RES 2008-0460 DLR Group Headquarters Building TIF PlanCny of Omaha
Mike Fahey Mayor
Honorable President
and Members of the City Council
I '
Apnl 1 2008
Planning Department
Omah1/Douglas C.1 ~c l ntcr
1819 ra nam '->r cct 'iwt t 100
Omaha Neb ka 68183
(402) 444 5150
Tclcf (402) 444 6140
Steven N Jensen AICP LA
Dtr Cto
The attached Resolution transmits the approximately 0 37 acre DLR Group Headquarters
Bu1ldmg Project Tax Increment Fmancmg (TIF) Redevelopment Project Plan for the
redevelopment of an area located at approximately 65 1h and Frances Streets The plan area is
located w1thm the Aksarben Village Redevelopment Area northwest of 63r<l & Center Street
The DLR Group Headquarters Buddmg Project located at approximately 65 1h and Frances Streets
comphments and is located withm the Noddle Development Company Tax Increment Fmancmg
Redevelopment Project Plan Area for the Aksarben ViUage Redevelopment Project which
provides for the redevelopment of the area through the development of a four bmldmg mixed use
complex with two 2 story bmldmgs one 4 story bmldmg and an adjacent 4 level 600 stall
parkmg garage for mixed uses mcludmg ground floor retail/service busmess space and upper
floor office space This development enhances the development of The Aksarben Village A
Urban Mixed Use Commumty
DLR Group Headquarters Bmldmg project cost is estimated to be approxunately $8 335 070
funded m part with TIF up to $1 000 000 as a part of total TIF ehgible cost of$1 811 440
The City Planmng Board recommended approval of the DLR Group Headquarters Bmldmg Tax
Increment Fmancmg (TIF) Redevelopment Project Plan at its meetmg on December 5 2007
Your favorable cons1derahon ofth1s Resolution 1s requested
1 it{ o~
Date
Approved as to Fundmg
~t-~~~~'---~-"""--~~~~~-~~1~.\vr
Carol A Ebdon Date
Fmance Director
PUBLICATION OF PUBLIC HEARING Apnl 3 2008 and Apnl 10 2008
PUBLIC HEARING Apnl 22 2008
PLNAMRI 077 -cover letter
DLR GROUP HEADQUARTERS BUILDING
651 H AND FRANCES STREETS
TAX INCREMENT FINANCING
REDEVELOPMENT PROJECT PLAN
MARCH, 2008
PLANNING OMAHA
Steven N Jensen AICP LA Director
Plannrng Department
Omaha/Douglas C1v1c Center
1819 Farnam Street
Omaha Nebraska 68183
Date
To
from
Developer
Project
INTER OFFICE COMMUNICATION
November 26th 2007
Chairman and Member::. of the Omaha Plannmg Board
Steven N Jemen AICP LA
Plannmg D!fector
DLR Group
Tax Increment Fmancmg Rede"elopment Project Plan
Headquarters Bmldmg Project@ Al'iarben Village
Aksarben Village Zone 3 Building 5
approximately @ 65th & Frances Street
The approval of the project 1mplementat10n redevelopment plan 1s reqmred a~ a cond1t10n to facilitate the
approval of Tax Increment Fmancmg to be u~ed as a potential funding :.ource for the redevelopment and
rehabihtahon of this site for the construction of a new 30 000 <>quare foot Corporate Headquarter<; fac1hty
to consolidate the locat10n<> of and enhance the operations of the DLR Group m a :.mgle locat1on
Th1& project was cond11!onall) approved with the Ak&arben Village Pro1ect Implementation
Redevelopment Plan under Plannmg Board ca~e c~ 07 029 and the <;upportmg documentat1on CO\ ermg
the &tandard planning issues 1s not rephcated m this proposal The pro1ect 1mplementat10n plan 1<>
consistent With and complies with the tenm. and condi1!on5 as covered m the approved plan The plan
provides all of the requJred information and 1s <;UbJect to change based on actual co~t and final project
design
The developer has applied for Tax Increment Fmancmg (TIF) to be used to cover a portion of the cost
related to public improvements for the development of the project ~ite The impro"ement& were built m
comphanl-e with standards of the City of Omaha as estabhshed by the Pldnnmg and Pubhc Works
Departments The project meet~ the reqmrement of and comp hes ~1th Nebraska Commumty
Development Law The current street alignment servmg the site is adequate for eftechve redevelopment
and expans10n
The approval of the redevelopment plan will authorize and facilitate TIF tmancmg to cover TIF
