To finance the infrastructure - streets, water and sewer - for the campus, the city is proposing that a new urban renewal district (URD) be established.

Jeff Tashman, a consultant on URDs, explained that a URD is a financing tool for public improvements. It does not raise taxes, but redirects a portion of taxes paid in the area.

After boundaries of the URD are established, the assessor calculates the total assessed valuation within the area. Taxes on that valuation continue to support existing taxing districts such as the county, school district, city and fire district. During the life of the URD, any taxes collected on property values above that amount go into the URD.

Local tax statements show the amount each taxpayer pays into a URD.

URD revenue may be used directly or the URD may sell bonds to be paid back from future revenue.

The URD must be approved by the Planning Commission and City Council. Hearings on the URD proposal will be held at 6:30 p.m. on July 16 before the Planning Commission and at 7 p.m. on Aug. 13 before the City Council. If it is adopted by the council it takes effect 30 days later.

The proposed URD is roughly V-shaped, with one-half the V extending west of Highway 20 from Academy Street to north of Reeves Parkway and the other half from Wheeler Street through the industrial area off N. Williams Street to the urban growth boundary. The hospital property, which is between the two parts of the V, is excluded.

Revenue from the URD may be used anywhere in its boundaries, not only for the medical campus, though that is the first project to be funded, said City Administrator John Hitt. A list of other possible projects is being developed, and may include street improvements in the industrial area.

Lebanon currently has two URDs. The Northwest Lebanon URD has helped finance infrastructure for Pioneer School, Lowe's and ENTEK. Cheadle Lake URD is only a few years old and hasn't accrued enough revenue for any major projects. A third URD, which closed a few years ago, funded improvements along South Main Road, Second Street and Airport Road.