RES 2013-8 Airlite IML Building #3 TIF PlanCity of Omaha
Jim Suttle, Mayor
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January 8, 2013
Honorable President
and Members of the City Council,
t'
Planning Department
( )maha/Dougla:.; Civic Center
1819 Farnam Street, Suite 11 00
Omaha, Nebraska 68183
(402) 444-5150
Tdcfax (402) 444-6140
R. E. Cunningham, RA, F.SAME
Director
The attached Resolution transmits the Airlite IML Building #3 Tax Increment Financing (TIF)
Redevelopment Project Plan which proposes constructing a new 43,000 square foot building
addition to its existing manufacturing facility within the Airport Business Park/Riverfront
Industrial Park area to accommodate their expanding manufacturing needs to produce plastic
injected food packaging products, located at 6110 Abbott Drive.
Air lite Plastics Co. (Air lite) has a long history in Omaha. Air lite produces and sells plastic
containers and lids for food packaging, drink cups, and lids, as well as polystyrene coolers,
insulated concrete form (ICF) building blocks and other custom plastic products. Airlite has
been in Omaha over 50 years and currently employs approximately 850 people. It is anticipated
that this expansion will create between 90-120 jobs over the next five years. Located within the
Airport Business Park and near populations with the highest unemployment rates, over half of
the new jobs created will be held by low and moderate income individuals. Airlite provides
training for its employees. Airlite has a facility in Pennsylvania where it could expand more
easily, yet it has made a commitment to Omaha and will increase its operational capacity within
Omaha. The TIF will help offset costs of incurred at this site that Airlite would not incur at an
already constructed site.
The Redevelopment Project Plan recommends the City's participation in the redevelopment of
this project site through the allocation ofTIF in an amount up to $1,655,240.00 to offset costs of
site work, architectural and engineering fees, special foundations due to the soil conditions in the
Airport Business Park, and any public improvements, which includes $30,000.00 of the TIF
allocation toward the Airport Business Park Public Improvement/Detention Center Fund. The
total project cost is estimated to be $57,803,000.00 with TIF eligible cost of approximately
$1,697,000.00.
Your favorable consideration of this Resolution will be appreciated.
Approved:
Pam Spaccarotella n~
Finance Director v {J
1791 dlh
Date
/z. ;z. J2_
Date
t2~~~ /Z-Il-/(_
Robe G. Stubbe, P.E. Date
Public Works Director
Notice of Publication: January 10, 2013 and January 17, 2013
Public Hearing: January 29, 2013
IV. Alta Survey & Legal Description of project site.
An Alta survey is in progress and is expected to be completed in the next 15 days. Attached is a
copy of 2002 survey certificate of the property.
BK 1502 PG 466-468
11111~1~1111 ~~~~~
11I'3C 2003 0~3759 .. -......... -...... '.:..,
BEING A REPLA TIING OF :I'HA T PART OF GOVERNMENT LOT 4 IN THE NE y. OF THE SW Y. OF SECTION 35,
Tl6N, RI3E OF THE 6TH P.M~. DOUGLAS COUN1Y, NEBRASKA, DESCRIBED AS FOLLOWS: BEGINNlNG AT THE
NW CORNER OF SAID GOVERNMENT LOT 4;
THENCE soo•o5'54"W (ASSUMED BEARING) 924.30 FEET ON THE WEST LINE OF SAID GOVERNMENT LOT 4
TO THE NORTH LINE OF THE SOUTH 400.00 FEET OF SAID GOVERNMENT LOT 4;
THENCE S89•59' I O"E 1323.90 FEET ON THE NORTH LINE OF THE SOUTH 400.00 FEET OF SAID GOVERNMENT
LOT 4 TO THE EAST LINE THEREOF;
THENCE N00°04'42"W 924.77 FEET ON THE EAST UNE OF SAID GOVERNMENT LOT 4 TO THE NE CORNER
THEREOF;
THENCE N89°59'37"W 717.13 FEET ON THE NORTH LINE OF SAID GOVERNMENT LOT 4;
THENCE S89°58'41"W 505.11 FEET ON THE NORTH LINE OF SAID GOVERNMENT LOT 4 TO THE
NORTHEASTERLY LINE OF KANSAS AVENUE;
THENCE S52°49'03"E 82.55 FEET ON THE NORTHEASTERLY LINE OF KANSAS A VENUE;
THENCE S37°10'57"W 55.00 FEET ON THE SOUTHEASTERLY LINE OF KANSAS AVENUE;
THENCE NORTHWESTERLY ON THE SOUTHWESTERLY LINE OF KANSAS A VENUE ON A 55.00 FOOT RADIUS
CURVE TO THE RIGHT, CHORD BEARING N56"44'55"W, CHORD DISTANCE 109.74 FEET, AN ARC DISTANCE OF
165.22 FEET;
THENCE NORTHWESTERLY ON THE SOUTHWESTERLY LINE OF KANSAS A VENUE ON A 19.45 FOOT RADIUS
CURVE TO THE LEFT, CHORD BEARING Nl6"53 '04"W, CHORD DISTANCE 28.66 FEET, AN ARC DISTANCE OF
32.22 FEET;
THENCE NORTHWESTERLY ON THE SOUTHWESTERLY LINE OF KANSAS A VENUE ON A 198.39 FOOT RADIUS
CURVE TO THE LEFT, CHORD BEARING N66°32'51 "W, CHORD DlST ANCE I 5.28 FEET, AN ARC DISTANCE OF
15.28 FEET TO THE NORTH LINE OF SAID GOVERNMENT LOT 4;
THENCE S89"58'41 "W 17.35 FEET ON THE NORTH LINE OF SAID GOVERNMENT
BEGINNING.
SURVEYOR'S CERTIFICATE
I HEREBY CERTIFY THAT I HAVE SURVEYED
THE PROPERTY DESCRIBED HEREON Al~D
THAT PERMANENT MARKERS HAVE BEEN
FOUND OR SET AT ALL CORNERS OF THE
LOT BEING PLATTED.
JUNE 28, 2002
DATE: JAMES D. WARNER,
NEBRASKA R.L.S. 308
,.1 · '-1 ,-~ -(~SREET 1 OF 3
) ./ .,c--"'l\.'\~,_r-.,:,.Q-y-
4 TO THE POINT OF
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BAIRD HOLM 0~" TD' JOB NO. 200-300-140 DATE: JUNE 28,2002
THOMPSON, DREESSEN & DORNER, INC. • 10836 OLD MILL ROAD • OMAHA, NEBRASKA 68154 • ( 402) 330-8860
\;::, c.:,.s, \ ~
OWNER'S CERTIFICATION
KNOW ALL PERSONS BY THESE PRESENTS: TilA T WE, AIRUTE PLASTICS CO., A NEBRASKA CORPORATION,
TilE UNDERSIGNED OWNER OF TilE PROPERTY DESCRIBED HEREON AND EMBRACED WITHIN TillS PLAT,
HAVE CAUSED SAID LAND TO BE SUBDIVIDED INTO A LOT AS SHOWN ON TillS PLAT.
AIRLITE PLASTICS CO.,
A NEBRASKA CORPORATION
BY'~
TITLE:~?-.:-
ACKNOWLEDGEMENT OF NOTARY
STATEOFNEBRASKA )
) s.s.
