does that look like
and the cost for us as a city to
take on that since it is our,
since we caused the damage.
This report just formalizes that
so we can get some answers and
make a decision as a council.
>> Councilmember Harris:
absolutely. PRESIDENT Pro tem
parks, anything to add?
Okay. All right, without
objection we'll move item number 9 for passage. Items 10
and 1 we will file. With that I
move that the committee move
into executive session pursuant
to ohio revised code 121.22234
to discuss with the solicitor
about, with the city solicitor
for an update on ongoing fire
negotiations. Sorry. Samantha
you almost had a -- do I have a
second?
>> Councilmember Cramerding:
second.
>> Councilmember Harris: all
right. We will move into
executive session. We will come
back to -- do I need to do roll
call?
I'm sorry I did a first and
second I should do a roll call.
Roll call, please.
>> [All respond yes].
>> Councilmember Harris: all
right. We will move into
executive session. (Council in