ehg1ble cost of Public Improvements site acqms1t10n development demohtion and mfrastructure as
required This redevelopment compliments the approved elements and site development planned and
approved by the Planmng Board for the development of the Mixed Use Aksarben Village Project
Recommendation The department recommends appro" a\ of the rede\ elopment plan
IDlR Group Buuldn111g Project
Aksarben Village
DLR Group a full service architectural engineering and 1ntenor design services firm was
founded 1n 1966 with three employees in Omaha Nebraska O•er the next forty one
years the Company has grown to nearly six hundred employees in fourteen c1t1es across
the United States Currently DLR Group 1s ranked the number one K 12 and Justice
design firm in the United States according to several industry publications DLR Group
perforrrs design services 1n four sectors K 12 Justice Corporate and Higher Ed/Sports
The Company has 113 personnel In Omaha including 25 employees in the adm1nistra 1\e
and technology headquarters for all DLR Group locations
DLR Group 1s one hundred percent employee owned having implemented an SESOP
organ1zat1on structure in the fall of 2004 Our V1s1on Lead the nation as the
outstanding client focused design firm We will be acclaimed for design excellence
client oriented services and employee ownership Our M1ss1on Provide unequaled
professional design services consistent quality creative designs and functional solutions
that exceed expectations ensure success through professional growth and sp1r1t of
integrity and teamwork Our Values Commitment Trust honesty and mtegrit)
Creative ideas and persistent effort Lastly our Brandmg Statement
listen DESIGN deliver
DLR Group has been conducting an analysis for well over a year of upgrading its current
facil1t1es or building a new bu1ld1ng in the Omaha area At the present time DLR Group
1s entering into a memorandum of understanding with Noddle Companies the
Developer of Zone 3 Aksarben Village for the procurement of land on Lot four and
labeled as Building 5 DLR Group plans to bu1!d a two story 30 000 square foot
building to house its Nebraska design operations and adm1nistrat1ve and IT headquarters
for the rest of the Company All Omaha Nebraska based employees would relocate to
the Aksarben site DLR Group will be the only tenant •n the building
EXECUTIVE SUMMARY
TAX INCREMENT FINANCING REQUEST -
DLR GROUP HEADQUARTERS AKSARBEN VILLAGE -
ZONE 3 -BUILDING 5
ProJect Description
The proposed DLR Group project 1s to construct an office bu1!d1ng for DLR Group {Zone
3 -Bu1ld1ng 5) to be located within the currently platted Lots 4 and 5 of Aksarben
V1IJage part of the Aksarben Mixed Use Business and Education Campus The build mg 1s
proposed to be a two story office building approximately 30 000 gross square feet with a
building footprint of approximately 16 000 square feet A to be formed entity will
acauire the real estate and contruct the building and other improvements
Organizational documents will be provided upon complet1on The building will be the
corporate headquarters of DLR Group which will be the single tenant of the bu1ld1ng A
preliminary site plan of the property with the proposed building parking area public
parking garage and other features is attached hereto as Exh1b1t A and incorporated
herein by this reference Cor.struct1on and permanent financing will be done by Great
Western Bank Estimated building costs land parking parking garage tenant
improvements design fees etc total $8 335 070 or $277 84 per gross square foot
Construction 1s ant1c1pated to begin in April of 2008 and completion by August of 2009
with occupancy set for September 2009
Cost Pro Forma/Budget
A Project Cost Pro Forrna and Project Budget are respectively attached hereto as Exh1b1ts
B and C and incorporated herein by this reference The total pro1ect costs are
estimated to be $8 335 070 TIF ellgrble expenses are estimated to be approximately
$1500 000
Special Cons1derat1ons
Typical foundation support for a lightly loaded two story building 1s accomplished with
