from The Lebanon Democrat::Oct. 22, 2008
Council approves the Bible Park study

ACLU Files open-record request
By J.R. Lind, Staff Writer

The Lebanon City Council accepted the Bible Park’s economic impact study and approved an interlocal agreement with the county to create a tourism development zone Tuesday, important first steps for the project.

The council voted 5-1 – Councilor Alex Buhler voted no – to approve the two ordinances, though changes were made to the original draft. State law requires local legislative bodies to accept impact studies for projects to be authorized to receive bonds paid through tax-incremental financing. The council did that, but added that the bonds issued by the Industrial Development Board would not exceed $60million without further council action. The project’s developers have said they are looking for $13 million to $15 million in TIF backed bonds and another $35million to $45million in bonds paid through a 5 percent “privilege tax” issued inside a TDZ.

TIF is a process wherein the increase in property tax incurred by land improvements is captured and used to pay off bonds. Since both the county and city assess property taxes, both the county commission and city council have to approve the plan before the Industrial Development Board can issue the non-recourse bonds.

A provision was also added to protect the city form having to commit to building the road between U.S. Highway 231 and U.S. Highway 70 that will serve the park.

“I’m not against your project,” Councilor William Farmer said. “But are you willing to indemnify the city for the road? If the state doesn’t build it, are you willing to keep it off the taxpayers?”

An amendment was added that said the city was “in no way obligated” to fund the infrastructure unless specifically authorizing it in the future.

Buhler expressed reservations that the project was “going too fast.”

“I’m really not convinced of this [economic impact] plan,” he said.

During a work session, Mayor Don Fox emphasized that Tuesday’s votes were not the last say the council would have in the project’s developments.

“All this is doing is enabling the Bible Park to start seeking the financing. There are a lot of drop dead points between now and then…If something doesn’t work out, the project disappears. …All we are doing is a first step,” he said.

During citizens’ comments before the vote, Tom Walsh of Lebanon, an attorney, said the city would be opening itself to a potential First Amendment lawsuit.

“A suit is coming down the line,” he said.

After the meeting, Walsh said he is not aware of any suit in the works already, but that he would be surprised if one was not filed.

“I think there’s a sustainable position to be made fore ‘excessive entanglement.’ …I don’t have a problem with the Bible Park, but I don’t want any government funds going to do it. Certainly there is the option of filing suit. The ACLU may do it, I may do it pro se, for myself. Or as an attorney working pro bono,” he said.

The American Civil Liberties Union filed an open-records request for information about TIFs, TDZs and the Bible Park with the county mayor’s office Tuesday.

City Attorney Andy Wright said the spoke to former state Attorney General John Summers, now an attorney working the for representing the park project, and Summers said that “constitutional issues” could be avoided. He also referenced an opinion issued early this year by current Attorney General Robert Cooper that indicated that, even though the park tells biblical stories, government bonding could be used.

“We are doing everything we can to keep it constitutional,” Wright said.

Farmer wanted another amendment that would remove the city’s liability for attorney’s fees in such a constitutional case, but the projects attorneys said the Bible Park would likely enter the case as an intervening defendant and then take the lead in the defense.

Both ordinances passed Tuesday have to be approved by the council a second time before going into effect.

In other business, the council unanimously approved the creation of new type of zoning. The council has already eliminated Lebanon’s planned-unit development ordinance and the never-used “mixed use” zoning to pave the way for the new “Special plan” zoning district. PUDs were already frozen after a March court decision in which a judge ruled that the council acted in a “arbitrary and capricious” manner by denying PUD designation for controversial development Chestnut Ridge. The council was looking for an new way to protect neighborhood integrity while allowing for the increasingly-popular mixed use developments. Rather than an overlay, the SP zoning will be a zoning district, much like residential or commercial, giving the council much more information – and authority –during the zoning process.

Councilor Kathy Warmath said the new zoning gave the council peace of mind.

“The PUD issue gave us a lot of heartburn. …I appreciate us getting past these obstacles. This is good for the City of Lebanon,” she said.