Havasu Foundation for Higher Edu

The majority of students — 68 percent – said the most appealing aspect of attending an ASU campus here would be completing their bachelor’s degree in three years instead of four years.

63 percent said they would receive an ASU degree while staying here.

62 percent said cost.

34 percent said they were “likely” to apply to a campus here (deemed to be the potential applicants) which translates to 39-49 potential applicants.

Of 393 students surveyed, 33 percent said they expect to attend a four-year college or university.

Out of Kingman, Mohave, River Valley and Park high schools, between 66 to 84 potential applicants were identified.

Mohave Community College students: 211 surveyed who plan to attend a four-year college / university 77 percent stated they were “likely” to attend an ASU campus here.

The majority — 23 percent – were interested in nursing.

39 percent said they would not attend because Lake Havasu City is “too far away.”

59 percent said they were “likely” to apply translating to a potential 16 to 21 applicants.

75 percent said they would prefer to live at home if they attend the campus.

Lake Havasu City adult residents: 200 residents surveyed who were at least 25 years old 49 percent made less than $50,000 42 percent made $50,000 or more 44 percent were retired.

31 percent were employed full time 72 percent had no bachelor’s degree 28 percent stated they had a bachelor’s degree 34 percent stated they were not interested in a bachelor’s degree.

23 percent stated they were “very interested.” Residents aged 25 to 54 were most interested 8 percent stated they were “definitely very likely to apply” translating into a potential 3,400 people.

23 percent said an obstacle was feeling too old to go back to school.

Potential College students and parents in Riverside and San Bernardino Counties: 600 surveyed The majority surveyed who plan on attending a college / university expect to do so in California. 68 percent stated because it was closer to home.

The majority if those surveyed stated they had “no opinion” of Arizona State University compared to a “favorable” opinion and “never heard of.” Of the favorable, the majority said due to good athletic programs. Of unfavorable responses, the majority said of a reputation of being a party school.

The majority of surveyed said a new ASU campus in Lake Havasu City was “not appealing.” Of those surveyed who stated it was “very appealing” it was due to “convenient location / area.”

The majority of community college students surveyed attended Riverside Community College.

12 percent stated they were “very likely to apply” to an Lake Havasu City campus translating to 1,480 potential students. (Only San Bernardino and Riverside counties were surveyed.)

Source: Moore Information Opinion Research Strategic Analysis / provided by Arizona State University http://www.havasunews.com/articles/2010/06/04/news/doc4c089c1e8fe0d170799913.txt

ASU at Lake Havasu

March 174, 2010

Arizona State University and Lake Havasu City to explore college program options

The Arizona Board of Regents, Lake Havasu City, the Lake Havasu Unified School District and the Lake Havasu Foundation for Higher Education are planning to explore the feasibility of offering select Arizona State University undergraduate degree programs in Lake Havasu City, commencing in the fall of 2011.

A memorandum of understanding, which outlines the scope of the study, will be submitted to the Lake Havasu City Council for approval at its regularly scheduled meeting on March 23. If approved, completion of the study is expected within 45 days of execution of the memorandum.

The School District and Foundation also will review the proposed agreement on March 23. “We look forward to working with the City, school district and Mohave Community College to develop and implement a plan to collectively address the higher education needs of Lake Havasu City and the region," said Rich Stanley, ASU's senior vice president and university planner.

IIf the results of the feasibility study are positive and if funding allows, ASU will open a new type of program under its Colleges@ASU framework. The Colleges will be focused solely on instruction, offer a limited number of high-demand degrees, such as business and education, and have lower tuition levels than Arizona’s research universities.

"We are excited to work with Arizona State University to explore the feasibility of ASU's undergraduate programs in Lake Havasu City," said Mark Nexsen, mayor of Lake Havasu City. "This may very well be the largest economic development project in our history."

Under the terms of the proposed memorandum, ASU will develop models for projected enrollment during the first three years of operation and will assess the economic impact of the proposed programs.

The City will create an economic development plan that assesses future workforce needs to be used for determining which academic programs will be offered.

The agreement will assess utilizing facilities of the Daytona Middle School for program operations.

The Foundation will provide support and assistance with respect to data collection.

College proponents pleased with survey

32 percent of respondents say they would ‘definitely attend’ university

By DIANA PARKER
TODAYS NEWS-HERALD, Thursday, March 26, 2009

Proponents of a fouryear university in Lake Havasu City are encouraged by the results of a marketing survey that targeted Lake Havasu High School juniors and seniors.

Of the 602 students who responded to the online survey, which was commissioned by the Havasu Foundation for Higher Education, 32 percent said they would ‘definitely attend” a university like the one proposed for Lake Havasu City. Another 46 percent said they would be very or somewhat likely to attend.

The survey rates the importance of factors that include cost, area amen-ties, recreational opportunities and academic programs. Survey takers were also asked to rate their perceptions of potential university partners Arizona State University, Northern Arizona University and University of Arizona.

By last weekend, 71 percent of the target group had responded with about two weeks left to go in the survey period. Foundation members were expecting a response rate of 55-60 percent.

“It just blows file away, the response rate;’ foundation board member Bill Ullery said. “I'm trying to figure out why so many young people would respond, and I think it’s the impact of the economy, the worst economic crisis since the Great Depression. It seems like everybody is worried about education amid jobs.

Though respondents showed a slight preference for ASU and NAU over U of A, the difference was “statistically insignificant’ Ullery said.

“My gut feeling is that it wouldn’t make any difference if we partnered with ASU, NAU or U of A. The factor now of where to attend is cost-based” Ullery said. The trend away horn costly private university to publicly-funded universities is pretty strong he said.

The foundation analyses have shown attending a four-year university in Lake Havasu City would cost as much as $9,300 a year less than attending a university in a large metropolitan area. Among the survey responses, only 4 percent indicated cost savings was not important.

The foundation plans to expand the reach of its survey to other high schools in northwestern Arizona as soon as next week, Ullery said. Members are also working to identify high schools in Southern California to include in the study, though Ullery said western Arizona is the focus for now.

“With the Internet-based technique, we have the ability to do thousands in a day. I don’t know if we’ll get there, but we have that capability,” Ullery said.

State won't help fund new campuses

by Anne Ryman - Jan. 29, 2010 12:00 AM The Arizona Republic

The state will not contribute any money to help Arizona's university system provide lower-priced bachelor's degrees to students. That was the message Gov. Jan Brewer brought to the Arizona Board of Regents on Thursday, and it could mean some programs will be delayed or the universities will have to find other funding sources.

The absence of state funding for the new initiatives comes as the universities are dealing with steep state funding cuts as a result of the sluggish economy. "The checkbook at the state is empty," Brewer said, after attending a regents meeting at Arizona State University West.

"They're (the universities) going to have to work together collectively with each other and the community colleges and implement what they presented here."

Last year, Brewer pushed the board to come up with lower-priced options for students, and she attended Thursday's meeting to see what progress had been made.

University officials are working on several options, including allowing students to transfer more credits from community colleges and offering more online courses. ASU also plans to develop a network of lower-priced colleges called the Colleges @ ASU, where students could earn a bachelor's degree in three years.

Northern Arizona University is expanding its partnerships with community colleges in Yuma and Prescott Valley, which will allow more students to earn NAU degrees without leaving their communities.

But how the universities will pay for the options is unclear. University presidents say their budgets are already stretched thin and they likely will have to rely on more tuition hikes in coming years to make up for state funding losses. The regents don't have a price tag yet on the lower-priced options.

About 130,000 students are educated at the state universities, and between now and 2015 an additional 25,000 are expected to enroll. University officials are hoping to serve about half of the new students with the lower-cost models.

"They (the regents) have made tremendous progress," Brewer said after the meeting. "They have brought back exactly what was needed for the state of Arizona to make education more affordable, more accessible and more reasonable. Now, they need to get it up and running and implemented."

Brewer also said the regents need to consider establishing at least one state college that offers four-year degrees but doesn't conduct research.

Regents President Ernest Calderón said the board may have to delay some of the lower-cost options but not all. One that will go forward is the ability to transfer more credits from community colleges, he said.

One possible funding source is an increase in tuition for all students except those who are in the lower-priced programs. Essentially, one set of students would be subsidizing some costs for another set. (Calderón)

Regent Fred DuVal said offering lower-priced options is one of the board's most important goals. "We're going to nip, tuck, squeeze and save to get it going," he said.

The movement to restructure higher education is being driven by the state's below-average percentage of adults with four-year degrees. In Arizona, 25 percent of adults who are 25 and older have at least a bachelor's degree, compared with 28 percent nationally, according to the U.S. Census Bureau. U.S. census and other surveys show a correlation between education and quality of life.

For those who do attend college, Arizona has relatively few options when it comes to a public-university education. Students who want to stay in the state and earn four-year degrees from public schools have three choices: ASU, NAU and the University of Arizona.

