The University is moving downtown but is keeping its bags packed. It may not be staying long.

In recent years, the lack of space on campus has forced some University functions into leased downtown offices. However, leasing is only a temporary solution to the space problems on campus, and much of the space will be vacated when on-campus facilities become available, a top University official said.

"There has never been any intent to lease space (as a permanent solution)," said James Dungan, senior director of the Office of Physical Plant.

Leasing is not a long-term solution for the University because it is not cost effective, Dungan said.

"In the long run, leasing is not the best thing to do," he said.

While the University has not established a definite time line, the goal is to bring all off-campus programs back on campus, Dungan said.

The Facilities Resources Committee drafted a five-year plan that identifies possible new on-campus construction and use of new space for facilities at the proposed Research Park. This will free locations for the offices currently downtown and also those planned for off-campus placement.

Many of the leases are one-year agreements with an option to renew each year. As facilities become available on campus, the University has the option to decline renewal and move the programs back across College Avenue, he explained.

As space becomes available and the University starts moving back on campus, difficulties could arise in filling the offices left behind, some say.

"It could be potentially a problem," said Carl Hess, borough planning director. He added that the occurrence of problems in filling space vacated by Penn State depends on several factors including the economy, the vacancy rate and the amount of space opened at one time.

"The University renting space downtown might be forcing others outside (State College)," he said. Companies now occupying buildings outside of the borough may not want to relocate to the downtown area once space becomes available.

Charles Rider, owner of Rider Building I, 120 S. Burrowes St., and James Building, 123 S. Burrowes St., leases about 63,000 square feet to the University. Rider said there could be difficulties if the University leaves the buildings when the leases expire.

"It could have quite an effect," if the University would not continue to lease about 40,000 square feet in Rider Building I, he said.

Administrative services are conducted in Rider Building I where the University has a 10-year lease. The lease will expire in 1997.

The University's lease for James Building is its longest, set at 12 years, Dungan said. The School of Communications plans to move offices into the building in May, said Paul Ruskin, director of operations for the school.

Dungan said the University is planning to rent at least the top two floors of Rider Building II, currently under construction at the corner of South Burrowes Street and West Beaver Avenue. The space would be used for a proposed national weather service program, he said.

The proposed Rider Building III, to be located next to Rider Building I and across Burrowes Street from Rider Building II "should be completely devoid of the University," Rider said.