shallow spread footing systems bearing on structural fill soils Soil cond1t1ons on this site
however make the use of spread footing systems d1ff1cuft A deeper underlying layer of
soil (alluvial clays) at this site (approximately SO feet below grade) are generally weak
soils that are expected to experience s1grnf1cant compression under the weight of the
new soi! fill and building loads which w1!! cause settlement of the proposed building
To min1m1ze the potential for building settlement there are three different approaches
that can be taken for the foundation system for the bwld1ng
1 Constructing a temporary sJrcharge (pre loading the site with soil fill above f1n1sh
floor elevation pnor to bu1ldmg construction) to pre load the building site and
cause the settlement of the underlying soils to occur prior to the building
construction hence reducing Jong term post construction settlement The
rmplernentat1on of a temporary surcharge would allow the burldrng to be
constructed on shallow spread footings The temporary surcharge to provide
2 000 pounds per square foot bearing capacity for the footings would have to be
approximately 15 feet high and would need to extend 10 feet beyond the
buildings perimeter The surcharge side slopes would have to slope at a 15
horizontal to 1 vertical
2 Ut1ltz1ng deep foundations {augered cast in place concrete piles) fa support of
the building The deep foundations provide support for the bu1Jd1ng pnmanly by
skin friction between the pile surface and the surrounding soil with some minor
contnbut1on from end bearing The deep foundations would have to penetrate
into the underlying medium dense to dense alluvial sands and sandy soils
ranging from 60 to 80 feet below tne bottom of the pile caps for the bu1ld1ng
(approximately 64 to 84 feet below the building s finish floor elevation)
3 Providing soil improvement by utilizing a Geop1er® rammed aggregate pier
foundation system The Geop1ers® would extend approximately 15 feet below
grade and are installed to improve the upper lying soils This improved layer of
soils provides an allowable soil bearing pressure of 5 000 pounds per square root
for the proposed building and helps to m1nim1ze the contributing loads to the
underlying weak soils reducing potential settlements
Of the options listed above only options 2 and 3 are options that are feasible at this
time Smee the drive lanes and various util1t1es are already in place within Frances Street
the 1mplementat1on of a 15 foot high surcharge to the necessary limits would cause
settlement to the pavement and utilities already 1n place DLR 1s currently evaluating the
two available options to find the best and most cost -effective solutJOn for prov1amg
foundation support for the building
Part of the proposed plan is to construct a ground coupled heat exchanger (geothermal
well field) to provide heating and cooling for the bu!ld1ng The intent of the well field
design is to use the deepest wefls possible to m1rnm1ze the number of wells required
hence lim1ting the impact the well field has on the site The primary location for the
well field 1s east of the proposed building within the l1m1ts of the eastern parking area It
1s estimated that 21 wells will fit (at a 20 spacing) beneath the parking area A total
maximum of an add1t1onal 68 wells may be required to be constructed within Lot 8 both
east of the Lot 5 parking area and beneath the driveway south of the planned office
bu1ld1ng
a-==
C1 o ~DLRGroup -_..,,,,. -
L ... -
\TBIT A
ZONE 3 OVERALl SITE LAYOUT PLAI:\
AKSARBE:N VILLAGE
ZONE 3 SITE WORK
I _J
,r
I
_J
EXHIBIT B
Aksarben Village DLR Bu1tdm9
Required uw, enlared Oma r elO
Costs Excludrng FFE by DLR $5 335 070 Rent Increases 1 I pe Year
DLR FFE Costs -Cash Retvrn of 2 / Per Year
Per Squa e Foat Cost wlo FFE NNN 1m;reases 2 5 / per Year
Per Square Fool Cost w th -FE $295 Building Value lncreas 1 I Per Year
Debt Ratio Dep ec atJon Assumes No Cost Segreagation Fo faster Write offs
Equ1tyRallo l<.,,. Profess Iona I Fees Ara For Accountants K 1 s Ta>e Returns
Debt 80/ $6 668 056
Equity 20/ $1667014 Cost Cost Per Foot
