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Villagers are grabbing their torches and pitchforks, so to speak, but city officials in Keizer are asking them to calm down. The monster is not going to take their hanging flower pots.

City planner Nate Brown said there is no monster anyway 鈥� just a developer who defaulted on a bond and potentially left the city and other local taxing districts on the hook for $2.5 million.

Some merchants along River Road are steamed because rumors are spreading down the street that city officials are using urban renewal money originally earmarked to improve landscaping and business facades to instead repay the debt.

鈥淚t does make it look like the city is diverting money from River Road to cover its rear end,鈥� said Jim Nardi, the owner of Uptown Music on River Road.

Such talk is creating a well of misinformation where everyone seems to be taking a drink, Brown said.

鈥淭here’s already a lot of bacteria in that well,鈥� he said.

City officials formed a local improvement district with other local taxing districts to finance road construction and other infrastructure requirements for five lots at Keizer Station 鈥� the city’s 227-acre shopping complex along Interstate 5 at the Chemawa Road exit.

The LID took out a $2.5 million bond for the Keizer Station work. Developer Chuck Sides, who owns the five lots targeted for improvements, had agreed to pay the LID back. But Sides fell dramatically behind in his payments on the bond and eventually defaulted.

However, Brown said, Sides never received any money because it went to the LID. Sides’ responsibility was to pay the LID.

鈥淭he city’s full faith and credit is on the line,鈥� Brown said.

Now that Sides has defaulted, city officials have begun foreclosure proceedings on three of his five lots.

Two of the lots are up for sale, according to Brown. Keizer City Council set an auction for the other three for 10 a.m. on Oct. 16 on the steps of the Marion County Courthouse. Two of those lots are next to Interstate 5 and the other is behind a Lowe’s home improvement store.

But merchants are upset that the council increased the debt limit on its urban renewal area to $25,000 to pay on the bond if necessary. This will minimally affect the money available to merchants for River Road landscaping and facade improvements, Brown said. That money was available for years, he said.

Merchants have had ample opportunity to take advantage of the money, he said. If anyone lost out, he said, it’s their fault.

鈥淚f Van Winkle 鈥� just woke up after 10 years and applied for funds, he’s kind of missed the boat,鈥� he said.

That is not to say the River Road project is not affected.

鈥淭here was a million dollars left in the kitty,鈥� Brown said. 鈥淲e had to show the other taxing districts we were willing to make sacrifices.鈥�

Unless the bond debt is satisfied some other way, that $1 million will go to the debt. However, council members decided that whatever is leftover (after foreclosure sales and other attempts to satisfy the debt) will go toward River Road improvements.

Nardi said he is not necessarily mad at city officials.

鈥淚 am not a big fan of pretty sidewalks and extra trees when you have bills to pay,鈥� he said. 鈥淵ou have to take care of business first.鈥�

However, he said, what irks merchants like him more is that it looks like the city is focusing less on River Road 鈥� traditionally, its main business district 鈥� and more on Keizer Station and its box stores and chain retailers.

鈥淭here does seem to be a shift to Keizer Station, like that’s the new center of business in Keizer,鈥� Nardi said. 鈥淓ven the Chamber of Commerce has moved out there.鈥�

Brown said he understands people’s emotions.

鈥淏ut my response to that would be there is often a difference between what you want to do and what you would like to do,鈥� he said. 鈥淜eizer Station is demanding a lot of attention right now. The fact that councilors made the decision to return as much money as possible to the River Road project shows that they do care about River Road.鈥�

Brown added that it is unlikely that the LID will have to pay the entire amount because much of it will be recouped by the sale of the land. There is also the possibility that Sides himself will come up with some of the money, he said.

Businesses along River Road will not bear the burden, Brown said.