Does Anyone Think Rowan U. Can Actually Raise 1 Billion Dollars?

[DaveBrett]

Why in the world would a developer put one BILLION dollars into a remote suburb of Philadelpia? For 280 acres of free land? Heck, 280 acres in downtown Philadelphia probably isn't worth that much money.

I hope I'm wrong, but I just don't see developers (and their banks) going for this. I could see Rowan raising 10 million in private cash, or even 50 million if they are lucky. But one billion? Since when have developers been that eager to build in South Jersey??? Someone please tell me I'm wrong.

Here is part of a news article about it...
http://www.philly.com/mld/inquirer/news/local/states/new_jersey/counties/camden_county/14148296.htm
Rowan outlines its 'audacious' plan to expand campus

The $1 billion project would avoid public expense. It includes a pro soccer arena.
By Sam Wood
Inquirer Staff Writer

Rowan University officials announced yesterday an ambitious development plan that would expand the campus by 280 acres, double enrollment, and build an athletic complex with "the best Division III facilities anywhere in the country."

At the heart of the "audacious" $1 billion project called Rowan West - to be built at Routes 55 and 322, where peach orchards are beginning to bud - is a professional soccer stadium.

The stadium would be home to a Major League Soccer expansion team and ringed by restaurants, stores, and housing for about 3,000 students.

But before any construction begins, Rowan must find a developer willing to build the project at little or no cost to the university. "There will be no cash outlay by the university," Rowan spokesman Joe Cardona said. "Tuition will not be increased to support the project. We hope to build in a system where revenue will be generated for the developer."

Rowan would retain the deed to the land, and the developer would own the buildings, Cardona said. "Housing makes money," he said. "The new townhouses will be filled by students for X number of years, and that's guaranteed income."

The developer would also keep all rents and lease revenue from the new stores and restaurants. Major League Soccer would own the stadium but make it available to the university, MLS spokesman William Kuhns said.

This week, the university will place advertisements seeking a developer, Cardona said. University representatives will also contact eight construction companies in the region that have built similar projects.

While Rowan is seeking a builder, MLS will spend the next four months searching for a team owner.

[Sundevil9]

Why in the world would a developer put one BILLION dollars into a remote suburb of Philadelpia? For 280 acres of free land? Heck, 280 acres in downtown Philadelphia probably isn't worth that much money.

I hope I'm wrong, but I just don't see developers (and their banks) going for this. I could see Rowan raising 10 million in private cash, or even 50 million if they are lucky. But one billion? Since when have developers been that eager to build in South Jersey??? Someone please tell me I'm wrong.


It's not remote. It's right on a major limited access highway. And the suburban sprawl is nearly up against it. As a matter of fact, there's major housing developments just a few miles to the North, South, and West of it.

Farms and orchards in that immediate area have been bought up and converted into fields of houses and townhomes for the last 10 years or so.
And this is land that Wal Mart wanted just a couple of years ago, so it must have some real value to it.

[Bill Archer]

This whole project is a pipedream. It has more holes than swiss cheese and less substance than fog. It will never happen.

[Roehl Sybing]

Unless my math and quick research is wrong, the Golden Gate Bridge cost $659 million, adjusted for inflation ($35 million in bonds in 1933 plus $39 million in interest by 1971).

A billion dollars would not be totally absurd for making over an entire college campus.

[DaveBrett]

It's right on a major limited access highway.
How many lanes are we talking about - two? And no public transportation either.

Look, I'm not saying it's worthless land. It's just not worth a billion dollars.

[trickyfool]

I know that there are a few universities that have been able to raise a billion plus on private donations from alumni and corporations for large projects. I know Miami (FL), U of Arkansas, UCLA, and Ohio State to name a few have done it from a single campaign and others like the University of Florida have done it from a couple of campaigns. So it can be done, but the Institutions that have been able to pull it off have huge alumni bases and strong connections with corporate America. I don't know too much about Rowan but it would seem to me that it will be an uphill battle for them to raise that much cash. However, I am sure they can raise a hell of a lot more than 50 million dollars and it wouldn't surprise me if they can raise a substantial amount pretty quickly.

[Adam Zebrowski]

glassboro is not remote...

now whether rowan can get the funds is still to be seen...

don't forget this venture has the 2016 olympics in minds too, where philadephia is making a major push....

olympic deelopment funds could easily be funneled towards rowan

[Mike22]

Might they raise as much money as possible and then restructure their plans based on that amount? I agree that I would be completely astounded if they could get 1 bill for a Div III school.

[Big_Ghi]

How many lanes are we talking about - two? And no public transportation either.

Look, I'm not saying it's worthless land. It's just not worth a billion dollars.

