Lebanon, OR, January 13--It was probably the worst kept secret in mid-valley history. For nearly a year now, rumors had circulated that Lowe's Home Improvement Warehouse Inc. was looking at Lebanon to build a regional distribution center that would serve its retail outlets in all or part of six western states, according to the Albany, Oregon, Democrat-Herald.
The rumors and speculation were put to rest Monday evening when Lebanon Mayor Ken Toombs announced to a crowd of nearly 100 community leaders that Lowe's will build a 1.4 million-square-foot warehouse on 204 acres at the north end of Lebanon. The plans also include the possibility of expanding the building to almost 2.2 million square feet in the future.
The land for the project, which is located northwest of the intersection of Reeves Parkway and Hansard Avenue and bounded on the north by Gore Drive, is being sold to the home improvement giant by Norman Steckley and John Wittrig, according to Toombs.
While all of the agreements have yet to be signed, Toombs said that Lowe's has made it clear that it wants to be in Lebanon.
The company has submitted its development plan to the city planning department and authorized Monday's announcement. Lowe's was not represented at the gathering.
Construction is expected to start in September and take about two years to complete. The construction phase of the project will employ approximately 350 workers. Lowe's says it hopes to use as many local contractors and laborers as possible.
Once completed, the distribution center will employ between 400 and 750 workers in jobs that will pay between $15 and $20 per hour, plus benefits. The company's annual payroll in Lebanon is expected to be between $15 million and $17 million.
Lebanon City Administrator John Hitt said the landing of a major employer such as Lowe's would not have been possible without the cooperative effort of Linn County and the state of Oregon.
Among the three entities, Lowe's was offered over $12 million in incentives to locate in Linn County. They include new infrastructure through Lebanon's Northwest Urban Renewal District, state grants through the Oregon Economic & Community Development Department and road improvements by Linn County that will keep the estimated 300 trucks a day off of city streets. The Lebanon's enterprise zone will also offer tax breaks for the company.
It is estimated that Lebanon will pay approximately $9 million of the $12 million in incentives. But the mayor said the costs will be paid back through Lowe's property taxes in 10 to 15 years. The company's annual tax bill is expected to be in the neighborhood of $2 million.
Toombs commended the present and previous city councils who saw the necessity of developing a plan to have "shovel ready" property when companies come looking to relocate or build a new plant. The mayor also praised the council which was in office in 2000 for hiring Hitt — who had a long history of working in economic development — as city administrator.
Another driving force behind bringing new industry to Lebanon was former Mayor Bob Smith, who died last month at the age of 88.
In an interview in 1998 shortly before Smith's last term ended, he said that when the reconstruction of Highway 34 was completed it would only be a matter of time before new industries discovered Lebanon.
"I wish he could have been here to see this," Toombs said, as he choked up. "This is what he worked so hard for."
