Oregon Public Broadcasting

A University of Oregon plan to build one of the most expensive college basketball arenas in U.S. history approaches its next hurdle Wednesday. A committee of state lawmakers will hear plans to back a $200 million construction bond with taxpayer funds. As Ethan Lindsey reports, state legislators have some qualms.

Two new documents have unsettled some lawmakers.

One was the publication of the contract between Nike founder Phil Knight and the University. It set strict guidelines on how a historic $100 million gift could be spent.

And the other was a four-year-old study, reported in the Oregonian, projecting less-than-blockbuster arena profits.

In response, lawmakers say they want new guarantees they won't be on the hook if the arena disappoints.

University President Dave Frohnmayer says he's responding with a multi-million-dollar reserve fund.

And really, he says, that's not a new development.

Dave Frohnmayer: “But the fact that it's in agreement with the Ways and Means Committee, elevates its significance. Because it means it's not just internal to the University, but is a commitment that the University makes to the Oregon legislature.”

Plus, Frohnmayer says, he hopes a big public works project like this has greater political muscle in rough economic times.