Post by spook on Jun 5, 2008 23:25:21 GMT -5
Land-use ruling threatens University of Oregon arena plan
An independent hearings officer says traffic and other impacts in the Fairmount neighborhood of Eugene require a conditional use permit
Thursday, June 05, 2008
RACHEL BACHMAN–
The Oregonian Staff
A land-use decision released Wednesday dealt a serious blow to the University of Oregon's $200 million basketball arena project, possibly delaying construction and financing as much as a year.
An independent hearings official ruled that the arena needs a conditional-use permit, which requires a public hearing and typically takes four to six months to process. University officials had hoped to begin construction late this summer and open the arena in late 2010.
No matter what the university decides to do, the potential for appeals throughout the process could delay the arena's construction for nine months to a year, said Steve Pfeiffer, a land-use attorney at Portland firm Perkins Coie. The uncertainty also could scare off bond issuers, he said.
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"If such appeals are taken, the mere existence of these pending appeals and the uncertainty as to whether and under what approval process the arena may be approved may have a negative effect on the ability to obtain public or private financing for the project until such issues are resolved," Pfeiffer said.
That means the sale of $200 million in state-backed bonds to finance the arena, tentatively scheduled for June 17, could be delayed. Those bonds were to be backstopped, in part, by a $100 million athletic department reserve fund pledged to the university by Nike co-founder Phil Knight. His pledge required the university to secure public financing for the arena project by June 1.
University officials could not be reached for comment.
The Fairmount Neighborhood Association sparked Wednesday's ruling by appealing the Eugene planning director's original decision that arena construction could proceed under a general "university or college" use in the city's zoning code -- that is, without a conditional-use permit.
But independent hearings official Anne Corcoran Briggs disagreed, writing that the arena will "encompass most of the 7.4 acre site, will accommodate up to 12,500 spectators, will require approximately 300 additional parking spaces, and will significantly change the traffic circulation during major events."
University officials have 21 days to appeal the decision to the state Land Use Board of Appeals. They could do that or submit to the conditional-use review or pursue both tacks concurrently, Eugene planning director Lisa Gardner said.
The ruling complicates planning for the project, on track to be the nation's most expensive on-campus arena. Construction costs in Eugene have risen an average of 6.1 percent annually in the past four years, according to Marshall & Swift, a firm that tracks such figures nationwide, and the price of structural steel spiked 17.6 percent in the past year.
University officials have declared a $200 million ceiling for the arena's design and construction costs and said potential overruns would be prevented by scaling back the arena.
The price of the land, design, construction and a parking structure for the arena is $245.4 million, the most expensive building project in the history of Oregon's state universities.
The ruling arrived two days before an expected victory for the project: votes on the final approval needed from the State Board of Higher Education. Oregon needs permission from the board to spend the bond money on the arena and to sidestep the typical open-search process for contractors.
The builder and architects were selected in 2003 by National Championship Properties, a nonprofit group created within the UO Foundation by Howard Slusher, a special assistant to Knight, when the plan was to fund the arena project privately.
Even though the arena plan is now to use public financing, Oregon wants to retain the firms it says have unmatched knowledge of the project. If the state board approves, it could do so under an Oregon University System rule that took effect this year.
Rachel Bachman: 503-221-4373; rachelbachman@news.oregonian.com
www.oregonlive.com/sports/oregonian/index.ssf?/base/sports/1212638105210570.xml&coll=7
An independent hearings officer says traffic and other impacts in the Fairmount neighborhood of Eugene require a conditional use permit
Thursday, June 05, 2008
RACHEL BACHMAN–
The Oregonian Staff
A land-use decision released Wednesday dealt a serious blow to the University of Oregon's $200 million basketball arena project, possibly delaying construction and financing as much as a year.
An independent hearings official ruled that the arena needs a conditional-use permit, which requires a public hearing and typically takes four to six months to process. University officials had hoped to begin construction late this summer and open the arena in late 2010.
No matter what the university decides to do, the potential for appeals throughout the process could delay the arena's construction for nine months to a year, said Steve Pfeiffer, a land-use attorney at Portland firm Perkins Coie. The uncertainty also could scare off bond issuers, he said.
Advertisement
"If such appeals are taken, the mere existence of these pending appeals and the uncertainty as to whether and under what approval process the arena may be approved may have a negative effect on the ability to obtain public or private financing for the project until such issues are resolved," Pfeiffer said.
That means the sale of $200 million in state-backed bonds to finance the arena, tentatively scheduled for June 17, could be delayed. Those bonds were to be backstopped, in part, by a $100 million athletic department reserve fund pledged to the university by Nike co-founder Phil Knight. His pledge required the university to secure public financing for the arena project by June 1.
University officials could not be reached for comment.
The Fairmount Neighborhood Association sparked Wednesday's ruling by appealing the Eugene planning director's original decision that arena construction could proceed under a general "university or college" use in the city's zoning code -- that is, without a conditional-use permit.
But independent hearings official Anne Corcoran Briggs disagreed, writing that the arena will "encompass most of the 7.4 acre site, will accommodate up to 12,500 spectators, will require approximately 300 additional parking spaces, and will significantly change the traffic circulation during major events."
University officials have 21 days to appeal the decision to the state Land Use Board of Appeals. They could do that or submit to the conditional-use review or pursue both tacks concurrently, Eugene planning director Lisa Gardner said.
The ruling complicates planning for the project, on track to be the nation's most expensive on-campus arena. Construction costs in Eugene have risen an average of 6.1 percent annually in the past four years, according to Marshall & Swift, a firm that tracks such figures nationwide, and the price of structural steel spiked 17.6 percent in the past year.
University officials have declared a $200 million ceiling for the arena's design and construction costs and said potential overruns would be prevented by scaling back the arena.
The price of the land, design, construction and a parking structure for the arena is $245.4 million, the most expensive building project in the history of Oregon's state universities.
The ruling arrived two days before an expected victory for the project: votes on the final approval needed from the State Board of Higher Education. Oregon needs permission from the board to spend the bond money on the arena and to sidestep the typical open-search process for contractors.
The builder and architects were selected in 2003 by National Championship Properties, a nonprofit group created within the UO Foundation by Howard Slusher, a special assistant to Knight, when the plan was to fund the arena project privately.
Even though the arena plan is now to use public financing, Oregon wants to retain the firms it says have unmatched knowledge of the project. If the state board approves, it could do so under an Oregon University System rule that took effect this year.
Rachel Bachman: 503-221-4373; rachelbachman@news.oregonian.com
www.oregonlive.com/sports/oregonian/index.ssf?/base/sports/1212638105210570.xml&coll=7