Tuition for those schools is becoming increasingly expensive. ASU and UA now charge about $6,840 a year for new students, just a few hundred dollars shy of the $7,020 national average.

The three state universities have already lost $231 million, or 21 percent of their state funding this school year. In 2008-09, they saw a 20 percent cut totaling $190 million.

http://www.azcentral.com/news/articles/2010/01/29/20100129lowcostdegrees0129.html

OPINION TODAY’S NEWS-HERALD, Wednesday, June 9, 2010 OUR VIEWS

ASU campus should yield big cost savings

The state of Arizona needs to graduate more people with four- year college degrees. The state Board of Regents recognizes this need and another imperative: Make it more affordable both for the students and for the state.

Lake Havasu City was at the forefront and is now on the cusp of turning this raw idea into reality.

Arizona State University is on board, partnering with the local schools, the city and the Havasu Foundation for Higher Education. A survey showed strong enough interest among prospective students to warrant moving toward converting Daytona middle school into a college campus.

Now things begin to drill down to the details on a project designed to be innovative and, therefore, for which few good models exist in higher education.

Somewhat incongruously, for example, there are financial barriers to saving money with the campus. Aside from one-time renovation costs, the initial operating cost estimate to educate a class of 175 incoming students is $2.5 million annually.

We believe that’s too high. That works out to more than $14,000 per student, the same as at the ASU main campus. Tuition usually covers somewhere between half and two-thirds of student costs. But, per-student costs get tricky, especially at research universities such as ASU, where facility and material costs are tough to split between undergrad and post-graduate use.

At Daytona, with a contributed campus, the main educational costs would be instruction, unities, materials and administration. Even with 20 instructors and staff making $75,000 per year each, the direct payroll cost would be $1,500,000.

If 15 of the 20 are full-time instructors, somewhere around 60 different classes could be offered. This appears more than adequate for a 175-person student body.

Tuition revenue projections assume all students will pay a lower in-state rate, producing some $950,000 in annual tuition revenue. Odds are, even out-of-state tuition of $8,000 or so per year would be very appealing to many Californians.

Could the per-student cost at the local campus be as low as $10,000? That number appears realistic. Could the tuition revenue be higher than expected? Probably.

If the regents and ASU are serious about this business of trying to generate more affordable undergraduate university education in this state, they will recognize the value of moving ahead with the Lake Havasu City campus.

To appearances, the local campus has a very good chance of being much less expensive than imagined and will be well worth any reallocation of budgeted instruction money it takes to get it up and going.

— Today’s News-Herald

OPINION TODAY’S NEWS-HERALD, SUNDAY, MAY 23, 2010 OUR VIEWS

ASU-Havasu can succeed with support

An indirect result of the passage of Prop. 100 — the sales tax increase — is that it greased the skids for the extension of Arizona State University classes to Lake Havasu City.

Failure would’ve been a deal killer as ASU and other universities say they would’ve faced millions of dollars of more cuts. Passing the tax increase, though, is far from a guarantee that ASU will establish a branch campus here. There is still much work to do to make it happen.

The official end of a 45-day investigation period is coming up, but all the parties appear to be working as though some sort of new agreement will be in place. The next phase is the real nitty-gritty: What will it take to renovate Daytona Middle School into a college campus and how to pay for that work? What might the curriculum and student body really look like?

To our view, one of the more important questions is how much support is given to the project by the people of Lake Havasu City. Can the many organizations that offer scholarships each year cooperatively focus some scholarships to ASU at Lake Havasu?

Might volunteers help in the campus transition? Will students and their families go beyond a survey form and make commitments to attend the school? Can the community drive the creation of even more scholarships?

The major organizational stakeholders in the project are ASU, of course, along with the Lake Havasu Unified School District, city government and the Havasu Foundation for Higher Education. They each have big roles to play in assuring the college comes to fruition.

Assuming ASU signals an intention to move forward, these organizations will be at the forefront of working out the myriad plans and details.

One thing is guaranteed: The final outcome won’t be perfect. But, it stands a real chance of being pretty darned good and places a four-year college into our city years ahead of most proponents’ dreams.

The way to make it as good as possible is to show widespread individual and organizational support for the college even as it hits some inevitable snags and hurdles. The end result could be the biggest boon to our city since London Bridge.

— Today’s News-Herald

Interim report on the Lake Havasu university

Business Plan project

Phase II Market Demand Survey

Executive Summary

May 2009

Objective:

Continue the Phase II market demand study of Western Arizona, Southern Nevada, and Southern California to determine potential enrollment of resident and non-resident students in the proposed residential 4-year university campus on the shores of Lake Havasu. See, http://www.havasufoundation.com/news.htm

Phase I Study:

The initial study was conducted May/April 2008 by Lipman-Hearne for NAU. While the study was to survey 500 students, the actual number of interviews conducted by telephone for various reasons was about 380 students and a smaller number of parents “near Lake Havasu”, San Diego, and Los Angeles.

In a press release dated April 11, 2008, City Manager Richard Kaffenberger reported, “The findings suggest that a minimum of 17,000 and upwards of 93,000 potential students within the survey area would be interested in attending college in Lake Havasu City.” However, NAU and Lipman-Hearne in a news article of April 8, 2008, interpreted the data differently; “Overall, demand for and appeal of this campus in the context of well-established competitors is very weak at this time.”

The Foundation (sensing NAU’s 2+2 priorities shaped by impending budget cuts) chose to dramatically increase the breadth and scope of the Phase II market demand studies by undertaking a major business plan project that included surveys of thousands of college-bound students within the Lake Havasu region with a focus on those areas that have the most impact on Lake Havasu City’s economy. Following the surveys of high school students, the adult continuing and professional education needs of Southern Mohave County will also be researched.

Phase II Study:

The Foundation retained the services of Huron Consulting Group, Inc., a nationally recognized firm specializing in financial, managerial, technical, legal, industrial, medical, governance, and university services; http://www.huronconsultinggroup.com/ Huron is assisting the Foundation with the review of the content and methodology of the business plan, as well as assisting with the formulation of a major market demand study. A grant from the PED has made this support possible.

The survey instrument initially derived from Lipman-Hearne has been modified significantly to reflect the Foundation’s needs for more information and new data. Moreover, the Foundation has rejected telephone survey techniques because of the small numbers of individuals that can be contacted through sampling methodology, the lack of available reliable phone numbers for the target population, the inability to gain a high rate of useable responses from phone contacts, and other issues with the NAU Phase I methodology.

Huron recommended a web-based survey methodology due in part to the Internet skills of current college-bound high school students, the reliability of responses on web-based survey instruments, the ability to survey thousands of students, and the ability to automate data input and analysis with a high degree of accuracy and reliability.

Most student respondents in the current Mohave County high school study are including their email address, which is exceedingly important to the Foundation’s efforts of follow-up research and scholarship awards. To view the survey instrument on Huron’s secure website, see; www.HavasuSurvey.com

Mohave County High School Surveys:

The local school surveys were conducted in March, April, and May 2009 and will be followed quickly by similar surveys in Southern California. There will also be surveys of high schools in the western portion of Maricopa County, Southern Nevada, and the remainder of Southern California next August and September 2009.

Grades 11th &12^th Respondents

High School 9-12 Population to Survey

Lake Havasu H.S.	1,987	862	683
Colorado River Union	1,521	600	Sept.
River Valley H.S.	916	400	Sept.
Kingman H.S.	1,999	600	152
Parker H.S.	505	207	135
Totals	6,928	2,669	970

About 38% of the AZ respondents provided email addresses. Thus, we can expect nearly 400 email addresses for the respondents to date.

The target high schools in Southern California alone include over ½ million students. These communities have about 1/4^th of the Southern California population, which equals that of Arizona. Moreover, these clusters of population centers have a significant impact on Lake Havasu’s economy providing tourists, boaters, homebuyers, technical and professional workforce, investors, business owners, etc.

The target population in Lake Havasu included 420 juniors and 683 seniors in classes for college-bound students. Of the 862 target student population, 611 students as of May 20, 2009, had completed the questionnaires for a response rate of 80%. By contrast, the NAU Phase I survey may have produced useable data from a dozen or so Lake Havasu students.

Locally over the years, Chamber of Commerce web-based surveys have achieved response rates of 10% to 37%. The Realtors Association has had response rates of 10% to 15%. The exceedingly high rate of response from Lake Havasu City students and parents likely reflects their commitment to and support of the proposed university campus.

With parents and other community members also responding to the Lake Havasu survey, the total respondents is now just under 1,000 with about two weeks remaining for the Mohave County study. The additional responses are not expected to significantly change proportional results on answers to specific questions.

Summary of Key Findings:

On the final question #23, “If this campus was available now with lower costs, scholarships, financial aid, and a brand-name university, would you apply to attend upon high school graduation?” 673 of the respondents selected Definitely Would/Very Likely Would/Somewhat Likely Would Attend for a positive rate of 86.4%. 475 or 61% selected the Definitely Would/Very Likely Would response.

