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Last-minute deal for Antioch College collapses

By Stephanie Irwin Gottschlich | Friday, May 9, 2008, 10:02 AM

YELLOW SPRINGS — The Antioch College Continuation Corporation, the alumni group that has tried to negotiate deals with Antioch University trustees to keep the college open next year, said today that trustees rejected its 11th-hour offer of money in exchange for board seats. This is the second time the board voted down an ACCC offer, and the second time it has “reaffirmed” its June 2007 decision to temporarily shutter the campus. The failed negotiations has both sides pointing fingers at the other as the culprit.

The ACCC offered a large donation — $9.5 million immediately and then another $6 million for other university campuses — in exchange for 10 seats on the 19-member board of trustees, which would have given it a majority vote, it said. The college could continue operating, the group said, while allowing the board more time to legally separate the college from the university.

Eric Bates, co-chair of the ACCC and an Antioch alum, said the following in a press statement:

“It almost defies belief that the trustees could reject this extraordinarily generous offer by a group of major donors,” he said. “We were not only prepared to make an immediate contribution of $9.5 million for Antioch College, we offered to make an additional contribution of $6 million for the direct benefit of the University’s five other campuses. This was a win-win opportunity for the entire University, and the trustees squandered it.”

The university, in its released statement, said it voted Thursday, May 8 against the ACCC proposal because because it would have resulted in the forced resignation of existing trustees and create an “untenable” leadership structure for the remaining five-campus system. It seems to have hinged on one trustee. The university was concerned about ceding control of the university to the ACCC. It also said the ACCC plan still lacked a business plan with financial benchmarks - one of their original beefs with the first ACCC plan.

Antiochians meanwhile accuse the university’s chancellor, Toni Murdock, of running out the clock. And a group known as Non-Stop Antioch said Friday it will support faculty whose contracts end June 30 and their efforts to keep teaching an Antioch education somewhere in Yellow Springs. Former Antioch College development officers are managing the College Revival Fund and about $16 million in cash and pledges for the effort. The group has opened an office in Yellow Springs and plans to slap the university with lawsuits.

Keep reading for the key points of the ACCC plan.

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Gun-toting students want to bring weapons on campus

By Stephanie Irwin Gottschlich | Tuesday, April 15, 2008, 10:45 PM

(April 16, 2007: In front of Norris Hall at Virginia Tech, after shootings resulted in multiple fatalities. AP photo.)

Gun-toting students legally permitted to conceal their weapons should be allowed to bring their guns on campuses in order to protect themselves against shooting rampages, assaults, rapes and armed robberies.

That’s one idea, anyway. And it’s being pushed by a lot of college students. And some Ohio lawmakers.

As the nation looks back to one year ago Wednesday, when 32 students, faculty and a lone gunman died in the horrific massacre at Virginia Tech, everyone is asking: How do we prevent this?

While colleges across the country have increased security focused on preventing and responding to future shootings, a movement fighting for the right to carry concealed weapons on campus is gaining momentum.

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Master plan for Ohio colleges released

By Stephanie Irwin Gottschlich | Monday, March 31, 2008, 11:43 AM

The 10-year master plan for Ohio’s public colleges and universities was delivered to Governor Ted Strickland on Monday that details strategies for the Governor’s mandate that Ohio’s colleges increase the number of Ohioans with degrees by 230,000 in the next decade.

The plan takes a consumer-friendly approach, saying the state will offer many educational options to students who can then choose the best programs at the best price to meet their needs.

One of the plan’s main goals is to make available high-quality associate and bachelor’s degree programs in core fields to students within 30 miles of their home, using the infrastructure of the state’s 47 community colleges and regional branch campuses. Community colleges will be linked through policies and a database that will enable each school to offer programs from the other schools. The first associates degree available to the entire state will be available this fall, Ohio Board of Regents Chancellor Eric Fingerhut said in a press conference this morning in Columbus.

All colleges and universities will join the national Voluntary System of Accountability, a voluntary initiative for 4-year public colleges and universities to demonstrate public accountability by measuring students’ outcomes and making information about their institutions accessible, understandable and comparable to consumers. About 225 institutions around the country participate in the system.

Ohio’s institutions will make available to students and their families data regarding price, financial aid, degree programs, retention and graduation rates, campus safety, student satisfaction and student learning outcomes. Two-year institutions will participate in a similar national initiative for community colleges.

The information will be available in an “Ohio College Portrait,” which will show campuses’ progress in 20 performance metrics in real time on a “dashboard” at the University System of Ohio website.

Keep reading for a summary of some of the changes to Ohio’s system.

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Cedarville caught up in speculation

By Stephanie Irwin Gottschlich | Sunday, March 30, 2008, 12:00 PM

An anonymous phone call from someone in Cedarville, Ohio that something was amiss at the university there triggered my front page story and deeper explanation story on Sunday on the terminations of two professors arising from an apparent theological divide within its most important academic department, Bible studies.

