Lebanon advances LEAP water allocation MOU and $4M wastewater expansion contract

Lebanon advances LEAP water allocation MOU and $4M wastewater expansion contractThe Indiana utility moved to formalize water capacity splits with the state economic development corporation while securing supervision for its treatment plant expansion.

Board approved an MOU with the IEDC to split 25 million gallons of incoming water capacity between the civil district and the LEAP district.

Wessler Engineering was awarded a $4.05 million contract for construction administration of the wastewater plant expansion.

The water MOU approval was conditional on the removal or editing of 'Section 5' regarding pre-allocation agreements.

Baker Tilly was engaged to manage Phase 2 LEAP bond closings, targeted for April 2026.

Staff addressed public concerns regarding thermal pollution from the planned Meta data center.

On February 4, 2026, the Lebanon Utility Service Board took significant steps to formalize the infrastructure framework for the LEAP Research and Innovation District, approving a key water usage agreement and a major wastewater consulting contract. The Board voted to approve a Memorandum of Understanding (MOU) with the Indiana Economic Development Corporation (IEDC) to manage the distribution of 25 million gallons of additional water capacity expected to enter the system. According to legal counsel Mr. Jacob, the agreement memorializes a split in capacity, designating a specific portion for the local civil district and the remainder for the LEAP district. However, the Board’s approval was conditional. Mr. Jacob advised that 'Section 5' of the agreement, which deals with pre-allocation agreements, was 'problematic' and potentially redundant. He argued that once the capacity is carved out, the utility should be free to utilize its portion without additional pre-allocation constraints. The Board approved the MOU subject to the removal or editing of this section and subsequent City Council approval. To support the wastewater side of the expansion, the Board approved Amendment No. 4 to its agreement with Wessler Engineering. The contract, with a not-to-exceed value of $4.05 million, covers construction administration and resident representative services for Phases 1 and 2 of the wastewater treatment plant expansion. Spencer Portish, representing the utility staff, noted that the services would span approximately 3.5 years and would be funded through LEAP wastewater bonds. Dr. Bob Holden of Wessler Engineering confirmed that the firm would have a construction manager and inspectors on-site full-time. The firm brings a track record of similar large-scale infrastructure projects to the table, including the $27.8 million Warsaw Wastewater Treatment Plant expansion and capacity upgrades for the Southport Advanced Wastewater Treatment Plant. Financial preparations for these projects are nearing completion. The Board authorized an engagement letter with Baker Tilly not to exceed $250,000 to provide advisory and debt issuance services for the Phase 2 LEAP water and wastewater SRF loans, which are scheduled to close in April 2026. The meeting also addressed public opposition regarding the environmental impact of the planned Meta data center. Residents raised concerns about 'thermal pollution' affecting the downstream Eagle Creek watershed. General Manager Ed Basile and Dr. Holden responded that an anti-degradation demonstration is currently in draft form for the Indiana Department of Environmental Management (IDEM). Holden stated that due to residence time in the collection system and treatment basins, the discharge would not have a significant thermal impact.