Airlite Plastics Co. TIF PlanCity of Omaha
Hal Daub, Mayor
Honorable President
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July 13, 1999
and Members of the City Council,
Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street, Suite 1100
Omaha, Nebraska 68183-0110
(402) 444-5200
(402) 444-5150
Telefax (402) 444-6140
Robert C. Peters
Acting Director
The attached proposed Resolution approves the Airlite Plastic Company Redevelopment Plan for
the construction of a 330,000 square foot manufacturing and office complex to be located at
Lindberg Drive and the Storz Expressway. Growth of the company has facilitated the need to
expand its manufacturing and office operations, resulting in the proposed construction of the new
facility.
The total estimated project cost is approximately $20,753,200.00 with the construction costs
estimated to be approximately $18,293,581.00. The facility will include parking areas, truck loading
and dock areas and a railroad spur track and loading area. The proposed TIF will be used to cover
site preparation, storm runoff and detention, wetland mitigation, traffic alterations and other special
requirements due to site soil conditions.
The proposed TIF amount is approximately $2,201,000.00, which is approximately 11 % of the total
project costs. The TIF will be repaid through the increase in ad valorem taxes over the amortization
period as established by state law.
The project meets all of the relevant requirements for consideration. The project is located in a
blighted area, at least 51 % of the jobs created will be held by and available to low and moderate
income people, the site is substandard and blighted based on existing conditions, the site is a vacant
and undeveloped parcel with a significant portion of the site being unplatted, having poor drainage,
poor soils and lacking adequate accessibility. In addition, there are significant wetlands
improvements required as a condition of approval of this request.
Honorable President
and Members of the City Council
Page2
The Redevelopment Plan is in conformance with the goals of the City of Omaha to support economic
development and private sector business reinvestment. The plan conforms with the goals of the
Community Development Master Plan and the Urban Development Policy of the City, as well as the
Airport Business Park Redevelopment Area Plan.
Your favorable consideration of this Resolution will be appreciated.
Sincerely,
Date
Approved as to Funding:
Don Elliott, P .E.
Public Works Director
Approved:
~~kr
Kellie Paris I 1/f~rl
Date
Finance Director
P:\PLN3\4613.PJM
Notice of Public Hearing:
Notice of Publication:
Human Relations Director
July 15, and July 22, 1999
August 3, 1999
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Exhibit "A"
AIRLITE PLASTICS COMP ANY
City of Omaha
Hal Daub, Mayor
Lindberg Drive and Storz Expressway
REDEVELOPMENT PLAN
June,1999
City of Omaha
Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha, Nebraska 68183
CASE: C3-99-116
APPLICANT: Planning Department
REQUEST: Approval of AIRLITE PLASTICS COMPANY REDEVELOPMENT PLAN
LOCATION: Northwest of Lindberg Drive and Storz Expressway
SUBJECT AREA IS OUTLINED -JUNE 1999
EXPR SSWAY
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AIRLITE PLASTICS COMPANY
REDEVELOPMENT PLAN
Lindberg Drive & Storz Expressway
This project as proposed by Airlite Plastics Company will provide office, manufacturing,
warehousing and distribution facilities built to suit the expanded needs of the company.
This $20,753,200 project will develop vacant property in the Airport Business Park.
The project site is in a General Industrial District (GI) suitable for manufacturing,
warehousing and distribution activity. The project includes site preparation and
construction of a 330,000 square foot building with truck delivery docks, rail spur,
landscaping and other improvements to complement the expanded operational
complex. As an adjunct to this construction project, a portion of the Tax Increment
Financing would be applied to the cost of the storm sewer detention pond, traffic
improvements and wetlands mitigation. The building of the detention pond is an
element of the public infrastructure that makes this industrial area suitable for
development. To facilitate the land acquisition for the mitigation of the wetlands and to
acquire land for the rail spur extension, the company is requesting the approval of the
use of eminent domain should the need arise. The firm is in negotiations to acquire the
required property through normal channels.
With the approval of approximately $2,201,000 in Tax Increment Financing
approximately $1,501,000 will be allotted to Airlite Plastics Company for site
preparation costs with approximately $700,000 for infrastructure development costs.
The $2,201,000 in TIF financing as a portion of the $20,753,200 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 $316,362 per year.
The developer will be responsible for the entire construction project including the
installation of gas, water, electricity and sewer suitable for the proposed use.
Construction at the project site is expected to begin in 1999 and be completed by June
1, 2001.
The attached maps show the project location and site plan of the redevelopment
project. 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.
History
The firm increased employment by 150 employees over the last three years and has
averaged from 30 to 50 employees per year. They expect to average 15 to 20
employees per year over the next 5 years. Airlite currently employs over 500 workers
to produce printed plastic tubs and lids for the dairy, salad and margarine industries.
