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Straw Bale Builders, LLP

CLUSTER COMMUNITIES

HABITAT CLUSTER PLANNING

. OVERVIEW

Create in the unincorporated and unzoned areas of the Gallatin County, a series of Habitat Clusters which generally follows the theory of: “Live where you work and work (and shop) where you live.” We need to reverse the city planning theory of Balkanizing our communities into separate clusters which thereby require long ribbons of freeways and roads to connect, thereby forcing the use of cars and fossil fuels.

. THE COMMUNITY PLAN Habitat would work with various groups to put together a community plan (ala business plan), which examines each element and then integrates them into a “cluster of clusters”. The land would be chosen using demographic and agricultural criteria as described herein. The community would include agricultural land (especially good for vegetables, fruits and nuts and other similar crops); residential land ala Martha's Vineyard; business cluster, light industrial cluster and technical and educational cluster. The land ownership would likely be in a land trust with sufficient covenants so that the essence of the cluster of clusters is preserved in an ecologically acceptable manner, but not to stringent as to prevent some reasonable experimentation and diversifications.
. LAND ACQUISTION AND TENURE At an early stage, bring some stakeholders into the discussion, especially land trust. The Land Trust (501.c.3) would hold title and lease the ground to a community development trust or co-op which would actually plan and run the operation. The latter could be a 501.c.4. Since 501.c.3's cannot make gifts to 501.c.4's, the lease payments would have to be around fair market value. However, there is nothing to prevent the Land Trust from making all of the infrastructures improvements from donations and grants. Other than a Land Trust, a public sub-entity could be created such as an “improvement district” or “development district”, of the County or some other suitable sub-entity. I favor the Land Trust because of the flexibility in planning and executing the plan. Certainly the County would be one of the “partners in progress” as would Habitat for Humanity. The following criteria and progess should guide the land selection:
1. State and County Regulations: The land should be located in the unincorporated area of the county and be unzoned. This selection give us the maixmum flexibility in combining land uses. Check with State and Gallatin County laws governing co-housing developments.
2. . Demographics: The site should be within reasonable driving distance of Bozeman, say 20 to 25 miles one way. Some membears of the Co-op will still need to drive to and from work, especially at the beginning before there are sufficient enterprises and jobs available within the cluster. Also, we will need access to the city for sales of products and other services and for collection of recycleables. We should stay west of the hills since the eastern side towards Livingston and windier and lacks the moisture we have on the west side. The area west of Four Corners has some promise.
3. . Agricultural criteria: The soil should be suitable for growing crops: pH of 8 or lower; low salinity and not sodic; adequate ground water; streams would be good; either flat or south sloping. The soil tests should indicate percentages of organic matter, composition of the soil foodweb; location relative to manure sources and carbon sources; top soil thickness; topography; crop history; history of use of 'cides; radon readings and all other environmental elements. Examine site for noxious weeds and history of pests and pathogens.
4. . Utilities and access: Electricity should be on or next to the property; Telephone, DLS and other Internet carriers should be next to the property; perc tests should allow for sewerage disposal on site; and wind direction and velocity. Access should include paved county road next to property or within ¼ mile or so.
5. . Tenure: A 501.c.3 land trust will purchase the fee title to property, with or without seller financing. A seller could get a tax break by donating part of the purchase price to the land trust. The land trust would lease the property to the Co-op on a 99 year lease. The terms and conditions would enable the Co-op to function as a clustering of clusters and would impose environmental goals. The agreement would provide relief from termination because of default or eminent domain, including payment by the land trust for improvements by the Co-op, the bonus value of the lease, and renegotiation of lease terms and rates, to prevent the insolvency of the Co-op.
6. . Uses:
  1. Agricultural uses: All legal agricultural and animal husbandry uses, including on-site sales, regardless of origin.
  2. Residential uses: All legal land uses, including, single family residences, multi-family residences, guest residences, motel residences, employee housing, and camping.
  3. . Light industry: All legal light industry, including arts and crafts, light manufacturing, biodiesel production, algal production, and electrical generation.
  4. Commercial: All legal commercial, wholesale and retail sales.
  5. . Education: All legal schools and educational services.
  6. . Other: All other legal uses, including air strips, fair grounds, exhibition facilities, and the like.
7. . Rent: Rent should be based on the fair market value of the land and facilities leased to the Co-op. In setting the fair market rental value, the conservation restrictions need to be addressed as tending to lower the value of the property for otherwise allowable uses. Also, the costs expended by the Co-op for wildlife habitat and other conservation practices should be credited against the rent otherwise required. Rent should also reflect the fact that during the startup period, rent should be waived or deferred until the crops reach initial maturity, such as hazel nuts and other agroforestry crops. A base rent plus a percentage of the crop net profit should also be considered.
8. . Security deposit: Since the Co-op will need all of its cash flow during the first seven years of startup, the security deposit should be waived, deferred or allowed to be established by installment payments. Alternatively, the Co-op could have a patron underwrite the security deposit with a personal guarantee.
