The Lebanon Planning Commission on July 17 recommended approval of a new urban renewal district to help fund infrastructure related to a new medical campus.

An urban renewal district (URD) provides a financing mechanism to fund infrastructure improvements. The proposed North Gateway Urban Renewal area would include 279 acres near the site of a planned Western University Health Science medical school and health science campus located across from Lebanon Samaritan Hospital. The URD would allow the the city of Lebanon to assist in providing infrastructure for the medical campus as well as other improvements inside the URD boundary.

Urban Renewal Districts raise money by redirecting property taxes, not raising them. If the Lebanon City Council accepts the commission's recommendation and approves the URD, the Linn County assessor would calculate the assessed value of property inside the URD. Taxes on any increase in value over that base value established by the assessor would go toward funding infrastructure projects.

The city estimates the current value of property inside the North Gateway URD to be about $10.7 million.

During the July 16 public hearing, Lebanon Fire Chief Dan Woodson, and Sue Davis, chair of the Lebanon Fire District Board told the commissioners they were concerned that the URD would negatively affect the fire department.

"It's an increase in responsibility without an increase in funding," Woodson said.

As an example, Woodson said that had Laticrete and Lowe's not been inside the Northwest Lebanon URD, the fire department would be receiving an additional $195,000 a year from taxes.

In a later interview, Woodson said the increase in large commercial buildings such as Lowe's and the

medical campus could cause the Insurance Service Organization to lower Lebanon's fire rating, resulting in higher fire insurance premiums if it does not believe the city is maintaining the capability to handle the increase in responsibility.

Woodson said the primary need of the department to handle a fire at a large commercial structure is more firefighters.

"The trouble with larger buildings like ENTEK, or Lowe's is that they're labor intensive. It takes a lot of people to fight big fires," Woodson said.

Projects to be administered under the URD plan include six main categories:

€ Transportation improvements.

€ Sewer improvements.

€ Water improvements.

€ Park and public spaces.

€ Acquisition.

€ Rehabilitation loan fund.

€ Linn-Benton Community College Training Center.

The maximum indebtedness of the URD would be $18.6 million. The period of the URD financing is proposed to be 20 years. The URD can finance projects from tax revenue or sell bonds to paid back from future revenue.

The city current has two URDs: Northwest Lebanon and Cheadle Lake. A third, the Lebanon URD, which dissolved a few years ago, funded improvements along South Main Road, Second Street and Airport Road.

The Lebanon City Council will take up the issue of the North Gateway URD on August 13. If approved by the council, the URD would take effect 30 days later.