Airlite was originally started in 1946 in a building near 16th and Locust. In the late
1960's Airlite moved to its current location at 18th and Cuming. Since then, Airlite
added a satellite facility in the Millard area, which was eventually eliminated when they
expanded at their current location. 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. Since 1970, Airlite has added an average of 15 new positions per
year. In the last 24 months, over 100 manufacturing positions have been added. The
manufacturing jobs are split roughly 50-50 between molding operations and printing
operations.
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. They have already filled every machine location in their newest
molding room. The print machines that are on order will virtually fill the current print
shop. Over the winter, they finished the basement at 14th and California as additional
warehouse space. This is the last addition that can be made to the current warehouse.
If Airlite is to continue to grow and compete in this competitive market, new
manufacturing space must be developed.
In addition to the outright need for manufacturing space, Airlite also seeks to improve
operating efficiencies. The packaging market is extremely competitive. Many of
Airlite's competitors have merged to form large companies. To compete against these
companies, Airlite must maximize operational efficiencies. The current plant layout is
not efficient due to the simple fact that the molding and printing operations are in two
completely separate facilities located a quarter mile apart. The new facility under
consideration would alleviate this situation by combining these operations, thus
maximizing operational efficiencies. Construction of a new facility is paramount to the
company. This new facility will put Airlite in a strong position to keep its current market
share secure and to maximize growth potential for many years in the future.
PROJECT DESCRIPTION
Airlite Plastics proposes to purchase and improve this site with the construction of a
facility to meet their expanding office, manufacturing, warehousing and distribution
needs. Airlite Plastics desires to locate in a new facility in East Omaha rather than
move to another part of the City. The firm made this decision to move to the proposed
location after an analysis of the expansion opportunities at their present site. The
company wanted to expand at their present location, however, because of the shortage
of adequate buildable area to expand into, the opportunity does not exists.
Airlite has considered locations within a 20-mile radius of its current facility. They
believe that the Riverfront Industrial area will serve their needs so long as TIF funds
are available to help compensate for increased development expenses necessitated by
2
this site which would not be present in other sites that Airlite could purchase and
develop at a lower cost.
The proposed project site is vacant at this time and will require grading, excavation and
the installation of suitable utilities on the site. Tax Increment Financing can be used
for the cost of preparing the land and other eligible cost to develop the detention cell,
wetland mitigation and other public improvements that may be required.
Preliminary design plans for the storm sewer, detention pond, traffic improvements and
wetlands have not been completed. A preliminary estimate indicates that the
construction cost for the detention cell, necessary storm sewer network, traffic
improvements and wetlands mitigation will be approximately $700,000. A portion of the
TIF approved in this redevelopment plan will be applied to the cost of these
improvements. The amount of the TIF dedicated for public improvement cost related to
this project may increase based on final cost estimates.
DEVELOPMENT FINANCING PLAN SUMMARY
Bank Financing
TIF Financing
Developer Equity
TOTAL
$16,092,581
$ 2,201,000
$ 2,459,619
$20,753,200
77%
11%
12%
Permanent financing at 7% for a term of 20 years fixed TIF
financing at 7.75% for 15 years.
Cost Benefit Analysis
1) The use of Tax Increment Financing will not result in tax shifts. The current level of
taxes will continue to flow to the current taxing entities and only the increased value of
revenues resulting from the improvements will be applied to the cost of the
improvement; 2) No community public service needs will be generated as a result of
this project. The TIF proposed will be used to offset public infrastructure improvement
cost including wetlands mitigation. The expansion will increase the level of truck traffic
above that which currently exist in this industrial area. The industrial capacity of the
infrastructure is more than adequate to serve the increased demands. ; 3) this
expansion project will not significantly impact other industries in the area except to
increase demand for construction and any manufacturing supplies that are locally
procured; 4)the expansion at this site rather than moving to a green field site will
maintain and add new jobs in eastern part of the City
UTILITIES AND TRANSPORTATION
Gas, water, electrical and sewer services suitable to the proposed use will be
installed by the developer. Truck access to the site will be from Abbott and/or
3
Lindbergh Drive based on final recommendations from the Public Works
Department. The site is convenient to air transport facilities. A rail spur will be
extended to satisfy the needs of the firm on the north side of the site.
LAND USE/ZONING
This site is located in a General Industrial District with abutting properties that
are also zoned for General Industrial use. The proposed manufacturing,
warehousing, distribution and office complex is in compliance with the
proposed Land Use Plan and Master Plan for this area. 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 frontage ............................. 10 feet minimum on lots without alley
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 that has an unemployment level
at 124.17% of the state average. The average age of housing or commercial units in
the tract is 58 years. Per capita income is $8,207 lower than the per capita income of
the municipality as a whole. This industrial park is in a low lying area that has water
table problems which require that special infrastructure and site preparation
construction techniques to be utilized in order to make the site suitable for
development. The effective utilization of this vacant property will eliminate the potential
of illegal dumping or other hazardous uses.
4
C-25A. CITY OF OMAHA
LEGISLATIVE CHAMBER
July 13 99 Omaha, Nebr .................................................................... 19 .......... .
