[4:28] >> Councilmember Harris: all [4:30] right, welcome to to budget and [4:31] finance, I'm your committee [4:33] chair, rusconi's r reggie harris [4:34] joined today with me committee [4:37] vice chair, councilmember [4:38] cramerding, councilmember anna [4:42] albi and jeffreys, vice mayor [4:51] kearney councilmember owens, [4:53] parks and. I don't believe we [4:56] have any public comment and on [4:57] zoom. From the developmental [4:59] disabilities o DR. Dudas, and [5:01] law, our clerk is rob either [5:06] kneel I. And we have a couple [5:07] presentations. [5:09] That we'll take up [5:15] then we will take up the items [5:18] and then we will make a movement [5:20] to go no executive [5:23] into executive session [5:24] at the conclusion of the meeting [5:26] and we'll talk about that at the [5:30] end. With that, we have our [5:32] favorite topic here in the city [5:37] of cincinnati, biochar, so we're [5:40] joined today we have jason [5:42] barron with us and director [5:45] kroner and crystal courtney [5:46] division manager of natural [5:49] resources. Welcome. Come on [5:54] up. We also see jon harmon in [5:59] his new role supporting biochar [6:01] replication and decked out in [6:08] park swag. All right. Welcome. [6:14] >> good afternoon, CHAIRMAN [6:16] Harris, committee. We're happy [6:18] to come here today to talk about [6:20] biochar. We talked about did [6:21] individually with many of you [6:23] and here last year for our [6:25] budget presentation where we did [6:28] a science experiment how it [6:30] retains water as opposed dirt. [6:32] We're here to give a update on [6:33] the project and a item you will [6:35] be considering to give an ad [6:37] advance from the energy [6:38] revolving loan fund that we [6:40] would use as part the capital [6:42] stack for that. Where we're at [6:44] is at the FEBRUARY park board [6:46] meeting. Park board voted to [6:47] move forward with the project [6:49] and purchase the equipment. All [6:52] told the start up project is [6:54] about $2.9 million. About 1.7 [6:56] of that is the equipment. Much [7:03] of which we'll be able to get [7:04] tax credits back in the form of [7:05] direct pay, which director [7:07] kroner will walk us through. We [7:08] are considering about 8 $50,000 [7:20] as a advance to use as part of [7:21] the capital stack and that will [7:22] be refunded through these tax [7:22] credits that are part of the [7:23] inflation reduction act. We are [7:24] in the process of we are signing [7:24] up a mechanical engineer that [7:25] will help us design it's [7:29] facility and how it ties into [7:30] water and nursery, that's where [7:33] the site will go. And the [7:35] reason we get do claim tax [7:36] credits it will take water [7:39] nursery off the grid, using the [7:40] hoot from the biochar machine to [7:42] create energy. We spend about [7:44] $40,000 a year on energy that we [7:47] will be able to save and produce [7:48] ourselves, which is exciting. [7:51] That's outside of even creating [7:52] biochar which is what we're here [7:54] to talk about today to give a [7:55] run down how that works. With [7:57] that I will pass things over to [8:00] my colleague here, division [8:02] manager of the division of [8:04] natural resources crystal [8:04] courtney. [8:06] >> it is a honor to join you [8:08] here today. I have spoken many [8:11] times about the status tree [8:12] canopy and the projects we're [8:13] working on. Just a brief [8:15] overview why cincinnati, why [8:17] now. So as you know, the [8:18] majority of our street trees are [8:21] planted in relatively small [8:24] areas and in pretty poor compart [8:25] pacted soil that's inn none [8:28] dated with salt and other refuse [8:31] from the streets. As an urban [8:32] forrester, arborist in this [8:34] industry we have becoming [8:35] looking to biochar as a solution [8:37] for some of that dee compaction [8:41] and soil improvement materials. [8:44] The it is pretty absorb dent to [8:45] build into our budget so we [8:46] started this project with an [8:48] idea around okay does this work? [8:51] And we started outed buy lotting [8:54] a couple sites using biochar. [8:56] And then soon thereafter got [9:00] into this whole bloomberg [9:01] philanthropies grant. The why [9:03] is really to improve the canopy, [9:07] the growth rates in the [9:08] survivability of street trees [9:10] and treats throughout the city. [9:12] We have initiatives build into [9:13] the green cincinnati plan and [9:15] within our own organization to [9:17] help meet canopy goals in low [9:19] income communities of color and [9:21] can by areas over the city [9:25] overall. We have a innovative [9:30] uli, we urban forestry program [9:32] and excited to put it to work in [9:34] our and streetscapes. In [9:35] addition we have been working at [9:38] the national to advance urban [9:39] forestry throats the united [9:42] states, last year being deemed a [9:44] van guard city leading it's [9:47] charge in urban forestry [9:49] initiatives tenablal level. I [9:52] will bringing in innovative [9:53] technology home will be a pilot [9:56] for the amazing work that our [10:00] city does for urban canopy ass [10:03] and we have opportunities with [10:06] the inflation reduction act and [10:08] through bloomberg [10:09] philanthropies. In 2015 stock [10:14] hold hole many sweden pie need [10:16] the first biochar facility. [10:19] That was a bloomberg challenge [10:22] grant and they put out a request [10:25] for proposals from municipals a [10:27] round the world for inn corp the [10:30] biochar into their city wood [10:32] waste mainingment. Since at [10:33] that time cincinnati was one of [10:35] ten cities in the world chosen [10:37] to complete the feasibility [10:40] study, we had a cohort of about [10:42] 12 people from various entities [10:44] throughout the city, including [10:46] office of environment and [10:48] sustainability, university of [10:49] cincinnati, ground work ohio [10:50] river valley and local partners [10:54] in the urban ag field and soil [10:56] remediation field. So we put [10:58] forward this feasibility study, [10:59] our entire goal knowing that [11:02] this would be a city operation [11:05] was to make this essentially [11:06] revenue neutral. So we knew [11:09] that we needed to -- we knew how [11:11] much biochar we needed to [11:12] produce in order to take care of [11:14] trees that we're planting, but [11:16] then we multiplied that by how [11:17] much did what we need to produce [11:20] and sell in order to run this [11:22] operation, pay for every aspect [11:23] of it so that we're not having [11:26] to come back and ask for city [11:29] operational budgets to fund [11:30] this. We built our feasibility [11:31] study based upon that. When [11:33] which put that forward in 2022 [11:35] we were one of 7 cities in the [11:36] world chosen, one of three in [11:38] the united states with our [11:40] county parts being minneapolis [11:43] and lincoln, tph [11:43] e n, have I [11:45] been working with those cities [11:47] cocreating what does this look [11:48] like in the united states, all [11:49] the permitting aspects that we [11:51] all have to go through and then [11:54] finally the machinery itself, [11:55] which means would be best suited [11:56] for this application that aren't [11:58] going to breakdown and are going [12:01] to essentially allow us to have [12:03] a seamless operation overall. [12:04] We have been collaborating, we [12:06] have monthly meeting with those [12:08] other cities. We have quarterly [12:10] meetings with the other six [12:11] entities throughout the world to [12:12] kind ever collaborate on what [12:15] these projects look like at a [12:18] international level. One of our [12:21] first major tasks was we're [12:24] urban foresters but this is new [12:25] technology so one of the first [12:28] things was a rfp for a operator. [12:31] So we are wrapping up phase 1 of [12:33] that contract, essentially [12:34] carbon margin invest was the [12:36] entity that was chosen, sam [12:38] dunlap is the owner of that [12:41] company. He's been helping us [12:42] build through everything from [12:44] putting out the rfp for [12:45] equipment to help with site [12:47] design, to building out [12:48] operations plan and business [12:49] plan for how do we bring in [12:51] enough revenue to pay for this [12:57] operation overall. This is a [13:00] slide that I why in ever biochar [13:02] presentation I give the it is [13:03] not a new technology. It has [13:05] been a round since the beginning [13:08] of of agriculture, it goes over [13:10] 2000 years to what they are [13:13] finding now over 200 heck trays [13:15] of lad lap in south america [13:17] today where our original kind of [13:19] first nations were in [13:20] corporating this into the soil [13:23] to make the soil and amazon more [13:26] fertile for growing crops. The [13:28] slide, or the picture to the [13:30] right there is a very close up [13:33] show shot of what biochar looks [13:34] like. The way that this works [13:37] in the ground is it will, [13:39] because of its high beings [13:41] change, carbon I can structure [13:43] proper individuals a small home [13:46] for all of the beneficial micro [13:47] buy on the I can organisms in [13:50] the soil 20 live, thrive, so [13:52] that we have nutrients and water [13:54] holding capacity right thereon [13:56] site. This is essentially what [13:58] is helping to build that soil [14:00] struck sure so the trees are [14:03] then better able to survive [14:05] overall. So what does this [14:06] process look like? [14:08] So we generate a lot of wood [14:10] waste. We have about 30 yards [14:13] of wood chips a day, so if you [14:14] think about the big tree trucks [14:16] that are coming through, that's [14:18] two of those big tree trucks [14:20] every day and historically have [14:22] been piling that material up and [14:24] under utilized land within parks [14:26] property. We might use it for [14:28] mulching trees, in partnership [14:30] with compost with our composting [14:32] partners or urban ag partners [14:33] throughout the city. But [14:35] overall this waste is just kind [14:36] of accumulating and breaking [14:38] down. And so if you think about [14:42] how a tree grows to the process [14:44] of photo synthesis, as its [14:47] taking in cash bone dioxide it [14:49] is releasing oxygen back out [14:51] which is what is cooling the [14:52] temperatures around the trees [14:54] and store that's carbon within [14:56] its makeup. That's how you get [14:58] trunks and branches and leaves [15:00] and roots, that's all carbon. [15:02] So, as plant waste decomposes if [15:04] we were to pile it up, all that [15:06] carbon that a tree has [15:09] sequestered is released back [15:12] into the atmosphere as it [15:13] decomposes. Biochar does is [15:17] high heat, low oxygen in [15:19] hydrolysis, wood chips come in, [15:21] they are processed through the [15:24] machine, all the gasses and/or [15:25] began I can materials that are [15:27] built up within that are [15:29] released out, burned off, that [15:30] is part of the system, part of [15:33] the fuel that keeps that unit [15:34] running. At the end of the day [15:37] the final product is up to 830% [15:39] solid carbon. So what we will [15:42] come away with is that through [15:44] our six year pruning cycle, [15:45] through all the trees that are [15:46] pruned and removed throughout [15:49] the city, we'll be repurposed [15:51] into biochar holding up to 830% [15:53] of the carbon that those there's [15:56] and tree parts have sequestered [15:59] over their lifetime almost in [16:00] perpetuity. They are still [16:02] filing these in the amazon that [16:05] are 2000 years old. So the rest [16:07] dense time of biochar in the [16:09] soil is very long. So what [16:11] we'll be doing we're already, we [16:13] already have a preventive [16:16] maintenance cycle, pruning and [16:17] creating wood waste. We will [16:20] take it to the unit, converting [16:24] it into biochar, and then [16:28] reincorporating that into a [16:32] compost facility that park [16:34] parky's farm through great parks [16:35] of hamilton county. They [16:38] produce, they pay about $60,000 [16:41] a year to have the manure there [16:43] taken off site. As we were [16:44] developing this project, they [16:47] were developing a composting [16:48] facility at their site. We said [16:50] let's match, you can't do is [16:52] take biochar and put it straight [16:55] into the soil because than [16:57] carbon will pull all the [17:00] material out of the so is, the [17:01] nutrients and moisture by [17:04] warming it before it is brings [17:06] the benefits to the treats and [17:08] roots. We will produce t at [17:10] that to parky's farm, mixes with [17:12] compost and that will be planted [17:13] back in the trees that we plant [17:16] throughout the city. Another [17:17] portion will be going out into [17:18] the industry for sales which [17:21] we'll get into a little more. [17:23] One element that I definitely [17:24] want to point out here when you [17:26] go through this sickle, [17:27] converting wood waste into [17:30] biochar you are also generating [17:31] exorbitant amount of heat and [17:33] that heat is what we're going to [17:36] be capturing in order to do [17:37] combined heat and power system [17:40] that jason alluded to which will [17:44] power the nursery. So this is [17:45] the step by step kind of process [17:47] that I just went through [17:48] receiving wood chips, bringing [17:51] it the shredder, shredder will [17:53] essentially take them and make [17:55] them into a uniform size as they [17:56] are going through the machine [17:59] they are processed in a similar [18:00] size, similar heat so that we [18:01] have a clean product at the end [18:05] of the day. And then we will be [18:07] essentially loading it into [18:09] super sacks and taking it to be [18:12] distributed for reuse within our [18:13] streetscapes, through that [18:15] compost mixing or distributing [18:17] specifically for sale as a raw [18:25] or for the unified fortified [18:28] product broad. Since 22 we have [18:30] been working through what does [18:32] this operation look like, what [18:34] does the cost us, how much do we [18:35] need to sell? [18:37] What is the current rate kind of [18:39] at the national level, what do [18:41] we think we can sell it for, as [18:43] well as any carbon crediting [18:46] opportunities that we MAY run [18:48] into. So just a break down on [18:49] some of the equipment that we [18:51] purchased so far. So this is a [18:54] image of the shredder, so again [19:03] the shredder will make the wood [19:04] chips into a even form size. It [21:39] the in springfield township. [21:41] The historically is where we [21:44] grew all the trees to forest [21:49] mount airy forest. And then in [21:51] the mid 20 teens we springfield [21:53] township and they have created [21:55] the preserve which is a awesome [21:57] new park, springfield township [21:58] operates and developed. It is [22:02] right next to it. Just north [22:04] west of this site but it's [22:09] nursery we have about six [22:11] greenhousers, we to krohn [22:13] conservatory and it is a great [22:14] operation. It was and that [22:16] cincinnati parks we have had it [22:18] forever. But it also is under [22:20] utilized. It has a ton of [22:22] potential. It hasn't been oning [22:23] at full steam since it's 830 [22:24] real estates and we're [22:25] developing a lot of plans to [22:28] bring it back on line and ramp [22:29] up our own production this. One [22:32] of the things we're most excited [22:33] about is bring biochar out here. [22:36] You can see that road that the [22:39] two red lines that run from the [22:41] right side to left are two [22:43] potential access roads. We're [22:44] work with springfield township [22:47] about how to accept wardner [22:49] nursery from north bend road, [22:52] which is the road southwest to [22:53] northeast on that lower portion [22:55] or right hand side of the page. [22:56] We are work with them to work [22:57] through the process of [22:58] redeveloping this and get tag [23:00] back on line much that's going [23:01] smoothly. They are excited [23:05] about the potential for this [23:07] project. This is a schematic [23:09] drawing of what the operation [23:11] looks like as as can you see, I [23:13] don't know if my mouse shows up [23:15] there, it does not. But the box [23:16] in the middle of it with the [23:19] little circle on it, that is the [23:21] pie recall cyst unit and you can [23:21] see. [23:23] If you are moving from the south [23:27] part of the page to the north, [23:28] the already part to the top, [23:29] that is the wood chipper [23:31] outside, that will move north on [23:34] conveyor/belt to that first box [23:36] inside building a moving floor. [23:37] We'll load that up to run even [23:40] when we're not there and to [23:41] operate 24/7. And that will [23:45] slowly move the woods chips over [23:46] to a conveyor or belled belt [23:48] that will run through the unit [23:50] in the middle and split off to [23:52] bagging up the biochar for sales [23:55] and distribution or over to the [23:56] organic ran kin cycle which is [23:58] the machine that generates [24:02] power. A generator that uses [24:05] heat to generate and probes [24:06] electricity. We have a cool [24:08] individual owe about that if you [24:11] would like to see it. So what's [24:13] the revenue potential? [24:15] As can you guess, crystal [24:17] mentioned early on, we need this [24:19] to be revenue neutral at best. [24:21] It is something that takes away [24:23] from other parks priorities as [24:25] everybody knows revenue is not [24:28] growing throughout the city, tax [24:30] revenue we noticed to do more [24:32] with lessor produce more [24:34] revenue. We need to make enough [24:36] to cover costs. And step 2 is [24:37] there a possibility to create [24:39] additional revenue that we can [24:41] use to accomplish some of our [24:43] priorities throughout the park [24:45] system related to additional can [24:46] pee [24:50] tree canopy and reforesting our [24:52] forest. So about 80% of the [24:55] biochar is going to be available [24:57] for sale. About 15% of it will [24:59] be held back for use between us [25:01] and great parks. And this [25:02] partnership where we provide the [25:04] biochar, they provide the [25:06] manure, we combine the two at [25:10] about a 1-5 ratio and that will [25:11] be planted in tree wells with [25:13] our trees or in other projects [25:15] throughout our system. And [25:16] we're estimating high on that. [25:18] We're not totally sure we can [25:20] use even the 15% that we [25:22] produce, but again we always try [25:24] to estimate high where you want [25:26] to over performance estimate low [25:29] where we're worried about [25:32] underperforming. So 85% for [25:34] sale. Additionally this is [25:35] going to be available for [25:40] eligible for carbon credits. [25:41] Essentially we'll be able to [25:44] sell carbon credits for the heat [25:45] that we're