Lockheed Martin Airdock

Lockheed Martin won contracts with the U.S. Department of Defense to build a High Altitude Airship as well as Persistent Threat Detector Systems (PTDS) . To fulfill the contracts, Lockheed Martin needed to remediate and improve its air dock facility. The facility had been largely vacant and under utilized. The company also required equipment for the manufacture of specialized material for the airships for the U.S. Army.

The Value Provided

The airdock site was a brownfield requiring environmental remediation. Lockheed Martin required off-balance sheet financing.

Benefits of Working with us

DFA partnered with state and local authorities to fund project.
DFA’s experience enabled a creative financing solution.
DFA has extensive experience in real estate and equipment leasing.
Lockheed MS2 IDT

Project Cost

Source Funds:

$2,215,000 – DFA Jobs & Investment Bond Fund
$5,000,000 – Ohio Enterprise Bond Fund
$4,952,000 – Ohio Department of Development 166 Direct Loan
$2,000,000 – Brownfield Cleanup Revolving Loan Fund
$3,000,000 – Clean Ohio Revitalization Fund Grant
—————
$17,167,000 – Total

$20,300,000 – Lockheed Environmental Private Investment
$40,000,000 – HAA program investment

Interest Rate

DFA Fixed Rate Bonds(for equipment) 5.55%
OEBF Bonds(for equipment) 5.35%
ODOD 166 Loan(for facilities) 1% in years 1-5, 3% in years 6-20
BCRLF .05%

Airdock Real Estate

  • The City of Akron gifted the airdock to the Development Finance Authority.
  • The DFA structured at 20-year operating lease with Lockheed Martin.
  • Lockheed Martin can renew the lease, return the asset, or purchase it for fair market value at the end of the lease.
  • Lockheed Martin will pay 85% of the lease payments.
  • 15% of the lease payments are funded through Tax Increment Financing (TIF).
  • The State of Ohio has a 1st mortgage on the airdock.

Manufacturing equipment

  • The DFA acquired machinery and equipment using state and DFA proceeds.
  • The DFA leased the equipment to Lockheed.
  • Lockheed Martin was able to renew the lease, return the assets, or purchase them for fair market value at the end of the lease.
  • Lockheed Martin pays 85% of the lease payments.
  • 15% of the lease payments are funded through Tax Increment Financing (TIF).
  • The State of Ohio and the DFA Bond Fund share a 1st lien on the equipment.

Brownfield Remediation

  • The cleanup was funded by the U.S. Environmental Protection Agency, the State of Ohio and Lockheed Capital.
  • The DFA arranged funding for the cleanup.