The recently lifted sewer moratorium, a high interest rate and cold winter weather combined to drive down the value of building permits issued in the Centre Region, county officials said.

Centre Region's Code Administration Office issued 78 building permits worth $8.75 million in February, compared to 81 permits worth $19.28 million in February 1989. Records show this as a 56 percent drop.

However, a $10.73 million permit for the expansion of Nittany Mall in February 1989 contributed to the high total.

Bans on sewer construction issued by the state Department of Environmental Resources halted most local development for more than two years, said Robert Crum, regional planner for the Centre Region Planning Commission.

Last week, DER conditionally approved the region's latest proposal for the state-mandated sewage facilities plan, Act 537, Crum said. Some property owners had been waiting for the ban to be lifted, he said.

While restrictions were lifted for on-lot septic system permits and subdivision plans, bans on new connections to the sewer system and issuance of planning modules will remain in effect until further notice from the DER.

Centre Region Code Administration Director Harry Burd said too many buildings are connected to the local sewer line now.

"The real culprit is that there is too much affluent going to the plant," he said, adding that the borough planning commission must start to devise a method to handle more sewage.

While several possible reasons exist for the drop in building permit value, the largest factor is the high interest rate on borrowing money, Burd said.

"(Contractors) hold off while interest is high," Burd said. The value of building permits varies proportionally with the interest rate, which was 10 percent in February.

Weather also was a factor.

"People are reluctant to start building in wintertime," he said.

The biggest permit issued last month was $4.81 million for Gateway II, Unico Corporation's student apartment complex between Beaver and College Avenues near University Drive.

Another large permit was issued for a $1.7 million addition to the Nittany Mall.