producing and energy [25:46] that we're producing that will [25:48] be a funding stream or revenue [25:56] stream as well. And then our [25:57] hope is that we're going to [25:59] produce revenue that will be [26:01] flood, to use in other parts of [26:02] the system. We're currently [26:05] estimating that in year 1 we'll [26:07] be about 45% success rate on [26:08] creating biochar. This [26:11] obviously if we run this 24/7, [26:13] there is a maximum output. But [26:15] whether it is how much wood [26:17] chips do we produce throughout [26:18] our system, we want to estimate [26:20] low on that how successful we're [26:24] at keeping it going 24/7, will [26:26] there be down time, working out [26:30] kings and in kinks and 67% [26:32] success rate and hoping by year [26:36] 3 we're close to 930% of the max [26:39] output that we put out every [26:41] year. In year 1 a little built [26:44] of a deficit in what it costs to [26:46] run this versus what we think [26:47] question make. About a [26:49] 50,000-dollar gap in year 1, the [26:52] start up years with some [26:53] troubles. $400,000 to operate [26:55] this in year one. Raising over [26:56] time as everything does, so [26:59] we're building in increases but [27:01] we think as as quickly by year [27:04] two this will be making revenue [27:07] of about $200,000 in year 2 and [27:09] as much and 3 hounds that will [27:11] be revenue positive if we're [27:14] able to hit those production [27:16] targets. So, again, it is not [27:19] often that a city starts up a [27:21] business we think this will have [27:23] a real benefit for our bottom [27:24] line and when you look at the [27:26] most important piece is going to [27:28] make our trees grow quicker and [27:29] healthier and more success full [27:31] name. You look at what it can [27:33] do to help parks achieve some of [27:35] its goals throughout the system, [27:37] then the other piece is all that [27:38] biochar we sell that will make [27:41] revenue it will also go to make [27:43] healthier trees, better crops, [27:48] better landscapes elsewhere as [27:50] well. We're paid about the [27:54] potential. We had some [27:54] preliminary discussion was some [27:54] whole sale operator that are [27:55] very interested in this and are [27:57] kind of like, when are you going [27:58] to start producing? [28:00] But there is a market for this. [28:01] I know from talking to the vice [28:04] mayor that it is not as ease toy [28:05] find it at lowes and you would [28:07] like it to be but we would like [28:10] to provide some large scale [28:11] wholesalers that product that [28:12] they will then bag and reuse in [28:17] other ways. So, how had we use [28:18] the 15%? [28:20] Like crystal mentioned, we will [28:22] send to parky's farm where they [28:27] are creating this compost [28:30] facility, 1 bye biochar to 5 [28:31] manure effectstively which [28:33] creates that night row gin rich [28:35] planting element that allows the [28:37] tree to be successful. We use [28:42] about 8/10 of a cubic yard per [28:43] tree and great parks will use it [28:46] in their trees as well. So next [28:49] steps, like I said we're work [28:50] with springfield township to [28:51] make sure everything is up and [28:53] running for this. We're fine [28:56] lieding our contract with the [28:57] mechanical engineer that will [29:00] help us design this property. [29:01] We're -- and then we're work [29:03] with carbon harvest on [29:04] finalizing and continuing to [29:06] test and study the operations [29:07] plan, the business plan. It is [29:09] our hope that if everything goes [29:11] right with this we will be able [29:13] to begin construction on the [29:15] facility as early as this spring [29:17] and by the first quarter we'll [29:19] be producing biochar and [29:21] starting to see this benefit. [29:22] And that lines up relate if I [29:25] havely well with great parks [29:26] compost facility they are [29:27] working to develop right now as [29:30] well. So we will have time for [29:33] questions at the end, but next [29:35] up is the inflation reduction [29:37] act, which is what we're talking [29:41] about days the advance. [29:42] >> happy earth day to the [29:43] committee. I want to commend [29:46] parks from building this from a [29:49] seedling of an idea to a full [29:50] fledged vision business [29:54] operation. It is been a amazing [29:55] development. Alongside what I [29:58] consider to be one of the [29:58] innovative climate solutions the [30:02] city is working o I want to [30:04] present to you what I thinks a [30:05] innovative financial tools that [30:08] is help making this possible. [30:10] So to set the stage, I want to [30:13] remind folks of some of the key [30:15] changes made by the inflation [30:18] reduction act. This is the [30:20] largest climate investment in [30:22] human history. Some of it is [30:26] available via grants which we're [30:28] pursuing. The the bulk, tax [30:30] credits, tax credits for clean [30:33] energy, energy efficiency. [30:35] Historically city government and [30:35] not profit evennity at this [30:37] times have had to partner with [30:38] for profit entities to capture [30:40] tax credits because we don't [30:43] have tax burden. One of the key [30:45] stipulations of inflation [30:46] reduction act which is direct [30:48] pay which makes all of those tax [30:49] credits available to entities [30:54] like us as cash back on our [30:56] investments. Thanks, crystal. [30:58] There are a whole variety of [31:01] clean energy solutions that are [31:03] being incentivized through the [31:04] inflation reduction act. They [31:06] are outlined on the slides. I [31:09] want to zoom in on combined heat [31:11] and power. This allows the [31:14] project to move from a simple [31:17] processor into a net zero city [31:19] facility by implementing [31:22] combined heat pow are, taking [31:22] advantage of the inflation [31:23] reduction act and getting all [31:27] that money back. But there is a [31:30] cost premium to get there. And [31:31] so many projects have that up [31:34] front capital premium where the [31:35] dollars just aren't available. [31:37] So we don't install solar, we [31:39] don't go the beings interest [31:41] mile. The tile want to talk to [31:44] you about provides that advanced [31:45] funding. Before we get there, [31:51] next slide, please. Beyond just [31:53] cash back, the availability of [31:55] different types of tax credits [31:57] has expanded drastically. So, [32:00] you have a default 30% renewable [32:02] energy credit that comes back to [32:04] us, but then there are [32:05] additional credits if at the [32:09] time cited on a brown field, [32:09] additional credits if it is [32:09] american made product, [32:10] additional credits if it [32:12] benefits a low income community. [32:15] So these different layers of tax [32:18] credits can stack up to 60-07% [32:20] back on these investments. [32:22] clean energy on sale we have [32:29] never seen before. So in [32:30] partnership with direct [32:32] developmental disabilities' [32:34] director or oes has been working [32:36] to create a revolving energy [32:38] loan fund. This fund is. [32:40] Seed funded with $2 million of [32:42] our green cincinnati plan [32:43] implementation money. The [32:45] concepts here is when we have a [32:47] project like the biochar [32:48] processor that has this [32:50] financing gap that can be filled [32:52] by direct pay, but you need [32:54] those dollars up front. This [32:56] fund can advance the money to [32:58] the project, make the project [33:00] happen, with the understanding [33:05] that when the direct pay it [33:06] replenishings this fund. It [33:09] makes this projects happen, [33:10] capture, maximize the benefit [33:11] from the federal government and [33:15] do it over and over again in [33:17] perpetuity. This project and [33:20] what is before you today is a [33:22] consideration of a [33:24] 850,000-dollar allocation to the [33:26] biochar project, to get them to [33:28] the finish line with the [33:29] understanding between parks and [33:32] the fund that when the dollars [33:34] are returned they are come back [33:39] to this account. I want to [33:41] point out that this is one of [33:43] many projects across the city [33:45] that can take advantage of these [33:46] types of funds, take advantage [33:50] of these fed ran incentives, [33:52] outlined a variety here as we [33:53] think about deferred maintenance [33:55] and investments in our capital [33:57] infrastructure, this revolving [33:59] loan fund can help our [34:02] renovation of facility x also [34:04] add solar, add battery back up, [34:07] take our facilities to net zero, [34:11] reduce, eliminate our ongoing [34:13] utility operation expenses. I [34:16] want to splenoma this works but [34:18] also wet your apparent type for [34:20] future projects appetite for [34:21] future projects. [34:23] >> and so that end when we were [34:25] here just a month or so ago for [34:27] our budget presentation, [34:28] councilmember walsh asked me [34:30] about kind of what our next [34:31] capital projects that we're [34:33] talking about. And we mentioned [34:35] the facility where we're [34:36] renovating that facility to [34:37] bring it back on line and make [34:39] it a world class center to [34:41] operate our eastern parks out [34:43] of. Part of that will be about [34:44] $400,000 that will go on top of [34:46] that building. As I mention it [34:48] had just a giant immediate metal [34:50] build that's has a huge roof on [34:53] it. It will