RES 1998-2973 - Processing Solutions Inc redevelopment plan H
`�°`,• 4'-- ,;y Planning Department
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Fo R '' r r r Telefax(402)444-6140
City of Omaha Robert C.Peters
Hal Daub,Mayor October 6, 1998 Acting Director
Honorable President
and Members of the City Council,
The attached proposed Resolution approves the Processing Solutions, Inc. Redevelopment Plan for the
industrial development project located at 9th Street and Ellison Avenue. The plan proposes construction of
an industrial facility suitable for finish meat and other food processing,marketing and distribution activities.
The Plan proposes that the City participate in the development by providing$1,110,000 in Tax Increment
Financing;the total project cost is estimated to be$9,763,826. Approximately$100,000 of TIF funds will
be allocated to the city for storm sewer network improvements. The redevelopment project will develop a
vacant property in the vicinity of the airport industrial park and create approximately 200 new employment
opportunities in this area.
The Contractor has on file a current Annual Contract Compliance Report Form(CC-1). As is City policy,
the Human Relations Director will review the Contractor to ensure compliance with the Contract Compliance
Ordinance.
Your favorable consideration of this Resolution will be appreciated.
Sincerely, Referred to City Council for Consideration:
9. 3 feP Sr /47,6"z
Robert C. Peters Date Mayor's Office/Title / Date
Acting Planning Direct
Approved as to Funding: Approved:
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e- oe,D.,,,:,,p,„,./., oi/hy:
Louis A. D44j le Date George L. Davis, Jr. ate,; !;
optAfinance Director Human Relations Director ,'x LI
Approved:
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Don W. Elliott,P.E. Date
Public Works Director
Notice of Publication and Public Hearing: October 8 and October 15, 1998
Public Hearing: October 27, 1998
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PSI ADDITION ��I', i I
9TH STREET AND ELLISON AVE � "—' !+"'
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a OMAHA NE --—w, t
8 mot Oaomesa AMINCBCMTs NC.
PRELIMINARY PLAT ..�.
ATTACHMENT 1 page 2
LEGAL DESCRIPTION: LOT 1 , PSI ADDITION
LEGAL DESCRIPTION PRIOR TO REPLAT:
PARCEL NO. 1: LOTS ONE THROUGH THIRTY (1--30), BLOCK ONE
(1), COTTAGE HOMES. AN ADDITION TO THE CITY OF OMAHA, AS
SURVEYED. PLATTED AND RECORDED IN DOUGLAS COUNTY,
NEBRASKA.
PARCEL NO. 2: A PARCEL OF LAND BEING THE SOUTH 225.00
FEET OF LOT "M", OF THE UNION LAND COMPANY'S FIRST
ADDITION TO THE CITY OF OMAHA, AS SURVEYED, PLATTED AND
RECORDED IN DOUGLAS COUNTY, NEBRASKA.
PARCEL NO. 3: A PARCEL OF LAND BEING THAT PART OF THE
SOUTH 225.00 FEET OF LOT "L", OF THE UNION LAND COMPANY'S
FIRST ADDITION TO THE CITY OF OMAHA. AS SURVEYED, PLATTED
AND RECORDED IN DOUGLAS COUNTY, NEBRASKA, LYING 8.50 FEET
EAST OF THE CENTERLINE OF THE EXISTING MAIN LEAD TRACT
V-585 OF THE UNION PACIFIC RAILROAD COMPANY,
PARCEL NO. 4: A PARCEL OF LAND BEING ALL OF LOTS 1 THRU
7, INCLUSIVE, TOGETHER WITH LOTS 24 THRU 30. INCLUSIVE.
TOGETHER WITH ALL THAT PART OF LOTS 8 AND 23. ALL IN
BLOCK 2. COTTAGE HOMES. AN ADDITION TO THE CITY OF OMAHA,
AS SURVEYED, PLATTED AND RECORDED IN DOUGLAS COUNTY,
NEBRASKA, LYING 8.50 FEET EAST OF THE CENTERLINE OF THE
EXISTING MAIN LEAD TRACK V-585 OF THE UNION PACIFIC
RAILROAD COMPANY.
