Photo: LocalMotive
LocalMotive announces participation in Summerland Food Hub
Another delay to Summerland's South Okanagan “food hub” plans has the district considering a new partnership with a local organic farm.
The proposed hub, aimed at providing a space to connect food and ag tech entrepreneurs with resources, has been in the works for several years but has moved closer to becoming a reality with the province announcing it will invest $800,000 in 2023.
The Okanagan Food Innovation Hub (OFIH) will be part of the BC Food Hub Network, which already has 13 facilities across British Columbia.
The District of Summerland is proposing to enter into a memorandum of understanding with LocalMotive Organic Delivery and Community Futures Okanagan Similkameen (CFOS) to establish an Okanagan Food Innovation Hub in Summerland.
Thomas Tumbach, owner of LocalMotive Organic Delivery and Low Waste Market, is also due to appear before council as part of a delegation during Tuesday afternoon's meeting.
Following the award of the $800,000 grant, OFIH project partners District of Summerland and Okanagan-Similkameen Community Futures (CFOS) are continuing to work to meet grant contract deadlines and conditions, according to a staff report to city council.
“However, Okanagan Crash Pad has been unable to proceed with construction of a new building on its property at 26405 Garnet Valley Road due to unfavorable economic conditions, including rising construction costs and increased borrowing costs to proceed with construction of the new building at this time,” the report states.
Delays in finalizing the location of the food hub have caused delays in meeting deadlines for a Ministry of Agriculture grant to move the OFIH project forward, staff said.
Okanagan Crush Pad has now withdrawn as the land/building partner for the project, which has led the district to turn to LocalMotive.
LocalMotive recently won a $3 million grant to build a new commercial food storage and distribution facility in Summerland and is looking to partner with the OFIH project by co-locating in the same location.
LocalMotive said it will build a new state-of-the-art storage, packaging and processing facility for its own operations, with additional storage space and complementary “scale-up” commercialization services for local distribution, while OFIH will provide space for local farmers and food processors to test new product ideas and access processing facilities.
Officials said the ministry is requesting action from both the district and CFOS to move the project forward or the project risks losing the $800,000 grant funding that is causing the deadline to be pushed back.
Officials added that the state may not provide the remaining 50 percent, or $400,000, for the project because it could be delayed.
“The district's financial obligations, if any, should be covered entirely by grant funding received from the Ministry of Agriculture and Food in relation to the established deliverables and draft Memorandum of Understanding. Finance staff are somewhat concerned that after signing the proposed Memorandum of Understanding, LocalMotive may ask council for a waiver of associated fees and DCCs on the construction of the facility,” the report states.
“Council has recently supported two construction projects in this manner, resulting in approximately $2 million in DCC and fee waivers. The District has not included such fee waivers in its 2024-2028 Financial Plan Ordinance for the Food Hub Project. Therefore, if an application for such a fee waiver were submitted, Summerland District taxpayers may be on the hook for these lost revenues.”
Staff have recommended council support entering into a memorandum of understanding with LocalMotive Organic Delivery, and the matter is due to be debated on Tuesday. The full report can be found on the afternoon agenda.
