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RCC expansion grows a few glitches Costs are rising; financing still iffy By DANI DODGE Although Southern Oregon University and Rogue Community College are still expecting to combine services in a downtown Medford building, the financing of the deal is in a state of flux. The renovation of the old Montgomery Ward store at Central Avenue and Eighth Street is turning out to be more costly and less roomy than officials had expected when they announced a partnership between the schools two months ago. And the bill is a little higher than the university can choke down. "We are certainly working in partnership with RCC, but until we get further details on cost and financing, it would be premature to say it would be a 50-50 ownership of the building," said SOU President Stephen Reno. Although it was first believed the building would accommodate four floors, it appears now only three are possible. The cost estimate has risen from $2.2 million to a range of $2.2 to $2.9 million. Because of the changes, RCC officials will be taking the lead on the project, Reno said. Regardless of the shift, the project will continue "full-steam ahead," said Tom Bradbeer, dean of human resources and college advancement at RCC. "The partnership is much more important than the specifics of any effort," Bradbeer said. "While it's a disappointment we won't have all we hoped in the building, it doesn't compromise our commitment to work with Southern Oregon to expand access in the region." In November, the schools unveiled plans for the University/College Center opposite the Craterian Ginger Rogers Theater. Although the building was last a furniture store, its past life included housing Montgomery Ward. The building will be used primarily for classroom space, although key student services such as registration, tutoring and counseling are also expected to be located there. Putting university and community college courses together in one building would expose students to a fuller range of post-secondary educational opportunities, officials believe. It will give SOU a Medford base and RCC much-needed space. Bradbeer said he continues to expect the building to be ready by fall. "While this is a bump in the road, it's something we hope to get past by discussion with the board next week," Bradbeer said. The schools are looking at several ways to deal with financing the project. Building owner Alan DeBoer may keep ownership and lease it to the schools. Or RCC may take ownership and lease a portion to SOU. So far, the two institutions have $600,000 in state funding for the project. "The way the rest of the building is financed is still not fully known," Bradbeer said. "There are still some possibilities." As a community college, RCC has the option of issuing tax-exempt financing instruments similar to bonds. But if the college uses those, it will have to pay them back with general fund cash, generally used to pay teachers and other necessary services. The community college board will meet Tuesday to consider the options, Bradbeer said. "It's a real dilemma for the board to try to figure out how to balance the need for facilities and instructors and support staff as we grow," Bradbeer said. "They will consider which option is most prudent." Mail Tribune Copyright � The Mail Tribune 2000, Medford, Oregon USA