produce more solar [34:55] than we need to that site. We [34:56] will put back into the grid or [34:58] how to use it on other city [35:00] facilities to pull that power [35:02] out of it. We will be able to [35:03] action sews these hopefully with [35:04] your assistance access this [35:06] revolving loan fund to help fund [35:07] that project. Lots of future [35:10] great work and great leadership [35:13] by director kroner and the team [35:16] at oes. And with that, we'll [35:18] take questions. [35:19] >> Councilmember Harris: thank [35:22] you very much. That's really [35:25] exciting work and the [35:27] possibilities. Colleagues, [35:28] councilmember jeffreys? [35:29] >> Councilmember Jeffreys: love [35:31] this stuff, and we were going [35:32] back and forth a little over [35:35] e-mail first, revolving fund [35:36] no-brainer, it is in my budget [35:37] priorities. It is the best [35:39] investment we could make as a [35:43] city because it replenishings it [35:43] self. [35:44] A little put services [35:46] announcement for that as we [35:48] approach budget season. There [35:50] were just one question and than [35:51] a couple comments. So to our [35:55] back and forth on this, the [35:59] revenue potential of 200 to 300 [36:03] on a ongoing base I year 2, 3 is [36:05] awesome, that's amazing. And I [36:07] always wonder not to get ahead [36:09] of ourselves, but the whole how [36:11] I it adds up what could this be [36:14] in five years, what could it be [36:17] could we do ten biochars so that [36:20] $300,000 a year is 3 million? [36:21] , you know, like so I love your [36:23] perspective on that. Not to get [36:25] ahead of ourselves, but it is [36:27] just interesting for us to think [36:29] about because the return on the [36:30] investment is really substantial [36:32] while we're doing kind of good [36:34] for the environment. But it is [36:36] a smart financial given all our [36:37] budget challenges, a smart [36:39] financial decision. So any [36:40] perspective on that. And I have [36:41] one other question. [36:43] >> excellent question, [36:44] MR. CHAIRMAN, councilmember [36:46] jeffreys, I really appreciate [36:48] your ambition with this project. [36:51] I've trying not to go into debt. [36:53] But there is quite a bit of [36:53] potential here. [36:55] And one of the things we started [36:57] out with originally looking at [36:58] different technology and we [37:00] early on made the decision to go [37:01] with technology that could at [37:04] least produce enough biochar to [37:07] make us be net for sure even [37:09] with those conservative [37:09] estimates for production. I [37:11] think there will be a couple [37:13] different this that will govern [37:15] how much biochar we can make. [37:16] One will be how much wood waste [37:18] do we have to turn into biochar. [37:20] Thinks you learn when you become [37:22] parks director. I had no idea [37:24] the amount of wood waste we were [37:26] producing continually. Based [37:28] upon what we produce ourselves [37:29] throughout the park system we [37:32] are confident we can produce [37:33] through our estimates. But you [37:37] start to look at again baby [37:39] steps as this grows and as we [37:40] get better and better at it [37:42] could we be and we talked to [37:43] councilmember cramerding about [37:45] and councilmember owens, could [37:47] we divert wood waste from [37:48] landfills that could do not [37:50] biochar facility and used to [37:52] increase production? [37:54] Could we be the spot that [37:55] everybody takes their christmas [37:56] tree at the end of the year or [37:58] spot that everybody picks up [37:59] their christmas tree when the [38:01] city picks up christmas treats [38:02] think bring it to us and that [38:03] becomes that? [38:04] Could we be a spot currently [38:05] there are private companies that [38:07] are, that we hire sometimes to [38:09] do some of our too pruning and [38:10] tree maintenance work, they are [38:11] taking their wood waste some [38:14] where else and probably paying [38:16] rumpke or others to compost them [38:19] or to dispose of them. Could we [38:20] take that? [38:21] Maybe which charge lessor maybe [38:23] we just take it for free because [38:25] we know we can turn it into [38:27] biochar. There is a lot of [38:28] possibility here. [38:28] The other piece that is [38:30] important to talk about is that [38:33] what does a cubic yard of [38:34] biochar cost? [38:35] We know that if the vice mayor [38:37] was going to buy a bag of it at [38:38] lowes they are going to up [38:39] charge that a lot because now [38:41] you are down to a tiny amount. [38:43] We are currently just looking at [38:45] selling it in could you please i [38:46] can yards to wholesalers that's [38:48] the easiest for us to get out [38:50] the door. We don't have a [38:52] bagging facility or production, [38:53] we might get there but for right [38:55] now it is easiest to get it out [38:57] the door and let a actual [38:59] business deal with that. But we [39:01] don't know what the market will [39:03] be like for that. Currently [39:06] about the average is about $150 [39:09] per cubic yard for biochar whole [39:12] sale. Can you find 250, $300 a [39:14] cubic yard. There's lot of [39:17] upside that we estimated low, we [39:18] used 125 to assume that maybe to [39:20] get our market going we had to [39:24] cut a deal like we'll give you a [39:25] thousand could you please I can [39:25] yards but discounted rate if you [39:27] take it off our hands. It could [39:29] be the opposite, it could be [39:33] that company and ab will give us [39:34] 325, 345 because they are [39:35] looking for that product. There [39:36] is a lot of upside. That's just [39:39] what we can produce. We're [39:40] predicting question do about [39:42] 45%, growing to about 65-730% [39:45] and settle in with this one [39:47] machine around 90% production [39:49] capacity. There is going to be [39:51] some downtown. But to your [39:52] point, could we buy a second [39:55] machine, expand this separation? [39:57] It will help our much waste [39:58] question get our hands-on and [40:00] the market for that. The scary [40:03] piece not scary but reality is [40:04] sooner or later if we're making [40:05] money a private business will [40:07] come in and try to do it cheaper [40:09] and different. We're trying not [40:10] to get too far ahead 6 [40:12] ourselves. If we can produce [40:13] enough for us to cover our [40:15] operations and make our trees [40:16] awesome, that's enough for us to [40:18] want to get into. And if we can [40:22] do other things to help inn [40:24] croft invest in our parks [40:26] invests and we're excited to see [40:27] where it goes we're hopeful [40:31] there is some upside here. [40:31] >> Councilmember Jeffreys: [40:32] carbon credits, you want to talk [40:36] about how many there are, how [40:36] that works, how this helps? [40:40] >> so I got some notes here, let [40:41] necessity see. It is a market [40:44] that I don't understand super [40:48] well and sam from our team can [40:50] get you more information on t. [40:53] But my understand they are [40:54] offset credits and me work the [40:56] carbon that we're saving other [40:59] companies are able to buy and to [41:02] use. That -- they are bought, [41:04] there's multiplier on how much [41:06] you offset and a multiply are [41:07] for that and that relates to a [41:09] market. It is kind of sold on [41:10] an exchange, almost like the [41:12] stock market. And he's done a [41:14] tremendous amount of research [41:15] into how does that market work, [41:17] what are the rates? [41:18] Do we have to pay a percentage [41:19] of that? [41:21] It is almost like a transaction [41:23] fee on a credit card, we have to [41:25] pay that to the system. We're [41:26] estimating only getting we're [41:27] doing the same thing we're [41:28] estimate that's we will have [41:31] some slippage, we won't be super [41:32] successful at it. We're [41:34] estimating about 50% realization [41:36] of those credits in year 1 and [41:38] hopingably year 2 and 3 we move [41:40] that up so that we'll be able to [41:42] sell on the market. That will [41:44] be determined based upon what is [41:46] the rate for, what is the going [41:47] rate for those credits at the [41:49] time that we take them to market [41:50] to sell them. But it is also [41:53] could be a tremendous [41:54] partnership on or about [41:56] sponsorship opportunity, right? [41:56] so all of the marriage or [41:58] companies that you are meet with [42:00] the headquarters of all day long [42:02] I for a host of different [42:03] things, many of them probably [42:06] sat on the future commissions. [42:07] They have varia climate goals [42:08] and things they trying to [42:09] achieve. They are going to [42:12] market to buy carbon credits [42:14] elsewhere. They might carbon [42:16] credits that are produced in [42:18] arizona arizona or columbus. [42:19] Could you imagine a partnership [42:22] where name your local company x [42:25] buys their carbon credits [42:28] exclusively through cincinnati [42:30] parks biochar project you get [42:31] the local partnership piece that [42:33] could make it really fun. We're [42:35] confident we'll sell them even [42:38] to company z in alabama or dba [42:39] dba, but there is [42:43] dba dba dba and we could [42:44] sell those credits lowingly that [42:46] will help them achieve their [42:47] goals as well. [42:49] >> one of the first tasks will [42:50] be a car bone analysis. [42:53] So how much carbon are we using [42:55] to produce it, how much carbon [42:57] does it take to get the material [42:58] from where it is produced to [42:59] where it ends up? [43:02] And then how much carbon are we [43:03] sequestering overall? [43:05] That lifecycle analysis is built [43:07] in the first year of the [43:10] operation, so as jason alluded [43:13] to sam with carbon harvest and [43:15] our team have been meet with [43:17] various broker even it advertise [43:19] to understand what does it look [43:20] likity international level and [43:22] the real deep dive what does [43:23] this look like at a city level. [43:25] I don't know that it has been [43:27] done before. So we'll be [43:30] piloting that whole field as [43:30] well. [43:31] >> Councilmember Harris: great. [43:33] Councilmember owens and then [43:34] PRESIDENT Pro tem parks. [43:35] >> Councilmember Owens: thank [43:38] you. And happy earth day right [43:40] back at you. To start at [43:42] cincinnati zoo and how they have [43:44] really looked at their [43:46] operations and made them the [43:50] most sustainable ever, seeing [43:51] this innovation at the city [43:54] that's what we're doing, taking [43:55] operational costs and applying [43:57] leveraging the I r a with that. [43:58] We're in the future right now. [44:01] And so thank you for positioning [44:06] parks to be able to pursue the [44:07] bloomberg philanthropy support [44:09] in this. You answered a lot of [44:10] questions, some of which are [44:11] around revenue. In terms of [44:13] equipment that needs to be [44:17] purchased, is it the pie recall [44:18] cyst? [44:20] How do you pronounce it? [44:21] Is that that equipment that [44:22] needs to be purchased. [44:24] >> that's what we sought [44:26] approval for from the park board [44:28] in FEBRUARY. We're under a [44:30] initiative called complete [44:31] solutions and they are [44:35] essentially package together a [44:37] whole project for us, shredder [44:40] convey evens, feed bins, pie [44:44] recall cyst and the o r c. So [44:45] the big make major part that [44:46] we're at right now is getting [44:48] into contract with a mechanical [44:50] engineer to tie all these [44:52] components into the site. [44:54] >> Councilmember Owens: as it [44:56] relates to tree canopy and being [44:59] able to plant trees and [45:00] healthier trees and all that, is [45:02] there an estimates on how quick [45:03] we can get there in [45:06] neighborhoods that need it the [45:06] most? [45:07] >> the goal is like I said we [45:12] will be producing biochar next [45:13] year. City projects you nerves [45:15] want to guess early an up and [45:17] running and we're rock he's [45:18] another that. Right? [45:20] We and the to see one of these [45:22] units live we had to drive tomo [45:25] m so tea it, a 9 hour, spent the [45:27] night, went and hung out a farm [45:28] and 9 hours back. In a day and [45:30] a half we were out and back awe [45:32] say amazing fath and got to see [45:34] it up close. And it helped us [45:36] decide this was the unit we [45:38] wanted because there's couple [45:38] different units we got to see [45:41] this live and in person it [45:44] worked well. Tet we met with [45:47] that farmer it would grow trees [45:48] twice as quick. [45:49] I wasn't [45:50] smitherman you are about that [45:52] but crystal has more scientific [45:56] knowledge. Estimated 44% better [45:59] tree canopy. When you become [46:00] parks degree a tree in the right [46:04] of way it has a 65% success [46:08] right, 35% of the trees plant in [46:09] the right of way are gone in a [46:10] year. I will walk by and see [46:12] new trees and walk back a couple [46:13] months later and see that tree [46:15] gone in walking around downtown [46:18] with my dog. Can you see for [46:20] all the reasons she talked [46:22] about, salt, small tree we will, [46:25] all the pressures urban life has [46:27] on these and in a tree well and [46:29] this much water. Biochar will [46:31] be able to hold that water in, [46:33] hold those nutrients in and make [46:34] that tree that much more [46:35] successful. So you will see [46:40] that benefit for from? [46:42] I biochar and making the tree [46:45] that much quick. Sometimes hear [46:46] from are citizens that want to [46:47] cut a tree down in front of [46:49] their house, one of our street [46:51] tries and we got really great [46:52] laws on the books that say you [46:54] can cut a tree down, crystal is [46:56] certify arborist they value it [46:57] and that's a thousand dollar [46:59] tree. Now buying a new tree of [47:01] the same isn't a thousand [47:03] dollars that has lived, 10, 15, [47:04] 20 years and treat a tree [47:05] canopy, you can't get that back [47:07] until it grows, it needs at [47:09] least 2010 years to provide that [47:10] again. That's why we protect it [47:12] and that's why cincinnati as [47:14] such a great tree canopy because [47:15] we value them. That will speed [47:17] up this cycle when you cut down [47:18] a tree you start to get that [47:21] back quicker, healthier tree, it [47:22] starts to cool the city and [47:24] achieve our climate goals. So, [47:28] that's a long way of saying we [47:30] think we will take some time to [47:32] charge it with the manure from [47:34] greatly parks and I should just [47:37] say we have said it a couple, to [47:38] great parks has been a [47:40] tremendous partner it in. They [47:43] have put $3 million toward to [47:47] and a that awesome $300,000. [47:49] And biochar going in the ground [47:51] and this will make trees grow [47:53] quicker. Hopeful over 5-10 [47:55] years and see a difference in [47:57] how quick they are growing and [47:58] how much tree canopy we are [47:58] getting. [47:59] >> and through partnerships with [48:01] uc we have professors that are [48:03] already kind of in line to begin [48:05] the research process to say like [48:07] what is the return on investing [48:09] in this technology and what are [48:13] we actually seeing in our [48:18] streetscapes. [48:20] >> Councilmember Parks: thank [48:23] you. Boy, this sounds exciting. [48:25] You know the collaboration, [48:27] working with great parks being [48:34] using the in a newer. You said [48:42] it would be, what 5-1? [48:45] will you kindly explain again [48:48] what a car bone credit is to me? [48:51] I just -- I'm not sure I [48:52] understand. [48:53] >> [48:55] >> can I try? [48:57] So you certainly heard many [49:00] organizations commit to carbon [49:03] neutrality. This can do that by [49:04] eliminating their own emissions [49:06] like we're doing by adding [49:08] solar, electrifying our fleet. [49:10] Or can you do that by purchasing [49:11] offsets. So rather than a [49:13] hundred percent elimination of [49:16] of your you can buy offsets that [49:19] help count down the total [49:21] emissions released. So there [49:23] are companies who don't have a [49:25] path way to achieving complete [49:27] carbon neutrality they look like [49:29] projects like this to purchase [49:31] carbon offsets to help them meet [49:32] their goals. [49:34] >> Councilmember Parks: is this [49:36] like solar energy? [49:39] >> solar energy does decarbon [49:42] eyes, it helps toward carbon [49:46] neutrality. So, they are of the [49:47] same mission but this is a [49:49] different type of project in [49:51] that it captures carbon. Soaks [49:54] it up and stories it in the [49:58] ground. Solar replaces cole [50:02] emissions so rather than burns [50:07] cool, coal without any carbon. [50:12] >> Councilmember Parks: got it. [50:14] Ohio long was this study? [50:19] How long did it take? [50:22] >> we started work on this when [50:24] I believe this pre dates me but [50:26] crystal started working on this [50:27] 2021 when we found out about the [50:29] opportunity we were invited, [50:30] right, to be one of the cities [50:33] that applied for this through [50:34] this bloomberg philanthropies [50:36] grant and we were one of the 7 [50:37] worldwide cities that got this [50:39] 400,000-dollar grant that was [50:40] the seed money to get this [50:42] project started. And so we have [50:43] been working on it for at least [50:45] 3 years, three plus years but we [50:48] have a lot to learn. We got a [50:49] lot more to learn about carbon [50:51] credits as we do the lifecycle [50:53] analysis as part of our year one [50:54] start up costs and then as we [50:56] dig into this we're going to be [50:58] study it from the beginning. [50:59] This is, you know, a hundred [51:01] percent of pilot project. This [51:03] is saying there is nothing like [51:04] this comprehensive strategy in [51:06] the midwest. We want to [51:07] innovative and lead the way on [51:08] this and get this up and [51:10] running. This will be [51:11] educational and we're be [51:12] learning and study it the whole [51:14] time we're doing it. So we hope [51:16] to replicate this for other city [51:18] gloves, we hope to replicate [51:20] this for other even for private [51:21] industry because ultimate goal [51:23] is healthier tries, capturing [51:25] that carbon, making sure that [51:28] the wood waste that's produced [51:29] from storm or from other cutting [51:30] down of the trees, make sure [51:32] that's not just left to [51:34] decompose but is instead getting [51:35] sequestered and returned to the [51:38] ground and deemed beneficial. [51:38] >> Councilmember Parks: that's [51:41] so cool. And who are the other [51:42] two cities? [51:46] >> minneapolis and lincoln [51:50] necessity net zero net [51:55] lincoln. [51:55] >> Councilmember Parks: the [51:57] trees will