COUNTY OF DOUGLAS )
THE FOREGOING OWNER'S CERTIFICATION WAS ACKNOWLEDGED BEFORE !VIE TillS -~r-DAY OF
tN"r2.C..I+ 2_oO 3 .~Y ah."P c~o l3. r t-
OF AIRLITE PLASTICS CO., A NEBRASKA CORPORATION, ON BE F OF S
CNERAL NOTARY· State Dl Nolbraska
;' KEVIN MclAUGHUN
.....-;_ My Coolm. E.lp. Oc1. 2. 2005
COUNTY TREASURER'S CERTIFICATE
TillS IS TO CERTIFY THAT I FIND NO REGULAR OR t>PECIAL TAXES, DUE OR DELINQUENT, AGAINST THE
PROPERTY DESCRIBED IN THE ~E~~. ?~~~~0~ AND AS SHOWN BY THE~RECORD:2 TillS OFFICE.
~-\0-0~ i~(~·· ,: ; .. \.tt~~
DATE: ·Cl \.:--~-· • -~./ $_'! fj COUNTY TREASURE
.• ·... _...-,:j_f .. .,, ~;;·,[;·::~~;~:;#'
PLANNING DIRECTOR'S APPROVAL
APPROVED AS A SUBDMSION OF NOT MORE THAN TWO (2) LOTS, PARCELS OR TRACTS, WITH PLAT
REQUIREMENTS WAIVED PER SECTION 7.08 HOIVIE RULE CHARTER OF THE CITY OF OMAHA, 1956. TillS
SUBDMSION APPROVAL IS VOID UNLESS THIS PLAT IS FILED AND RECORDED WITH THE COUNTY
:I~:i:~EEDS WTI1llN TillRTY (30) DAYS OF~~
4 DAk ' ~==-~-=-=::'::G-::D:::IRE~=frlr<-="-'::;,_-""'-----
I( )t( (' SHEET2 OF3
BAIRD HOLM TW JOB NO. 200-300-140 DATE: JUNE28,2002
THOMPSON, DREESSEN & DORNER, rNC. • 10836 OLD MILL ROAD • OMAHA, NEBRASKA 68154 o (402) 330-8860
LEGEND
e CORNERS FOUND
0 CORNERS SET
(5/8" REBAR)
R RECORDED DISTANCE
M MEASURED DISTANCE
OTP OPEN TOP PIPE
CTP CRIMPED TOP PIPE
RADIUS=55.00'
f.'\ CHORD BEARING=N56'44'55"W
\!J CHORD DISTANCE=109.74' R&M
ARC §_~BJ~.Q= 165.22'
RADIUS= 19.45'
r;;'\ CHORD BEARING=N16'53'04"W
\!:.)CHORD DISTANCE=28.66' R&M
ARC BEARING=32.22'
RADIUS= 198.39'
ADDRESS, LOT 1, ___ 5_2_5_K_A_N_sA_s __ A_ve ________ __
f.\ CHORD BEARING=N66'32'51"W
\:V CHORD DISTANCE= 15.28' R&M
ARC ~EAIDNG=15.28'
ADDRESS, LOT 2, ___ 6_11_o_A_s_so_rr __ D_R_Iv_E ______ _
~
I z(J)I LOT 1 LOT 2
RIVERFRONT INDUSTRIAL u' 1 (;; 1 RIVERFRONT
: PARK REPLAT J 15_28, v, 1 )> 1 INDPUA~~IAL
~·------L~o2~~~.~~~~--~~-o~~~ s::.:~:1:w 1
,·· c,'\ ~~ 924·30' ~ 17.35 R&M . ~ ! I .._fo 'CD S3T19'57"W I
: 1• 55.00 R&MI
N a:::
~
: 0 s ~ 1 'd LOT ~o0 .~'? S52'49'03"E 1
~ 31 2,542 SQUARE FEET '0 ml I 82.55' R&M/1
I OR 7.17 ACRES ~1 1 ! _____________________ ~12500' /
I 924.52' 1 : ./"'"':s89'5a· 41 ·w rr 505.11' R&M
::;I 1;:;1 I I ~I ~ :1 ~~~ i I
<:1!1 I ~~ I ~~ \ c"-~li/ Y
I ~
0 ~~~ i -" ~:s LOT 2 1::::;: ~
I 910,238 SQUARE FEET I ~ ll1 'g
OR 20.90 ACRES I~ f-~
I ·I~ 3
I ~~~ ~ I ~~~ ~
I ~~~ ~ I
I I~ ~
d I~ /
\I I V1 I
\JI o""< I : ; I I ~ \ ":J\ 924.77' I ~ r·------'N00:04·42-W.-92ill-R&;------~·......_,_ ~ ~ i c3='
I • 0
I ":J\"' 1:::
I PART OF LOT 4 I ~
RIVERFRONT INDUSTRIAL PARK I ~
I
~
BOOK 02-10, PAGE 76 SHEET 3 of3 SCALE 1" = 50'
BAIRD HOLM TD2 JOB NO. 200-300-140 (ADM) DATE: JUNE 28, 2002
THOMPSON, DREESSEN & DORNER, INC., 10836 OLD MIU. ROAD, OMAHA, NEBRASKA 68154, 402-330-8860
I I .) ( ( (~
EXHIBIT "B"
AIRLITE PLASTICS
TIF REDEVELOPMENT PROJECT PLAN
611 0 ABBOTT DRIVE
JANUARY 2013
Jim Suttle, Mayor City of Omaha R. E. Cunningham, RA, F. SAME
Director, Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street, Ste. 1111
Omaha, Nebraska 68183
INTER-OFFICE COMMUNICATION
Date: November 15,2012
To: TIF Committee:
Rick Cunningham, Pam Spaccarotella, AL Herink, Paul Kratz, Robert
Stubbe, Todd Pfitzer, Gail Braun, David Dover
From: Bridget A. Hadley -City Planning~
Applicant: Airlite Plastics Co.
Location: 6110 Abbott Drive
Project:
This project represents an economic development project in that the end result of the project is to
create jobs within the Airport Business Park which is in close proximity to highly unemployed
populations. See attached maps following the plan. Also, this project represents economic
development as the result of the increase in business investment/recapitalization by a local
company, Airlite Plastics Co. (Airlite). This project contemplates redeveloping the unimproved
ground remaining at the Airlite campus to construct an addition to the manufacturing facility to
allow Airlite to continue to meet its market demands. This site was part of a TIF project that was
paid off in 2011. This new TIF project will "lock" in the increase in base valuation created over
the years by Airlite, yet generate additional new taxes which will flow back to the taxing
jurisdictions as this TIF project pays off.