Land (Est mated) Q1Qi Construcbon and Land Cost $8 065 893 $26886
Asset Value Less Land $7 485070 Oesgn Fee 51 $269 177 $897
Oep ecrable Life 39
Professional F61es/Year .....
Per Unrt Investor Amount
Investor Units 33 3 Total Construcbon Cost $8 335 070 $277 84
Building Footage {Approx Gross)
LLC Rent Income Rate
Interest Rate
Amortzatlon (Years)
NNN Costs Per Foot
Cuti on Cash Retum o/ 2 00 I 200/ 200 I 200 I 200/
Year 1 Year2 Year3 Year4 Yaar5
Income
Rent $510 000 $515 100 $520 251 $525 454 $530 708
lnleresl Income 2000 2 coo 2 ODO 2000 2000
Total Income 512 000 517 100 522251 527 454 532 708
Expenses
Oeprec1atron (191925) (191 925) (191 925) (191 925) (191 925)
I terest (447 922) (442 974) (437 681) (432 020) (425 965)
Pro!essronal Fees {5 000) (~ 150) (5 305) (5 464) (5 628)
T eta! Expenses (644847) (640 049) (634 911) (629 409) (623 ~17)
Projected Income ($132847) ($122 949) ($112 860) ($101 955) ($90 609)
Oeprec1abon 191 925 191 925 191 925 191 925 191 925
Note Reducbon (71 065) (76 013) (81 305) (86 967) 185 029)
Pro1ected Cash Flow ($11 987) ($7 037) (S2 040) $3003 $16 087
Cash Retained Each Year (If Nega~ve
Rent Rate Needs To Be AdJUlited) ($45 327) ($40 377) ($35 380) ($30 337) ($17 253)
cumulatlve Cash Retained ($45 327) ($85 704) ($121 084} ($151 421) ($168 674)
Dlsllrbubon A a1lab!e $33 340 $33 340 $33 340 $33~0 $33 340
Distribution Per Unit $1 000 $1 000 $1 000 $1 000 $1 000
Cum ulat1ve Dlstril>Ubon Amounts $1 000 $2000 $3 coo $4 000 $5 000
Annual Cash Rate of Retum 2 00/ 200/ 2 00/ 2 00 I 2 00/
ProJ&cted Pro,oerty Value 8418421 8 502 605 8 587 631 8 67 507 8 760 242
Less Mortgage Ba.lance 6 596 991 6 520 978 6 439 673 6 352 707 6 267 678
Net P operty Value 1 821 429 1 981 626 2 147 958 2 320 801 2 492 564
f'e Unit Property Value $54 631 $59 436 $64 425 $69 610 $74 761
Annual Increase $4 631 $9 436 $14 425 $19610 $24 761
Total Rate of Return 11 / 21 I 31 I 411 52/
Monthly R&nt expense $42 500 $42 925 $43 354 $43 788 S44 226
NNN Expenses $22 500 $23 083 $23 839 $24 230 $24 836
Total Monthly Rani Exp $65 Olio $65 988 $66 993 SSS OHi S69 061 Ban Rant Cost Per Foot $17 00 $1717 $17 34 $17 52 $17 69
Total Rem Cost Per Foot $26 00 S2640 526 80 $27 21 $27 82
Annualitsd Cost $780 660 $791 850 s8o3 920 $816 214 s828 fae
EXHIBIT G
DLRaksarben Office Bulldmg Pro1ect Budget 11/2/2007
# work unit unit$ cost notes
01 General Conditions 1 LS 320 ODO 00 $320 000
02 Bonds 0 LS 0 00 $0
03 S1tework 1 LS 3 000 00 $3 000 ncluded 10 Lend Cost
04 Landscaping 0 0 00 $0
05 a Foundations Footings 17 700 sf 3 83 $67 791
05 b Foundations Grade Beams 17 700 sf 147 $26 019
05 c Foundations Slab 17 700 sf 619 $109 563
05 d Foundations Steel 30000 sf 0 85 $25 500
05 e Foundations Mesh 38 252 sf 0 12 $4 590
05 f Foundations Sealants 2 LS 5900 00 $11 800
06 a Superstructure Steel 26173 sf 20 56 $538 117 2nd FL 3 cone on 3 metal deek
06 b Superstructure COMO a 476 sf 2 36 $20 003
07 Roofing 15 000 sf 517 $77 5o0 45 mll TPO
08 a Extenor Masonry 7 224 sf 25 96 $187 535
08 b Exterior Curta1nwall 8 BOO sf 8259 $726 792 EFCO 406
08 c Extenor Metal Panels 7 500 sf 41 29 $309 675
08 d Exterior Kalwall 2000 sf 60 00 $120 000
08 e Exterior Soff1ts 2500 sf 11 80 $29 500 EFJS w/ Mela! border
08 f Exterior Sun Screens 2 150 sf 41 29 $88 774
09 Insulation 0 000 $0 Roof " e m:lgid
10 Doors Frames Hardware 0 000 $0 wood soho core w/ HM frames
11 a Interior Construction 26 200 sf 3540 $927 480
11 b Interior Dry Wall 0 0 00 $0 dry wall on metal SILldS
11 c Interior Acoustical Ceilings 0 000 $0
11 d Interior Floorcovenngs 0 000 $0
11 e lntenor Painting 0 0 00 $0
11 f Interior M1llwork 0 0 00 $0
11 g Other Tl 35 00 $1 050 000
12 Fire Protection 30000 sf 1 18 $35 400
13 Plumbing 0 0 00 $0
14 Mechanical 30 000 sf 15 34 $460 200
15 Electncal 30 000 sf 5 90 $177 000
16 Elevators 1 EA 67 250 00 $67 250 Hydraulic HC 2stop
17 FF&E 1 LS 0 00 $0
Total Bu1ldmg Cost 30 000 sf 179 45 $5 383 539
18 a Contingency 10 lo 30 000 sf 17 95 $538 354
18 b Land 30 000 sf 29 83 $850 000
18 c Parking 1 LS 895 000 00 $895 000