grow faster, what [51:58] about the roots? [52:00] >> that's why they are growing [52:03] fast, it improves the soil [52:04] texture and water holding [52:07] capacity which will allot root [52:09] system to grow more expo then [52:12] alley and absorb more nutrients [52:15] and water as it grows. So what [52:17] you see above should be at least [52:20] equal to what you see below root [52:22] wise. And one of the biggest [52:23] issues that trees run into [52:25] especially in a urban [52:27] environment it come amount [52:30] pacted poor quality low [52:31] nutrients soil. [52:34] >> we were here a year ago for [52:36] budget presentation and had that [52:38] picture of biochar and that [52:39] picture of dirt we were able to [52:42] pour almost a entire pitch into [52:44] that biochar. It won't hold [52:46] that much because it will have [52:47] some manure in it but it will [52:48] hold that much more water, [52:51] whether he it rains it rains the [52:54] water all a hits that dirt and [52:55] runs off and enters the storm [52:57] system or it dries up real quick [52:58] because it is that compacted [53:00] dirt t dirt and doesn't got to [53:01] the bottom. This will hold more [53:04] water for longer periods of time [53:05] which means the tree will have [53:07] access to that walter monday and [53:10] continue to grow. [53:12] >> we're only looking at it from [53:13] a tremendous perspective because [53:15] that's our business, but the [53:17] applications for biochar do [53:19] extend to storm water cleaning, [53:21] prevention, offset, there is a [53:23] whole other world in which if we [53:26] were msd present this we would [53:30] be do it storm water water [53:32] holding capacity. We can [53:34] increase biochar into a concrete [53:36] as an adtive that the [53:38] possibilities are really endless [53:41] as far as the applications. [53:44] Essentially straight today than [53:45] carbon when a bring the a filter [53:47] it is running through a car bone [53:49] filter. So this essential the [53:51] same thing only we're charging [53:54] the carbon with the any trientes [53:55] and incorporating it into the [53:57] ground. It could have other [53:58] applications for other entities [53:59] in the city. [54:00] >> Councilmember Harris: lots of [54:01] opportunity. We'll conclude [54:02] therewith councilmember anna [54:05] albi and then jeffreys. [54:06] >> first I was going to ask you [54:09] on touch on that use for storm [54:12] water management and amiable you [54:13] were able to touch on that. In [54:17] terms of a quickly you know with [54:19] the wood waste usual mentions [54:22] wood waste, city does yard waste [54:23] collection is there any way to [54:25] use what residents are producing [54:27] for this or does it have to be [54:28] strictly wood? [54:29] >> there is a lot that goes into [54:32] that and another thing that [54:37] we'll study we start with the [54:39] woofed we'd whoa know how much [54:41] debris or outside come [54:42] contamination is in that and it [54:45] should be relatively pure. One [54:52] of the things making sure that [54:55] that we produce unique or not [54:57] unique a consistent type of wood [55:02] chip that's why we have this [55:02] fancy shredder that we will be [55:06] used to get the wood chips. And [55:07] go us throat system and end [55:08] product to have some consistency [55:12] to it. But you also want and be [55:14] consistent as you don't throwing [55:17] the system up. Forty-five [55:21] proper decks year and 08% it is [55:23] those contaminants or out if a [55:24] piece of metal in our wood that [55:25] could brick the machine and now [55:28] you are down for a day or two [55:29] and bringing in a cop to fix it. [55:32] If it has like a bunch of grass [55:34] clippings, they just purpose [55:35] burn off loading it in with not [55:37] much tree but a whole lot of [55:38] other yard waste that's just [55:41] burning off right away. And so [55:42] our hope is to start we're going [55:44] to do what we bring 23 because [55:47] we know how much leafy it is, we [55:49] know what, we can control what [55:51] we put into the bin. As we move [55:52] forward though we do think there [55:54] is a tun of opportunity to maybe [55:56] take ought christmas trees. [55:57] That easy to tell there is no [55:59] bulks on there, we start to [56:01] have, but we have to educate [56:04] here is our tree debris, leaf [56:07] debris, yard waste debris, tree [56:10] debris or maybe we'll need a [56:10] interim facility where we'll [56:13] sort it and have like system [56:14] which I don't know how it would [56:16] work where we can eliminate out. [56:17] But we could get there. But we [56:20] don't know for sure. That's [56:21] kind of like councilmember [56:22] jeffreys asked a lot of [56:24] questions about what's the big [56:25] end 6 of the this? [56:26] You can start to see a lot of [56:28] uses for it but we'll start with [56:29] the yard waste or tree waste we [56:31] have and then get better at it [56:32] and learn more. [56:34] >> I appreciate that, I could [56:35] see partnership with other [56:37] nearby municipalities, also [56:38] partnering with you especially [56:40] if we feel like we need more [56:42] wood waste. I want to finish [56:44] with this. It is cool to see a [56:46] green solution that also makes [56:48] economical sense. So very [56:49] excited to be investing in [56:51] something that's green and good [56:53] for the environment and also [56:57] makes money. [56:58] >> Councilmember Cramerding: [56:59] thank you, MR. CHAIRMAN. As we [57:02] talk about removing honeysuckle [57:05] one of our most predominant [57:07] invasives. Will honeysuckle be [57:08] considered part of the wood [57:11] waste stream, can we put it in [57:12] the facility? [57:14] >> yes, most of the honeysuckle [57:16] we're chip ago long roadways and [57:17] things like that, we're not [57:18] going to be necessarily pulling [57:20] the honeysuckle out forest to [57:22] chip it. We don't want to add [57:24] to the stress of our operations [57:27] because we're already producing [57:29] enough un. They have outfits [57:29] where can you fake them into the [57:32] field, a smaller air burn e [57:33] burners and we have piloted a [57:36] couple of those and partnership [57:38] with ground work and carbon [57:40] harvest so the opportunity turns [57:41] are there but it is also good to [57:42] leave that material in the [57:45] forest to allow it to break [57:46] down. [57:46] >> Councilmember Cramerding: [57:47] including honeysuckle? [57:49] >> once it is cut. [57:52] >> one of the, it n point one of [57:53] the cool things about this is [57:55] that as we replant in the [57:57] forest, a we remove the honey [57:58] sickle it is strangled out what [58:00] should be there. As we [58:01] replanned trees on the right of [58:02] way we want to plant a tree [58:05] that's a income inch to inch and [58:07] a half thick. Before that it is [58:09] more susceptible to death. In [58:12] the forest we can plant much [58:14] smaller trees, those trees we [58:15] planted with biochar and they [58:17] will grow quick, not just trees [58:19] but under store, under brush all [58:22] that will start to grow much [58:24] quicker and will reforest these [58:25] areas we're clearing out that [58:27] much quicker. [58:27] >> Councilmember Cramerding: [58:28] with the biochar we can plant a [58:30] more diverse array of trees? [58:33] I know that beech trees have [58:36] been hit with global warm along [58:39] hickory are slow grower, os we [58:41] can plant more diverse array [58:42] with the biochar? [58:45] >> absolutely, and honestly [58:46] relation to what jason was [58:49] talking about growing whips, [58:51] small trees, we will have [58:52] biochar facility there, we will [58:54] line them out essentially be [58:56] already, we are already [58:58] collecting native seed from [58:59] trees, we're starting to grow [59:01] them in the greenhouse, but this [59:03] would allow to us ramp up that [59:04] production. That's would be [59:09] then planted within the forest [59:12] itself. Yeah. [59:13] >> Vice Mayor Kearney: I was [59:15] just telling you I wanted some, [59:18] that's was it. [59:19] >> Councilmember Harris: and [59:20] PRESIDENT Pro tem parks, did [59:22] you, I didn't mean to cut your [59:26] questions short. I did not. [59:28] Okay. I, you know, I did not [59:31] know that we had such an [59:35] interest in arbor are you and/or [59:37] bore it pursues on this dais. [59:40] I'm impressed by the depth of [59:41] the questions that my colleagues [59:43] have asked. It is really cool. [59:47] It is really cool. Thank you so [59:48] much. [59:49] >> thank you. [59:51] >> Councilmember Harris: all [1:00:00] right. 