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Supporters of the Oregon Sustainability Center are waiting anxiously this week as a legislative committee reviews a bill that could determine the fate of the living building project proposed near Portland State University.

Funding for the center is planned to come from a variety of sources. A significant chunk of the $59.3 million cost, about $38 million, is slated to come from bonds through the Oregon University System. The system’s authority to issue those bonds, however, is caught up this week in the Joint Ways and Means Committee. , capital construction legislation for the university system, also includes funding for other capital projects at Oregon’s public universities.

Oregon Sustainability Center funding sources

Construction of the Oregon Sustainability Center will cost $59.3 million, which does not include a $4 million streetcar alignment and $1.9 million for research and educational exhibits. The list below enumerates the projected funding sources for the project.

$45.1 million	Oregon University System and city bonds
$4.9 million	City tax increment financing from South Park Blocks URA
$3 million	Oregon University System cash
$2.5 million	New Markets tax credits and Energy Trust of Oregon money
$2 million	In-kind and federal contributions
$1.8 million	City land contribution

鈥淲e are hopeful that the Legislature will recognize the statewide value of moving forward on the Oregon Sustainability Center,鈥� said Portland Mayor Sam Adams, who has been a strong advocate of the project. 鈥淚f the bonds aren’t approved at the state legislative level for the project, today I don’t see how this project will go forward.鈥�

The $38 million in bonds would be repaid with revenues from building operations, said Di Saunders, spokeswoman for the Oregon University System. The state Legislature previously authorized the university system to issue $75 million in bonds for the sustainability center during the 2009-2011 biennium, but the Legislature needs to reauthorize all unspent bonds every two years. This time, the university system asked for only $38 million because of an increase in the number of project partners and a reduced project scale, Saunders said.

Despite a smaller price tag, the project has continued to raise eyebrows in the Legislature.

鈥淭he concern that the Republicans have is whether or not there’s a viable business model for this project,鈥� said Rep. Dennis Richardson, R-Central Point, a co-chairman of the Joint Ways and Means Committee. His concerns were outlined in a newsletter about the project called 鈥淥regon’s Unsustainable Sustainability,鈥� in which he characterized the bond sale as the state 鈥渃o-signing鈥� on long-term debt.

Richardson wrote: 鈥淚n reality, the OSC will be designed to be environmentally sustainable, yet the price tag is so high that it simply cannot 鈥榩encil out.’ This 鈥榮ustainability’ project is economically unsustainable.鈥� He also criticized the likely lease rates, which probably will be above Portland’s market rate because of the high cost of sustainable features in the building.

Saunders said that the university system isn’t sure how strong opposition to the project is in Salem, but she understands that the Legislature has to carefully consider funding issues because of the 鈥渢ight revenue situation.鈥�

鈥淚t is difficult for some folks, when they look at (the sustainability center), because it does cost more per square foot than a traditionally built building,鈥� she said.

Saunders said it’s unclear what the bill will look like when it leaves the Joint Ways and Means Committee.

鈥淲e’ve been told: 鈥楧on’t send in any more advocates. Back off and let us get it on the floor,鈥� she said.

鈥淭here are ongoing negotiations amongst all decision makers about which (university system capital projects) will be bonded and which won’t be,鈥� said Republican Budget Coordinator Dave Dotterrer, a staffer in Richardson’s office. He said he wasn’t sure when decisions would be made because of uncertain scheduling toward the end of the legislative session, but Richardson predicted the bill would move either today or Friday.

The Oregon Sustainability Center could become the first triple-net-zero living building of its scale. Adams has predicted that the building would be a showcase that would attract visitors, business and investment.

A spokeswoman for Adams, Amy Ruiz, said that the mayor believes now is the right time, and perhaps the only possible time, for the sustainability center project to move forward.

鈥淲e’ve positioned Portland as a living laboratory, where we pioneer new green technologies and attract and grow many companies who want to experiment, innovate and create bold prototype projects. The Oregon Sustainability Center significantly furthers this effort,鈥� Ruiz said.

Stakeholders are concerned that if bond money is not secured now, private partners could be lost, and the whole project would die.

鈥淚f the bonds don’t come through this session, we lose the momentum. It’s taken a lot of work to get those partners at the table, and we don’t want to lose them,鈥� Ruiz said.