Airlite is a privately held, family owned company which has been located in Omaha for more
than 50 years. Airlite produces and sells plastic containers and lids for food packaging, drink
cups, and lids, as well as polystyrene coolers, insulated concrete form (ICF) building blocks and
other custom plastic products. The company contemplates constructing a new 43,000 square
foot building addition to its existing manufacturing facility in the Airport Business Park area to
accommodate their expanding manufacturing needs to produce plastic injected food packaging
products. It is anticipated that the building will be constructed of pre-cast concrete and will
include facilities for product manufacturing and offices. As Airlite takes on new customers or
accepts various requests from existing customers, their facilities need to adapt to the· changes; the
company typically needs a six month lead time for equipment order and installation. In order to
continue to grow and compete in this competitive market, new manufacturing space must be
developed. There is an opportunity to lease additional space for Airlite to expand its
manufacturing capability at its recently acquired business in Nazareth, Pennsylvania. After
consideration of expanding in Nazareth or Omaha, Airlite believes that a building addition to the
facility at 6110 Abbott Drive, located in the Airport Business Park area, will best serve its needs
with the assistance of TIF to help compensate for increased development expenses necessitated
by this site which would not be present at its Nazareth facility.
Airlite currently employs over 900 workers, with 850 located in Omaha and 57 located in a
recently purchased manufacturing business located at its Pennsylvania site. The company has
increased employment at its Omaha facility by 75 over the past last three years. In the next 5
years, Airlite projects creating 15 to 25 new jobs per year.
The project site is zoned GI, therefore no zoning changes are required. Public infrastructure
exists at the site other than some utility connections. This project will be required to comply
with all Planning Department and Planning Board recommendations. The construction of the
building is scheduled to be completed by July 2013.
The total estimated project cost is $57,803,000.00. This Project cost represents approximately
$7.8 million invested in building expansion and approximately $50 million invested in
production lines -capital equipment. TIF will be used to offset costs of site work, architectural
and engineering, special foundations due to the soil conditions in the Airport Business Park, and
any public improvements. TIF eligible costs are as follows:
Design Fees-AlE $ 340,000.00
Site Work $ 882,000.00
Special Foundations-Piling $ 475,000.00
Total TIF Eligible $1,697,000.00
Airlite will contribute $30,000.00 of the TIF loan toward the Airport Business Park Public
Improvement/Detention Center Fund.
The project site and area meet the requirements of Nebraska Community Development Law and
qualify for the submission of an application for the utilization of Tax Increment Financing to
cover costs associated with project development as submitted for approval throughthe Tax
Increment Financing process. The project is in compliance with the Master Plan, appropriate
Ordinances and development regulations of the City.
Request: The approval of up to $1,655,240.00 at an interest rate of 2.5%; Airlite may self-
finance in the beginning, and later use bank financing as necessary. Using the current levy rate
of 2.17798% supports the TIF request. See attached TIF calculation spreadsheets.
TIF Fee Schedule: $500.00 application fee and the processing fee of $3,000.00 were paid;
minimum administrative fees of $17,955.00 will be billed. Total minimum fees will be
$21,455.00.
Recommendation: Approval
ATTACHMENTS
TIF Application
TIF Calculation Spreadsheet
Census Tract Map
Poverty Rate Map
Unemployment Rate Map
Applicant: Airlite Plastics PROFORMA Debt Service Payments Total Less Pre-TIF Treasurer's Revenues ------Taxable Development Taxable Tax Tax 1% Collection Available Interest at Loan Capitalized Interest at DATE Valuation Base Valuation Levy Revenues Fee ForTIF Loan Principal 2.50% Total Balance Interest 2.50% -----------------------0 $1,575,000 0.5 $ 0 $ 2.17798 $ $ $ $0 $0 $0 $1,594,688 19688 19688 1 $ 0 $ 2.17798 $ $ $ $0 $0 $0 $1,614,622 19934 19934 1.5 $ 0 $ 2.17798 $ $ $ $0 $0 $0 $1,634,805 20183 20183 2 $ 0 $ 2.17798 $ $ $ $0 $0 $0 $1,655,240 20435 20435 2.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $55,021 $20,691 $75,712 $1,600,219 0 20691 3 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $55,709 $20,003 $75,712 $1,544,510 0 20003 3.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $56,406 $19,306 $75,712 $1,488,104 0 19306 4 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $57,111 $18,601 $75,712 $1,430,993 0 18601 4.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $57,825 $17,887 $75,712 $1,373,168 0 17887 5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $58,547 $17,165 $75,712 $1,314,621 0 17165 5.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $59,279 $16,433 $75,712 $1,255,342 0 16433 6 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $60,020 $15,692 $75,712 $1,195,322 0 15692 6.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $60,770 $14,942 $75,712 $1,134,552 0 14942 7 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $61,530 $14,182 $75,712 $1,073,022 0 14182 7.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $62,299 $13,413 $75,712 $1,010,723 0 13413 8 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $63,078 $12,634 $75,712 $947,645 0 12634 8.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $63,866 $11,846 $75,712 $883,779 0 11846 9 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $64,665 $11,047 $75,712 $819,114 0 11047 9.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $65,473 $10,239 $75,712 $753,641 0 10239 10 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $66,291 $9,421 $75,712 $687,350 0 9421 10.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $67,120 $8,592 $75,712 $620,230 0 8592 11 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $67,959 $7,753 $75,712 $552,271 0 7753 11.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $68,809 $6,903 $75,712 $483,462 0 6903 12 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $69,669 $6,043 $75,712 $413,793 0 6043 12.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $70,540 $5,172 $75,712 $343,253 0 5172 13 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $71,421 $4,291 $75,712 $271,832 0 4291 13.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $72,314 $3,398 $75,712 $199,518 0 3398 14 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $73,218 $2,494 $75,712 $126,300 0 2494 14.5 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $74,133 $1,579 $75,712 $52,167 0 1579 15 $ 7,022,700 0 $ 7,022,700 2.17798 $ 76,477 $ 765 $ 75,712 $75,060 $652 $75,712 $0 0 652 ======== --------======== ---- --------=========== $1,988,402 $19,890 $1,968,512 $1,678,133 $290,379 $1,968,512 $80,240 =========== =========== =========== =========== =========== =========== =========== ASSUMPTIONS: ( F9 = calculate ) NOTE: This Information Is provided to assist In analyzing the Original Loan Amount $1,575,000 specific request to the TIF committee. This Information Is subject Capitalized Interest $80,240 1. Assume No Pre-Development Base to change based on actual tax assessments. This schedule assumes Loan Balance Remaining $0 2. Loan Amount: $1,575,000 a 90% real estate valuation and a 1.0 debt coverage ratio. The ---3. Interest Rate: 2.50% actual TIF amount available to fund site specific project cost will $1,655,240 POTENTIAL 4. Project Hard Costs: $7,803,000 • change based on the cost of public Improvements. =========== 5. Increment Base: $7,022,700 Annual Incremental Tax Payment $ 152,954 General Conditions $ 640,000 Site Work $ 967,000 Building $ 3,796,000 Mechanical $ 1,000,000 Electrical $ 1,400,000 Total $ 7,803,000
CASE: C3-12-231
APPLICANT: Planning Department on behalf of the· City of Omaha
REQUEST: Approval of the AIR LITE PLASTICS EXPANSION TIF REDEVELOPMENT
PROJECT PLAN
LOCATION: 6110 Abbott Drive
SUBJECT AREA IS SHADED-DECEMBER 2012
6
N
A
CASE: C3-12-231
APPLICANT: Planning Department on behalf of the City of Omaha
REQUEST: Approval of the AIRLITE PLASTICS EXPANSION TIF REDEVELOPMENT
PROJECT PLAN
LOCATION: 6110 Abbott Drive
SUBJECT AREA IS SHADED -DECEMBER 2012
0 -Feet
1,700 -
6
N
A
TO:
FROM:
DATE:
SUBJECT:
INTER-OFFICE COMMUNICATION
City of Omaha, Nebraska
Planning Department
Chairman and Members of the Planning Board
R. E. Cunningham, RA, F. SAME
Planning Director
November 28, 2012
AIR LITE PLASTICS EXPANSION TIF REDEVELOPMENT PROJECT PLAN
6110 Abbott Drive
Case # C3-12-231
This project represents an economic development project in that the end result of the project is to create jobs
within the Airport Business Park which is in close proximity to highly unemployed populations. (See
attachments of maps behind the Plan). Also, this project represents economic development as the result of the
increase in business investment/recapitalization by a local company, Air lite Plastics Co. (Air lite). This project
contemplates redeveloping the unimproved ground remaining at the Airlite campus to construct an addition to
the manufacturing facility to allow Air lite to continue to meet its market demands. This site was part of a TIF
project that was paid off in 2011. This new TIF project will lock in the increase in base valuation created over
the years by Air lite, yet generate additional new taxes which will flow back to the taxing jurisdictions as this TIF
project pays off.
