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Because of concerns about increasing Oregon’s debt, Republicans in the state House of Representatives say they will delay bond approval for a number of Oregon University System capital projects.

Among the projects facing delays are the Oregon Sustainability Center and new classroom and student center buildings at Oregon State University.

Legislative leaders in Salem are scrutinizing a request by the OUS for approval of about $600 million in bonds to pay for capital projects and repair work.

Bonding approval had been granted in a previous session for some of the projects that would be delayed, like the Oregon Sustainability Center. However, unused bonds must be re-approved every biennium, and this time the Legislature said it had more questions about the projects.

鈥淭his is the first time we’ve ever experienced this,鈥� Jay Kenton, vice chancellor for finance and administration at the Oregon University System, said in reference to the Legislature reversing course on bonds it previously approved. He said that up to half of the $600 million in requested bonds, including carry-forward bonds and new requests, may be delayed until February.

Co-Speaker of the House Bruce Hanna, R-Roseburg, led the effort in the joint Capital Construction Subcommittee to scrutinize the projects. He said the Oregon Sustainability Center project lacked clarity.

One of Hanna’s concerns was the high cost per square foot and high rents expected. The OUS is expected to rent more than 40 percent of the building.

鈥淭hat should give all Oregonians a moment of pause: Do we really want to be building buildings that cost that much, with that high rental rate, and then have the university center rent it?鈥�

In a note to be appended to the Oregon University System’s budget bill, Hanna will ask the OSC project team to plan for a larger percentage of the building to be rented by private tenants.

鈥淚f the private sector finds the building to be highly desirable, that’s better news for this building’s future,鈥� Hanna said.

The Oregon University System is asking for approval of about $38 million in bonds for the Oregon Sustainability Center. The bonds would pay for more than half of the $59.3 million project cost; repayment would come from building operations, including rents.

Lindsay Desrochers, vice president for finance and administration for PSU, is concerned that a delay could halt the project’s momentum and worry private and public-sector partners.

鈥淓veryone has been moving forward under the assumption that bonds would be sold,鈥� Desrochers said. 鈥淒elaying the project and asking us to do a whole new series of analyses most definitely could result in a delay, and if we don’t move forward now we could really jeopardize the partnership and the project.鈥�

But Kenton said he still has hope.

鈥淚 think the project can come together and we can answer their questions and go forward,鈥� he said. 鈥淚’m not aware of any private-sector partners who are pulling out.鈥�

OSU’s Student Experience Center is facing delayed funding approval. Bonds for that project were slated to be repaid by student fees, which were approved by a vote of the student body last year.

A new $65 million classroom building at OSU also is on the delay list. That project would help the growing university avoid capping enrollment, Kenton said. The bonds would have been repaid through nonresidents’ tuition fees.

At this point, some uncertainty exists about which parts of the OUS budget and bonding requests will be approved. The university system’s budget and capital bonds bills are expected to be some of the last to pass this session. If legislators, as expected, add a note to delay bonding approval for projects until February, work would be delayed.

鈥淢any of these projects we’ve spent money on and have plans and third-party participation,鈥� Kenton said. 鈥淭o delay a funding decision at this point obviously makes people nervous and puts projects 鈥榦n ice’ a little bit.鈥�

In a worst-case scenario, he added, some planning or design work could go to waste if one of the projects were nixed. But he hopes that won’t happen.

鈥淭he (legislators) are doing what they’re elected to do: scrutinizing and asking questions. We plan to answer them,鈥� he said.