18 d Utilities 1 LS 100 000 00 $100 000
18 e Design Fees 1 LS 0 05 $269177
18 g Parking Util1tles Testing 1 LS 49 000 00 $49 000
18 h Soil Surcharg1T1g/stab11izatlon 1 LS 150 000 00 $150 000
18 f Noddle TIF Re1mbursment 1 LS 100 000 00 $100 000
Other Cost $2 951 531
Total Pro1ect Cost 30 000 sf 277 84 $8 335 070
DEVELOPMENT FINANCING PLAN SUMMARY
Sources of Funds
Construction Loan
Investor Equity
Tax Increment Financing
Total Sources of Funds
Uses of Funds
Purchase of Land
Bu1ld1ng Cost
Parking Ut1ht1es Soil Surcharge
Project Soft Costs
Total Uses of Funds
$5 668 056
$1667 014
$1.000.000
$8 335 070
$850 000
$5 383 539
$1194000
$907.531
$8 335 070
Without TIF funds the project will not be completed m a cost effective manner and will
not provide a return on equity that 1s balanced with the risks taken by equity investors
Without TIF funds there 1s negative cash flow of averaging $33 735 m each of the first
five years with a 2% cash on cash return to investors which 1s not suff1c1ent to support
the project as compared to a prudent investor analysis of other comparable investment
opportunities available in the Omaha marketplace which would provide cash flow return
along with equity growth m the investment With TIF cash returns to investors will reach
five percent each year and provide the equity growth making the project attractive as an
investment when compared to other similar real estate investment opportunities 1n the
geographic area
TIF BREAKOUT SUMMARY
Noddle TIF Reimbursement
Soil Surchargmg/Stab11.izat10n
Design Fees
Parking Ut1hties Testmg
Parkmg Garage
Utilities
S1te Work
Foundation
Total
$ 100 000
150 000
269 177
49 000
895 000
100 000
3 000
245,263
$1.811.440
Aklldlln Vlllge DLR Buldlag Wllh 1F :::e&W!lf'* .. "Rn I,...... flit perY_.
DLRFFECOID C811i RalumOfft PwY•
Pw 8qun Foat Callw/o FFE NNN mai-.2A parY•
Pw Squm9 Foat Call lllllh FFE Bulldqj v.1111 ir-1 .. Pllr Y•
Debi Rlllo OepNdlllol1 MelllnM No Call~ F« ftlllllrWrlllMlffa
6qulyRdo ~<1111111111 fieDM J;ar ~ 1(..1111 TolllC Rlbmw
Debt 80'lli
Eqlllly~ Coat CoalPwfaot
Lind (Elllmllad) CCll1lllrUallDn n:I Lind Colt .... ..
A..t Vllll8 L.s8 Lind c.lgrlF•S~ '2119177 SH7
o.pnicllble IA LuaTIFLAllm ...., ........
Piar-lanll Haa'Y•r
Pa' Unit lrMIAar Amolri
11'1\1911111' Unlll Tolll Con8bUctian Call i7:aMO IZH'.84
B'*"V Foalllp (Apprmc GJ088)
LLC Rll1t lncame Raia
l.ur.tRD
Amulltab1 CV-->
NNN Ca.ta P• Foat
Cllllh an c.11 RltUm 'Kt SOO'lt 6 OO'llo 5JXl'lo 6.oo'I' 6.caJ6
V..4 ¥1111'2 ¥ellr-I ¥...-4 v.,.1 --R8lll '8215000 $530,250 $636,568 $54090fl $548117
IN...t lnD01111 mZ: • ~OOD • • Talal ll'ICOl'na •
Elpllll8tl
DtpNCllll!m I (181S,2114) (11!e,284) (1811,284) (188,284) (1118,284)
lnlenet (394188) (389,828) (3815170) (3!0188) (374',8ell)
Pnilllllllllllll F.a !!!!l tl'lf • a cJHm Talll~ (586A88)
ProjectBd lnoom• ($38488) {128012) ($19,206) ($8028) $1,648
Dtpnicilllol1 188,284 188,284 1811284 1811,284 188,284
Nata R9ductlon lt12,5311) (GB.183) w 5511 (78,533} [?4.1127l
Projlct.d C8ah Flow $115,279 $70,S79 VTSIS'ZT $80723 "'80Cla
c:.11 Rll*lld Eaah Year (If Nagall¥e
Rent RD NMda To Ba Adjualed) $0 IO "2178 JT:m $18852
Cll!WllllMI cah Rabllnad $0 $0 $2,178 $9549 $29,200
DJlltr1tUIDn AVllllllbll $85279 $70,379 $73,351 $73,351 $73,351
DlatrlbuUon P• Uni 82,225 $2,389 $2500 $Z,50D $2,!IOD
CWrUlllY9 Dlllb1IUlan Arnol.ribl 82,225 $4824 '1124 $9624 $12.124
Anrul c.ti Rata ol Ralum 4.it6'11t 480J> 5~ 6 00'!(, 500li
Pro,19*1:1 Pniplrty \lalue 7 «18421 7"4&2,505 71fi611'30 7682,803 7709,232
Laa~Blllanca ~-we& sa I-~713 -~vu. i its
Per Unit Pn:ipsly Value $&4031 $5'1438 $84,425 $89810 '14781
Annual lnonleee $4631 $11"38 $14425 $19810 $24781
Tallll Rate of Rllba'n 14'llt 24% 34'6 ~ 55'1(,
Montiy Rent Expenae $43750 $44188 '44G211 $46078 M1128 NNNEJcpm-. • •;J • B • Talll Manlllv Rant Exp ii7 Bue Rent Call Pw Foot f17.lll $17.98 $17.85 $1803 $18.21 'nlllll Rlnt 0.-Per i;wt .. ---$27.:51 #7'12 a.14 Arnulllmd COit i8D7060 1818'221 N31ii8 $944,347
CaD Elcicbdng FFE ~DLR
DLRFFECaD
Per Squn Foot Colt w/o FFE
Per 8quln Foot Colt wlh FFE
DebtRallo
ScPIJRdo
Debt aa..
