Rider University Sells Part of Campus to County in $10M Deal

"The deal could pay the university up to $9,999,999, county officials said. It 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."

"In November, university officials announced plans to lay off 35 to 40 full-time faculty members, cut salaries by 14 percent and make other reductions as it attempts to address what President John R. Loyack called a 'significant cash shortfall' due to 'new and unforeseen developments.'"

"The county plans to use the campus lot as open space and a public access point for a future trail project, administrator Dan Benson told NJ.com. The agreement to purchase the presidential house would include negotiating a lease for the university to continue using the property."

Rider University, a private nonprofit college in New Jersey facing severe financial difficulties, has an opportunity to receive approximately $10 million through a deal with Mercer County. The county's Board of Commissioners approved resolutions to purchase a 56-acre campus lot, buy the university's presidential house, and lease school facilities for county services. The county intends to use the land for open space and a future trail project, while negotiating continued use of the presidential house by the university. County employees would gain access to university gymnasium and pool facilities. This financial injection aims to stabilize the institution and prevent insolvency. The university had previously announced plans to lay off 35-40 faculty members and cut salaries by 14 percent due to a significant cash shortfall. The Middle States Commission on Higher Education placed Rider on probation in October due to financial compliance concerns.

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