Exhibit "A"
•
PROCESSING SOLUTIONS, INC.
9th Street and Ellison Avenue
REDEVELOPMENT PLAN
oMAHA,A. September 2, 1998
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o�'�ED FEBR�'� PLANNING OMAHA
City of Omaha • City of Omaha
Hal Daub,Mayor Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,Nebraska 68183
PROCESSING SOLUTIONS,INC.
REDEVELOPMENT PLAN
NINTH STREET AND ELLISON AVENUE
This project proposed by Processing Solutions, Inc. (PSI) provides for the
construction of an industrial facility for finish processing of meat and other food
products, telemarketing, shipping and receiving. This $9,763,826 project will
develop a vacant property in the vicinity of the airport industrial park.
The project site is in a General Industrial District (GI) suitable for light industry and
distribution activity. The project includes site preparation and construction of a
107,400 square foot building with truck and delivery docks, on-site parking and
landscaping. The 9.70 acre property will have the capacity for a 50,000 to 75,000
square foot future expansion of the building.
Necessary public improvements will include street improvements at Ninth and
Storz Expressway. As an adjunct to this construction project, a portion of the Tax
Increment Financing would be applied to the cost of a detention basin and storm
sewer network, an element of the public infrastructure which makes this industrial
area suitable for development.
With the approval of approximately $1,110,000 in Tax Increment Financing,
approximately $75,000 to $100,000 will be allocated to the City toward infrastructure
costs. This amount will be finalized in the Redevelopment Agreement. The
balance of TIF will be allotted to PSI for public improvements, purchase, and site
preparation costs. The approximately $1,010,000 in TIF financing as a portion of the
$9,763,826 total project cost will make this project feasible. Other financing
including private financing and developer's equity are committed. The TIF will be
retired over 15 years. Excess ad valorem taxes resulting from the development
would produce approximately $164,228 per year.
The developer will be responsible for the entire construction project at 9th and
Ellison including the installation of gas, water, electricity and sewer suitable to the
proposed use and street improvements to City specifications. Construction at the
project site is expected to begin immediately and be completed by December 31, 1999.
The City will be responsible for the storm sewer detention basin.
Attached maps show the project location and site plan of the redevelopment project.
The legal description of the redevelopment site is attached (Exhibit A-1). PSI has
submitted a preliminary plat which consolidates the existing parcels to become Lot 1,
PSI Addition (Exhibit A-2). The excess ad valorem taxes from this project will be
computed from the base tax value assessed on this site for the year prior to the
passage of this Redevelopment Plan.
1
PROJECT DESCRIPTION
Processing Solutions, Inc. (PSI) proposes to purchase and improve this site with the
construction of an industrial facility for finish processing of meat and other food
products, telemarketing, shipping and receiving.
Processing Solutions, Inc. (PSI) is a subsidiary of Next Century Communications
Corporation, a Virginia-based marketing company specializing in the sale of
specialty food products. PSI processes specialty meat products such as Filet Mignons,
New York strip steaks, T-bone steaks, lamb chops, etc. In addition to the specialty
meat products, the expanded product line includes other specialty food products
such as cakes, cheesecakes and pies. The products are individually wrapped and
specially packaged, designed to target the high-end quality conscious consumer.
Next Century Communications established PSI as a new business in Omaha in 1997.
PSI is currently renting a facility at 92nd and F Streets which is inadequate for their
current and anticipated future growth. PSI wants to relocate in a new facility in East
Omaha to provide employment opportunities in that area. This location is also
close to suppliers for containers and dry ice and convenient for trucking and air
transportation.
The property at Ninth and Ellison Streets is vacant at this time and will require
extensive grading and dirt fill and the installation of suitable utilities on the site.
The proposed facility will be a 107,400 square foot two-story industrial facility with
truck and delivery docks. The building could be expanded by 50,000 to 75,000 square
feet at a future date.
PSI is a multi-faceted operation that trims, cuts, packages, freezes, warehouses and
ships high-end quality meat and other food products. PSI also conducts inbound
and outbound telemarketing and fulfillment services. The uses in the proposed
building are general offices, telemarketing, trimming and cutting of meats, cold-
storage warehousing, shipping and receiving.