. THE CO-OPERATIVE The Co-operative should be established as a Limited Liability Partnership under the laws of the State of Montana and be self-governing entity. The type of Co-op should be a non-Chapter T IRS Code LLP such that it can have two types of membership:
1. . A General Partner membership which grants voting rights, requires a uniform capital investment in the Co-op and has equitable rights of distribution of income and assets.
2. . A second type of membership is optional to all General Partners, namely a Limited Partnership interest. This limited parter interest is for the primary purpose of funding the LLP with cash and in-kind assets (at fair market value). These Limited Partnershp interest would have preference on dissolution of the Co-op and would have a floor and ceiling on distributions of net profits from a fixed percentage of the net profits. Losses would be shared with the General Partners.
3. . The Co-op would be governed by a Council of Partners, elected by the majority votes of the General Partners.
4. . The Co-op would be run on a curent basis by a Managing Genral Partner who would appoint other General Partners in various capacities.
5. . The Co-op would avoid having direct employees. On occasion, it might have to hire temporary labor through contract hiring companies (temp agencies).
6. . The Co-op would also have a Social Council which would be the equal of the Council of Partners, but be populated with non-management General Partners. The Social Council would handle the recruitment and discipline of general partners and act as an advisor to the Council of Partners. The Social Council would also be concerned with the health, eduction and welfare of the General Partners and their families. The Social Council would hear all greviences and arrange for mediation and arbtration of internal disputes and deadlocks.
7. . The General Partners would hold an annual meeting and elect the members of the Council of Partners and members of the Social Council. The members could offer resolutions on specific subjects other than discharge of a partner. Discharges would be handled by a panel of outside arbitrators in accordance with the governance documents.
8. . Net profits would be shared along these lines:
  1. . A “cost of living” portion of net profits would be paid on a regular basis (Base Draw).
  2. . A “bonus” would be paid on a monthly or quarterly basis, base on net profits, (less the Base Draw).
  3. . Portions of the net profits before the Bonus, would be allocated for use by the Social Council for health, education and welfare of the General Partners and their families, as well as for general community charities.
  4. . Portions of the net profits before Bonus and after Social Council portions, would be set-aside as a reserve for capital improvements, risk management, and replacements.
  5. Losses would be share in reverse order.
9. . Should dissolution occur, the distributions of net assets would made first to the Limited Partnership interest, then to the General Partners in equal amounts. Partition rights would be folded into the dissolution provisions.
10. . Dispute resolution would proceed first to mediation, then non-binding arbitration, then binding arbitration, followed judicial enforcement of the arbitrator's decision.
. ECONOMIC DEVELOPMENT Economic development of the Habitat Cluster would begin with a needs assessment of the clusters, aimed at basic living needs: food, clothing, energy, health, education, welfare, housing, utilities, community facilities, and communications. Next comes security, risk avoidance, ecological needs, creation of “envelopes” for location of specific uses: housing, agriculture, light industry, community, education, and recreational uses. Then, enterprise planning commences, including business plans, market surveys, and capital formation planning. After the business plans are vetted by competent third parties, selections are made and rosters of partners are organized by enterprise and available resources. The proposed enterprises are suggested as follows:
1. . Agriculture and husbandry:
  1. . Pastured poultry: eggs and meat.
  2. . Cattle: dairy and meat.
  3. . Pork: Hogs, pigs and swine
  4. . Aquaculture: fish, shrimp, crawdads, worms, water
  5. . Hydoponics: Algae for food and oil for biodiesel.
  6. . Fodder: Hay and grass for winter feed.
  7. . Compost turners and generators
  8. . Microbial innoculants for composting.
  9. . Earth worms and dung beatles
  10. . Nuts: hazel, chestnuts, hickory, pecan, walnut, almonds.
  11. . Berries: Indian Ice Cream Berries, blackberries,
  12. . Vegetables: To be selected by Community
2. . Electricty:
  1. . Vertical axis wind generator and solar generator.
  2. . Hydro-electric system
3. . Biodiesel:
  1. . Low volume: 40 gal. Reactor
  2. . Intermediate volume: 500 gallon reactor.
  3. . High volume: D1 Oil refinery.
  4. . Algal production of lipids.
  5. . Collection of waste oils
  6. . Mobile refinery
  7. . Manufacture of small farm refineries.
  8. . Establishment of a biodiesel testing laboratory.
4. . Light manufacturing:
  1. . Waste oil fueled heaters and boilers.
  2. . Vertical axis wind generators and hydro-electric systems.
  3. . Small farm biodiesel refineries and testing kits
5. . Services:
  1. . Information Technology Services (Chick Bruce)
  2. . Legal services (Jim Miller after he joints Montana Bar)
  3. . Economic Development (Jim Miller)
  4. . Biodynamic agriculture (Jim Miller)
  5. . Educational consulting (Montana Virtual Educational
  6. . Soil testing: biological and chemical
  7. . Biodiesel testing (same as 5.3.8)
  8. . Videography: Event, wedding, funeral, streaming Web.
. RESOURCES
1. . Personal: Personal resources are savings, assets transferred to the Co-op, new personal debt with proceeds transferred to the Co-op. Also continuing support from individual jobs held by partners and transferred to the Co-op.
2. . Land Trust: The Land Trust can add resources by receiving grants and donations for land acquisition and intrastructure construction.
3. . Credit union: Create a Credit Union to create funding sources for mico-loans.
4. . Venture capital: Possibility.
5. . Bank loans: Probably not available.
6. . Entrepreneural development center loans: Possible.
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jimmiller5417@gmail	Latest page update: made by jimmiller5417@gmail , Sep 2 2008, 6:25 PM EDT (about this update About This Update Edited by jimmiller5417@gmail 1953 words added view changes - complete history)
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