Airlite is a privately held, family owned company which has been located in Omaha for more than 50 years.
Airlite produces and sells plastic containers and lids for food packaging, drink cups, as well as polystyrene
coolers, insulated concrete form (ICF) building blocks and other custom plastic products. The company
contemplates constructing a new 43,000 square foot building addition to its existing manufacturing facility in
the Airport Business Park area to accommodate their expanding manufacturing needs to produce plastic
injected food packaging products. It is anticipated that the building will be constructed of pre-cast concrete and
will include facilities for product manufacturing and offices. As Airlite takes on new customers or accepts
various requests from existing customers, their facilities need to adapt to the changes; the company typically
needs a six month lead time for equipment order and installation. In order to continue to grow and compete in
this competitive market, new manufacturing space must be developed. There is an opportunity to lease
additional space for Airlite to expand its manufacturing capability at its recently acquired business in Nazareth,
Pennsylvania. After consideration of expanding in Nazareth or Omaha, Airlite believes that a building addition
to the facility at 6110 Abbott Drive will best serve its needs with the assistance of TIF to help compensate for
increased development expenses necessitated by this site which would not be present at its Nazareth facility.
Airlite currently employs over 900 workers, with 850 located in Omaha and 57 located in a recently purchased
manufacturing business located at its Pennsylvania site. The company has increased employment at its Omaha
facility by 75 over the past last three years. In the next 5 years, Airlite projects creating 15 to 25 new jobs per
year. The construction of the building is scheduled to be completed by July 2013.
The project site is zoned Gl; therefore no zoning changes are required. Public infrastructure exists at the site
other than some utility connections. The TIF request is for $1,655,240.00 at an interest rate of 2.5%; Airlite may
self-finance in the beginning, and later use bank financing as necessary. The total estimated project cost is
$57,803,000.00. This Project cost represents approximately $7.8 million invested in building expansion and
approximately $50 million invested in production lines -capital equipment. TIF will be used to offset costs of
acquisition, site work and any public improvements. This project will be required to comply with all Planning
Department and Planning Board recommendations.
BH
INTER-OFFICE COMMUNICATION
Case # C3-12-231
Page 2
No Building Permit will be issued based on a site plan that does not comply with the provisions of the
Zoning Ordinance.
The project site and area meet the requirements of Nebraska Community Development Law and qualify for the
submission of an application for the utilization of Tax Increment Financing to cover cost associated with project
development as submitted for approval through the Tax Increment Financing process. The project is in
compliance with the Master Plan, appropriate Ordinances and development regulations of the City.
DEPARTMENT RECOMMENDATION: Approval.
ATTACHMENTS
Plan
Census Tract Map
Poverty Rate Map
Unemployment Rate Map
BH
Airlite Plastics Co.
Tax Incremental Financing Application
November 2012
Project
IML Building #3, Rail Spur, Production
Equipment
Table of Contents
I. Project Summary
II. Narrative
Ill. Site Plans
IV. Alta Survey & Legal Description of project site
V. Sources & Uses and preliminary commitment letter for financing and/or equity
VI. Construction Project Budget and Project Timeline
VII. Pro-Forma, indicating total project costs and revenues
VIII. ROI Analysis-"But For'' /Statement of Need
IX. Evaluation Criteria
A. Mandatory
B. Discretionary
X. Cost-Benefit Analysis
XI. Organization Documentation
I. Project Summary
Airlite IML Building #3, Rail Spur, and Production
Lines/Equipment
Project Owner: Airlite Plastics Co.
Project Address: 6110 Abbott Dr, Omaha, NE 68110
Project Legal Description: AIRLITE PLACE* LOT 2 BLOCK 0 LT 2 IRREG 20.90 AC
Estimated Total Project Cost: $57.8 million
TIF Request: $1,655,240
Current Use: Production, warehousing, and offices Current Zoning: Industrial
Proposed Use: Same but project tied to TIF is a production building addition for manufacturing
plastic injected food packaging containers & lids
Current Annual Real Estate Taxes (2012 Tax Year):
Current Assessed Tax Valuation (2012 Tax Year):
[Type text]
Land:
Improvements:
Total:
$591,035.30
$961,000
$27,147,800
$28,108,800
11. Narrative
Airlite Plastics Co. is considering improving its site with the construction of a 43,000 square foot
building addition to its existing manufacturing facility in the Riverfront Industrial area to accommodate
their expanding manufacturing needs to produce plastic injected food packaging products. It is
anticipated that the building will be constructed of pre-cast concrete and will include facilities for product
manufacturing and offices. This facility will be attached to the existing Airlite facility at 6110 Abbott Drive.
Airlite Plastics Co is a privately held, family owned company which has been located in Omaha,
Nebraska for more than 50 years. Airlite produces and sells plastic containers and lids for food packaging,
drink cups, and lids, as well as polystyrene coolers, insulated concrete form {ICF) building blocks and other
custom plastic products. Airlite has increased employment at its Omaha facility by 75 over the past last
three years. Airlite projects to create 15 to 25 new jobs per year over the next 5 years. Airlite currently
employs over 900 workers, with 850 located in Omaha and 57 located in a recently purchase
manufacturing business located in Nazareth, PA. The majority of Airlite's sales are injection molded,
printed or labeled, plastics tubs and lids for the dairy, salad, and margarine industries.
Airlite originally started in 1946 in a building near 16th and Locust. In the late 1960's Airlite moved
to a location at 18th and Cumming. In 1988, Airlite purchased land at 14th and California and built an
automated high-rise warehouse in 1989. Three years later, that facility was expanded and the printing
operation was moved from 18th and Cuming to the warehouse. Due to shortage of adequate buildable
area to expand into at that location, Airlite purchased land in 1999 in the Riverfront Industrial Park,
located in Douglas County (Lindberg Drive & Storz Expressway) and finished constructing a facility to meet
their expanding office, manufacturing, warehousing, and distribution needs. In 2002, Airlite also
constructed another production facility on the same site and moved it polystyrene manufacturing to this
facility. In both cases, TIF financing dedicated for public improvement cost was a key factor in Airlite's
decision to stay in Omaha. Since 2002, Airlite has completed 3 building expansion to its existing facility
for additional warehousing and manufacturing. In April 2012, Airlite purchased a plastic injection and
extrusion business located in Nazareth, PA. This business operates in a leased facility.