Of the 673 positive respondents, approximately 51% were seniors. For a 500 FTE student campus, the entering resident freshmen class (60% residents, 40% non-residents) each year should number 94 resident students. Thus, the survey results suggest 3.7 applicants for each available seat. The rest of Western Arizona has yet to be surveyed.

Accordingly, the Foundation will provide an alternative business plan model based on 1,000 FTE students since the market demand studies show the smaller campus to be inadequate to service Western Arizona residents. In the interim however, given the current economy, the Foundation will maintain the initial conservative business plan goal of 500 FTE’s. As the economy improves, the Foundation will likely reconsider its campus enrollment model.

95.6% of the respondents had visited the Colorado River and Lake Havasu area.

77% indicated that factors such as traffic, congestion, pollution, crime, and safety would cause them and their parents to consider the proposed Lake Havasu campus.

92.2% indicated that this type of university town, campus site, small size, and academic format was of high interest to them.

92.2% indicated that the type of university program focus as described in the survey questionnaire was appealing.

95% found the potential cost savings of $9,346 in lower costs of the proposed Lake Havasu campus compared to metro area campuses was appealing.

69.8% indicated a need for $1,000 or more in scholarships and financial aid.

The perception of academic quality among ASU, NAU, and UA was about equal for each.

The preference for ASU, NAU, or UA as the university partner for the proposed campus was about the same for ASU and NAU with UA on the bottom of the list.

The attached Excel spreadsheet (also on the HFHE website) includes the raw survey data, which includes student and parent responses to each question. Student email addresses and names have been deleted.

The spreadsheet series also includes student and parent written comments. The overwhelming majority of such comments are positive even on those questions where comments were invited for the more negative question/answer options such as “…what factors would make it more appealing.” In another report, such student and parent comments will be summarized, categorized, and presented for ease of review.

Parent Responses:

The third spreadsheet in the initial Excel document allows the reader to compare student and parent responses on the same question. Some of the contrasts are not unexpected. For example, on Q8. “Would factors such as traffic, congestion, pollution, crime, and safety cause you or your parents to seriously consider the Lake Havasu campus? The response “Extremely Likely” was selected by 26% of the students and 43% of the parents.

On Q14, “Would such cost savings of $9,346 compared to Metro area campuses, be appealing to you?” The response “Extremely Appealing” was selected by 23.3% of the students and 48% of the parents. Parents and grandparents will likely find this contrast predictable and amusing.

On Q 10, “Is this the type of university town, campus site, small size, and academic format that would be of high interest to you?” The parents ranked it slightly higher. The students and parents were close to agreement on the other questions including the final question Q23 on “…would you apply to attend upon high school graduation.” Positive student responses were at 86.4% compared to 91.1% for the parents.

Conditions Affecting Responses:

The unusually high response rate of students on a university survey is likely due in part to the national economy. The trends everywhere show students and parents considering state-supported institutions closer to home or within commuting distance. Cost-to-attend remains the number one factor for students and parents in selecting a college. The economy and competition for jobs has also caused students and parents to rethink career goals and the income generating potential for professionals with university degrees compared to the well-documented alternatives.

The impressive Lake Havasu university campus “Greenfield” site and nearby amenities, judging from the comments, has also contributed to the positive responses and unusually high rate of participation in the survey.

Conclusion:

City Manager Richard Kaffenberger’s April 11, 2008 interpretation of the results of the Phase I market demand study may prove to have been quite accurate as Phase II study results accumulate. “The findings suggest that a minimum of 17,000 and upwards of 93,000 potential students within the survey area would be interested in attending college in Lake Havasu City.”

Only minor editorial changes are needed on the survey instrument. A question is being added to determine if a student is or is not planning to attend a 4-year college at some point. The “NO’s” will be excluded from the study. Some comment boxes are being eliminated. The two graphics will be modified to improve down-load time.

The Foundation should proceed immediately with surveys of the rest of the Western Arizona next August and September, complete some of the schools in Southern California by June 2009 and the rest next August and September, as well as Southern Nevada. The sheer size of the Southern California ½ million high school student body to be surveyed will require additional Foundation resources and volunteers.

Research reports will be published late June 2009 for Yavapai County. An interim study for Southern California will be published late June 2009, and the final studies of Western Arizona and Southern California next October 2009. The Foundation has budgeted funds for this research.

Click here for the Excel file of survey raw data.

A BUSINESS PLAN WITH A BROADLY BASED RESEARCH COMPONENT

FOR THE PROPOSED UNIVERSITY CAMPUS IN

LAKE HAVASU CITY

Not for public distribution. The 3-8-09 draft is for review and critique only. For the complete draft document, contact the Foundation. To date, this project has consumed 1,400 hours and would have cost $630,000 with an outside contractor. The Foundation estimates over a year and a minimum of 1,000 hours to finish this business plan project.

Executive Summary

(A Power Point presentation and jpg slides are also available.)

The basic mission of the Lake Havasu Foundation for Higher Education is to develop a comprehensive residential 4-year university in Lake Havasu City.

The Foundation vision includes an impressive lake-side “Greenfield” campus near the center of town with awesome vistas, marina, beaches, municipal golf course, fine and performing arts center, two small shopping areas, and a $1 billion mixed-use private development with a resort hotel.

Our long-range plan projects a campus of 2,731 students within 20 years of initial operation, growing to the size of the NAU or Northern Arizona University Flagstaff campus within 40 years. Such enrollment growth would be a direct result of significant population growth in Mohave County and the state at large.

The projected growth in college-bound students in Arizona is estimated at 39,500 new students by 2010. By 2020, university enrollment must double for Arizona to be nationally competitive. We are also aware of the increasing sensitivity of students and their families to the costs of higher education and the trends to select public colleges within their state and area of residence.

The Foundation’s mission is anchored to economic development. Our objectives include economic expansion in ways that will significantly broaden and improve the employment base of our community and county, attract businesses and industries that most benefit from and contribute to a university town, expand the tax base, and significantly increase tax revenue streams that result in improved city infrastructure and a reduced tax burden on individuals and families. The tax benefits are also expected to help the county and state in ways that directly benefit our community. To expand this objective, an Arizona State University (ASU)-Phoenix downtown campus educational and economic fiscal impact type study will be needed.

The economic development focus within our mission in no way diminishes the educational and social benefits individuals, families, businesses, organizations, and government will gain from meeting the basic mission of creating a vibrant and successful comprehensive residential 4-year university in our town.

To enhance this vision, a major business plan project is required with a broadly-based research component including market demand surveys. To that end, the Foundation retained the services of Huron Consulting Group, Inc., a nationally recognized firm specializing in financial, managerial, technical, legal, industrial, medical, governance, and university services; http://www.huronconsultinggroup.com/ Huron is assisting with the review of the content and methodology of the business plan, as well as assisting with the formulation of a major market demand study. A grant from the PED has made this support possible.

The initial results of the first of dozens of market demand studies are impressive. For example, 84% of those local students surveyed have indicated they would attend the Lake Havasu university campus if it were to open soon. By the end of June 2009, such surveys will have been completed for all of the major high schools in Mohave County and Parker. From there we will survey parts of Western Maricopa County and most of the rest of Western Arizona. You can check the survey instrument on; www.HavasuSurvey.com

We recognize the most important factor for students and their families in selecting a college, is cost-to-attend. The second ranked factor is availability of financial aid. The third ranked factor is the influence of the academic reputation of the institution on enrollment decisions. The Foundation in its business plan development and the related market demand research embraces the significance of such selection factors and is designing a campus and long-range operational plan accordingly.

Thus, the Foundation’s plan includes a quality university partner with a brand-name that will readily attract quality students. Otherwise, the Foundation will face a significant level of scholarship fundraising to insure a critical enrollment base.

Cost-to-attend factors also require a business plan design that takes advantage of the economies possible within our small town (modeled on Prescott area colleges) for student room, board and personal expenditures. The overall cost savings to students could be as large as $10,743 per year when compared to Arizona metro area university campuses. Or, $2,762 per year less than the average cost to attend a California State University system school.

We researched several small university models…public and private…within Arizona and California, including the two 2+2 campuses in Arizona. We investigated the economics of upper and lower division offerings, resident and non-resident student mix, management structure, curriculum, marketing, and student recruitment.

We built statistical tools to extrapolate into the Havasu campus model, data accurate to the penny for specific numbers of students. Our plans are well documented, with active links to the sources, and we have shared the results with the Arizona Board of Regents, legislators, and the three public universities.

Our initial goal of a 500 FTE or Full Time Equivalent enrollment with entering freshmen classes of 156 FTE students simply reflects the prudence of starting small and managing for maximum educational quality and financial stability. The Foundation has identified several small private colleges within our region that function quite well at that level of operation.

