Council hears first reading of Paddock Place TIF bonds to support 230-unit workforce housing project
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Summary
Ordinance 2025-33 was introduced on Oct. 14 to authorize up to $3.2 million in taxable economic development revenue bonds (TIF-backed) for the Paddock Place multifamily project; city staff said the project is a roughly $58.5–$60 million private investment with 230 units and that 80% of the project's tax increment would pledge to the bonds.
The Lebanon Common Council received a first reading of Ordinance 2025-33 on Oct. 14, a proposal to issue taxable economic development revenue bonds not to exceed $3,200,000 to finance public infrastructure related to the Paddock Place development on the city’s north side.
Catherine Panello, attorney with Dinsmore & Shohl, said the proposed financing had been considered earlier that day by the Lebanon Economic Development Commission and that the redevelopment commission is expected to pledge 80% of the tax-increment revenue generated by the project toward the bonds. “This proposed financing was also considered at today’s Lebanon Economic Development Commission meeting,” Panello said. She and staff said the project report anticipated an investment of approximately $58,500,000 in the Paddock Place economic development area established this year.
Ben (city staff) described Paddock Place as a roughly $60 million multifamily development of about 230 units, including about 20 townhomes. He said the project requires a “pretty significant public infrastructure investment” to extend road and utility connections and that total public-infrastructure cost is a little over $5,000,000; the proposed TIF bond would provide about $3,000,000 to offset part of that cost. Ben added that the project is market-rate and workforce-targeted — intended to house teachers, nurses and advanced-manufacturing workers moving to the area — but is not a tax-credit affordable housing development.
Ben offered rent figures discussed with the developer: average one-bedroom rents around $1,400 per month and two-bedrooms in the $1,500–$1,700 range. He said the developer’s objective is to price units to match what the market will bear while keeping rent attainable for targeted workers.
Rob (council member) read the ordinance language, including that financing documents and a draft economic development agreement have been submitted. The Economic Development Commission held a public hearing and found the financing would serve a public purpose; the ordinance was introduced for first reading and set for a second reading on Oct. 27. No final vote was taken on Oct. 14.
Ending: The council will consider Ordinance 2025-33 at its Oct. 27 meeting, when members may vote on whether to authorize the city to issue up to $3.2 million of TIF-backed bonds for Paddock Place.