All of these changes have allowed Airlite to gradually grow by providing quality goods and services
at highly competitive prices. Airlite is once again running out of room to expand its operations. Airlite
has already filled every machine location in their Omaha facility. There is an opportunity to lease
additional space for Airlite to expand its manufacturing capability at it recently acquired business in
Nazareth, PA. If Airlite is to continue to grow and compete in this competitive market, new
manufacturing space must be developed. After consideration of expanding in Nazareth, PA or Omaha,
NE, Airlite believes that a building addition to facility at 6110 Abbott Dr., Omaha, NE, located in the
Riverfront Industrial area, will best serve its needs so long as TIF funds are available to help compensate
for increased development expenses necessitated by this site which would not be present at its Nazareth,
PA facility.
This project consideration is now a high priority as Airlite has several new customer opportunities
that it may have to pass on due to lack of spaced for the needed additional production equipment.
Ill. Site Plans
Preliminary Plans for the Project
Enclosed are an aerial view of the project and a blueprint view of the interior of the building.
ti i l l
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V. Sources & Uses and preliminary commitment letter for
financing and/or equity
The funds for this project are projected to come from company equity, bank financing, and TIF.
A preliminary loan commitment acknowledgement/approval letter (attached} has been obtained from
Airlite's current lender, Bank of America.
The schedule below recaps the sources and uses of funds.
Source of Funds Estimate$
Owner Equity $ 40,147,760
Bank Financing $ 16,000,000
TIF Financing $ 1,655,240
Total Sources of Funds $ 57,803,000
General:
Design fees 1 LS $ 340,000
General Conditions 1 LS $ 300,000
Site: Special testing $ 25,000
Site Removals & Earthwork 1LS $ 365,000
special granular slab support 3800 tn $ 57,000
Paving 1LS $ 85,000
Rail Spur 1LS $ 290,000
Landscaping 1LS $ 25,000
Storm runoff 1LS $ 85,000
utility connection fees 1LS $ 35,000
Building:
Foundations/51 abs 1LS $ 176,000
Special Foundations/Piling 1LS $ 475,000
Precast 1 LS $ 1,800,000
Masonry 1LS $ 75,000
Structural Steel/Metals 1 LS $ 500,000
Carpentry 1LS $ 45,000
Thermal @Moisture protection 1 LS $ 325,000
Doors & Hardware 1 LS $ 90,000
Interior Finish 1 LS $ 165,000
Overhead Cranes 1 LS $ 145,000
Mechanical:
Fire Protection 1 LS $ 180,000
Plumbing 1LS $ 320,000
HVAC 1LS $ 500,000
Electrical:
Electrical 1 LS
Production Lines to be installed in Year 1 5
Production Lines to be installed over 3 to 5 20
Bank of America~
Merrill Lynch
GLOBAL COMMERCIAL BANKING
October 9, 2012
Brad Crosby
Chief Executive Officer
Airlite Plastics
611 0 Abbott Drive
Omaha, NE 68110-2805
Pat Kenealy
Chief Financial Officer
Airlite Plastics
6110 Abbott Drive
Omaha, NE 68110-2805
Dear Brad and Pat,
Bank of America is pleased to inform you that we acknowledge and fully approve the funding need for your
contemplated building expansion project. Based on the availability under the revolver, it is our understanding that
you have enough capacity to complete this expansion.
Additionally, should it be needed, we are willing to convert the project costs to a longer tenor term loan facility
subject to certain terms and conditions acceptable to either parties.
Very truly yours,
Michael Letsch
Vice President, Credit Products
Bank of America Merrill Lynch
(515) 235-7183
1
VI. Construction Project Budget and Project Time Line
A preliminary construction budget/cost for a building addition and site improvement is
$7,803,000. The preliminary project time line for the building addition and site improvement is
attached. Based on discussions with Boyd Jones Construction, it is anticipated that the building addition
will be completed and available for occupancy by late July or early August 2013. This projected
completion/occupancy date is based on a start construction date in late November or early December
2012.
The capital investment for the production equipment within the building is estimated to be $10
million/year for the next 5 years. It should be noted that each production line has a lead time of
approximate 6 months from time of order to delivery. Airlite's intent is to place an equipment order in
late December 2012 or early January 2013 for production equipment to be delivered in August 2013.
.1. 1 .. ra;r~ease~lansfors~n~to,~id+ I .. , . , PecmJt and Bid Phaee 1 I • ' l 1 t I ' I Submit plans for foundation permit (4 weefts}, IFij ... ~g.rading~tt(2~->: . • • · j l -l · . ' Submit plans for building pennits (5 weeks): ~. Boyd Jones Construction Company Alrlite IML w/ Accellerated Precast ' ' ' I··! r ,~, ' ' l ' ; ,~ ·1 ' r· -.,-I-· ·I .,.. ' ' ' r ' ' ' ' .,. t ' ' l . ,. ' ' ' ' ' Date is based on Coreslab's production ' 'schedule as of 10/17/12 ' ' ' ' ' ' ' .J. l .L .• ..._ ._). -Earlybar -Progress !::a -Critical bar -Sunnarybar ' I ·1· l ' + Start milestooo point
VII. Pro-Forma, indicating total project costs and revenue
The total projected capital investment over a five (5) year time period is $57,803,000. The
investment would cover a building addition/site improvement ($7,803,000) and production equipment
($50,000,000). Airlite estimates that the first year investment for the building and production
equipment to be $17,803,000. Depending on customer's demands/opportunities, Airlite anticipates
investing $10,000,000 annually over the next 3 to 5 years for additional production equipment.
The building will be entirely occupied by Airlite for its manufacturing operations which will allow it to
grow its revenue by approximately $8 million annually starting the first year after the building is
completed and four production lines are installed. The schedule below reflects the expected operating
financials over five (5) years which includes the benefit from TIF financing.
