Opponents of Westmoreland sale vow to fight on.

Byline: Greg Bolt The Register-Guard

Opponents of the proposed sale of the Westmoreland student housing complex pledged to take their fight to the courts if the state Board of Higher Education approves the sale on Friday.

At a rally on the University of Oregon campus Wednesday, Eugene attorney Dan Stotter said he believes that the board will listen to the students, faculty and community members who have come out against the $18.5 million sale. The board will hear testimony on the issue Thursday in Portland and vote the following day.

But if board members decide to support UO President Dave Frohnmayer's decision to sell the apartment complex, opponents said they will challenge the sale on both land use and procedural grounds.

"We're not giving up no matter what happens tomorrow," said David Zupan of Eugeneans for Affordable Housing. "This sale will be stopped."

Oregon University System Chancellor George Pernsteiner has recommended that the board approve the sale.

His report notes that the university followed the appropriate state and OUS policies in pursing the sale, and Frances Dyke, the UO's vice president for finance, said she is confident the sale will pass legal muster.

The rally on the steps of the Johnson Hall administration building drew about a dozen sale opponents. Most students have left campus for the summer, but student senator Brett Rowlett said the campus has spoken clearly against the sale.

He said both the student and university senates passed resolutions opposing the move and have support from several neighborhood organizations, the campus Service Employees International Union and other community groups.

"We feel like we have done our part in showing to the state board that there is no desire" on campus or in the community to sell Westmoreland, he said.

Stotter said if the sale is approved, he will challenge it as a land use violation with an appeal to the Land Use Board of Appeals. He said selling the complex could violate statewide planning goals regarding housing and public involvement in land use decisions.

He also said the university failed to follow administrative rules in reaching its decision to sell and denied the Westmoreland tenants council a meaningful role. He hopes to have the matter referred to the city planning commission or City Council, where he believes there is enough opposition to stop the sale.

"I am confident that when all is said and done, the local governments will not approve the sale," he said.

If nothing else, he said the effort could create enough doubt about whether the new owner will be able to get the zone change needed to operate the complex that he will pull out of the deal. The property is now zoned public lands, and would need to be changed to high-density residential under a private owner.

Dyke said those issues have been considered and the university does not believe they will block the sale, should it be approved. The sale also has been reviewed by the state Department of Justice.

"We have followed the procedures," she said. "We worked very carefully with DOJ on the things we needed to work with them on."

Frohnmayer has proposed selling the complex to Eugene real estate broker Michael O'Connor Sr. He said the complex has become too costly to maintain, is too far from campus, has a declining occupancy rate and has other short- comings.

By selling the property, Frohnmayer said the UO can pay off existing debt and use the savings to finance new housing that better meets student needs and the university's mission. The university will cover any increase in rent for students remaining at Westmoreland for the next two years and help pay moving expenses for those who left.

O'Connor, who said he plans to spend $1 million to upgrade the apartments, has said rents probably will go up 10 percent to 12 percent but will still be in the range of affordable housing. Opponents say there's no guarantee that the rents will stay low and that selling will be a blow to the area's low-income housing stock.