Land-Use Ruling Could Delay Construction On UO Arena

A land-use decision released yesterday "dealt a serious blow" to the Univ. of Oregon's (UO) $200M basketball arena project, "possibly delaying construction and financing as much as a year," according to Rachel Bachman of the Portland OREGONIAN. 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." UO officials "had hoped to begin construction late this summer and open the arena in late 2010." Portland-based land-use attorney Steve Pfeiffer said that the "potential for appeals throughout the process could delay the arena's construction for nine months to a year." Bachman notes the sale of $200M in state-backed bonds to finance the arena, tentatively scheduled for June 17, also "could be delayed." The bonds were to be "backstopped, in part, by a $100[M] athletic department reserve fund pledged" to UO by Nike Chair Phil Knight. Knight's pledge required UO to "secure public financing for the arena project by June 1." UO officials have 21 days to appeal the decision. 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" (Portland OREGONIAN, 6/5).

Land-Use Decision May Delay Univ. Of Oregon Basketball Arena