The processing area is about 25% of the building. In this area, PSI will receive
truckloads of boxed meat products such as short loins, tenderloin and pork loins.
The meat is then trimmed and put in a cooler where it is aged. After a
predetermined amount of time, it is pulled and cut into marketable pieces such as
steaks and pork chops. It is then sealed in individual servings, boxed for consumer
delivery and warehoused in a freezer environment until it is placed in coolers with
dry ice and shipped to end-user consumers. The fulfillment area in which the
packing and shipping of coolers takes place is about 25% of the building. Another
quarter of the facility will be used as dry storage for such things as packaging
materials, shipping coolers, catalogs and other marketing items.
The office and telemarketing operation will be housed in the remaining 25% of the
building. A growing number of highly-trained inbound and outbound phone
2
operators take orders and handle customer service for PSI. After obtaining an order,
they process it and send it to the fulfillment and shipping departments. In addition
to telemarketing, PSI markets its products through direct mail, print advertising and
catalogs which are professionally designed and feature photographs of the specialty
food products. PSI currently provides this processing, marketing and fulfillment
service for Butch Long's Steaks of Nebraska and anticipates providing the same
service to other companies in the future.
PSI currently has 110 employees and anticipates that expansion in the new facility
will create approximately 200 new jobs. This redevelopment project will directly
benefit low and moderate income people through job creation.
Public improvements required for this project are the widening of turn lanes for
truck movement at the intersection of 9th Street and Storz Expressway which
involves the relocation of a storm sewer and new lane markings on 9th Street. The
project will also contribute approximately $75,000 to $100,000 of TIF to the cost of a
detention basin and storm sewer network serving this industrial area.
DEVELOPMENT FINANCING PLAN SUMMARY
* Bank Financing $7,500,000 77%
** TIF Financing- approximate 1,010,000 10%
Developer Equity 1,253,826 13%
Total $9,763,826
* Permanent financing for a term of 30 years at approximately 8%.
The project will have $7,000,000 construction financing at 8%.
** TIF financing at 8%for 15 years; the actual amount allotted to the
developer will be the balance after the amount of contribution to
the City for storm sewer infrastructure is set.
UTILITIES AND TRANSPORTATION
Gas, water, electricity and sewer services suitable to the proposed use will be
installed by the developer. Truck access to the site is from 9th Street to Storz
Expressway. The site is convenient to air transport facilities.
LAND USE/ZONING/PARKING
This site is located in a General Industrial District. Surrounding properties are also
zoned for General Industrial use with an R4 District immediately to the southeast.
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A railroad corridor runs along the western edge of the property. This light
manufacturing and distribution facility is in compliance with the proposed land use
and Master Plan for this area. Proposed on-site parking exceeds the requirements for
the anticipated uses.
The proposed development will comply with the site development regulations for
GI use as follows:
Lot area 10,000 square feet minimum
Lot width 100 feet minimum
Floor area ratio 2.0 Maximum
Front yard (minimum) 50 feet from the center line of the fronting street
Street side yard Lesser of 10 feet or 50 feet from the center line of
the fronting street
Interior side year No requirement
Rear yard 10 feet minimum on lots without alley frontage;
no requirement along alley
Height 120 feet maximum;45 feet maximum where
building is within 100 feet of an R6 or lower
intensity district
Building coverage 90 percent maximum
Impervious coverage 90 percent maximum
BLIGHT AND SUBSTANDARD CONDITIONS
The property is located in an area of North Omaha previously designated as blighted
and substandard. The site is located in a census tract which has an unemployment
level at 102.17% of the state average. Per capita income is $4,474 lower than the per
capita income of the municipality as a whole. Population in the area dropped by 236
persons during the period of the last decennial census. Development of this vacant
property will eliminate the potential of illegal dumping or other hazardous uses.
4
EXHIBIT "A-1"
LEGAL DESCRIPTION: LOT 1 , PSI ADDITION
LEGAL DESCRIPTION PRIOR TO REPLAT:
PARCEL NO. 1: LOTS ONE THROUGH THIRTY (1.30), BLOCK ONE
(1), COTTAGE HOMES, AN ADDITION TO THE CITY OF OMAHA, AS
SURVEYED. PLATTED AND RECORDED I'N DOUGLAS COUNTY,
NEBRASKA.
