Lebanon City Council is scheduled to vote, and expected to approve, Monday on a proposed five-year lease extension with Copeland LP, a decision that arrives shortly after recent layoffs raised questions about the company’s direction in the community.
Council Bill No. 7000 would authorize the mayor to execute a revised lease agreement for the city-owned industrial facilities located on West Bland Road and Evergreen Parkway. If approved, the agreement would extend Copeland’s lease from April 1, 2026, through March 31, 2031, if all options are exercised.
The structure includes a three-year base term followed by two optional one-year renewals. If either renewal is not exercised, the lease could conclude at the end of year three or year four.
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Under the proposed extension, the base rental rate would remain $1.73 per square foot. That results in a monthly payment of $54,433.27, due in advance on the first day of each month. On an annual basis, the lease would generate $653,199.24 in revenue to the City of Lebanon before credits are applied.
A central component of the agreement is a rent credit tied directly to facility upgrades. The extension includes a monthly credit of $7,083.33, reducing the net monthly rent to $47,349.94. Over the full five-year term, that credit could total up to $425,000.
The lease specifies that Copeland must complete the full five-year term to receive the entire credit amount. If the company does not remain for the duration of the agreement, the total credit would not be fully realized.
Except for the outlined modifications, the original lease approved in 2016 would remain in full force and effect.
The timing of the vote has drawn attention following workforce reductions at the Lebanon facility. While no official layoff total has been publicly confirmed, multiple employees were impacted, with many reportedly employed through a staffing agency commonly used in manufacturing operations. Longer-term employees were offered severance packages. The company has no plans to close.
Details included with the lease materials outline a structured list of improvements tied to the agreement. Items identified for upgrades include restroom and hot water system updates, roof repairs, dock plate evaluations, lighting upgrades, exterior door and security improvements, heating and airflow enhancements in warehouse areas, resurfacing and striping of parking lots, drainage work, and various safety-related improvements such as alarm systems, OSHA-related dock interlocks, and mezzanine evaluations. Some items would be covered by the City of Lebanon, some split between the city and Copeland, and others handled directly by Copeland under the adjusted lease terms.
The negotiated rent credit tied to those improvements reflects planned investment into the existing facilities. Multi-year lease extensions of this scope are typically structured to provide operational stability while allowing for long-term maintenance and capital upgrades.
Monday’s vote is expected to formalize the revised agreement. The extension would set the terms for Copeland’s continued use of the city-owned industrial properties through at least 2029, and potentially through 2031, under an agreement centered on facility improvements and continued occupancy.
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