Oregon’s Emergency Board will decide Nov. 15 and 16 if the University can issue an additional $10 million in state bonds to pay unforeseen Autzen Stadium renovation costs.
An emergency board of 19 state legislators approved the University’s original $80 million renovation in February 2000. But because Nike CEO and University alumnus Phil Knight re-pocketed the $30 million he had previously pledged in April 2000, the project stalled for a year and incurred additional costs.
Knight donated an unspecified amount to the project in early October, but University officials have estimated the project’s cost has risen to $89.7 million. Bonds will be needed to cover $29.4 million in project expenses. The rest will come from private donations.
“We’ll be looking at the need for the increase,” said Steve Bender, an emergency board analyst. “They did bring this item forward and it was approved. But not with the increased costs.”
The University needs additional funding to cover inflation and to pay construction costs until donations are collected.
Legislators said they were optimistic the emergency board would approve the bonds because they won’t be paid back using the state’s general fund, which could be short as much as $290 million because of an economic downturn. Instead, the money will be paid back with bonds generated from Autzen Stadium revenue, said state Rep. Vicki Walker, D-Eugene.
“I don’t think the emergency board should have a problem with it,” Walker said. “We’re not taking any money out of the general fund.”
Bender said the state’s economic plight could figure into a decision to allocate bond money to the University, however, because it may hinder the University’s ability to repay the bonds.
“That very well could play into the decision,” Bender said. “The question is, will adding this debt payment requirement to the University budget be something they’ll be able to handle?”
University officials said the school can handle the bond payments because they’ve asked to stretch the payments over 30 years, instead of the original 10 years, Senate Budget Committee chairman Mike Kellman said.