PARCEL NO. 2: A PARCEL OF LAND BEING THE SOUTH 225.00
FEET OF LOT "M"', OF THE UNION LAND COMPANY'S FIRST
ADDITION TO THE CITY OF OMAHA, AS SURVEYED, PLATTED AND
RECORDED IN DOUGLAS COUNTY, NEBRASKA_
PARCEL NO. 3: A PARCEL OF LAND BEING THAT PART OF THE
SOUTH 225.00 FEET OF LOT "L OF THE UNION LAND COMPANY'S
FIRST ADDITION TO THE CITY OF OMAHA. AS SURVEYED, PLATTED
AND RECORDED IN DOUGLAS COUNTY, NEBRASKA, LYING 8.50 FEET
EAST OF THE CENTERLINE OF THE EXISTING MAIN LEAD TRACT
V-585 OF THE UNION PACIFIC RAILROAD COMPANY.
PARCEL NO. 4: A PARCEL OF LAND BEING ALL OF LOTS 1 THRU
7. INCLUSIVE, TOGETHER WITH LOTS 24 THRU 30. INCLUSIVE.
TOGETHER WITH ALL THAT PART OF LOTS 8 AND 23. ALL IN
BLOCK 2, COTTAGE HOMES, AN ADDITION TO THE CITY OF OMAHA,
AS SURVEYED, PLATTED AND RECORDED IN DOUGLAS COUNTY,
NEBRASKA, LYING 8.50 FEET EAST OF THE CENTERLINE OF THE
EXISTING MAIN LEAD TRACK V-585 OF THE UNION PACIFIC
RAILROAD COMPANY.
EXHIBIT "A-2"
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C-25A CITY OF OMAHA
• LEGISLATIVE CHAMBER
• Omaha,Nebr October 6 19 98
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, the primary objectives of the City of Omaha's Master Plan and
Community Development Program are to encourage additional private investment and infill
development within inner-city neighborhoods; arid to eliminate conditions which are detrimental to
public health, safety and welfare, by developing vacant, underutilized property within these
neighborhoods; and,
WHEREAS,the approximately 9.7 acre Processing Solutions, Inc., redevelopment
area is located at 9th Street and Ellison Avenue (see Attachment 1 for complete legal description);
and,
WHEREAS,this Redevelopment Plan is located within an area previously declared
"blighted and substandard and in need of redevelopment"by City Council Resolution No. 1445,June
2, 1992; and,
WHEREAS, Processing Solutions, Inc., Redevelopment Plan proposes the
construction of an industrial facility suitable for light industrial,marketing,and distribution activities
as described in Exhibit "A", attached hereto and made a part hereof; and,
WHEREAS,the Processing Solutions,Inc.,Redevelopment Plan provides for the use
of Tax Increment Financing for public improvements,purchase and site preparation; and,
WHEREAS, an Industrial Development Bond issue may be used in this blighted and
substandard area to assist with project financing; and,
WHEREAS, Section 18-2108 of the Nebraska Revised Statues requires the City of
Omaha to adopt a redevelopment plan before taking an active part in a redevelopment project;
including the division of ad valorem taxes under Sections 18-2147 through 18-2150, Revised
Statutes of Nebraska; and,
WHEREAS,the Processing Solutions, Inc., Redevelopment Plan was approved by
the City of Omaha Planning Board on September 2, 1998.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
C-25A CITY of OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr octobec6r:.er _'=19 98
•
PAGE 2
THAT,the attached Processing Solutions,Inc.,Redevelopment Plan,prepared by the
Omaha City Planning Department,containing a provision for the division of ad valorem taxes under
Section 18-2147 through 18-2150, Revised Statutes of Nebraska, be and hereby is approved as the
Redevelopment Plan for Processing Solutions, Inc., redevelopment area at 9th Street and Ellison
Avenue.
APPROVED AS TO FORM:
ASSIS ATT EY A E
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Councilmember
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