Several people have asked me this question and I figured I would try to document (with lots of links) what I've learned over the past 6 months.
Here is a blog post about it: https://dustymabe.com/2017/08/08/how-do-we-create-ostree-repos-and-artifacts-in-fedora/ I'll try to find a more permanent place for it to live (probably in our pagure repo). Dusty