SALEM, Ore. (AP) -- Analysts hired by the state say they found no major obstacles that would prevent construction of a new psychiatric facility on the existing site of the 124-year-old Oregon State Hospital in Salem.

But the report said some conditions might limit such use on part of the land and singled out some issues that need more study before construction can start on the proposed 620-bed facility.

KGW photo

Oregon State Hospital in Salem.

They include groundwater contamination, the possible presence of American Indian artifacts and questions over whether the hospital's rundown J Building - best known as the filming site of the 1975 movie "One Flew Over the Cuckoo's Nest" - should be preserved or demolished.

State Senate President Peter Courtney, a Salem Democrat, has been a leading proponent of replacing the hospital with two new facilities - one in Salem, the other in Junction City. He said both projects remain doable, despite potential hurdles.