~20'JI,
Land (EIDnlfad)
AMiil 'VlllU• LMa lM1d"
o.p.cllblll Llf9
Prafl8alol1lll FaealY•r
Per Uni lnv9ltDr Amount
1rW891:Gr Unla
BulldllV Foolllge (Approx Grou)
LLC Rent Income Reta
b'llllnllt Rm
Amar11mt1on EV-.)
NNN Com Par Fout
Cllllh an Cuti RIUn "ll>
Income
Rant
lnl9reatlncorna
Tmllnoorn•
Elpmmu
Dlpfll0illklr1
lnlnlt
Pro"8elomll F ...
Tata! Ellparlle9
Ptqaotadlnooma
Olpnlc1allon
Nata Reduction
ProjarMcl C..h F1aW
Clllt'I ~ Eaoh Y• (If NiGlllve
Rant Ra.._. To llllA$111Bd)
Cmulllllva Cnh RalU1lld
~ A'V8llable
Dllltrlbul1on Per Urit
Ownuldn Dlalrtbutlan Amounts
Annual Cah RID Of Rlllllm
Praj8alild Pr1lf*V v.u
Laaa Martgqa BUnoa
Nat PRlp9l1y vu.
Par Unit Proparty VllkJB
Annulllnor.ae
T°'91 Ra'9 of RabJm
Manlhly Rant Ellp9lll8.
NNN Elcpanlas
Teal Manlhly Rant E>lp a.. Rant Coat Per Faot
Toi.I Rft.Qolf,Plr FDOl
AMUBlll8d Collt
2.00'lll
YHr'I
$510000
-!000
812,DOO
(191,125)
(447,922)
Jl~
($132,847)
191,sr.z5
a'.:'1!!!!2
($11 987)
($45.3Z7)
($46327)
$3384CI
$1000
St 000
2.IJO'J(,
8418421
8,5118!!:! nm a
$64831
14831
11'16
$42,GOO • '17.00 .-oo
"80000
Red inc.--1 ... per Y•r
o.h Rmbm of ft flar'Y•
NHN ...... :zJ5'Ja pll'Ym:t
BUldq Villa mm..,,. PsY•
c.p19111111DnMlunm No Cclllt ~ Far FtlaterWllHIJ8
Rcoalllul..i i;.. Ale f:ol' Aacaunlm1la K-1-!8 .... Relll'na
Colt hr Foot
:Z,00,. 2.DOlo 2.~ 2.00'li
¥ellrl ..... Yur-4 v-•
$5t5t00 $620,251 SS25'454 $530708
5~ • a •
(11H lil25) (191,1125) (191,825) (1911125)
(4CZ,174) (437881) (432,o:zo) (4'2S,Bfl6}
cdi; (SM~ • • ($122,948) ($112,880) ($101,965) ($90809)
191 lil25 191,1125 1D1,sr.z5 191825
~01! !1.!!!l ~88i!!!n e!!!