As a local (and I have noticed that no one on this thread is a local), I have to say a few things. 1) My guess is that a good chunk has already been lined up. Rowan's president is not the type of person to announce a pipe dream with very little chance of coming to fruition. 2) There has been a great deal of discussion regarding public transportation for a few years. There is an existing rail line that can be used for a commuter rail, similar to a number of other lines that exist in the Philly and South Jersey area. A number of people have fought it with the "not in my backyard" argument, but this type of expansion and development would probably overwhelm the protestors. 3) In case you do not know this, Rowan received a $100 million gift in the 1990's (it was called Glassboro State at the time), so we have a history of getting some money. 4) The area of the NJ Turnpike near the Meadowlands (Giants Stadium) is 3 lanes wide. 67% of the roads for 25% of the crowd, with very little demand for the road except on Friday afternoons during the summer (close to the shore) doesn't sound like a bad thing. 5) The money coming in from the students will also have long-term impacts.

I'm not convinced that the entire proposal will work, but I have enough faith in Don Farish to believe that enough of this will work to make it useful.

[jbeall]

Just a question: how does everybody see the state budget crisis affecting these plans. According to an LA-based friend, NJ's budget problems even made the news out in CA.

[Big_Ghi]

Just a question: how does everybody see the state budget crisis affecting these plans. According to an LA-based friend, NJ's budget problems even made the news out in CA.

Since when has a NJ budget crisis kept the state government from spending?;)

[TMDSoccer]

Easy: corporate + alumni + admissions fees + real estate = plenty of money to fund...the $1 billion is also over many years, and I'm guessing Rowan and Glassboro probably both think they'll be growing significantly over the next 10+ years. And for Philly, I'd bet MLS waives its buy-in fee in order to get a team there, reducing the initial team start-up costs.

[P1brit]

Depends what the content of the project actually is. If its a billion dollars to build things that can't can't generate a return on investment no. Is so maybe. We still haven't seen a detailed buissness plan to make an educated analysis of.

[DaveBrett]

It's not just real estate developers who have to get on board. It's the banks. If banks aren't willing to lend money for a project, the developers can't do it.

The president of the university may very well have talked to a few developers who are already interested in this project. But that doesn't mean that banks are going to go along.

Dave

[Crafty Bernardo]

Unless my math and quick research is wrong, the Golden Gate Bridge cost $659 million, adjusted for inflation ($35 million in bonds in 1933 plus $39 million in interest by 1971).

A billion dollars would not be totally absurd for making over an entire college campus.

Not a very good analogy there Roehl.. at first I though you were saying the Rowan plan was woefully overblown at $1billion, comparing it to an engineering monstrosity like the Golden Gate Bridge and its cost. I don't think that comparison reflects favorably on the Rowan plan.

Just my 2 cents.

[scarshins]

It's a college president...and a college...they're usually pretty smart :rolleyes: and don't make crap up off the top of their heads the way BS posters do.

Public-private joint ventures using college-owned land (and brains) has been gaining steam and been used widely now for the past 20? years.

It may be derailed in the planning/voting/major investor stage, but it also may come true.

[DaMunk]

This whole project is a pipedream. It has more holes than swiss cheese and less substance than fog. It will never happen.

I can't believe I agree with Bill Archer. http://www.bigsoccer.com/forum/images/icons/icon11.gif

[Crafty Bernardo]

It's a college president...and a college...they're usually pretty smart :rolleyes: and don't make crap up off the top of their heads the way BS posters do.

Public-private joint ventures using college-owned land (and brains) has been gaining steam and been used widely now for the past 20? years.

It may be derailed in the planning/voting/major investor stage, but it also may come true.

"May get derailed at some stage and it may come true"? Really going out on a limb there Scarshins. :rolleyes:

[scarshins]

What I mean is that it will be a devil-in-the-details type of thing. Finding a willing Investor is of course huge.

But if a college president says they have a plan, a plan they like, to develop some land they own...I would tend to believe them. I would tend to believe that it's very feasible and that they have already considered, to some extent, the sources of funds.

[Crafty Bernardo]

What I mean is that it will be a devil-in-the-details type of thing. Finding a willing Investor is of course huge.

But if a college president says they have a plan, a plan they like, to develop some land they own...I would tend to believe them. I would tend to believe that it's very feasible and that they have already considered, to some extent, the sources of funds.

Agreed... Although I also agree with those who say it's a long-shot... I think the funding's been considered and this College President thinks he has a legitimite plan, but these things tend to have a habit of falling through... even when in larger cities and for less $$$. I think the funding stage of this project will be it's downfall.

Hope I'm wrong though! It does seem like a nice plan!