The 4^th year revenue budget is $9.3 million. It could be as high as $12 million with the level of general fund sharing the UA or University of Arizona provides to its Sierra Vista branch campus. Interestingly, the enrollment for the proposed Lake Havasu campus would be a miniscule 1/10^th of 1% of the total Arizona university system enrollment.

From the revenue budget analysis, a university partnership with UA as one example, would add $3,356,000 to the annual Lake Havasu campus budget if funded at the same rate and level UA funds the Sierra Vista branch campus. Accordingly, the Foundation keeps the door open to several options for a university partner and is prepared to negotiate the level of “withholding” by the parent university of Lake Havasu campus earned general fund revenues.

The Foundation business plan includes an appropriate mix of resident and non-resident students similar to that ASU has achieved where 28% of its total student body and 35% of entering freshmen are non-residents. It is the out-of-state enrollments, currently capped at 40% by ABOR, that help Arizona universities reach the critical mass of students needed for basic operations while expanding the options and choices for Arizona residents. In short, it is the appropriate mix of in-state and non-resident students that help the state universities meet their basic mission of service to Arizona.

Given the enrollment potential for the proposed Lake Havasu campus, the Foundation is able to project a profitable small campus operation, particularly with the $1.2 million of WICHE Western Undergraduate Exchange non-resident tuition income.

The Foundation envisions a common-sense method of financing campus and facilities construction modeled on the ASU-Phoenix downtown campus. Essentially, ASU and Phoenix developed agreements for acquiring land and financing buildings. Phoenix then passed a $220 million bond to acquire costly downtown land. In contrast, our town has access to 320 acres of prime lake-side land at no cost to the university. This BLM section is valued at over $128 million.

Before Phoenix voted on the bond, ASU and Phoenix developed lease agreements for the buildings. Essentially, Phoenix provided the land and buildings. Once the bonds are retired, ASU (actually the state through the Arizona Board of Regents) will take title to the land and facilities.

The Foundation’s facility cost analysis is based on an initial campus of 80,000 sq. ft. with costs of $177.74 psf, which equals $14,219,200 in 2008 dollars. The Foundation rounded that calculation up to $17 million to include campus amenities such as sidewalks, parking, lighting, modest recreational areas, etc. The annual principal/interest on a 30-year revenue bond for the $17 million would be $808,380.

The campus revenue budget identifies monies to cover that expenditure including:

$389,120 in surplus revenues from WUE enrollments

$250,000 in a student facility fee at $500 for each of the 500 FTE students

$169,260 from a portion of other revenues allocated to facility leases

Some advantages for the university partner include access to a targeted California market of 5.1 million population (over 20 million overall in Southern CA), which is as large as all of Arizona at 5.1 million (2000 census). Moreover, within the five Southern CA counties, there are nearly a million high school students. The University of California and California State University systems alone enroll over 69,000 freshmen each year. By comparison, the Lake Havasu campus will need to draw a miniscule 63 non-resident freshmen each year (likely Southern CA students) at the ABOR 40% cap to reach the desired overall Lake Havasu campus level of 500 FTE students.

The Lake Havasu campus operation is designed to be profitable thus reflecting well on the management and fiscal reputation of the university. Moreover, a small-college liberal arts (interdisciplinary studies) campus with a high-quality private college image at public college tuition will also reflect well on the parent university partner.

The university partner can expect to draw a larger share of the Mohave County higher education market, gain additional enrollments for the university’s main campus, and achieve a small increase in FTE’s from the Lake Havasu campus. Thus, the project becomes a model for other small cities.

For the Lake Havasu campus project, the City and Foundation need a major brand-name university partner to draw that proper mix of resident and non-resident students. Designating a university partner will also strengthen the City’s applications for economic stimulus funds. It will dramatically improve the campus business plan and help complete the planning of a “Greenfield” site and marketing strategies

Designating a university partner will also permit the City to move forward with the economic fiscal impact study as well as position the project for the upswing of the nation’s economy.

The text of the business plan narrative provides the detail, documentation, and reference sources to illustrate the Foundation’s vision for higher education in Lake Havasu City.

Table of Contents

PART A: Review and Critique of the Phase I Lipman-Hearne Study

A.1 Public university partner

A.2 Initial work with NAU

A.3 Positive results of Lipman-Hearne study

A.4 Complete experience campus

A.5 Cost of entry

A.6 Market demand survey

A.7 Realistic timeline

A.8 Lipman-Hearne survey instrument and study

A.9 The state of higher education in Mohave County or lack thereof

PART B: Business Plan and Related Research

B.1 Focus of the business plan and areas of research including various surveys, case studies,

Internet reviews, etc.

B.2 Ethics of marketing and marketing research

B.3 Economic factors

B.4 The costs of attending California State University system campuses.

B.5 The significance of Arizona and California residents on the Lake Havasu City economy

B.6 Campus site and components

B.7 Small college models, case studies

B.8 Student living and dorms, review of research

B.9 Campus facilities and cost estimates

B.10 Campus revenue factors

B.11 Factors influencing college choice

B.12 University brand name influence on college choice

B.13 Arizona survey methodology and instrument

B.14 Mohave County and Parker student survey form

Appendix:

A. Tables

B. Graphics

C. Attachments

Click Here for the Power Point summary of the business plan.
Click Here for those who can't open a Power Point file to get a folder of jpg slides.
Click Here for the draft Business Plan
Click Here for the Revenue Section spreadsheets
Click Here for the Business Plan attachments
Click Here for the market demand report
Click Here for the market demand raw data

Vision for Havasu U sharpened

By DIANA PARKER
Monday, January 19, 2009 11:25 PM MST

When the Havasu Foundation for Higher Education gathers for its annual meeting Jan. 29, it will be with a scaled down but better-defined vision of a four-year university for Lake Havasu City that it had last year.

The foundation has drafted a business plan that outlines a multi-disciplinary campus with an initial freshman class of 156 full-time students and a total of 500 students by the fourth year.

At that level of enrollment, the foundation’s research “suggests a very ‘profitable’ small college business model that should prove attractive to any one of several potential public university partners,” according to an executive summary released over the weekend.

According to the plan, a 500-student campus would generate more than $8.6 million dollars in annual revenue — more if it received funding from a major university partner.

It would also have a leg-up on other Arizona universities in the cost to students and their parents, according to the plan. The annual cost, in 2008-09 dollars, of attending Lake Havasu City’s university, including room and board, would be less that $13,000 compared to more that $22,000 at Arizona State University.

The plan calls for the campus to serve 4,000-6,000 students within 15-20 years of opening and to be the size of Northern Arizona University’s Flagstaff campus after 35-40 years.

The Chicago-based firm Huron Consulting Group was hired by the foundation in November to review the draft business plan and conduct a second marketing study. Foundation leaders were dissatisfied with the scope and conclusions of a study sponsored by Northern Arizona University last year.

Loren Mann, director of Huron’s higher education, health care and nonprofit division, said the foundation had already done solid work on the plan.

“We’re here to make sure they were dotting the i’s and crossing the t’s, and make sure they get up to speed that much quicker,” Mann said.

Mann will speak and answer questions at HFHE’s annual meeting. Mayor Mark Nexsen and foundation President Ralph Tapscott will also speak.

Mann said the revenue calculations in the plan are “very reasonable.” However, as solid as it may be, the business plan is only “one side of the coin,” Mann said.

“At the end of the day, this is only going to work if they find the right partner,” he said. “You must have the right partner with the right accreditation and the right perception. The degree has to mean something.”

Huron will also provide an online survey tool and crunch the numbers for a series of market studies expected to get under way in February. The purpose is “to support initial data that says if we build something there will be a market for it,” Mann said.

The foundation originally planned to have volunteers conduct telephone surveys. Under the current plan, volunteers will phone prospects and invite them to take the survey online, a less expensive option that Mann hopes will lead to a 55-percent or greater response rate.

Foundation Treasurer Bill Ullery said this round of surveys would focus first on the region’s high school students and their parents. Other market areas will include western Maricopa County, southern Nevada and “key communities” in Southern California that are the biggest contributors to Lake Havasu City tourism, boating and homeownership.

Ullery said the foundation’s leadership was impressed with Huron’s credentials because it acted as the consulting firm for ASU on its downtown Phoenix campus.

“That’s the model we’re following,” Ullery said. “They figured out how to fund it.”

Ullery said that by demonstrating future enrollment, ASU was able to work out the equivalent of a lease-to-own agreement with the city of Phoenix. The campus was financed with bonds to be paid off with lease revenues. When the bonds are retired, the Arizona Board of Regents will own the campus.

“It’s pretty simple stuff,” Ullery said.

You may contact the reporter at dparker@havasunews.com. Read her blog at havasunews.com, TNH Blog Spot.

If you go

Havasu Foundation for Higher Education Annual Meeting

When: Jan. 29 at 6 p.m.

Where: Shugrue’s Bridgeview Room.

