Lebanon — Members of the Lebanon Elks say a proposed zoning amendment could kill the sale of club-owned land to Dartmouth Coach, delaying the delivery of much-needed financial support.

Planners want to rezone the Elks’ 63-acre parcel from light industrial to high-density residential use, in part to encourage the development of more housing in the Route 120 corridor.

A deal to sell 7.6 acres of the Elks’ property along Labombard and Heater roads is “essential to the very existence of our lodge,” Scott Merrihew, exalted ruler of the Lebanon club, said in a letter delivered to the city on Monday.

“The city is aware that the lodge has suffered real financial losses and its plans to move forward require that the land remained zoned as (light industrial),” he wrote.

Lebanon planners unveiled a slew of proposed zoning changes to the City Council in October, including a plan to rezone the Elks property for high-density residential use.

The parcel along the Route 120 corridor now sits within a “hodgepodge” of three zoning districts: light industrial, rural lands 1 and rural lands 3, Lebanon Planning Director David Brooks said in an audio recording of the meeting.

By rezoning the area, it would better comply with city’s master plan, which cites the street’s proximity to large employment areas and interstate 89 as conducive to housing, Brooks said.

Completing implementation of the master plan, which was adopted in 2012, has also been a long-term goal of the planning office. Two community meetings in May previewed the zoning changes, as did an online survey ahead of the October Council meeting.

The survey was completed by 110 people with 57 percent in favor or rezoning the Elks’ land and 24 percent opposed, according to meeting minutes.

“I think it’s important to note that this is not specific to (the Elks’) situation. These proposed zoning amendments are part of the master plan implementation,” said Mayor Sue Prentiss on Tuesday.

Discussions involving the master plan predate any discussions between the Elks and Dartmouth Coach, she said, adding members are welcome to register their concerns when the City Council discusses the zoning changes on Jan. 17.

However, the Elks argue the proposed zoning change would make it more difficult for Dartmouth Coach to purchase a parcel of the land and convert it to parking.

The company announced in July its interest in paving over a portion of what is now Elks Field to build between 250 and 300 parking spaces designed to meet an increased demand for parking at its new terminal across the street.

The Elks have since obtained approval to subdivide the land. Dartmouth Coach also signed a purchase and sale agreement with the club, which is attempting to recover from financial difficulties reported in February and now the subject of an ongoing Lebanon police and FBI investigation.

In past proceedings, Dartmouth Coach officials have argued the company shouldn’t be required to obtain a variance to build the parking lot, a notion that has been challenged by the city’s planning staff.

During a conceptual review of the project in July, Lebanon Zoning Administrator Tim Corwin said initial plans could be considered “off-site accessory parking,” which would require the company to seek Zoning Board approval.

Corwin said on Tuesday that he’s since had discussions with Dartmouth Coach attorneys and doesn’t yet know what approvals the parking lot will require.

But if the zoning change were to go forward, the parking lot would “definitely need a variance,” Corwin said.

Dartmouth Coach also submitted a letter received by the city on Monday that calls the rezoning effort “inconsistent with proper planning.”

Labombard Road will soon be open to thru-traffic once construction of the Hilton Garden Inn and Conference Center is completed, creating a dangerous traffic situation to any new residences, wrote Harry Blunt, the president of Dartmouth Coach.

“The thought of families and children using or worse, playing, on or near Labombard Road is perilous,” he wrote.

The rezoning proposal is currently being reviewed by Lebanon’s land-use boards, which are expected to provide recommendations to the City Council.

That group will decide in January which changes would require a ballot vote in March to take effect.

On Monday, a contingent of Elks members attempted to convey their dismay to the Zoning Board before being turned around by Chairman William Koppenheffer, who explained changes to zoning maps are subject to Planning Board and City Council review.

“That’s beyond the jurisdiction of the Zoning Board and we have no authority to deal with that,” Koppenheffer said in an audio recording of the meeting. “So if your concern is with the lines being changed in various zoning districts, this is not where you want to be tonight.”

The Planning Board is scheduled to discuss the proposed zoning changes during its next meeting at 6:30 p.m. on Monday in City Hall.

The Lebanon City Council will also hold a public hearing at 7 p.m. on Jan. 17 in City Hall.

Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.