“You should have seen it. It was a nightmare,” said Fred Haberman, a local marketing executive who is part of the Urban Organics team.
But Haberman and his partners saw potential in the 105-year-old building, and they’re now transforming it into an indoor, urban farm. Most of the building has been cleaned up, and by mid-2013 there will be tanks full of tilapia and racks lined with fresh lettuce and herbs.
Urban Organics will use an agricultural technique known as aquaponics, a symbiotic marriage of aquaculture (raising fish in tanks) and hydroponics (growing plants in water). The nutrient-rich wastewater from the fish will be pumped to the produce growing on the racks above, and the plants then act as a filter for the water before it returns to the fish tanks.
The long-term goal is to generate 1 million pounds of food per year that will be sold through distributors to local restaurants and grocers. Eventually, some of the food will be set aside for food shelves and homeless shelters in the community.
Haberman projects that Urban Organics will make money within two years, establishing itself as a viable business in what, he said, has historically been “an industry of poets and pioneers.”
“From a revenue perspective the numbers look really good,” he said, noting that Urban Organics already has commitments from prospective customers who he declined to name. “For us, it’s not as much of a demand issue as it is an issue of generating consistent, high-quality supply. People are willing to take the product off our hands.”
The company anticipates a strong market from restaurants that want to offer locally grown produce but struggle to find a consistent supply during Minnesota winters. And the grocery sales will target the “MPR moms” who typically shop at Whole Foods and local co-ops, Haberman said.
Getting started
The idea for Urban Organics started almost two-and-a-half years ago when Dave Haider and his wife, Kristen Haider, saw a story on the nightly news about Sweet Water and Growing Power Inc., a pair of well-known aquaponics facilities in Milwaukee. Haider, who was looking for a more rewarding career after 16 years in construction, was immediately drawn to the idea of urban farming. “We went out there to visit the next week and were more than inspired,” he said. “It was insane.”
Haider called his friend and neighbor, Chris Ames, to tell him about his big idea. Ames, whose background is in accounting and commercial real estate, quickly got on board.
The final piece of the team was Haberman, head of the fast-growing Haberman marketing agency in Minneapolis and founder of the U.S. Pond Hockey Championships. Haider knew him from working on the pond hockey venture. And it just so happened that Haberman’s parents run a charitable foundation in Milwaukee that had given money to Growing Power.
Urban Organics then embarked upon an 18-month search for a site that would meet its unique requirements. Ultimately, the five-story, 55,000-square-foot Hamm’s building emerged as a strong fit because its 18-foot ceilings provided enough room for the growing racks, its two-foot-thick floors would support the weight of the fish tanks and its masonry walls would help retain heat.
“It’s like a bunker,” Ames said.
All told, Urban Organics is budgeting approximately $1.5 million for startup costs, including the purchase of the building, renovations and equipment. It has received several hundred thousand dollars in grants, but the majority of the money will come from private investors who the partners declined to name.
The city of St. Paul has played a key role in getting the project off the ground by helping to secure state grants and working closely with Urban Organics on the building sale and permitting issues, Ames said.
“The city’s been great to work with,” he said. “They’ve really bent over backward to help us get going.”
St. Paul Mayor Chris Coleman said the city was drawn to Urban Organics because it will create economic development on the Hamm’s site, while also helping to promote healthy, locally produced food.
“We’ve got this great old site that’s been vacant for way too many years, so we’ve been looking for a way to get that back on the tax rolls,” he said. “It has been a bit of a challenge due to the nature of the buildings. … And we’ve done a lot of stuff with locally produced food, trying to get more fresh produce and fish into people’s diets. So it just fits into a lot of different things we’re working on.”
Able to compete
Urban Organics plans to launch its business in two phases. The first phase will include three floors of the building; the second phase will expand to the top two floors and the basement.
Each floor will have five 3,500-gallon fish tanks linked to a four-tier rack of lettuce and other vegetables. Each level will have roughly 300 growing lights, which will emit enough energy that Urban Organics will require little additional heat to maintain a temperature between 70 and 85 degrees, even during winter.
“It’s going to be tropical,” Haider said.
The facility will get its water from the brewery’s old well. By recycling its water through the aquaponics process, Urban Organics projects it will only use 2 percent of the water typically needed for traditional farming.
It will take roughly three weeks to grow lettuce, start to finish, and six to nine months to harvest the fish.
Once fully operational, Urban Organics expects to have 18 to 20 full- and part-time employees. It also wants to develop an educational program to work with schools and other community organizations.
Indoor agriculture can be a successful business, said Garden Fresh Farms founder Dave Roeser, who operates an aquaponics facility in a 20,000-square-foot building in Maplewood. He’s generating about 1,000 lettuce plants and 40 pounds of basil per day.
Garden Fresh Farms has about 40 community-supported agriculture members who pay $22.50 per week for a box of fresh produce. And it’s selling fish, lettuce and herbs to local restaurants and corporate cafeterias.
“We’re growing things indoors, so we have some certain expenses for energy and our building and things like that,” Roeser said. “But we’re close to market, so we have lower transportation costs and you don’t have as much spoilage.”
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