UO E-clips, June 5

Land use ruling threatens UO arena plan (The Oregonian): A land-use decision released Wednesday dealt a serious blow to the University of Oregon's $200 million basketball arena project, possibly delaying construction and financing as much as a year. 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. University officials had hoped to begin construction late this summer and open the arena in late 2010. No matter what the university decides to do, the potential for appeals throughout the process could delay the arena's construction for nine months to a year, said Steve Pfeiffer, a land-use attorney at Portland firm Perkins Coie. The uncertainty also could scare off bond issuers, he said.

Neighbors present another hurdle for UO arena (Associated Press): The University of Oregon must get a conditional use permit before starting construction on a $227 million basketball arena, a Eugene hearings official has ruled. The permit process would require a public hearing and an evaluation of the project's impact on neighbors. The review won't stop construction of the 12,500-seat arena, but it will determine how the venue is built. It's unclear if the extra step will delay the arena's opening, scheduled for fall 2010.

City says UO arena will need use permit (Register-Guard): The University of Oregon on Wednesday was dealt what could be a major setback when a Eugene hearings official ruled that the UO must seek a conditional use permit before starting construction of its $227 million basketball arena. The ruling, greeted with satisfaction by neighbors who have questioned the arena plan, potentially adds several months to the planning process. It’s unclear whether that will cause the UO’s builder to miss the summer construction season or push back the arena’s planned opening in fall 2010.

Permits may delay UO arena project (OBP News, article in its entirety): The proposed University of Oregon arena project faces a possible delay. The city of Eugene has found that a conditional use permit is required in order to construct the new arena. Sue Jakabosky is the co-chair of the Fairmont Neighborhood Association. That group appealed the city’s original ruling allowing the arena to be built under a more streamlined process. She says the neighborhood association is not trying to stop or delay the arena; they just want to be involved in public hearings. Sue Jakabosky: “When this project is built, we want to see it built properly. Because you’re gonna build it for 100 years -- you need to build it right If you’re gonna build it for 100 years, like Mac Court, then we certainly want to make sure we’ve thought of everything before we start building it.” UO officials say they remain committed to moving forward with construction of the arena as quickly as possible.

Evidence points toward recession for Oregon, expert says (Register-Guard): Oregon has probably slipped into a mild recession, economist Tim Duy said Wednesday in releasing his monthly University of Oregon Index of Economic Indicators. “I think there’s a very good chance that we are in fact in a recession,” Duy said. “Unfortunately, it’s something you largely only identify in a rear-view mirror. But the majority of evidence is moving in that direction.” National recessions are typically defined as at least two consecutive quarters of decline in gross domestic product.

UO economic gauge tips toward recession (The Oregonian): Oregon nonfarm payrolls declined in April for a second month, suggesting that -- if not soon reversed -- the state tipped into recession territory in March, a University of Oregon economist says. Timothy Duy, UO Oregon Economic Forum director, released his monthly Index of Economic Indicators Wednesday, chronicling some gloomy developments. Oregon companies shed 1,600 employees in April, following a decline of 2,700 in March. Help-wanted advertising fell, as did residential building permits. "Consumer confidence fell sharply in April, indicating the potential for further sharp declines in consumer spending," Duy wrote. "Rising inflation expectations contributed to the decline." But the monthly index included two positive indicators. New orders for manufactured goods rose in April. And the interest-rate yield spread rose again, reflecting a stimulative monetary policy.