Millennium Sustainable Ventures Corp. announced that it is expanding its sustainable greenhouse cultivation activities by establishing its first produce related operations. A subsidiary of MILC, Millennium Produce of Nebraska LLC, has executed a long-term lease for an approximately 1.1 million square foot greenhouse cultivation facility located in O'Neill, Nebraska.

The Lease was entered into upon the acquisition of the Property by Power REIT. David H. Lesser, MILC's Chairman and CEO is also Chairman and CEO of Power REIT. As part of the transaction, Power REIT has agreed to fund capital improvements of approximately $534,000 for the initial phase of improvements, which includes costs related to the replacement of energy curtains.

As part of the transaction, Millennium Produce arranged a $3 million non-recourse loan with a fixed interest rate of 1.5% and a four-year term. The loan is secured by Furniture, Fixtures, and Equipment, which was purchased by Millennium Produce, as well as crops. The greenhouse has a total of approximately one million square feet under glass and sits on approximately 88 acres.

It includes a hanging gutter growing system serviced by a fully automated irrigation system and a central boiler for hydronic heating. The Property has expansion potential with approximately 20 acres of land available for approximately 875,000 square feet of additional greenhouse and related space. The Property includes logistics space equipped for processing, packaging, warehousing, and shipping activities.

The Property's exterior features a stormwater management pond a 1-million-gallon hot water storage tank, and CO2 storage tanks. Additionally, the Ogallala Aquifer, a shallow water table beneath the great plains of Nebraska, represents a significant resource to supply the region with fresh water. The Property is fully serviced with natural gas, water and electrical connections.

There is a 6.25MVA electrical substation located on-site which provides ample power for existing operations with excess capacity of approximately 5-6MVA and potential to expand up to 18.75MVA. In addition, the leased Property includes a separate employee housing property with 21 rooms that can handle up to 80 employees. There is a growing trend towards Controlled Environment Agriculture (“CEA”) cultivation of certain crops.

Climate change is accelerating the depletion of water and agricultural land resources and adapting to these intensifying trends is critical to achieve food security. Simultaneously, the demand for locally grown, fresh produce is increasing. Many traditional agricultural areas of the U.S. are experiencing drought and CEA's lower water demand combined with increased potential yields represent an important part of the solution.

Greenhouse technology is an economically and environmentally sustainable solution for these secular issues. Tomatoes are traditionally a warm-season crop and in more temperate climates tomato producers rely on CEA facilities to extend the production season. Tomato producers across the U.S. are establishing and expanding greenhouse operations to increase domestic production and provide consumers with a consistent source of fresh, locally grown produce.

Relative to outdoor (field) production of tomatoes, greenhouse production is more predictable and consistent, yielding a crop that is more uniform in appearance and quality. CEA allows for an average of 20x higher yield compared to outdoor cultivation, using 90% less water with no fertilizer runoff. The fresh tomato industry is capitalizing on the significant advantages and sustainability of greenhouse cultivation whereby approximately 60% of fresh retail tomatoes consumed in North America are now grown in greenhouse facilities.