Pro Forma $000's I YRO I Yr1 I Yr 2 I Yr3 T Yr4 l YrS I Total
Balance Sheet I
Beginning Fixed Capital $ -$ 17,803 $ 25,939 $ 32,210 $ 36,618 $ 39,161
Additions $ 17,803 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ -$ 57,803
Depr&Amort $ -$ {1,864) $ {3,728) $ {5,593) $ {7,457) $ (9,321) $ (27,963)
Total Fixed Capital $ 17,803 $ 25,939 $ 32,210 $ 36,618 $ 39,161 $ 29,840 $ 29,840
Working Capital Chge: $ 880 $ 1,760 $ 2,640 $ 3,520 $ 4,400 $ 4,400
Total Investment $ 17,803 $ 26,819 $ 33,970 $ 39,258 $ 42,681 $ 34,240 $ 34,240
Average Investment $ 22,311 $ 30,395 $ 36,614 $ 40 969 $ 38 460 I I
Airlite Plastics Co-6110 Abbott Dr, Omaha, NE. Site
;. :>PrOfit& l~WlthTIF::\:> .~)··YRO ''c' "·'Vr1.'"~:"i't·j:;:>Yr:2 !> ' '\'':·.£;c.:vr3 ;#!\.:Jtl :ii<:;1;:Yr4>;:;d,t·I·"Jc::;c::.rr!) 1ff"'<' Total
Revenue Per Production Line $ 8,000 $ 16,000 $ 24,000 $ 32,000 $ 40,000 $ 120,000
Expenses including Real Estate Taxes $ (7,462) $ (14,762) $ (21,999) $ (29,190) $ (36,208) $ {109,622)
Profit Before Tax $ 538 $ 1,238 $ 2;001 $ 2,810 $ 3,792 $ 10,378
ROI (pre-tax) 2.41% 4.07% 5.46% 6.86% 9.86%
5 YrAvgROI 5.73%
VIII. ROI Analysis-"But For"/Statement of Need
This site (6110 Abbott Dr) presents numerous development difficulties that are not present at
other sites, in particular Airlite's Nazareth, PA facility. It's estimated that Airlite will incur 25% in
additional site and building cost at this site due to poor soil conditions and drainage. The construction
budget schedule below provides a breakout of the additional development costs.
General:
Design fees 1LS $ 340,000 $ 340,000.00
General Conditions 1LS $ 300,000 $
Site: Special testing $ 25,000 $ 25,000
Site Removals & Earthwork 1LS $ 365,000 $ 365,000
special granular slab support 3800 tn $ 57,000 $ 57,000
Paving 1LS $ 85,000 $
Rail Spur llS $ 290,000 $ 290,000
landscaping 1LS $ 25,000 $ 25,000
Storm runoff 1LS $ 85,000 $ 85,000
utility connection fees 1 LS $ 35,000 $ 35,000
Building:
Foundations/Slabs 1LS $ 176,000 $
Special Foundations/Piling 1LS $ 475,000 $ 475,000
Precast 1LS $ 1,800,000 $
Masonry 1LS $ 75,000 $
Structural Steel/Metals 1LS $ 500,000 $
Carpentry 1LS $ 45,000 $
Thermal @ Moisture protection 1LS $ 325,000 $
Doors & Hardware 1LS $ 90,000 $
Interior Finish 1LS $ 165,000 $
Overhead Cranes llS $ 145,000 $
Mechanical:
Fire Protection 1LS $ 180,000 $
Plumbing 1LS $ 320,000 $
HVAC 1LS $ 500,000 $
Electrical:
Electrical 1LS $ 1,400,000 $
Subtotal Building Only $ 7,803,000 $ 1,697,000
One could argue that additional cost would be incurred at an alternative site for additional
infrastructure already in place at Airlite's current site to support this building addition. The counter to
this argument, the alternative site under consideration is Airlite's production facility located in Nazareth,
PA where the necessary supporting infrastructure is in place.
The financial schedules below provide an overview of this project at Airlite's 6110 Abbott Dr,
Omaha, Ne. facility with TIF, without TIF and at Airlite's facility located in Nazareth, PA.
($in thousands)
Airlite Plastics Co -6110 Abbott Dr, Omaha, NE. Site
;,s~d~rofit&tossWithJIF+ · ;;c;;~:::~vR o'.f,:;x. :r;;.":N;!''1i~~ti:'tl· •.':2·:~~~f:l y;'Jrazi:tVi-3 ~?J~,:;Xt'.l ·:.:~·'i'f:}t\iYr4:'"" :n;•>,;<£'!&.
'·"'P!'l;'!'C
Revenue Per Production Line $ 8,000 $ 16,000 $ 24,000 $ 32,000 $ 40,000
Expenses including Real Estate Taxes $ (7,462) $ (14,762) $ (21,999) $ (29,190) $ (36,208)
Profit Before Tax $ 538 $ 1,238 $ 2,001 $ 2,810 $ 3,792
ROI (pre-tax) 2.41% 4.07% 5.46% 6.86% 9.86%
5 YrAvgROI 5.73%
I ;; Profit& loss w /O TIF. '>'~~>:~ :,•:cYRO ·~ ··•:f'i~Yr1i/i~{c,: l'$sc'~f•;(Yr'.2F·~H~ • ·~·A r ·:vr3 ·:":'?%' •i•:c:;;:J r• , .{l\'J!Kt S1f!!H~}!~~~
PBT $ 538 $ 1,085 $ 1,848 $ 2,657 $ 3,639
PAT $ 334 $ 672 $ 1,146 $ 1,648 $ 2,256
ROI (pre-tax) 2.41% 3.57% 5.05% 6.49% 9.46%
5 YrAvg ROI 5.39%
Airlite Plastics Co-Nazareth, PA Site
'<>,:/;/(':. .:N'Profit & Loss: ·•·· • ~1··· ... ;-oro :i~::•l ~Y;.·vfi•;,,.;r"~i.;Ayr2:l:0;::~·1 ,~?q:wras!t\i':i;I<;J;;;;:.;,¥~4\t~}~'!::l •·>hM• -"'d·,;nL•ff• • . ·;· ~·,.o .~·,~; "
Revenue Per Production Line $ 8,000 $ 16,000 $ 24,000 $ 32,000 $ 40,000
Expenses include Real Estate Taxes $ (7,377) $ (14,753) $ (21,951) $ (29,103) $ (36,084)
Profit Before Taxes $ 623 $ 1,247 $ 2,049 $ 2,897 $ 3,916
ROI 3.02% 4.33% 5.84% 7.31% 10.50%
5 YrAvg ROI 6.20%
Summary Conclusion: Using the $152,954 of annual TIF proceeds boosts the five year average
ROI for the project to 5.73%. This percent is still lower than the Nazareth, PA site ROI of 6.20% but is an
acceptable return to Airlite. The use of TIF funds makes this project economically feasible.
IX. Evaluation Criteria
Mandatory Criteria
This project meets the mandatory evaluation criteria as follows:
1. The project must be located within a blighted area or an area eligible for designation of
blight as required and set forth by State Statue.
Response: The area where the project will be located is in a presently designated blighted area.
2. The project must further the objectives of the City's Comprehensive Plan.
Response: This project will further the objectives ofthe City's Comprehensive Plan in that it
further develops land in the Riverfront Industrial area for industrial uses. This will improve the
tax base for this area, will add additional industrial capacity to the area, and will increase
employment opportunities in the area.
3. The use of TIF for the project will not result in a loss of pre-existing tax revenues to the City
and other taxing subdivisions.
Response: During the TIF amortization period, the underlying real property and existing
improvements will continue to be taxed based upon its current assessed value at the time the
TIF financing is approved, and the tax revenues based as that base valuation will be distributed
to the various taxing jurisdictions. As such there will be no loss of current tax revenues. Airlite
believes that this project will actually improve the tax base in the area, in that it will result in the
continued development of a large portion of property that is not presently utilized.
4. The developer is able to demonstrate that the project would not be economically feasible
without the use of Tax Increment Financing.
Response: As demonstrated above, increased site development cost, when compared to other
sites including Airlite's facility located in Nazareth, PA., that would not have these costs would
require Airlite to locate the project to another site if TIF funds were not available.
