The Mercer County (New Jersey) board of commissioners has agreed to spend $10 million to acquire a 56-acre portion of the Rider University campus and other assets in an effort to help the school resolve its financial difficulties.
NJ.com reports that in addition to purchasing the land on the Lawrenceville campus, the county will acquire the school’s presidential house and lease school facilities for use as a county office.
The land acquisitions and service agreements in the deal could pay the university up to $9,999,999 if they are finalized.
The deals would provide “essential financial liquidity to a critical regional anchor institution, thereby stabilizing the local economic base and preserving the tax ratables of the surrounding community by helping to prevent the insolvency of Rider University, a major regional employer,” according to the resolutions approved by county commissioners.
Rider was placed on probation last year by its accrediting agency, the Middle States Commission on Higher Education, because of its financial problems.
Rider, which has about 3,600 students, remains accredited while it is on probation and classes are continuing.
The university has taken several steps to improve its finances, including laying off up to 35 full-time faculty members and reducing salaries of most employees by 14%.
The sale of part of its campus would bring in significantly more money.
One of the resolutions approved by the Mercer County board authorized the county’s executive to negotiate a purchase not to exceed $7,511,871 for a 56-acre lot on the edge of the campus. The land would be preserved as open space and serve as a public access point for a future trail project, county administrator Dan Benson said..
The county commissioners also agreed to authorize spending up to $1,065,000 to acquire the building that serves as a residence for the university’s president.
The final resolution approved authorizes for a seven-year agreement for the county to use university facilities for the county’s Office of Emergency Management.