Tickets: $40 per person, includes dinner.

The public is invited, but reservations are requested by Jan. 21. Contact Terry Fleming at 505-6925 for details.

Education group hires consulting firm for proposed college

Hopes to conduct more surveys

By Diana Parker
Today’s News-Herald, Wednesday, November 19, 2008

The Havasu Foundation for Higher Education, a local group working to form a four-year university in Lake Havasu City, has hired Chicago-based Huron Consulting Group to help it complete its business plan and conduct a new round of market surveys.

Foundation President Ralph Tapscott said an official at Arizona State University recommended the firm. Huron consulted ASU on its 5,000-student downtown Phoenix Campus, which was completed recently.

“They add credibility to what we’re trying to do internally,” Tapscott said.

HFHE Treasurer and Executive Director Bill Ullery said the foundation was dissatisfied with the scope of a market study performed earlier this year by Lipman Hearne and funded by Northern Arizona University, a potential partner in a local university.

“They focused on the areas that have no significant impact on Lake Havasu’s economy — the boaters, the tourists, the home-buyers,” Ullery said. “We simply need to finish the research.”

A second survey would focus in on the region’s four high schools, western Maricopa County, southern Nevada and those portions of five Southern California counties that contribute most to the local economy. All are markets the Lipman Hearne study missed, Ullery said.

The economy could make the idea of a university in Lake Havasu City more attractive to its potential markets, according to Ullery.

“The turn-down of the economy has caused students and parents to rethink their decisions on university attendance, and those people are choosing colleges closer to home,” he said.

Huron Consulting Group’s first job will be to analyze the foundation’s draft business plan and assist it in developing a final version that can be present to the public.

“My guess is we’ll have additional work to do,” Ullery said.

Tapscott said the foundation would probably be ready to begin its new market study by the end of January.

“We anticipate surveying literally thousands of people. That could take 60-plus days,” he said.

It could take another month or more for volunteers to tabulate the results and incorporate the data into the foundation’s business plan, Tapscott said.

In the meantime, local architecture firm Associated Architects is producing renderings of a proposed university campus “typical of a 500-student, full-time equivalent setting with easy access to the lake, marina and beaches,” Ullery said.

Plans are for the drawings to be presented at the foundation’s annual meeting in January and later displayed at city hall, he said.

“It’s pretty early for us to be doing that, but conceptually we’re pretty close. We’re starting small — high quality. We know that works,” Ullery said.

According to the foundation’s calculations, a local university could get under way with an initial freshman class of just 156 students.

You may contact the reporter at dparker@havasunews.com.

Is information available on Huron?

For information on the prestigious Huron Consulting Group, Inc., go to; http://www.huronconsultinggroup.com/ See also, http://www.businessweek.com/magazine/content/07_23/b4037412.htm

Contact Point master plan and university site map updated June 2008.

A better exam for new university, May 25, 2008

Oh, sure, they look like boaters, all those visitors in Lake Havasu City this weekend and throughout the summer.

They are really potential university students and the parents and grandparents of potential university students... At least that’s how backers of a local university project see it.

Last month’s plans for the local university seemed to have hit a wall. Northern Arizona University, the educational partner in the project, commissioned a study that found, in essence, that a new university in Lake Havasu City made no economic sense.

If the proposed university flunked its first test, it is likely because the examination was flawed.

Among other things, the NAU commissioned study assumed a $225 million cost of construction. That’s like a million square feet and included things like expansive student centers and sports and fitness facilities. That cost is some 10 times greater than what the local backers expect to be needed to start offering classes.

The study, conducted by Lipman-Hearne, was done without consulting any local organizations. Those groups could have provided information on visitor patterns and other data that would round out and validate the study. Instead, the study focused on the potential number of students that would come from local and nearby high school graduating classes and also looked at the potential in the core areas of San Diego and Los Angeles.

The Havasu Foundation for Higher Education, the propelling organizer of the university project, wasn’t involved in planning the study and was caught unaware by the results.

Now, the foundation wants to do new market study, this time focusing on the very real and time-honored “market” for Lake Havasu: Those very large portions of Southern California that generate most of the visitor business in our area. Specifically, it seeks to target those who visit here and own summer homes here as a key part of building a student population.

The results of the planned second study are likely to breathe some new life in the university project, providing a clearer perspective on student interest and the scale of the school.

It will still be a long-term effort, a decade or more, to get a university built on the shore of Lake Havasu. It’s good to see the foundation is moving quickly to get the new study developed (casting a wide net for planning feedback) and completed in order to keep the university project moving along.

— Today’s News-Herald

HFHE Awards Its First Scholarships, May 12, 2008

Lake Havasu City, AZ, May 12, 2008 — On behalf of the Havasu Foundation for Higher Education, Pamela Meyers, Ph.D. (Center), presented the first scholarships ever awarded by the Foundation at the LHHS Evening of Excellence held Monday night. Recipients Leah Williams (Left) and Jessie Erickson (Right) received scholarships in the amount of $1000 each. These ladies have not only excelled academically, but in ever other aspect of their lives, as well. Leah will be attending California Lutheran University and Jessie will be attending the University of Oregon in the fall.

Kaffenberger Statement

DATE:       April 11, 2008
TO:            News Outlets and Citizens of Lake Havasu City
FROM:      City Manager Richard Kaffenberger
SUBJECT: DEVELOPMENT OF 4-YEAR UNIVERSITY IN LAKE HAVASU CITY

A recently completed survey for Northern Arizona University (NAU) indicates there is strong student interest in a 4-year university in Lake Havasu City. While the study offered long-term recommendations for a residential campus here, NAU officials and Lake Havasu City representatives agreed Thursday to continue moving forward on developing an NAU facility at this time.

Most of the citizens of Lake Havasu City are well aware of the City’s support and involvement in the master planning of a 4-year university in our community. This involvement goes back several years, coinciding with the establishment of a volunteer organization called the Havasu Foundation for Higher Education (HFHE). The conceptual design, campus location and prospective courses of study have taken many different tracks over the years. Fortunately, the HFHE did not view each change as a failure because with each course correction, the vision of the project became a little clearer. NAU expressed interest in the project and enthusiasm grew when the ideal campus location was identified near the proposed 320-acre Mainland Marina project at Contact Point.

The survey was commissioned to determine the level of interest of potential students who may consider Lake Havasu for their residential college experience. 500 college-bound 12- to 16-year-olds within 250 miles of Lake Havasu City were surveyed, along with 400 parents. The findings suggest that a minimum of 17,000 and upwards of 93,000 potential students within the survey area would be interested in attending college in Lake Havasu City. With City Council approval, we will begin a comprehensive economic and fiscal analysis that we expect will lead to the first NAU campus building on the site.

NAU Leader Sees Hope for Havasu University

By John Rudolf
Today’s News-Herald, Sunday, April 13, 2008

Due to a lack of funding, the construction of a full-fledged Northern Arizona University campus on Lake Havasu is unlikely any time in the near future. But according to NAU president Dr. John Haeger, who met with city leaders and boosters of the project last week, hope still exists for the project.

“The idea is a good one, but it’s going to take a very long time to build up a substantial student presence,” Haeger said. “It’s not practical now to say we’re going to build a campus all at once. It just isn’t going to happen.”

A recent study of the university project concluded that the high cost of capital construction, and competition from existing schools in California and Arizona, would present major challenges for a Havasu campus. That study has drawn criticism from some locally, who questioned both its cost estimates for the campus, and its conclusions about the desirability of the Havasu campus to students in the region. The study surveyed hundreds of prospective students and parents, and concluded that demand was relatively weak in comparison to existing campuses.

Yet Haeger said his views on the challenges facing the Havasu campus went well beyond the conclusions of the recent survey. He pointed to two other educational studies that showed lagging demand for higher education in the state.

“When you put the three studies together, in my mind, it makes a pretty compelling case that before we could really imagine Northern Arizona University having 1,000 students in Lake Havasu City, we’ve got to do a much better job of graduating students from high school, and getting them to transfer from the community colleges,” Haeger said.

High school graduation rates are 61 percent in Mohave County, 74 percent in Lake Havasu City, and 63 percent in Kingman.

Arizona ranks near the bottom of states in funding for K-12 education, and according to Haeger, only about eight out of 100 8th graders in the state will ever attain a four-year baccalaureate degree.

“The problem is not that we lack universities,” Haeger said. “The problem is, we don’t have enough students in the pipeline.”

Some boosters of the Havasu campus have pointed out that the city’s proximity to the large population centers in southern California and Maricopa County could attract thousands of students. While that was likely true, such a scenario would depend on the construction of an elaborate campus, complete with residential dorms. The university study projected the costs of such a project at about $250 million.

“When you talk about recruiting students from California, now you needs lots of the campus infrastructure,” Haeger said. “That’s where the costs then skyrocket.”

