LEBANON — Facing down an onslaught of public opposition Wednesday night, the City Council delayed a vote on zoning changes aimed at increasing development along Route 120.
In pushing off a decision, the City Council warned that the delays could alienate employers but determined it would be worthwhile to take a step back and think about how zoning changes along Route 120 might fit into their long-term plans for the city.
“One of the questions I don’t think we’ve necessarily answered or addressed in a long time is what ultimately do we want the city to look like…,” Mayor Doug Whittlesey said. “We are making decisions now that should tie into … some vision.”
Whittlesey advocated for building out a vision for the city and then thinking about how zoning changes might fit into that plan.
After Wednesday’s meeting, the council plans to take more time for discussion about the broader goals for development and answer some resident concerns.
The group warned, however, that ignoring calls from some of Lebanon’s largest employers to build more housing could lead them to go elsewhere.
Losing any large employers would be “traumatic” for Lebanon’s “economic vitality,” said Tim McNamara, a longtime city councilor.
About 70 people attended the meeting either remotely or in person at City Hall. While members of the business community spoke in favor of the changes that they said would allow more workforce housing, residents largely panned the proposal and successfully urged the council to put off a vote.
“If you guys go ahead and pass this tonight, I think it’ll be really clear, really, really clear, as to who you’re thinking about and who you’re concerned about the most,” resident Eric Cole told the council.
Cole is challenging incumbent George Sykes to represent Ward 2 on the council in the March municipal election.
He was among multiple residents who asked the council to take a step back from approving the zoning changes, which have been in the works for about two years.
The proposed zoning amendments would have “upzoned” properties along Route 120 between Exit 19 on Interstate 89 and Centerra Park to allow for more mixed-use development. The area has been zoned for light industrial use.
City planners have argued that the changes would allow for more housing development while ensuring important wildlife corridors and natural lands are conserved.
Several representatives of Dartmouth Health argued that the lack of housing in Lebanon makes it difficult for them to recruit and retain employees. They pointed to the lack of larger apartment units, single-family homes and owner-occupied housing generally as particular challenges.
Jennifer Sargent, DH’s director of relocation and community resources, works with new recruits and current employees to help find housing. The city does not need more small apartments, she said, but does need diverse kinds of housing.
“After about two or three years, many of our employees … reach a decision point,” Sargent said. “If they can find a home to purchase, they stay here in the Upper Valley. If they cannot, then they leave the region. Not just because they want to, but because they don’t have an option and the numbers don’t work.”
But on Wednesday, residents argued that the council should gather more information about the potential impact of development, especially large apartment complexes, on existing city infrastructure such as water, sewer and solid waste systems.
“This is not fair to the residents of Lebanon, every new sidewalk, every new road, bike path, all of these things have long-term consequences,” resident Lori Key urged. “We have to be clear-eyed as to what this means for the current residents in the city.”
Key is running unopposed to replace Councilor Karen Zook as the Ward 3 representative on the Council.
She and many others argued that the zoning changes under consideration Wednesday would disproportionately benefit Dartmouth Health.
DH is a nonprofit and does not pay property taxes, but has a payment in lieu of taxes agreement with the city to account for its impact on city services. In 2026, DH will pay Lebanon $2.13 million, according to the city budget.
DHMC reported $2.26 billion in total revenue from July 2023 to July 2024, according to the most recent tax filings for the hospital.
Opponents told the council that new development to support the medical center’s staffing would force current residents to cover more of the cost of wear and tear.
“It’s not a Lebanon taxpayer problem. From what I’ve heard tonight, it’s a Dartmouth Hitchcock problem …” said Paul Roberts, who is one of five people running for two at-large City Council seats. “I don’t know why we’re talking about doing all these changes and all the hurdles you’re jumping through.”
Roberts argued that the council did not have enough information to vote on the changes Wednesday. One missing piece, he said, was the potential impact of development on other established parts of the city. Roberts urged the Council to refocus their attention on maintaining existing infrastructure.
Other residents warned that any more development along the corridor would only worsen existing traffic problems.
Route 120 is congested during the morning and afternoon commutes. Resident Rebecca Kidder warned that traffic is only expected to get worse when nearly 500 additional units are completed at the Brickyard apartment complex near Lebanon High School.
“That’s the worst place we could put more housing,” Kidder told the council.
The Brickyard apartments are among 1,200 new housing units expected to be built in Lebanon in the coming years, said Planning and Development Director Nate Reichert. Many of those projects are long-delayed.
Some residents, including Steve Whitman, urged the council to wait and see the impact of the previously permitted projects before making zoning changes.
“We don’t need any more backlog at the moment when we’ve got all this building that’s already on the books. It just has to be started,” Whitman said.
The council will invite developers of major projects in the city to a March 18 City Council meeting to learn about the projects’ status and the potential impact of allowing more residential development along Route 120.
“That’s our starting point. From there we can start asking those questions,” Whittlesey said. “What do we want to see for development; Where do we want to see it and getting into what are the impacts. How do we encourage that?”