Rider University is seeking significant help from Mercer County amid a financial crisis that threatens the private school’s accreditation and has led to layoffs.
The county board of commissioners last week unanimously approved three resolutions that include plans to purchase 56 acres on the edge of campus, purchase the school’s presidential palace and lease school facilities for county offices.
County officials said if the land acquisition and services agreement in the deal is finalized, up to $9,999,999 could be paid to the private university.
The transactions would “provide critical regional anchor institutions with necessary financial liquidity to stabilize the local economic base and maintain tax rates in surrounding communities by helping prevent the bankruptcy of Rider University, a major regional employer,” the resolution said.
Rider President John Loyack said the agreement “represents another critical step in reimagining a meaningful Rider as we continue to rapidly rebuild our financial strength.”
In October, Rider was placed on probation by its accrediting agency, the Middle States Commission on Higher Education, due to financial issues.
Losing accreditation often means the university will have to close. But this is rare because accrediting agencies usually give schools plenty of time to fix the problem.
Rider, which has about 3,600 students, remains accredited during the probationary period and classes are continuing.
The university is awaiting a decision this spring from the Middle States Commission on Higher Education on whether to continue probation.
The university has taken several steps to improve its financial situation, including laying off as many as 35 full-time faculty members and reducing most employees’ salaries by 14%.
Selling part of the campus could bring in more revenue.
County Administrator Dan Benson told NJ.com that the most expensive of the three Mercer County Board resolutions authorizes county administrators to negotiate the purchase of 56 acres on the edge of campus for no more than $7,511,871, which will be retained as open space and serve as a public access point for future trail projects.
The county will be eligible to recoup up to 50 percent of the purchase cost through the state’s Green Acres Planning Incentive Grant program, Benson said.
County commissioners also agreed to authorize spending up to $1,065 billion to purchase a property Knight owns on Lawrence Road for use as a residence for the university president. The deal will include negotiating a lease agreement so Ryder can continue to use the home.
Commissioners also approved a resolution to continue a seven-year facility use agreement totaling $1,423,128 through 2033. The facilities will serve as “strategic sites” for the county’s Office of Emergency Management.
In addition to establishing Rider as a possible staging area for personnel and equipment during a major disaster or public health emergency, county employees will also have access to the university gym and pool.
Rider officials also announced last month that it had received good news from another agency that was reviewing its operations.
The school received a “Confirmation of Approval” from the New Jersey Approving Agency, which reviews educational institutions and programs serving America’s veterans.
Ryder also recently established the President’s Hope Fund to assist students experiencing unexpected financial or family hardship. It has received more than $2 million in pledged donations.
This story has been updated with comments from Rider University’s president.
Read the original article on NJ.com. Click here to add NJ.com as your preferred source.