A note about the “climate of fear” statement quoted in the headline: That hardly summarizes the whole story. That statement comes from a group of 16 faculty - some current, some retired - called the Coalition of the Concerned, who are decidedly against the administration but are leading a very public campaign to call attention to the fired faculty issue. It should be noted too, that the headline makes it appear the faculty were suddenly fired this weekend - they were terminated in July, many months ago.

The Chronicle of Higher Education, the national newspaper for higher education, first wrote a similar story about the faculty firings in mid-March. I had just started to look into it when the call came in, signaling to me that people locally wanted to hear more about it.

A couple of thoughts on this: There’s a lot of he-said, she-said going on in regards to what exactly caused the terminations and the extent of the divide. Cedarville can’t say much about it, because they’re bound by confidentiality. I talked to Mr. Hoffeditz, some current students for background, the coalition leading the effort to preserve fundamentalism and the AAUP - but the administration was very limited in what it could say. It did say that if it weren’t bound by confidentiality and people could see what they saw, people might better understand why they took the actions they did.

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Antioch University still willing to sell college

By Stephanie Irwin Gottschlich | Saturday, March 29, 2008, 10:01 PM

In a last-minute offer Saturday night, Antioch University said it will re-open negotiations with the Antioch College College Continuation Corporation or any other party to sell the college for $12.2 million as long as the two sticking points that caused an impasse between the two parties can be resolved.

In it’s “best and final offer” this week the corporation offered to buy the college for $12.2 million in order to make Antioch College independent. But its offer of providing half the cash at closing and pay the balance over a five-year period was not acceptable to the university, both parties announced Friday, March 28. The university said it needs the entire cash amount up front, at closing. The corporation also wanted National Public Radio affiliate WYSO including in the sale. The university could not agree to that either, it said.

After that announcement, trustees then voted to re-open the negotiations and said it will agree to an offer from the ACCC or any other party as long as they can provide the cash up front.

Lynda Sirk, spokeswoman for Antioch University, said that trustees “feel that if they can work out the financing on 12.2 million, the rest is definitely workable.” So it sounds like they’re willing, maybe, to let go of WYSO for the cash.

Here’s why they opted to be a bit more flexible. From their press release:

In the wake of the ACCC announcement at noon on March 28, the Antioch University Board of Trustees met and expressed deep disappointment at not having reached an agreement with only 2 items remaining—the need for underwriting appropriate security for the $6.2 million the ACCC proposed to pay in installments over five years, and ownership of WYSO. Recognizing that every day of delay is a day lost towards reaching the goal sought in common by all parties, the Board is prepared and willing to negotiate at any time with any party to the end of assuring a vigorous, progressive residential liberal arts college while at the same time protecting the viability and vitality of the University. “We recognize the importance of Antioch College not only to the nation at large but also to the economic health and vitality of the historic village of Yellow Springs, Ohio,” said Art Zucker, “and to the dedicated faculty and students and staff and alumni who have championed Antioch College throughout its storied history and to the present day.” In going forward, the Board will receive formal or informal inquiries made to the Chancellor of Antioch University or the Chair of the Board of Trustees at their corporate headquarters in Yellow Springs, Ohio.”

Here’s a recap from Friday’s impasse. You can read the full story here.

Friday, March 28: Antioch University officials said Friday they rejected an offer from an independent corporation of wealthy alumni to purchase the college for an agreed-upon price of $12.2 million because it needed the whole kit-and-caboodle up front, at closing to keep creditors satisfied.

The Antioch College Continuation Corporation, a Yellow Springs-based non-profit corporation of alumni and former trustees, proposed in December buying the college from the university to make it an independent institution. Negotiations took on a sense of urgency in late February, when the university trustees reaffirmed their June 2007 decision to close Antioch College for a year starting this June, after initial negotiations with the AC3 did not produce an agreement. The final impasse came today, after trustees evaluated what ACCC said was its “best and final” offer Wednesday night.

The university said today the ACCC offered to pay half the purchase price at closing, and then pay the rest over five years. But an installment arrangement would not be acceptable to the university’s creditors “which must ratify the terms of the deal,” the university said. That was the deal-breaker. If they agreed to the deal and for some reason ACCC defaulted on those last remaining payments, “the university’s only remedy wold be to foreclose on the real estate,” Bruce Bedford, chair of the trustee finance committee, said in the statement.

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Antioch College takeover negotiations fail: University said it needed $12.2 million in cash up front

By Stephanie Irwin Gottschlich | Friday, March 28, 2008, 12:20 PM

(Art Zucker, chair of the board of trustees; Toni Murdock, chancellor.)

3:00 p.m.

Antioch University said this afternoon it rejected an offer from an independent corporation of wealthy alumni to purchase the college for an agreed-upon price of $12.2 million because it needed the whole kit-and-caboodle up front, at closing to keep creditors satisfied.

The Antioch College Continuation Corporation, a Yellow Springs-based non-profit corporation of alumni and former trustees, proposed in December buying the college from the university to make it an independent institution. Negotiations took on a sense of urgency in late February, when the university trustees reaffirmed their June 2007 decision to close Antioch College for a year starting this June, after initial negotiations with the AC3 did not produce an agreement. The final impasse came today, after trustees evaluated what ACCC said was its “best and final” offer Wednesday night.