($7037) ($2.040) $3003 $18 Of{(
($40'77) ($35380) ($30337) ($17,253)
($ll6 704) ($121 084) ($151.fl'I) ($188874)
$83MO ~ $33,Ml $13,340
$1 DOD St ODO SUIOO ,, 000
$2,0llO $3000 $4000 SS.000
2.00'!6 2.00l!i 2.°'"" 2.00'll
8,602,805 8,5fil 1131 81S735ft1 8780242 -~= 8,352.707 -2,320801 --SB4<CZS $09810 $74781
'9438 $14425 $19810 $124791
21'16 3t'l6 41'16 ~
M,8211 '43364 $48,788 $44,228 • • -= "1717 '17.14 f17.8'Z '17.19
840 .$28.80 0.21 --i76t 8ii -· $8111214 a:s
TIF Cost Benefit Analysis
The project compliments the development of an approx1mately 70 acre mixed
use development It 1s an important project that will have a s1grnf1cant impact on
this section of the former Ak Sar Ben Race Track property by providing the
opportunity to brmg additional goods and services to the area There 1s evidence
of potential opportunities for expansion and growth however the marginal benefit
to developers and the cost of development has prevented this from being
achieved 1n the past It 1s necessary for innovative financing approaches to be
used to encourage development and to support the potential growth that will
occur as a result of this and other improvements m the area The use of Tax
Increment Financing will not result m tax shifts The current level of taxes will
contmue to flow to the current taxing ent1t1es and only the increased value of
revenues resulting from the improvements will be applied to the cost of the
improvement
1) No community public service needs will be generated as a result of this
project The proposed TIF will be used to offset the cost of public
infrastructure improvements including traffic systems ehmmatmg potential
traffic concerns that may be a determent to the development and to defray
extensive site development cost which are eligible TIF act1v1t1es The
development and expansion of this site will provide employment and
services which are needed to support the add1t1onal 1nst1tut1onal and
commercial expansion m this sector of the community
2) This development will have an impact on other businesses rn the area
There will be increased compet1t1ve demand for the employees to fill the
add1t1onal employment opportunities There will also be an increase m
compet1t1on for customers and this 1s the healthy basis of our economic
system This factor stimulates the delivery of quality goods and services
3) The ehm1nat1on of the substandard and bhght designation and the
prov1s1on of new employment opportunities and services will stimulate
needed economic opportunities to support the expansion and growth The
expansion will cause an increase 1n traffic 1n the area however 1t will
cause a corresponding reduction m traffic 1n other areas by providing the
delivery of localize goods and services which will reduce the outflow of
people and of dollars from the area The current street system 1s not able
to accommodate the development however the City will require
improvements on the abutting nght -of ways to provide for an improved
traffic system that will eliminate potential traffic problems and safety
concerns The development of the site the ehminat1on of potential traffic
safety cond1t1ons the creation of new businesses the creation of new
employment opportunities and the delivery of goods and services justify
the cost associated with the project The long term benefits from the
mst1tut1onal and commerc1al expansion increased employment and the
increase 1n the tax base from the development are other valid JUSt1f1cat1ons
to provide assistance to the project
The approval of the Ak Sar Ben Village concept Redevelopment Plan will
facilitate the development of this area and create the opportunity for developers
to apply for Tax Increment Financing (TIF) to be used as a financing mechanism
to offset public improvement site acqu1s1t1on and development cost associated
with the redevelopment
The project site meets the requirements of the Master Plan and other City
Ordinances as well as Nebraska Community Development Law that establishes
the process and requirements for the approval of a redevelopment plan
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Chairperson
Board of Commissioners
Douglas County
LC2 C1v1c Center
1819 Farnam Street
Omaha NE 68183 0001
Chairperson
Omaha Publ1c Schools
3215 Cummg Street
Omaha NE 68131
Chairperson
Board of Governors
Metropolitan Community College
3000 Fort Street
Omaha NE 68111
Chairperson
Board of Directors
Pap10 Natural Resources District
8901 South 1541h Street
Omaha NE 68138
President
Educational Services Unit 1
3215 Cuming Street
Omaha NE 68131
Chairperson
Metropolitan Utilities 01strrct
1723 Harney Street
Omaha NE 68102
Chairperson
Metro Area Transit Authority
2222 Cuming Street
Omaha NE 68102
Chairperson
Omaha/Douglas Public Building Comm1ss1on
City of Omalia, Ne6ras~
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 OF PUBLIC HEARING ON THE DLR GROUP HEADQUARTERS BUILDING
TAX INCREMENT FINANCING (TIF) REDEVELOPMENT PROJECT PLAN
Notice 1s hereby given that the Omaha City Council has set Tuesday Apnl 22 2008 at