Rather than building a full-fledged university from scratch, Haeger suggested the project be done piecemeal. He said the 320-acre waterfront property identified by the city was an excellent location, and that if the city constructed a small university building, then NAU would likely be interested in a long-term lease of the facility. “I think it’s an excellent location,” he said. “We’d be excited to partner with the community in doing this.”

Haeger pointed out that Northern Arizona University itself has humble roots.

“If you take the long-term view of this, there was a time when we were a single building,” he said. “It’s taken 100 years to produce the institution we have now.”

Future of 4-year university still alive

Today's News Herald - April 11th, 2008

A survey conducted by Northern Arizona University indicating that Lake Havasu City isn’t quite ready for a four-year university may have dampened enthusiasm by the Foundation for Higher Education, but in reality the project is far from dead in the water.

The survey questioned 500 students and 400 parents of prospective students in the regional market as to the desirability of a Lake Havasu City location. The authors of the study concluded that the results showed interest in a local campus to be weak in comparison to other better-established competitors.

Results suggested a wait of three to five years to try the survey process again was recommended.

For all who are in favor of and working toward the establishment of a four-year university, the three- to five-year recommendation wasn’t a complete surprise. Fundraising has begun but that will take lime. Figures presented in the survey estimating an outlay in excess of $250 million to develop the campus also took proponents by surprise. Those who want to see the project come to fruition are in it for the long haul.

Of the three scenarios offered in the survey, a “complete campus” was preferred. The complete campus would offer rigorous academic programs, combined with outdoor activity. During beginning discussions for a four-year university, the thought was to offer programs centered around the hospitality business and business in general, but it appears that if students were coming to Lake Havasu City to attend college, they want a well-rounded offering to choose from.

Plans to move forward with the development of the area in the meantime bodes well for the future. Progress on a municipal golf course and a marina located in the area will ensure the campus site remains top of mind. Those projects will benefit the community.

In the three to five years that would ensue before another survey is recommended more visible progress on those projects would make more sense to those wanting to move forward on the university side of the coin.

The positive impact for Lake Havasu City has been mentioned on this page in the past, but taking a second look is always helpful. The jobs provided if a college building project were to begin would be a boost. That boost wouldn’t end once the project was complete because teachers and their families would move the Lake Havasu City and students to fill the college would also contribute greatly to the local economy. So the benefits begin before one student walks on campus.

The culture and prestige that accompanies an institution of higher learning is a given.

The continuing work to bring the project to fruition will only be aided by the continual, visual forward progress in the area.

ULLERY CALLS BILL 1110 ‘A MONEY GRAB’

Rep. McLain says bill gives legislature authority to OK use of SLIF funds

By DIANA PARKER
TODAYS NEWS-HERALD

Backers of a four-year university for Lake Havasu City are waging a campaign to express their disapproval of a move in the Arizona Legislature to appropriate monies from the State Lake Improvement Fund.

Bill Ullery, who founded the Havasu Foundation for Higher Education three years ago and is still the driving force behind it, called Senate Bill 1110 “a money grab.”

“It’s pretty drastic. It totally guts the authority of the State Parks Board and diverts money from the SLIF fund to the general fund,” Ullery said.

He believes the bill threatens the development of a new state park, marina and boat launch at Contact Point, adjacent to land targeted as a potential university campus. Plans for the land, set for disposal by the Bureau of Land Management, also call for a golf course, hotel and housing development.

“That marina at Contact Point is so critical down there. If we don’t get the infrastructure ... we can’t develop any of that land, and it’s SLIF funds that would develop the marina project,” Ullery said.

Rep. Nancy McLain, R¬-Bullhead City, said it’s a misconception that SB 1110 would divert SLIF monies into the state’s general fund.

“The fact that money is being appropriated does not necessarily mean it goes into the general fund,” McLain said.

The bill would give the Legislature the authority to approve the use of SLIF monies rather than leaving that authority to the State Parks Board, she said. The kinds of projects the funds could to go to pay for would remain unchanged.

“Some legislators don’t think the State Parks Board is properly utilizing SLIF funds and this is an attempt to get more control over how SLIF funds are spent,” McLain said. The Arizona Game and Fish Department’s spending is already subject to such legislative appropriation, she said.

Even so, SLIF monies will not remain untouched. Legislators are recommending 25 percent — or about $4 mil¬lion — of SLIF monies be transferred to the general fund as part of the Legislature’s “sweep” of funds to help make up for a $1 billion budget deficit, according to McLain.

Uncertainty about the future of SLIF monies has already lead the City Council to lower the Contact Point marina and boat launch on its list of priorities in favor of a project to dredge South Bridgewater Channel.

In an e-mail to Ullery, McLain said she doesn’t feel the appropriation of SLIF funds is necessary and that she’d vote against the bill if it makes it to the House. As for the broader sweep of funds, McLain wrote, ‘We don’t have much choice.”

“I, along with others, will be working to insure that these funds are restored when our economic situation improves,” she wrote.

SLIF monies come from boat registration and a tax on marine fuel. In fiscal year 2007, the State Parks Board awarded $6.1 million in grants from the fund to pay for improvement projects in five counties. Nearly $4 million went to five projects in Mohave County, including $220,000 for restrooms and a public safety center in Lake Havasu City.

Ullery said there’s a lot at stake for the university project and the city as a whole if SLIF monies are lost, even temporarily.

“These are things that can hurt us, or if not hurt us slow us down,” he said. “It kills the very kinds of projects cities like Lake Havasu need to develop economically.”

Ullery has written legislators and Gov. Napolitano stressing the impact of lake improvement funds on economic development. He’s also encouraging the foundation’s membership, which includes many business and community leaders, to do the same.

Ullery said it will take hundreds of letters from local residents to preserve the funds. In his own letters, Ullery has reminded the politicians of the sizable contributions he has made to representatives of both political parties.

LAKE MONEY SHOULD GO TO LAKES, NOT ELSEWHERE

Today's News Herald - February 22nd, 2008

With tax revenue coming in at least a billion dollars less than projected, it’s easy to understand why state legislators are almost down to checking the sofa cushions for spare change.

One place they should not, but probably will, look is in the fund set aside for improving state waterways. Naturally, this area hits close to home since Lake Havasu is arguably the state’s most intensively used lake.

Some seven or eight million dollars each year is raised for the fund, with money coming from portions of watercraft registrations and from fuel sales to boats. For almost four decades, the state Lake Improvement Fund has helped local communities better the recreational opportunities on state waterways.

Local officials expect the SLIF funds to be raided by legislators and are downplaying expectations for major improvements on Lake Havasu this year.

But it’s just recreation, right? With the state grappling to pay for roads and bridges and public safety, why should money for leisure activities ‘not be sacrificed for more important needs?

The easy answer is that the SLIF money produces even more revenue for the cash-hungry state.

Consider, on this weekend alone, a weekend that is in the off-season for boating, hundreds of professional anglers were on Lake Havasu in a $275,000 bass tournament. Those anglers are spending lots of money on lodging and food and in the stores. This produces a variety of tax revenue for the state.

Also, consider, please, a new study that says boating has an economic effect of more than $200 million per year on the community. The study, prepared for the Lake Havasu City Partnership for Economic Development and due for presentation to City Council next week, says boating supports more than 4,600 area jobs and produces more than $27 million in local and state taxes.

It seems inconceivably shortsighted for legislators to cut into programs that produce revenue, even indirectly. But local government is expecting it. City Council recently rearranged its lake improvement spending priorities. A much-needed but relatively expensive city mari-na/boat launch project moved down on the list in recognition that $1.4 million in SLIF funds are in doubt A long-awaited dredging of Bridgewater Channel — a project with safety and water quality issues possibly overshadowing that of’ boater enjoyment — moved up.

Boaters pay their fees to the state specifically to finance lake improvements. The money raised should go to lake improvements. The public shouldn’t tolerate spending the money elsewhere.

— Today‘s News-Herald

HFHE Executive Director Comments:

The SLIF grants directly affect the proposed new mainland marina at Contact Point State Park. It is this project that will provide the roads and infrastructure to the entire 320-acre BLM site, which directly affects the new university campus.

CONTACT POINT STATE PARK MARINA

HFHE Executive Director Comments:
The SLIF grants directly affect the proposed new mainland marina at Contact Point State Park. It is this project that will provide the roads and infrastructure to the entire 320-acre BLM site, which directly affects the new university campus.

CONTACT POINT STATE PARK MARINA
By Dr. Bill Ullery, 2-5-08

Funding for the new marina is in trouble. Mainly due to some Maricopa County legislators that want to skim off Havasu funds for stuff around Phoenix.

Surely, your yacht club members could make good use of a new modern mainland marina with beaches, lake access, launch ramps, fueling, concessions and support services.

As it is, the launch ramps on the Island and at Windsor are nearly inaccessible for local residents on weekends and holidays. Not only that, but its getting downright dangerous on the roads and water, during busy periods due to congestion.