616 race street, you're [1:00:16] up. [1:00:17] >> good afternoon and to the [1:00:18] members of the committee. We [1:00:23] have prepared a presentation for [1:00:24] served 616 race street [1:00:25] investigatement agreement. This [1:00:27] item 2 on the agenda. Today I'm [1:00:31] joined by MR. Adam gelter with [1:00:33] 3cdc, along with MR. Patel with [1:00:36] the keystone development group. [1:00:37] Adam, take it away. [1:00:39] >> we had a chance to connect [1:00:43] with most of you, MR. CHAIRMAN, [1:00:44] members, thank you for having. [1:00:47] I had a chance to connect with [1:00:49] most of you on this project and [1:00:50] we're excited to be here. [1:00:53] It has been a long road for 3cdc [1:00:56] and keystone to get to this [1:00:58] point. The building we're [1:01:01] talking about, it is actually 2 [1:01:03] buildings at 616 race street [1:01:06] race street we purchased these [1:01:07] properties the land lease for [1:01:08] these properties from [1:01:10] MR. Chopping who operated for a [1:01:13] long time congress inc. Store [1:01:16] and this space it was closing [1:01:19] that store. And really want to [1:01:21] make sure this is a important [1:01:22] piece of the overall convention [1:01:27] district and with the hoe tells [1:01:28] both keystone group and others [1:01:30] have developed north of here on [1:01:32] race street. I want to make [1:01:33] this a seamless district. And [1:01:35] this block in particular has [1:01:37] some challenges with vacancies [1:01:39] and uses that weren't adding [1:01:41] productive things to the [1:01:44] downtown vibrancy. And so we [1:01:46] purchased this without a plan [1:01:48] for it, other than to get [1:01:51] control. And we demolished the [1:01:53] facade that was put offer the [1:01:54] original historic building, did [1:01:56] all the interior abate and [1:01:58] looked at a number ever [1:01:59] different uses for this space [1:02:01] over the past 3 or 4 years as we [1:02:03] have been working on this. And [1:02:05] this map shows you in the [1:02:07] context of the convention center [1:02:08] district where this property [1:02:10] sits and again the connection to [1:02:12] those hotels, but ultimately the [1:02:12] connection to over-the-rhine [1:02:14] which is one of our strongest [1:02:16] assets here in cincinnati. But [1:02:19] that district to get to our [1:02:20] visitors to have a seem less [1:02:23] walk up there from the [1:02:24] convention center. So here is [1:02:29] the building that I MAY [1:02:30] remember. And again we took off [1:02:32] that facade and found a pretty [1:02:34] spectacular building on the [1:02:37] other side. But I think once [1:02:39] the keystone group restores it [1:02:42] and even would have more [1:02:44] excitingly the original building [1:02:45] had 6 stories, there was a fire [1:02:47] at some point and they [1:02:49] demolished the upper two floors. [1:02:51] And so the plan is to bring [1:02:52] those floors back to the [1:02:53] building and restore the entire [1:02:55] facade to original historic [1:02:58] plan. So, I think that we have [1:03:01] a exciting opportunity. I will [1:03:04] let MR. Patel talk about it. [1:03:06] But we are looking at a [1:03:07] hospitality use that's because [1:03:09] the way the shape their building [1:03:11] was originally a store it is [1:03:15] just too deep for the typical [1:03:17] resilience use. We tried office [1:03:19] and don't and hospitality is the [1:03:21] best plan. And we've got a good [1:03:25] plan together to make this an [1:03:28] exciting property. [1:03:30] >> thank you, adam. Thank you [1:03:32] to the committee for having us [1:03:35] today, spending your time with [1:03:38] us. Keystone hotel group which [1:03:42] have 9 hoe tells, 8 are in [1:03:43] cincinnati area. [1:03:45] We have a fairly young portfolio [1:03:47] of hotels, about 4 or 500 rooms [1:03:51] or less than 48 months old. And [1:03:54] so we're pretty aggressive about [1:03:57] building new product primarily [1:04:00] in the marriott and hilton [1:04:06] branded hotels. Had this [1:04:09] particular project is proposing [1:04:12] on 616 race. Just down the road [1:04:15] catty-corner from our town place [1:04:17] suites particular purdahed on [1:04:20] seventh and race. We completed [1:04:23] that project in 2001, shortly [1:04:28] after the pandemic and we [1:04:30] witnessed this building being [1:04:33] demolished or bought and demoed, [1:04:37] so we were excited to pursue it. [1:04:39] And or primary focus for want [1:04:41] toking pursue this complex [1:04:44] project is the fact that the [1:04:47] city and county are building the [1:04:49] renovation of the convention [1:04:53] center and the convention hotel. [1:04:54] We think that investment will [1:04:58] spark more visitors to the area. [1:05:03] Happy to answer any questions. [1:05:05] >> so after this presentation, [1:05:07] we have included on page 4 of [1:05:10] the transmittal our proposed [1:05:13] incentive. We have 25 years net [1:05:15] 52% project tif. This will put [1:05:18] in for the cps pilot along with [1:05:23] vtica. There is sbe and wbe [1:05:26] goals than 10 and we do s ask [1:05:28] that we recommend the approval [1:05:31] of this ordinance. It is [1:05:32] necessary from the emergency [1:05:34] perspective to facilitate the [1:05:36] financial closing which is [1:05:37] expected this week so that [1:05:39] construction can commence at the [1:05:41] earliest possible time. It is [1:05:43] also worth noting this project [1:05:44] has received historic tax [1:05:45] credits and they are working [1:05:46] through some additional [1:05:48] financing that also has [1:05:53] accelerated the schedule. [1:05:55] >> Councilmember Harris: [1:05:57] fantastic. I'm stunned that at [1:05:59] some point someone decided to [1:06:02] cover up that gorgeous facade [1:06:04] with that, wow, so that's really [1:06:08] exciting to go back to the [1:06:10] original facade. Okay. Great. [1:06:13] Sounds like a great project, [1:06:15] needed project. Councilmember [1:06:15] walsh? [1:06:16] >> Councilmember Walsh: thank [1:06:18] you, MR. CHAIRMAN, I think this [1:06:20] is a fantastic project. The [1:06:21] main question that I have and I [1:06:23] think it is for you MR. Gelter, [1:06:25] although any of you can address [1:06:27] this. We see a lot of buildings [1:06:28] that exist throughout the city [1:06:30] that are one or two stories and [1:06:32] I have often thought, we need to [1:06:34] do things like this. We need to [1:06:36] add on top of them, go higher [1:06:38] but keep the original first and [1:06:39] second floors, can you elaborate [1:06:41] on what it takes to do this and [1:06:42] why we don't see more of that [1:06:44] and ifs possible to see more of [1:06:44] this? [1:06:47] >> you know, you really have to [1:06:49] take a case by case it is upon [1:06:50] possible and things that are [1:06:51] limiting on some building are [1:06:54] the foundation of the building, [1:06:55] structure of the building. [1:06:57] Because this had floors [1:06:58] previously, it can support the [1:07:00] weight of these additional [1:07:02] floors without too much rework. [1:07:03] I think there are other cases [1:07:05] where that is the case as well [1:07:06] where the building is strong [1:07:07] enough to support it as its. [1:07:09] Whether you get to make it a [1:07:10] little challenging the bigger [1:07:13] the building the more likely the [1:07:14] foundation that is exist are not [1:07:15] going to support those extra [1:07:17] floors. But us talked about one [1:07:19] or two story buildings, [1:07:20] typically it is not super [1:07:22] difficult to add height to those [1:07:25] buildings, which I know as we're [1:07:26] looking at dennity in our city [1:07:27] is a important thing that we can [1:07:32] and should be looking at. [1:07:33] >> Councilmember Harris: great [1:07:35] question. Vice mayor? [1:07:35] >> Vice Mayor Kearney: we talked [1:07:36] about this in planning [1:07:38] commission but I wanted to talk [1:07:43] about your inn cluing goals and [1:07:46] mbe, sbe, all that. [1:07:50] >> I mean I think as we look at [1:07:51] this, you know, even though it [1:07:53] is I think technically not in [1:07:57] the convention district as per [1:07:59] the convention center plan. We [1:08:00] view it as that and we want to [1:08:03] feet meet those same goals. I [1:08:05] think we and keystone has had [1:08:07] some real success in their [1:08:09] project in oakley with there are [1:08:11] inclusion goals and meeting [1:08:12] annex seeding those and we have [1:08:13] every expectation that we're [1:08:15] going to do the same here. [1:08:18] We have a woman own architecture [1:08:20] firm that's leading the team for [1:08:23] them. And so I think we'll have [1:08:25] a strong position to beat those [1:08:29] aggressive goals. [1:08:30] >> Councilmember Jeffreys: [1:08:31] MR. CHAIRMAN? [1:08:33] One quick question. Really [1:08:35] appreciate the comment of this [1:08:37] is enable convention center [1:08:38] planned development district. I [1:08:40] want to amplify this that is [1:08:41] really catalytic, so the fact [1:08:44] that we made that investment [1:08:45] yielded another investment. So [1:08:46] I think it is important for us [1:08:50] to keep in mind as we consider [1:08:52] future investments that can also [1:08:59] similarly be catalytic. [1:09:00] >> Councilmember Harris: agreed. [1:09:06] All right. Thank you very much. [1:09:09] All right. DR. Dudas, let's [1:09:10] jump into the agenda. [1:09:13] >> to the chair, item number 1 [1:09:16] there this the biochar item from [1:09:18] the first presentation. This is [1:09:20] from the parks department as [1:09:21] well as from office of [1:09:23] environment and sustainability. [1:09:25] There are two funding sources [1:09:30] here being allocated to the [1:09:30] biochar replication facility [1:09:31] capital improvement program [1:09:34] project account. The first is [1:09:37] $500,000 of existing resources [1:09:42] in the urban tree canopy-gf [1:09:43] account that is existing [1:09:45] resources of $500,000 that will [1:09:49] be transferred. Additionally [1:09:51] $850,000 of existing funds in [1:09:54] the revolving energy loan fund [1:09:57] are also being transferred to [1:09:59] that same biochar replay [1:10:01] indication facility capital [1:10:02] accountment and this will enable [1:10:05] the city