2 00 p m as the date of PublJc Hearing on the DLR Group Headquarters Bu1td1ng Tax
Increment Fmancmg (TIF) Redevelopment Project Plan
The DLR Group Headquarters Bu1ld1ng Tax Increment Fmancmg (TIF) Redevelopment
Pro1ect Plan 1s approximately O 37 acre located at approximately 651h and Frances
Streets and 1s located w1th1n the Aksarben Village Redevelopment Proiect The
Redevelopment Plan 1s located w1thrn an area declared blighted and substandard and 1n
need of redevelopment by the City Council by Resolution No 3325 adopted December
17 1996
The DLR Group Headquarters Building Tax Increment Financing (TIF) Redevelopment
Project Plan proposes the construction of a 30 000 square foot headquarters building on
a 16 000 square foot site
The plan proposes up to $1 000 000 m Tax Increment Financing The total project cost
1s estimated to be $8 335 070 A copy of said plan 1s available for public inspection m
the City Clerks Office
Public Hearing will be held before the City Council of the City of Omaha m the
Leg1slat1ve Chambers Omaha/Douglas C1v1c Center 1819 Farnam Street Omaha
Nebraska
Buster Brown
City Clerk
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EXHIBIT A
ZONE 3 OVERl\LL SITE l.AYOUT PLAN I AKSARBEN VILLAGE
ZONE 3 SITE WORK _J
t 25A
By
CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha Nebrai;ka
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA
WHEREAS the primary objectives of the City of Omahas Master Plan and
Community Development Program are to encourage add1t10nal pnvate mvestment and mfill
development withm mner city neighborhoods and to ehmmate conditions which arc detrimental to
pubhc health safety and welfare by developmg vacant underutilized property withm these
neighborhoods and
WHEREAS the approxnnately 0 3 7 acre DLR Group Headquarters Bwldmg Project
Area is located at approximately 65 1h and Frances Streets (see attached Plan) and
WHEREAS this Redevelopment Plan is located withm an area previously declared
blighted and substandard and m need of redevelopment by City Council Resolut10n No 3325
adopted December 17 1996 and
WHEREAS the DLR Group Headquarters Building Project Tax Increment Fmancmg
(TIF) Redevelopment Project Plan is to fac1htate the construction of a 30 000 sq ft Headquarters
Bu1ldmg on a 16 000 sq ft site as mdicated m the Plan attached hereto and made a part hereof and
WHEREAS the DLR Group Headquarters Bmldmg Project Tax Increment Fmancmg
(TIF) Redevelopment Project Plan provides for the use of Tax Increment Fmancmg m the amount of
$1 000 000 for mstallat1on of pubhc improvements and mfrastructure the cost ofutihty relocations
and msta1Jat1on land acqms1tion demohtion and site preparauon and related TIF ehg1ble project
costs and
WHEREAS an Industrial Development Bond issue may be used m this blighted and
substandard area to assist with project financmg and
WHEREAS Section 18 2108 of the Nebraska Revised Statutes requtres the City of
Omaha to adopt a redevelopment plan before takmg an active part m a redevelopment project
mcludmg the division of ad valorem taxes under Sect10ns 18 2147 through 18 2150 Revised
Statutes of Nebraska and
Counc1lmember
Adopted
City Clerk
Approved
Mayor
C 25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha Nebraska
PAGE2
WHEREAS the DLR Group Headquarters Bu1ldmg Project Tax Increment Fmancmg
(TIF) Redevelopment Project Plan was approved by the City of Omaha Planning Board on December
5 2007
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA
THAT the DLR Group Headquarters Buildmg Project Tax Increment Fmancmg
(TIF) Redevelopment Project Plan prepared by the Omaha City Planning Department contammg a
provision for the d1v1S1on of ad valorem taxes under Section 18 2147 through 18 2150 Revised
Statutes of Nebraska m an amount up to $1 000 000 be and hereby is approved as the
Redevelopment Plan for the DLR Group Headquarters Bmldmg Project Tax Increment Fmancmg
(TIF) Redevelopment Project Plan area located at 65th and Frances Streets
PLNAMR1077 Resolution
By A),_,q t._)~embc•
Adopted ~ -6 }OOfJ / -0 ~~ City Clerk,/;,. L Approved~ ,~if~~
~ Mayor
NO f/60 Resolution by Res that the DLR Group Headquarters Bmldmg Project Tax Increment Fmancmg (TIF) Redevelopment Project Plan prepared by the Omaha City Planning Department contammg a prov1s1on for the d1v1s1on of ad valorem truces under Section 18 2147 through 18 2150 Revised Statutes of Nebraska man amount up to $1 000 000 be and hereby is approved as the Redevelopment Plan for the DLR Group Headquarters Bmldmg Project Tax Increment Fmancmg (TIF) Redevelopment ProJ ect Plan area located at 65th and Frances Streets PLNAMRl077 Resolution I 'Ji Presenk:d to City Council MAY -6 2008 Adopted 7 -o APR -1 200& GJva.g AJeel6 t-o ~3' 7t;~~@bf} t:JA~#o k.ar;;; /W//5uctd! 6 d.f. ~.,d,._,/ A,e-12JL-r-APIJ; 2 2008 -~~& ~ 4overoL4/ee.Lf~676/o?£.. / aa;r;pt:?/JQ~tfk o/J t:?~co./JP/Jae de ~c AB:2/'//1?? &//'/~ -"7-o "/5u.jf er rown .I'-City Clerk #p~se ...s