Developer Jeremy Katz hopes to turn the former  NAPA Auto Parts building on Route 4 in Lebanon, N.H., into an apartment building. (Courtesy Studio Nexus Architects + Planners)
Developer Jeremy Katz hopes to turn the former NAPA Auto Parts building on Route 4 in Lebanon, N.H., into an apartment building. (Courtesy Studio Nexus Architects + Planners) Credit: Courtesy Studio Nexus Architects + Planners

LEBANON — Plans to redevelop the former NAPA Auto Parts store on Route 4 into an apartment building cleared the Lebanon Zoning Board, which granted the project a variance Monday night.

The Zoning Board voted unanimously to allow developer Jeremy Katz to forgo new regulations that require buildings within Lebanon’s downtown core to set aside space for street-level commercial use.

Katz, who serves as an alternate on the Zoning Board, recused himself from deliberations and the final vote.

The rules, which took effect earlier this year, are part of the city’s efforts to increase walkability and encourage pedestrians to frequent the neighborhood.

But businesses aren’t interested in moving into the property because of plans to construct a roundabout at the intersection of Mechanic, Mascoma and High streets, Katz said.

The roundabout project is slated to take parking from his property, build new curbs and regrade a portion of the street, all of which could make pedestrian access challenging.

“When the road construction is done, the property is permanently altered,” Katz said during Monday’s meeting, which was held over teleconferencing software. “And it’s altered in a way that substantially diminished its usefulness.”

For instance, a door that now leads directly to the sidewalk along Route 4 would be obstructed by a retaining wall once the roundabout is complete, Katz said.

“Unless we have any high jumpers, no one’s going to be walking into the building from that way,” he said.

Katz decided instead to turn the roughly 10,000-square-foot building into apartments, although he didn’t say how many. Phone messages left for Katz on Tuesday were not returned.

However, those details are expected to be reviewed by the Planning Board before the redevelopment moves forward.

Katz purchased the roughly ⅓-acre property for $264,000 last June, according to the city’s assessing records. At the time, Katz said, he was unaware of long-awaited plans to reconfigure the Route 4 corridor leading into downtown.

The roundabout — one of two planned for Mechanic Street — is a part of Lebanon’s larger goals to rebuild the east-west road with new sidewalks, trees and improved drainage.

Some of that work is happening now as the city upgrades sewer connections, but other portions have stalled and are continually pushed back as the state reviews its priorities.

The roundabout, which is expected to cost just over $3 million, relies heavily on state grants, with the New Hampshire Department of Transportation picking up almost all of the cost. Construction is scheduled to start in 2022, but state officials have warned that revenue shortfalls stemming from the coronavirus pandemic could postpone projects.

Even with the delays, Katz said, the impending roundabout work is enough to scare off retailers. Losing a road cut would make it impossible for delivery drivers to drop off goods, while visitors would need to navigate around Foundry Street to access potential shops, he argued.

In addition, construction would temporarily make heavy use of the land, Katz said. (It also would require the demolition of the triangular building that is now home to Phnom Penh Sandwich Station, city leaders have warned.)

It’s unclear when Katz will present further details to the Lebanon Planning Board. In letters to the city, he’s indicated that workers are currently engaged in a remediation effort stemming from the site’s former use as a gas station before it was home to the auto parts store.

That work is expected to be completed this summer.

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