Rider University could receive nearly $10 million after agreeing to sell part of its campus to Mercer County Board of Commissioners in a move aimed at easing the institution’s financial challenges.
County commissioners last week approved resolutions allowing the county to purchase a 56-acre parcel of land on the university’s campus, buy the college’s presidential residence, and lease some of the school’s facilities for county services.
County officials said the agreement could provide the university with up to $9,999,999. According to the resolutions, the deal 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.”
Mercer County administrator Dan Benson said the county plans to use the 56-acre lot as open space and as a public access point for a future trail project.
Under the proposed arrangement, the county will also purchase the university’s presidential house but negotiate a lease that would allow the institution to continue using the property. The agreement could also allow county employees to access the university’s gymnasium and swimming pool.
The development comes as the university works to address financial difficulties. In November, university officials announced plans to lay off between 35 and 40 full-time faculty members, reduce salaries by 14 percent, and implement other cost-cutting measures.
University president John R. Loyack said the steps were necessary to address what he described as a “significant cash shortfall” caused by “new and unforeseen developments.”
In October, the Middle States Commission on Higher Education placed Rider University on probation over concerns related to its financial standards.
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