Discretionary Criteria (Three minimum)
This project meets the following discretionary evaluation criteria as follows:
1. The project will generate at least one full-time equivalent job for each $35,000 in principal
value of the TIF loan.
a. Response: The project will create approximately 50 new jobs within two years of the
completed project which will exceed the minimum job creation requirement of 48
assuming a TIF loan amount of $1,655,240.
2. The project will eliminate an actual or potential hazard to the public. Hazards may include
condemned, vacant or unsafe buildings, sites, or structures.
a. Response: This project would be located on a portion of undeveloped property at
Airlite' s current site.
3. At least 51% of the jobs created by the project will be held by or available to low and
moderate income people.
a. Response: Airlite anticipates that this project will create 90-120 new jobs over a 3 to 5
year period. At least 51% of the jobs created by the project will be held by or available
to low and moderate income people. In the first year alone, following the completion
of the project, Airlite will create 20 -25 new jobs which over 51% of the jobs will be held
by low and moderate income people.
4. The site that is to be redeveloped displays conditions of blight as established by the
Nebraska State Statues.
a. Response: The propose site for the building addition is undeveloped with most of the
property having poor drainage and poor soils, all of which blight the property and make
it difficult to develop.
Employment Information
Vr1 Vr2 Vr3 Vr4
Total New Jobs 23 so 71 94
New jobs created/year 23 27 21 23
Annual Wages $ 732,909 $ 1,580,842 $ 2,230,550 $2,932,883 $
Annual wage increase/year $ 732,909 $ 847,933 $ 649,709 $ 702,333 $
VrS
117
23
3,665,792
732,909
Estimated # of construction jobs to be created during construction phase 200-250 I
Below is a list of job titles and the respective hourly pay range (note: a shift differential rate of $0.40 and
$0.50/hr would be added to the rates below for 2"d and 3'd shift employees). The majority of the new
positions created will be the Packer and Material Handler positions. There are opportunities to promote
up to a Mold Specialist, Mold Lead, Shift Supervisor and Floor Supervisor based on personal
performance and position availability. There is a "shift" differential rate
Job Titles Min Mid Max
Packers $11.55 $12.65 $13.75
Material Handler $11.55 $13.05 $14.55
Mold Specialist $16.01 $16.51 $17.00
Mold Lead $19.01 $19.88 $20.75
Shift Supervisor $16.00 $20.50 $25.00
Floor Supervisor $16.00 $20.50 $25.00
There will be other support positions created in the areas of trainers, forklift operators, machine and
building maintenance, machine tooling, sales support, and procurement
X. Cost-Benefit Analysis
The following required factors were considered and analyzed for this project:
1. Tax shifts resulting from approval of use of funds pursuant to section 18-2147 (of the
Community Development Law);
Response: As mention earlier in the "Evaluation Criteria" section, during the TIF
amortization period, the underlying real property and existing improvements will continue
to be taxed based upon its current assessed value at the time the TIF financing is approved,
and the tax revenues based as that base valuation will be distributed to the various taxing
jurisdictions. As such there will be no loss of current tax revenues. Airlite believes that this
project will actually improve the tax base in the area, in that it will result in the continued
development of a large portion of property that is not presently utilized.
2. Public infrastructure and community public service needs impacts and local tax impacts
arising from projects receiving incentives.
Response: No additional public improvements or community public services are needed for
this site.
3. Impacts of employers and employees of firms locating or expanding within the boundaries
of the area of the redevelopment project.
Response: Potential more competitive market place for employers to hire and retain entry
level and skilled employees.
4. Impacts on employers and employees within the city of village and immediate area that are
located outside of the boundaries of the area redevelopment project.
Response: More entry level positions available to apply for from a long-term secure
employer.
5. Airlite has agreed to give the City of Omaha $30,000 of the TIF loan towards the Airport
Business Park public improvement fund.
XI. Organization Document
A copy of the Articles of Incorporation of Airlite Plastics Co along with a copy of the State of
Nebraska "Good Standing Corporation" certificate is enclosed
..
ARTICLES OF RESTATEMENT
OF
ARTICLES OF INCORPORATION
OF
AIRLITE PLASTICS CO.
Airlite Plastics Co., a Nebraska business corporation, hereby restates its Articles of
Incorporation as follows:
ARTICLE I
The name of the corporation shall continue to be:
Airlite Plastics Co.
ARTICLE II
The corporation shall have perpetual existence.
ARTICLE III
The purposes for which the corporation is organized are to do and transact fully and to the
same extent as natural persons might or could do in any part of thejworld any and all lawful
business for which a corporation may be incorporated under the Nebraska Business Corporation
Act, as amended from time to time.
ARTICLE IV
The affairs of the corporation are to be conducted by a Board of Directors and its officers
who shall consist of a President, one or more Vice Presidents, a Secretary and a Treasurer, and
such other officers as shall be designated in the Bylaws.
ARTICLEV
The aggregate number of shares which this corporation shall have authority to issue is
40,000 shares, having a par value of$10.00 each, all of which shall be common stock.
All transfers of the shares of this corporation shall be made in accordance with the
provisions of the Bylaws of the corporation.
ARTICLE VI
No shareholder of the corporation shall have any preemptive right to purchase, subscribe
for or othenvise acquire shares or other securities of the corporation, whether now or hereafter
authorized, unissued, or issued.
ARTICLE VII
68110-2805. The name ofthe initial registered agent at that office is Bradley J. Crosby.
ARTICLE VIII
The corporation shall indemnify an individual who is a party to a proceeding because he
or she is a director or officer against liability incurred in the proceeding to the full extent
permitted by the Nebraska Business Corporation Act if he or she (1) conducted himself or herself
in good faith, (2) reasonably believed, in case of conduct in his or her official capacity, that his or
her conduct was in the best interests of the corporation, and, in all other cases, his or her conduct
was at least not opposed to the best interests of the corporation, and (3) in the case of any
criminal proceeding, he or she had no reasonable cause to believe his or her conduct was
unlawful.
The terms used in this Article shall have the meaning given to them by section 21-20,102
ofthe Nebraska Business Corporation Act.
ARTICLE IX
The corporation reserves the right to amend or repeal any provisions contained in these
Articles of Incorporation in the manner now and hereafter permitted by law, and all rights
conferred upon shareholders herein are granted subject to this reservation.
DATED this c?~ day of {'2'aruar'i ,2oof
AIRLITE PLASTICS CO.
c::-----
By:-'=~~~~~---!...L.{._~~~
Its:
65.05
w
.c
5
<!)