The university said today the ACCC offered to pay half the purchase price at closing, and then pay the rest over five years. But an installment arrangement would not be acceptable to the university’s creditors “which must ratify the terms of the deal,” the university said. That was the deal-breaker. If they agreed to the deal and for some reason ACCC defaulted on those last remaining payments, “the university’s only remedy wold be to foreclose on the real estate,” Bruce Bedford, chair of the trustee finance committee, said in the statement.

That part about the creditors caught my attention.

In a telephone interview this afternoon, University Chancellor Toni Murdock said that the university’s credit situation isn’t dire, but it does have significant debt in the form of bonds on the new Antioch University McGregor building, and buildings in Seattle and in Keane, New Hampshire.

Transferring the college assets to the ACCC while the university still had outstanding bonds “creates a huge negative impact on the university’s balance sheet,” the university said.

Murdock elaborated. “Because we had so much debt in relation to the bonds we needed to have enough assets to…It put us in financial jeopardy. If you take away all the assets of the college then it gives bankers pause.”

Which begs an interesting question: How important are the college’s assets to the bonds? College faculty, staff and alumni critical of the administration have questioned the university in the past on whether the college’s assets have served as collateral on bonds. The university has always maintained that the bonds were financed based on each campus’ projected revenue, and the college assets were never at risk.

But it appears that nonetheless, the university’s eggs are in one basket. Murdock on the phone said it needed some assets - either the college, or the $12.2 million in cash - if it hoped to secure future loans on other campuses that need updates (Los Angeles, Santa Barbara).

Another sticking point was WSYO, the NPR affiliate station based in Yellow Springs. The ACCC wanted WYSO as part of the $12.2 million purchase; the university said it wanted to keep WYSO but would let the college use it. They couldn’t work that out.

Members of the ACCC said in a statement today the rejected proposal was its “best and final offer,” and it appears their attempt to take control of the college is over.

“Our offer would have enabled Antioch College to thrive and grow, while simultaneously infusing the rest of the university with millions of dollars in cash,” said Frances Degen Horowitz, co-chair of the ACCC and president emerita of the Graduate Center of the City Unviersity of New York. Horowitz is a college alum.The AC3 said it had raised $18 million to operate the college in the short term, and was preparing to launch a fundraising drive to secure a total of $100 million for its long-term future. The group had hired a turnaround management firm to prepare a detailed five-year plan to increase the college’s enrollment and staffing.

It sounds like everyone involved is disappointed.

“To have worked this hard - and be this close - and not have an agreement is truly heartbreaking,” said Art Zucker, chair of the board of trustees in a statement.

“This is a sad day not only for Antioch, but for all those who care about progressive education in this country,” said Eric Bates, co-chair of the ACCC, who participated in the negotiations.

Murdock said administrators are going to rest for awhile, and then by summer will turn to figuring out how to re-open the college after it closes for one year starting June 30. The university’s headquarters will remain in Yellow Springs, she said. Antioch University operates five campuses nationwide in addition to Antioch College, including Antioch University McGregor also in Yellow Springs. Those campuses will remain open.

But there’s another front in the multidimensional fight to keep the college from closing June 30. On Tuesday, April 1, a hearing in Greene County Common Pleas court will hear evidence in a lawsuit Antioch College faculty filed against the university March 10, alleging the university broke its contractual obligation with the faculty in its decision back in June to declare financial exigency and close the school at the end of this academic year.

The faculty seek a permanent injunction requiring the university follow the faculty policies and prevent it from suspending operations. The faculty also ask the court to enjoin the university from liquidating or dispersing its assets, including buildings, land and its endowment.

I’ll be covering the hearing here on the blog.

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Master Plan for colleges to be released Monday

By Stephanie Irwin Gottschlich | Thursday, March 27, 2008, 06:34 PM

I’m sure the state’s colleges and universities are anxiously awaiting to hear how the 10-year master plan for the University System of Ohio is going to dramatically change their plans in the next few years. I know I am. I’ve been covering this for 9 months. I’m sure the staff of the board of regents, who are working until 2 a.m. some nights this week editing the thing, can’t wait either. One of the staff members said he was dreaming about the thing in his sleep. Definitely working too hard. I hear V-8 juice is the secret antidote to getting through a long work day.

Details of the long-awaited 10-year master plan for Ohio’s public colleges and universities will be released by Ohio Board of Regents Chancellor Eric Fingerhut on Monday, March 31, his office said today. Fingerhut plans to release the 100-page plan online early Monday morning. That’s right, 100 pages. Pretty meaty stuff, I hear. I’ll have details here on the blog about 7 a.m. Better grab some V-8 juice.

Speaking of education reform: Before you read more on this, head over to my colleague Scott Elliott’s blog to read about a potentially controversial list of reform ideas from Gov. Ted Strickland’s office for the state’s K-12 system that Dayton Daily obtained today. One idea on the list: Eliminating the Ohio Graduation Test.

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