Borough officials say the University's move into State College benefits downtown business, and they worry that a move back to campus could hurt the borough.

Although the lack of space on campus forced the University to lease about 22 buildings in the borough, University officials said they hope to move the offices back to campus as space becomes available.

"The University's intent is to get everything back on campus," said Jim Dungan, senior director of facilities resource management.

But State College Borough Council member Jean McManis said that if a move occurs, she hopes it will be done in phases so there will be time to find replacement tenants.

Although he does not predict a move in the near future, council member Bill Welch said the empty office space would not help the borough economically.

"No community would want 20 to 30 percent of its rental office space empty," he said.

Welch added that the empty office space could result in a delinquency of taxes and bankruptcy on the part of the building owners.

Dungan said one reason for the return to campus is economics.

"In the long run, (leasing) is not the most cost-effective solution," he said.

Dungun added that in light of the budget cuts the University is facing and the fact that some downtown leases are effective for a few more years, he does not expect a pull-out in the near future.

McManis, who worked for the University as director of publications, said the expansion into town is good for the borough because University buildings are close to stores and restaurants, which is convenient for facutly, staff and students to run errands.

"I don't think the intermingling does any harm downtown," she said.

Some businesses located near downtown University offices could be affected by a move, some local managers said.

"I'm sure it would hurt," said Mike Webb, manager of McLanahan's Drug Store, 116 W. College Ave., which is beneath Scott Building, one of three University School of Communications offices.

Webb said that since many of the people who work in the offices would no longer be close, they could easily do business elsewhere. There would also be less need for students to be downtown, he added.

McLanahan's has only been located on West College Avenue for a short time and Webb said he thinks having University offices downtown has helped the store find a clientele.

Mike Desmond, an owner of the Corner Room, 100 W. College Ave., agreed that the move has been beneficial.

"We see a good number of students and faculty and support staff at breakfast, lunch and dinner," he said.

However, Desmond said the move would only affect the restaurant slightly.

Council member Peter Lang said that with all the vacancies downtown, the University's presence is beneficial for the borough, but a massive pull-out would leave little time to find new tenants.

"There would be an awful lot of vacancies," Lang said.

Borough Planning Director Carl Hess agreed.

"If (a pull-out) does not happen in the short-term, it is positive for the borough," Hess said.