HFHE, the Havasu Foundation for Higher Education, while not a social or yacht club, did go to bat for you boaters at the recent series of public hearings on the city’s General Plan amendments. Those amendments did pass unanimously and will allow the zoning for not only the Contact Point State Park marina, but for the proposed adjacent university site, golf course, and resort hotel. The infrastructure down to the marina will make development of the adjoining projects economically feasible.

HFHE is absolutely apolitical. Our mission is to help our town and its citizens by bringing a residential university to our city. But, we are prepared to step forward when there are others trying to block progress for Lake Havasu City. And, we did aggressively support the marina because it is so important to the other adjoining projects.

Are you yacht club members and boaters going to step up and help HFHE on the marina project?

May I attend one of your future club meetings or meet with your key offices to chat about the problem, what we can do together, and how to help Havasu in the process? Will you share this email with your members and other Havasu boaters?

These are the key questions and issues:

1. Why do we need a mainland marina at Contact Point State Park?

Havasu residents have been talking about a mainland marina for over 30 years. The main issues have always been improved access to the lake for residents, boater safety, traffic safety, and economic development.

Traffic congestion on H-95 and the roads to Windsor State Park the congestion of boaters around Island and the Windsor State Park boat launch ramp area, are increasingly critical public safety issues due to the growing number of accidents, injuries, deaths, and property damage.

For example, on holidays, Windsor State Park typically closes the gates at 9:30 A.M. On a typical summer weekend, the park closes the gates around noon. The closings result in traffic backing up to H-95, resulting in more accidents. All of which makes lake access for residents more difficult.

A 2005 BLM report stated that Lake Havasu had the highest utilization of any lake in Arizona. Also, 75% of all boating activity was located within 33-53% of the lake, much of which is in and around the island and the Windsor State Park boat launch area. By comparison, the lake area west and south of Contact Point State Park is lightly used.

At a City Council meeting September 26, 2006, Arizona State Parks board president Bill Porter, a Kingman attorney, addressed the growing safety issues from the congestion on streets and the highway to Windsor State Park and the number of boats around the island and the park boat launch. He promised action on the new Contact Point marina by his board and emphasized his support for the university project.

2. Is there an economic advantage in adding a new mainland marina?

The primary industries in Lake Havasu City have been tourism and new home construction. However, in a report published by the PED in 2006, the annual economic output of the local marine industry of Lake Havasu City has grown to $191 million. The annual payroll of the marine industry was $29,646,808 and most of those jobs pay well above the average in our town. We think the new mainland marina will be a big boost for our town’s expanding marine industry, related local businesses, and our town’s economy in general.

The close proximity of a major new and modern marina and beaches on one side of the university property and a new championship quality Emerald Canyon type municipal golf course on the other side, is a college recruiter’s dream. Not to mention the Town Center and a resort hotel within a sand wedge distance away. All within two miles of the London Bridge, shopping and a variety of tourist activities unique to the Channel, Village and McCulloch Blvd.

Note the area on the attached map of the current State Park and the 40 acre subset on the west portion of the 320 acres referred to as the Section 24 university site. This 40-acre portion of the BLM land is earmarked for Arizona State Parks to expand Contact Point State Park.

3. Is there a budget and funding?

Fortunately, the City and the State Parks Board have made progress in discussions on roads and infrastructure. Presently, the park is landlocked. Without roads and infrastructure through the BLM 320-acre section, no development is possible.

A 7-12-07 letter by the legislative Joint Committee on Capital Review, recommended a favorable review of the portion of the State Parks Board request on $942,100 in improvements at Lake Havasu State Park. The Committee also requested more information on the $1,500,000 for planning the new proposed Contact Point facility. The funds would be SLIF dollars (State Lake Improvement Fund).

The Committee is aware that Lake Havasu boaters are a major source of SLIF income. The purposes of the Fund are detailed in A.R.S. §5-382.

The Parks Board expects to use SLIF dollars in the future to fund part of the construction estimated at $19,380,000. The various projects include:

$2,200,000 for roads from ADOT.
$1,500,000 for site prep.
$5,$5,420,000 for a marina, fueling station, and boardwalk. A private concession company would operate the marina, similar to the arrangement at Kartchner Caverns.
$1,750,000 parking lot.
$1,000,000 beach area.
$2,500,000 day use area.
$2,500,000 potable and wastewater services.
$2,500,000 boat launch area.

The city is also an applicant for SLIF money. According to a recent 8-16-07 news article, “Previously, the city received $400,000 in SLIF money to participate in the proposed new mainland marina at Contact Point. The city asked for another $700,000 to install buried infrastructure to a new state park facility, which also will assist the effort to place a four-year university on land adjacent to the park.”

However, the funding now appears headed for big trouble.

4. What are the key issues?

a.) Our local residents are in need of better access and improved boat launching facilities, a marina, beaches, and water recreational opportunities.

b.) With the present situation on our lake and the limited facilities on the island and at Windsor State Park, our town has a documented serious problem of safety on the water and on the roads from congestion, particularly on weekends and holidays.

c.) Our town is in need of action to stimulate our economy and the proposed south-side mainland marina should be a nice boost to our tourism and our growing boat manufacturing industries.

4. What can your yacht club and/or boating friends do to help?

a.) Formally endorse the Contact Point State Park marina project.

b.) Write a letter to the City Council, the Arizona State Parks Board, and our three area legislators, emphasizing your club’s support of the Contact Point State Park marina project.

c.) In that letter, emphasize the need to complete the proposed “$5,420,000 for a marina, fueling station, and boardwalk. A private concession company would operate the marina, similar to the arrangement at Kartchner Caverns.”

d.) Given the current shortfall of revenues for state government, suggest consideration of completing the marina portion of the project with funding from alternative sources. >
e.) Emphasize the need to move forward with the entire project given the boating safety and highway traffic issues, the need for better lake access by local residents, and the immediate need for action on the marina project to help stimulate the economy for both our town and the state.

f.) Help identify boaters who are community leaders and who have a desire to help our city and State Parks with the marina project. To that end, perhaps we might consider forming a new group such as a Contact Point Yacht Club.

Will you help?

Thanks!

NAU interested in Havasu university

School will finance study on potential students

By Diana Parker

Today’s News-Herald Friday, February 01, 2008

Diana Parker/News-Herald Photo.

Northern Arizona University Vice President Fred Hurst, left, talks with Mayor Mark Nexsen, right, Wednesday at the annual meeting of the Havasu Foundation for Higher Education. Also shown is Floyd Hamilton, a past president of the foundation.

When members of the Havasu Foundation for Higher Education met Wednesday for the organization's annual meeting, the mood was optimistic and the speeches were inspiring, even though the group's dream of bringing a four-year university to Lake Havasu City is years away.

"Lake Havasu U - how does that sound?" foundation President Ralph Tapscott said to enthusiastic applause. "It's a 10- to 20-year vision, and we've got to start sometime.”

Though a university is still more vision than reality, foundation members seem to prefer focusing on how far they've come rather then dwelling on how far they have to go.

They point to the fact that Northern Arizona University has demonstrated its commitment by financing a study to identify potential students. The results are expected to be released in mid-March, according to NAU Vice President Fred Hurst.

“It’s looking at the market for a residential, four-year university, how large the market is and what sorts of things would have to be done to recruit those students to Lake Havasu,” Hurst said. “More and more it is difficult to draw people away from their home area … You have to have a draw."

The study surveys students, parents and high school guidance counselors in a potential market area that includes Phoenix, Tucson, Las Vegas and Southern California.

“There are two things we’re looking at closely: how to recruit the students needed and how to get the facilities built,” Hurst said. “The money to do that is going to be an issue and is going to take some time to put in place.”

Speaking before the foundation Wednesday, Hurst was clear that the responsibility for paying for facilities ---- at a cost of “multiple tens of millions of dollars” — would fall on the local community.

“From the beginning we said we knew we didn’t have the bonding capacity to pay for the facilities. What we have committed is staffing — faculty and staff necessary to operate a university of the size they want,” Hurst said.

Bill Ullery, the local builder who founded HFHE three years ago, believes the proposed university site will a draw in itself.

On a tour of the property Monday, it might have been no coincidence that he wore sunglasses with rose-colored lenses as he gazed out over the rolling desert landscape and saw a full-blown university campus with high-rise residence halls, a student center with a water slide, a performing arts center and a sports complex. Surrounding the campus he envisioned a marina, a world-class municipal golf course and a luxury resort hotel on adjacent private land.

With amenities like these — not to mention the lake and London Bridge just two miles away — it was obvious to Ullery a university would attract the same students who used to come in droves for spring break.

“Realistically, we’re a suburb of Southern California, a recreation playground. That’s where we sell this — that’s where we get our students,” Ullery said.