(/)
70.01
70.03
71.01
QSt
71.02
Legend
--; South NRSA
North NRSA
##.#% Enemployment Rate
Source: 2010 5-YearACS
N
A
___ .,
5.5%
16.1%
Pacif1c St
4.3%
7.7%
9.6%
QSI
6.5%
26.9%
#.# Poverty Rate
South NRSA
North NRSA
Source: 2010 5-YearACS
N
A
7.6%
6.2%
9.4%
QSI
7.8%
Legend
[ South NRSA
North NRSA
##:/1.% Enemployment Rate
Source: 2010 5-YearACS
N
A
oo
Chairperson
Board of Commissioners
Douglas County
LC2 Civic Center
1819 Farnam Street
Omaha, NE 68183-0001
Chairperson
Omaha Public Schools
3215 C uming S\reet
Omaha, NE 68131
Chairperson
Board of Governors
Metropolitan Comm~nity College
3000 Fort Street
Omaha, NE 68111
Chairperson
Board of Directors
Papio Natural Resources District
8901 South 154 1h Street
Omaha, NE 68138
President
Educational Services Unit 1
3215 C uming Street
Omaha, NE 68131
Chairperson
Metropolitan Utilities District
1723 Harney Street
Omaha, NE 68102
Chairperson
Metro Area Transit Authority
2222 Cuming Street
Omaha, NE 68102
Chairperson
Omaha/Douglas Public Building Commission
City of Omafia, :Ne6rasfta
Buster Brown
City Clerk
1819 Farnam-Suite LC 1
Omaha, Nebraska 68183-0112
(402) 444-5550
FAX (402) 444-5263
"NOTICE TO TAXING AUTHORITY"
Notice is hereby given that the Omaha City Council has set Tuesday, January
29, 2013 at 2:00 p.m. as the date of Public Hearing on the Airlite IML Building #3
Tax Increment Financing Redevelopment Project Plan.
The Airlite IML Building #3 Tax Increment Financing Redevelopment Project Plan
is located at 6110 Abbott Drive. This project proposes constructing a new 43,000
square foot building addition to its existing manufacturing facility within the Airport
Business Park/Riverfront Industrial Park area to accommodate their expanding
manufacturing needs to produce plastic injected food packaging products. It is
anticipated that this expansion will create between 90-120 jobs over the next five
years. Located within the Airport Business Park and near populations with the
highest unemployment rates, over half of the new jobs created will be held by low
and moderate income individuals. TIF in an amount up to $1,655,240.00 will be
used to offset the costs of site work, architectural and engineering fees, special
foundations due to the soil conditions in the Airport Business Park, and any
public improvements, which includes $30,000.00 of the TIF allocation toward the
Airport Business Park Public Improvement/Detention Center Fund. The total
project cost is estimated to be $57,803,000.00.
A copy of said plan is available for public inspection in the City Clerk's Office.
Public Hearing will be held before the City Council of the City of Omaha, in the
Legislative Chambers, Omaha/Douglas Civic Center, 1819 Farnam Street,
Omaha, Nebraska.
Buster Brown
City Clerk
'' I . -~
CASE: C3-12-231
APPLICANT: Planning Department on behalf of the· City of Omaha
REQUEST: Approval of the AIRLITE PLASTICS EXPANSION TIF REDEVELOPMENT
PROJECT PLAN
LOCATION: 6110Abbott Drive
SUBJECT AREA IS SHADED-DECEMBER 2012
0 1,700
Feet
6
N
A
'
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha, Nebraska
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; and to eliminate conditions which are detrimental
to public health, safety and welfare, by developing vacant, underutilized property within these
neighborhoods; and,
WHEREAS, the redevelopment project site located at 6110 Abbott Drive is
within a designated community redevelopment area, as the area meets the definition of blight and
substandard per the Community Development Law and is in need of redevelopment; and,
WHEREAS, this Airlite Plastics IML Building #3 Tax Increment Financing (TIF)
Redevelopment Project Plan for the redevelopment project site was approved by the City of
Omaha Planning Board on December 5, 2012; and, .
WHEREAS, the project site for the Airlite Plastics IML Building #3 is located at
6110 Abbott Drive as described in the legal description contained in said Plan( see Exhibit "A"
for complete legal description); and,
WHEREAS, the Airlite Plastics IML Building #3 Tax Increment Financing (TIF)
Redevelopment Project Plan contemplates the construction of a new 43,000 square foot building
addition to its existing manufacturing facility in the Airport Business Park/Riverfront Industrial
Park area to accommodate its expanding manufacturing needs; and,
WHEREAS, this Resolution seeks approval of the Airlite Plastics IML Building
#3 Tax Increment Financing Redevelopment Project Plan which includes the City's participation
through the allocation of Tax Increment Financing (TIF) in an amount up to $1,655,240.00 to
offset the costs of site work, architectural and engineering fees, special foundations due to the
soil conditions in the Airport Business Park, and any public improvements as may be required,
which also includes $30,000.00 of the TIF allocation toward the Airport Business Park Public
Improvement/Detention Center Fund; and,
WHEREAS, the Plan presents a project based on estimated figures and
projections that are subject to change as project costs are finalized, and is required to comply
with all Planning Department requirements and Planning Board recommendations; and,
By ........................................................................................ .
Councilmember
Adopted ......................................................................... .
City Clerk
Approved .............................................................. .
Mayor
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha, Nebraska
Page 2
WHEREAS, Section 18-2108 of the Nebraska Revised Statutes 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 for a period not to exceed fifteen years under Sections
18-2147 through 18-2150, Revised Statutes ofNebraska; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
THAT, the attached Airlite Plastics IML Building #3 Tax Increment Financing
(TIF) Redevelopment Project Plan for the redevelopment project site located at 6110 Abbott
Drive which contemplates constructing a new 43,000 square foot building addition to its existing
manufacturing facility in the Airport Business Park/Riverfront Industrial Park area;
recommending the City's participation through the allocation of Tax Increment Financing (TIF)
in an amount up to $1,655,240.00 to offset the costs of site work, architectural and engineering
fees, special foundations due to the soil conditions in the Airport Business Park, and any public
improvements as may be required, which also includes $30,000.00 of the TIF allocation toward
the Airport Business Park Public Improvement/Detention Center Fund; containing a provision
for the division of ad valorem taxes under Section 18-2147 through 18-2150, Revised Statutes of
Nebraska, as recommended by the City Planning Department, be and hereby is approved.
1791 dlh
/ NO .............. $.. .............. .. Resolution by ................................................... . Res. that, the attached Airlite Plastics IML Building #3 Tax Increment Financing (TIF) Redevelopment Project Plan for the redevelopment project site located at 6110 Abbott Drive \\'hich contemplates constructing a new 43,000 square foot building addition to its existing manufacturing facility in the Airport Business Park/Riverfront Industrial Park area; recommending the City's participation through the allocation of Tax Increment Financing (TIF) in an amount up to $1,655,240.00 to offset the costs of site work, architectural and engineering fees, special foundations due to the soil conditions in the Airport Business Park, and any public improvements as may be required, which also includes $30,000.00 of the TIF allocation toward the Airport Business Park Public Presented to City Council Improvement/Detention Center Fund; containing a provision for the division of ad valorem taxes under Section 18-214 7 through 18-2150, Revised Statutes of Nebraska, as recommended by the City Planning Department, be and hereby is approved. 1791-dlh JAN -8 20 13 . , 1 . , ovt'f 3 ~.Jee;e.; ~~ ;pCfh r;;"/Jtdlcuz!C/J <~/.tfrMc k/'Lt?rf/Ut"."'Uco:l..zf; dzf.iJ"M"""/ A) J!iJ:. /I ~A.N..?: .. ~.~913 -Adopted 6-o ···················································· Bu:Jfer Brown City Clerk #~_;?5~