City, Air Tractor in talks over airport annexation

A proposal by the City’s economic development corporation to annex the Olney Airport into the city limits could be “concerning” to Air Tractor, which plans to build a new plant on city-owned land, Air Tractor CEO Jim HIrsch told the City Council on Aug. 12.

Air Tractor plans to break ground on the 75,000-squarefoot plant around the first of next year. But Mr. Hirsch indicated that the City’s proposal to annex the airport, where Air Tractor manufactures the planes it builds for agriculture, fire prevention, and military uses, could have an impact on whether the company goes forward with the new plant.

Mr. Hirsch said he has been discussing the plan with the Olney Economic Development Corporation after learning about the proposal earlier this summer. The company is one of Olney’s major employers.

The Olney Economic Development Corporation board has recommended annexing the airport into a tax incremental reinvestment zone (TIRZ) that would also include most of Main Street and Olney Lake to fund revitalization of downtown and infrastructure repair.

OEDC Executive Director Tom Parker and OEDC board President Johnny Moore appeared before the City Council on Aug. 12 to request permission for a consultant, David Pettit, to collect data for the proposal.

The City Council will decide on the size, shape and composition of the TIRZ, as well as what percentage of new revenue created inside the TIRZ will flow to infrastructure improvements.

“Everybody in this room … would love to spur development,” Mr. Hirsch said. “But most everybody in this room also has … their home and their business and to look after those interests too. And sometimes those [interests] conflict a little bit.”

Mr. Hirsch said Air Tractor is facing the prospect of paying City tax on buildings, inventory and new construction – a potential cost of $500,000 per year. “That’s concerning,” he said.

Mr. Hirsch said he was discussing tax mitigation measures with the OEDC.

“It’s a little complex. We need to understand and get some numbers and some draft agreement language to see if we can get something that everybody can buy into and can go forward with,” he said.

Councilmember Thea Sullivan asked Mr. Pettit to create a TIRZ plan that does not include revenue from Air Tractor.

“I was going to ask you if you would, when you do your plan, to do one without Air Tractor because I’m not willing to destroy our relationship with Air Tractor,” she said.