Lebanon council names team for Fire Station 13 build-operate-transfer, schedules March 10 public hearing

At its Feb. 24 meeting, the Lebanon City Council recommended the selection of the team of Greg Martz, Core Construction and RQAW as the most reasonably susceptible offeror under Indiana Code 5-23-5 for the city’s Fire Station 13 build-operate-transfer (BOT) procurement.

City staff described the BOT selection as a two-step statutory process: (1) identify the most reasonably susceptible offeror and (2) hold a public hearing to present the proposed BOT documents. The council voted to accept the recommendation and scheduled a public hearing on the BOT agreement for its March 10, 2025 meeting at 7:15 p.m.

Kevin, a city staff presenter on contract and financing matters, said the scoping process produced preliminary pricing "just under $9 million" for the station and that the BOT structure lets the city lock a guaranteed maximum price during construction. "The price doesn't go up. They cannot change order of the price. You lock in that guaranteed max price," Kevin said. He described a likely financing plan that begins with a short-term bank loan during the BOT operator period, followed by issuance of a bond to retire construction costs at the end of that window.

Fire Department leadership said Station 13 will be located across from Menards in the business park area and is intended to maintain a four-minute response-time standard for surrounding neighborhoods and commercial areas. Chief Batts said Ladder Company 213 will move to Station 13, which will also host a Boone County EMS and Witham Hospital medic unit 24 hours a day.

City staff and the fire chief outlined a proposed schedule that would set a March 10 public hearing, a midsummer groundbreaking and a roughly one-year construction period with the station entering service in 2026. The team selection and public-hearing scheduling carried on voice votes with unanimous "ayes."

Council members asked about financing risks if projected development west of State Road 32 did not materialize; Kevin said the city could fund the project from reserves if necessary but would prefer layering financing with LEAP district revenues, the business-park TIF and a short-term loan to avoid depleting reserves. City staff reported differing figures in the discussion about reserves during the meeting (one staff member referenced a $2–4 million general fund balance; another staff comment said the city had $16 million in banked funds); council discussion left the final financing layering subject to further refinement.

The council action was limited to the statutory BOT selection recommendation and to setting the public hearing; the council did not yet approve construction financing or a final contract.