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A nearly $100 million construction project in Eugene was put on hold last month when University of Oregon students rejected a proposal for new fees that would provide most of the money for a renovation and expansion of the student union building.

The plan to modernize the Erb Memorial Union, which was built in 1950 and then expanded in the 1970s, has been in the works for nearly a decade. University officials say the existing facility is too small to meet current needs, but students have twice rejected requests for additional fees to help cover improvement costs.

鈥淥verwhelmingly, the students have made it clear that they want a more affordable project,鈥� UO student body president Ben Eckstein said.

The April referendum called for assessing an additional $100 fee per student per term; it failed by 480 votes.

鈥淲e’re pausing,鈥� said Gregg Lobisser, UO assistant vice president for capital projects. 鈥淲e’re disappointed, but it’s more complex than other projects because there’s an added level of approval.鈥�

, Los Angeles-based and construction manager-general contractor have worked together through schematic design, which cost the school about $2.3 million. Although their work is 鈥減aused,鈥� the EMU contract was written so that the same team can finish the remaining $5 million of design and pre-construction if student approval is secured.

Now, the capital projects office is working on a plan to decrease the financial burden on students in hopes of gaining their support for a new referendum in the fall.

But the problem is that construction costs are expected to rise over the next few years, making cost reductions especially hard to come by. Matt Pearson, vice president of Lease Crutcher Lewis, said that he expects costs to start escalating approximately 4 percent per year as commodities rise and the economy improves.

鈥淭hat’s a lot of money over the course of a year’s delay or more,鈥� Pearson said. 鈥淐onstruction has been really economical over the last couple of years, so how the market will impact this project will be one of its biggest challenges.鈥�

Another sticking point is a proposed concert hall.

Eckstein said it’s a 鈥渢ough sell鈥� to students that a concert hall is the best use of space in the student union. He also said the university did not seek enough student input about the concert hall, especially considering that the building is intended to be a student-centered space.

But Lobisser said there were many misunderstandings surrounding the concert hall, including that a $10 million gift 鈥� not student fees 鈥� will pay for that part of the project. Lobisser hopes better communication about the planned facility’s cultural value 鈥� and the arrival of new student leadership later this month 鈥� will help move the conversation forward.

EMU construction may not start until 2015 or 2016, but the UO campus won’t be entirely quiet. Students gave their green light for a $50 million expansion and renovation of the student recreation center 鈥� and an associated $38 fee per student per term. Construction is set to start in summer 2013.

鈥淭he recreation center is something students want and need right now,鈥� Eckstein said. 鈥淚t’s also important to have a functioning student union, but it’s more important that it’s done in the right way and led by students.鈥�

Eckstein hopes the controversy surrounding the EMU will change the process for future projects. But students’ consensus can change every year, highlighting the challenges inherent in multiyear campus construction projects, especially when student fees are involved.

If students were to approve a new referendum for EMU-related fees this fall, the revamped facility likely would open by 2018.