to take advantage of [1:10:07] the direct pay benefits as part [1:10:10] of the inflation reduction act. [1:10:11] >> Councilmember Harris: it is [1:10:11] quite clear with the engagement [1:10:15] that there is no objection with [1:10:21] moving item 1 for passage. [1:10:22] >> DR. Dudas: item number 2 is [1:10:24] the development agreement item [1:10:26] related to the second [1:10:27] presentation. This would [1:10:29] authorizes the execution of a [1:10:31] development agreement with 616 [1:10:34] race street llc. Pertaining to [1:10:37] development and construction of [1:10:41] 84281 square feet of commercial [1:10:45] space at 616 race street in the [1:10:47] central business district. [1:10:48] >> Councilmember Harris: I want [1:10:49] to, I you know without objection [1:10:51] we'll move item number 2 for [1:10:52] passage. I also want to [1:10:55] highlight I think that as we're [1:10:58] starting to talk about about [1:10:59] rivelment just thinking about [1:11:00] the number of buildings that we [1:11:02] have had that have been vacant [1:11:03] for decades and the challenges, [1:11:05] so not all buildings are [1:11:08] conducive to housing for a [1:11:10] number of just structural [1:11:11] reasons or business doesn't work [1:11:15] there. I think this is really [1:11:20] creative, expanding our capacity [1:11:24] for hotel rooms in this space. [1:11:25] And then the again the tools [1:11:28] that we have, this project tif [1:11:30] really enables e abling it to [1:11:33] get done. This is exciting [1:11:35] overall. [1:11:38] So item number 2 move for [1:11:38] average r passage. [1:11:40] >> DR. Dudas: to the chair, item [1:11:42] number 3 is a grand ordinance [1:11:45] for the cincinnati health [1:11:48] department, this would accept a [1:11:49] grant of $2,000 from the [1:11:50] american heart association. It [1:11:51] is designated for the health [1:11:53] department to participate in [1:11:56] ambulatory quality improvement [1:11:58] program, essential there would [1:12:00] enable the health department to [1:12:03] data share with the halter heart [1:12:06] association regarding the risk [1:12:09] of cardiovascular disease, death [1:12:12] and disability. [1:12:13] >> Councilmember Harris: that's [1:12:14] great. All right without [1:12:16] objection we'll move item number 3 for passage. [1:12:18] >> DR. Dudas: to the chair, item [1:12:20] number 4 this is also a grant [1:12:22] ordinance for the cincinnati [1:12:23] health department, this would be [1:12:27] a grant of up to $400,000 from [1:12:29] the ohio department of health. [1:12:33] These funds are earmarked for [1:12:41] expanding school based health [1:12:43] centers. And to would proper [1:12:45] additional equipment beings [1:12:47] supplies as well as furnishings [1:12:49] for waiting room, but there is [1:12:51] also a capital improvement [1:12:54] component which would enable the [1:12:55] construction ever a community [1:12:57] entrance that would be separate [1:12:59] from the school to provide [1:13:03] community access to the health [1:13:04] center. [1:13:06] >> Councilmember Harris: [1:13:07] fantastic. Without objection [1:13:08] we'll move item number 4 [1:13:08] important passage. [1:13:09] >> DR. Dudas: to the chair, item [1:13:11] number 5 is a grand ordinance [1:13:12] for the office of environment [1:13:21] and sustainability. This is a [1:13:22] grant of up to $50,000 from the [1:13:22] bloomberg philanthropies youth [1:13:23] climate action fund. Funds [1:13:25] would be designated for programs [1:13:28] to assist youth to help design, [1:13:30] produce and oversee urgent [1:13:32] climate solutions. [1:13:33] >> Councilmember Harris: all [1:13:37] right, oes is on fire. All [1:13:38] right. Like not real fire [1:13:41] though, doing a good job. [1:13:43] That's earth day. All right, [1:13:45] without objection we'll move [1:13:48] item number 5 for passage. Item [1:13:51] number 6 we'll indefinite [1:13:52] postpone. Which brings us to 7 [1:13:54] which is the b version of 6. [1:13:56] >> DR. Dudas: to the chair, item [1:13:59] number 7 is the b version of [1:14:00] number 6. It is a grant [1:14:03] ordinance for cincinnati police [1:14:04] department. This authorizing a [1:14:08] grant of up to $56,000 from the [1:14:10] ohio department of public safety [1:14:13] ohio traffic safety office. It [1:14:14] is the drive to succeed 2024 [1:14:18] grant. This would allow cpd to [1:14:21] provide scholarships to eligible [1:14:23] students in the community for [1:14:24] driver education training. The [1:14:27] b version is required because [1:14:29] the grant amount increased. The [1:14:34] award is now for additional [1:14:35] $1,560. [1:14:36] >> Councilmember Harris: this is [1:14:40] much needed. Very excited about [1:14:42] this. [1:14:43] >> Councilmember Jeffreys: my [1:14:45] back of envelope math I think it [1:14:46] is about 130 kids or so that [1:14:48] will be able to have driver ed, [1:14:51] more the merrier. [1:14:52] >> Councilmember Owens: thank [1:14:53] you, that was going to be my [1:14:55] question, but also I mean we [1:14:56] probably all recognize after the [1:14:59] pandemic that people are driving [1:15:01] crazy. And also that, you know, [1:15:02] this doesn't exist in schools. [1:15:06] And so what a wonderful resource [1:15:07] this will be. [1:15:08] >> Councilmember Harris: yeah, I [1:15:13] appreciate the candor. Yes. [1:15:15] But we have had this [1:15:15] conversation before about the [1:15:18] relationship to access to [1:15:21] drivers education and we know [1:15:22] that the pandemic, so many young [1:15:26] people missed out on the [1:15:29] opportunity to get drivers [1:15:31] education, drivers, licenses, [1:15:33] lapse. A number of things [1:15:35] happened and so this education [1:15:37] piece around driving really is a [1:15:39] real component and addressing a [1:15:41] lot of our pedestrian safety [1:15:44] issues. This is timely and [1:15:45] relevant. Without objection [1:15:49] we'll move item number 7 for [1:15:49] passage. [1:15:50] >> DR. Dudas: to the chair, item [1:15:52] number 8 is a motion submitted [1:15:54] by council members johnson, [1:15:56] walsh, owens and jeffreys, this [1:15:57] questions that the [1:16:00] administration prepare a report [1:16:02] within 90 days related to the [1:16:05] pro's and con's of MR. Project [1:16:08] labor [1:16:09] projectlabor [1:16:15] of project laboragreements. [1:16:16] >> Councilmember Walsh: this a [1:16:16] straightforward motion. There [1:16:18] is a lot of conversations [1:16:21] publicly behind the scenes about [1:16:22] project labor agreements a a lot [1:16:24] of things are being said, pro [1:16:26] and con. And so we're simply [1:16:27] asking the administration to put [1:16:28] things on paper so we can get a [1:16:29] firm understanding as a council [1:16:32] ever what is being talked about [1:16:34] about plas instead of everybody [1:16:35] having a different view and [1:16:37] perspective of it. We had [1:16:38] conversation with looking into [1:16:41] this and putting a report [1:16:42] together. [1:16:43] >> Councilmember Harris: great. [1:16:44] Without objection we'll move [1:16:46] item number 8 for passage. [1:16:48] >> DR. Dudas: to the chair, item [1:16:50] number 9 is a motion sub notice [1:16:51] I had about councilmember walsh, [1:16:54] harris and parks, this motion [1:16:55] requests the administration [1:16:57] provide a report within 90 days [1:16:59] regarding the process of [1:17:02] replacing trees planted in the [1:17:04] right of way around the city [1:17:06] that have damaged adjacent [1:17:10] sidewalks and other private [1:17:12] property also looking at a [1:17:15] replacement time line for those [1:17:17] trees. [1:17:18] >> Councilmember Walsh: thank [1:17:19] you again, MR. CHAIRMAN, I don't [1:17:21] want to take credit for this. A [1:17:23] conversation that started last [1:17:24] year before my time on council. [1:17:26] There is a lot of trees planted [1:17:29] in tree wells that have caused [1:17:30] property damage to the sidewalks [1:17:31] and as the city comes through [1:17:34] and replaces them gets charged [1:17:36] back to the property own every. [1:17:37] This council has had discussions [1:17:38] about what does that look like [1:17:42] and the cost for us as a city to [1:17:42] take on that since it is our, [1:17:44] since we caused the damage. [1:17:46] This report just formalizes that [1:17:47] so we can get some answers and [1:17:51] make a decision as a council. [1:17:53] >> Councilmember Harris: [1:17:53] absolutely. PRESIDENT Pro tem [1:17:57] parks, anything to add? [1:17:58] Okay. All right, without [1:18:03] objection we'll move item number 9 for passage. Items 10 [1:18:09] and 1 we will file. With that I [1:18:11] move that the committee move [1:18:13] into executive session pursuant [1:18:19] to ohio revised code 121.22234 [1:18:21] to discuss with the solicitor [1:18:23] about, with the city solicitor [1:18:26] for an update on ongoing fire [1:18:27] negotiations. Sorry. Samantha [1:18:34] you almost had a -- do I have a [1:18:34] second? [1:18:35] >> Councilmember Cramerding: [1:18:36] second. [1:18:36] >> Councilmember Harris: all [1:18:37] right. We will move into [1:18:40] executive session. We will come [1:18:42] back to -- do I need to do roll [1:18:43] call? [1:18:44] I'm sorry I did a first and [1:18:45] second I should do a roll call. [1:18:48] Roll call, please. [1:19:04] >> [All respond yes]. [1:19:04] >> Councilmember Harris: all [1:19:07] right. We will move into [1:19:09] executive session. (Council in