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 approximately 29-acre Airlite Plastic Company Redevelopment
Area, is located at Lindberg Drive and Storz Expressway, (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. 2555,
approved September 28, 1975 and Resolution No. 1528, approved June 4, 1985. The project area
was recertified as blighted and substandard in June of 1992 and June of 1993; and,
WHEREAS, Airlite Plastic Company Redevelopment Plan proposes the rehabilitation
of the site through the development of a 330,000 square foot manufacturing and office complex, as
described in Exhibit "A", attached hereto and made a part hereof; and,
WHEREAS, the Airlite Plastic Company Redevelopment Plan provides for the use
of Tax Increment Financing to fund the cost of traffic improvements, wetlands mitigation, detention
cell development and site specific development costs to develop the project based on poor soil
conditions; 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,
By ........................................................................................ .
Councilmember
Adopted ......................................................................... .
City Clerk
Approved .............................................................. .
Mayor *
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0 ::::
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"NOTICE TO.PUBLIC"
NOTICE OF PUBLIC HEARING ON THE
AIRLITE PLASTIC COMPANY
REDEVEl.OPMENT PLAN
Notice is hereby given that the Om ah a
City Council has set Tuesday, Au9!1St 3,
1999 at 2:00 o'clock P.M. lis th&· date of
Public Hearing on the Airlitll.f• ~astic
Company Redevelopment lllan. ,: -.·:..
The proposed plan proposes ior the
construction and development of. a 330,000
square foot manufacturing efid; ·office
complex to be located at the Lindberg. Drive
& Storz Expressway .. A CQPY.. of said plan is
available for public ir.spectipn. in" the City
Clerk's Office.
Public Hearing will be hetdbefore the City
Council of the City of Omah.a. in the
Legislative Chambers, Omaha/Douglas Civic
Center, 1819 Farria"'! :. Street, Omaha,
Nebraska. • · •
' ' BUSTER BROWN,
City Clerk
THE DAILY RECORD
OF OMAHA
RONALD A HENNINGSEN, Publisher
PROOF OF PUBLICATION
UNITED STATES OF AMERICA, }
11te State of Nebl'Mka,
District of Nebnl8ka, ss.
fumty of Douglas,
City of Omaha,
JOHN P. EGLSAER
being duly sworn, deposes and says that he ls
ADVERTISING MANAGER
of THE DAILY RECORD, of Omaha, a legal newspaper, printed and
published daily in the English language, having a bona fide paid
circulation in Douglas County in excess of 300 copies, printed In
Omaha, in said County of Douglas, for more than fifty-two weeks la.st
past; that the printed notice hereto attached was published In THE
DAILY RECORD, of Omaha, on ............................................. .
July 15 and 22, 1999
That said Newspaper during that time was regularly published and
in general circulation in the County of Douglas, and State of
::~:::~ $ ... zg .• JS.. . ..... Sribed~ ... ln .. my .. /'·p· --~\n··· ~an. d··s·······to······
Additional O>ples . . . . . . . . . . . . . . ~ ::;:~:~ #
........ s ... Z9,>L ..,..._°';·i~ )22nd 9 .... , ...
~;~~:
CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha, Nebr. ....... ..:!\tJY .. J.~ ............................................ 19 .. }.~ ... .
PAGE2
WHEREAS, the Airlite Plastic Company Redevelopment Plan was approved by the
City of Omaha Planning Board on June 2, 1999.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
THAT, the attached Airlite Plastic Company 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 Airlite Plastic Company Redevelopment Area, located at Lindberg Drive
and Storz Expressway.
P:\PLN3\4614.PJM
(;)~ c:J. 7(~
By ........................................................................................ .
Councilmember
APPROVED AS TO FORM:
~ /<?' , >d
, ~~,&El-
"/:1{'f-NO ........ -:2///. ............ . Resolution by ................................................... . Res. that the attached Airlite Plastic Company 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 Airlite Plastic Company Redevelopment Area, located at Lindberg Drive and Storz Expressway. P:\PLN3\4614.PJM Presented to City Council JUL 1 3 1999 . ...J . ., .... ·.· ·~: ... ·; ..... "jF "j" ... .;2 )}o. ,;}., /' :r-=/?1:lf~t:A.e/· _, Jiee.,,<.._;1 z::-c: ~1',, 1 . · -"· ,•I I. I. . . '.)·~I/, · .. · · · ' 1 " ' ;: -'' . ,. 1 ;// / .. ~ ,., ·'"''1:-6</. ... 12/.. .. 2::':17Zf· . ..1.::t.1.0/ .. " ... _~a~.-~·.. . ._ ........ . /A /?. ~.·. ~ • / r_,~• ; -"°'-;;_ . ~cd/1~/ '''JL). r AUG . .3 ...... 1999. ~: ........ MQP..te.d ..... :?. .. :<:?. ........ . Bu6fer Brown City Clerk ,. \ ',·