The university plan relies on the City of Lake Havasu City and Arizona State Parks joining to purchase the land, which has been designated for disposal by the Bureau of Land Management. A portion would go for the new Contact State Park boat launch and marina.

Though the land has a market value of $128 million, according to foundation officials, the city and State Parks could acquire it for just $10 an acre if it’s used in the public interest.

Though foundation members talk as if the land acquisition is a given, “Nothing’s a given in the government,” said BLM spokeswoman Diane Williams.

However, because the land can only go for public use, there’s no possibility of it being snatched up by private developer, she said.

Though the city and State Parks may not have competition for the land, they face “quite a drawn-out process” in acquiring it, Williams said.

A development plan and environmental impact studies will have to be submitted.

“And then the Corps of Engineers gets involve,” Williams said.

She had no projections for how long the process would take. BLM hasn’t even received an application for the land yet, she said.

“I’ve heard anything from five, 10, 20 years. It’s not going to happen in the next six months or a year”

Another hurdle could be presented by state budget shortfalls, which threaten the State Lakes Improvement Funds monies that would finance Contact Point State Park.

Ullery said the university project depends on the state park development to provide essential infrastructure, including access roads and electricity.

“If we don’t get that marina done, nothing else, including the private development, will happen,” Ullery said. “That would set us back years.

City looking toward diversifying jobs as high priority

By JOHN RUDOLF

Today’s News-Herald, Thursday, November 15, 2007 9:52 PM MST

If the job market in Lake Havasu City were a stool, it would have three legs: tourism, retail and construction.

But with new construction at record lows and the recent fall in the city's bed tax showing a weakening tourism market, that stool is starting to wobble a bit. So with an eye on the future, some city leaders are doing everything in their power to add some new industries into the city's economic mix.

"We have to diversify the economy as much as possible," said Mayor Mark Nexsen. "It's important that we create better paying jobs."

Nexsen has lent his support to two initiatives that hold promise for the city's employment opportunities both in the long and the short term: the 162-acre business park on the north side of town, and the proposed four-year university.

With about $4.5 million in grants already in place from city and federal sources, and the endorsement of site plans by the Army Corps of Engineers expected soon, the business park will likely be up and running long before the four-year university is begun.

We are still very optimistic that we’ll be able to break ground in the first quarter of 2008,” said Gary Kellogg, president of the Partnership for Economic Development.

The Corps is expected to make a decision on the property after the closing of a public comment period in early December. Once the property was secure, potential tenants would be aggressively sought out. “We’ve held back until all these things were nailed down,” Kellogg said. “We didn't want to promote a park that didn’t come to fruition.”

According to mandates that accompany the grants, businesses that use the park must pay employees an average wage of $17.76.

“We’re going to shoot for companies that provide good wages,” Kellogg said. Looking towards the long-term, advocates for a proposed four-year university on the south side of town say that higher education will give the city an unprecedented economic boost.

“You talk about the esoteric benefits of the culture and education a university brings to a town, but our objective from the start is almost totally focused on the goals of economic development for our community,” said Bill Ullery, a board member of the Havasu Foundation for Higher Education.

"What is the potential? We’re talking 300 to 400 new jobs,” said Ralph Tapscott, president of the foundation. “Even better than that, it allows people living locally to gain the education they need to get higher-paying jobs.”

Even the promise of a future university might be enough to entice businesses to relocate to the city, Tapscott said.

Several months ago, Thomas Jay Wacker, the founder of Simple-Pedic, a mattress manufacturer, commented that a new university would be an incentive to locate a new factory here.

“It is my hope that one day Simple-Pedic will able to choose Lake Havasu City for its new home,” he wrote, adding that a university-trained workforce would be best equipped to operate his computer-driven machinery.

Tapscott pointed to university towns such as Prescott and Tucson that have used universities to fuel entrepreneurship. “They create entrepreneurs,” Tapscott said.

Eventually, graduates would be able to create their own advanced businesses and also attract better-paying jobs requiring advanced degrees.

“Until you’ve built up that kind of talent pool locally, it’s going to be real hard to attract those kinds of businesses,” he said.

You may contact the reporter at jrudolf@havasunews.com.

Seeing promise in empty land If boosters get their way, university may soon rise

By JOHN RUDOLF

Today's News-Herald, Thursday, September 20, 2007 10:12 PM MST

When Bill Ullery looks out on an expanse of dry washes, sandy gulches and scrub brush, he sees not a barren desert, but a thriving community centered on a new four-year university.

“It’s a little bit rough,” he said, looking over the craggy ground. “But our whole town looked like this at one point.”

Ullery, as chairman of the Lake Havasu Foundation for Higher Education, is the city’s biggest booster for a project that he says has the potential to forever alter the town for the better. The project he envisions for this rough patch of desert on the shores of Lake Havasu encompasses not only a full-fledged extension campus of Northern Arizona University, but also a new marina, a park, a sports facility, a performing arts center, new shops, a first-class resort hotel, residential housing and an 18-hole championship golf course.

All that, and maybe even a waterslide from the campus into Lake Havasu.

“It’s a college recruiter’s dream,” Ullery said.

The city’s Planning and Zoning commission recently voted to recommend approval of a measure changing the land-use designation of the proposed university site, sending the measure to the City Council, where it will likely be approved. The measure is part of a concerted effort by the city to secure the 320-acre parcel, since it was made available by the Bureau of Land Management.

Next week, a firm hired by Northern Arizona University will begin a marketing study to determine the feasibility of locating a satellite campus in the city. As part of the study, city officials and community leaders will be surveyed to gauge support for the project

Mayor Mark Nexsen anticipated a positive response from locals.

“I think there is huge support here,” he said.

Estimates of the future student population vary from as low as 2,000 to as high as 10,000, although the most likely size is around 4,500.

The university would be an “economic engine,” Nexsen said, generating new jobs and spurring development, as well as creating a better-educated local work force, potentially attracting new industries to town. The campus and the cultural activities it would generate would also add to the life of the town.

“It’s a real plus from a quality-of-life standpoint,” he said.

The land has been appraised at a value of around $400,000 per acre, but could be acquired by city and state government from the BLM for only $10 per acre, Ullery said. The 100-acre parcel of land where the university would be located had a value of $40 million but would cost Northern Arizona University virtually nothing.

“We’re going to give it to them,” Ullery said. “How do you beat that?”

Developer Jim Komick owns a large swath of land adjacent to the BLM property and has plans to build housing for students and faculty, a resort hotel and a shopping center. Another large parcel of waterfront land, part of the 320 acres, would be the site of a new marina.

Irrespective of the outcome of the university’s marketing study, major hurdles remain for the project. As beneficial as the university and surrounding amenities could be for the area, the city simply did not have the funds to construct the campus and buildings itself, Nexsen said.

“I don’t know what it’ll cost, but we don’t have millions and millions of dollars lying around,” he said. “We have a little thing called the sewer we have to deal with.”

At a cost of more than $400 million, the sewer construction project has made a major impact on the city’s finances for years to come.

There are alternatives to having the city pay for construction, Ullery said. One option pursued by Arizona State University in its new Phoenix campus was the development of a lease agreement with the city, in which the city would finance construction with a bond issue, and the university would pay the financing of the bond through yearly lease payments.

Opposition to the project has come almost exclusively from a small but determined group of homeowners with properties adjacent to the 320-acre parcel. Paul Rhoads lives on Sweetwater Lane and says the development would turn his sleepy side street into a traffic-clogged thoroughfare

“The people who are in favor of this project do not live in our neighborhood,” he said. “The people who live on Acoma, Regency and Sweetwater would pay a heavy price in the way of traffic, noise and lights. I would like to see the college go north of town.”

The proposed development site, however, lies on steeply graded land that descends quickly to the lake. Standing on what he hopes will one day be the boundary of the university, Bill Ullery looked up toward Sweetwater Avenue and the highway. Nothing was visible but hills and barren land.

“It’s just sour grapes,” Ullery said of the homeowners’ complaints. He pointed out an entrance to the college on a diagram of the site, which was far from any homes. “There’s going to be no new traffic on their streets,” he said.

More troublesome to Ullery was the question of time. “I’m a little uneasy about the pace,” he said. “I’d like us to do it like Phoenix and ASU did it: Get the leases done and build it in 2 1/2 years flat.”

You may contact the reporter at jrudolf@havasunews.com.

New Conceptual Land Use Plan -

August 23, 2007

P and Z Commission Hearings:

6 pm, August 22, 2007, Aquatic Center; 6 pm, September 19, 2007, LHC Police Dept

Request for a major amendment to the city’s general plan text creating a new public/semi-public land use designation allowing public and semi-public uses that are owned and/or operated by a governmental, nonprofit, or philanthropic institution that provide educational, recreational, cultural, governments, or other similar uses. And a request for a major amendment to the future land use map of the city’s general plan for a 320-acre site commonly referred to as the 4-year university site described as the south half of section 24, T12N, R20W to change the future land use designation from parks/open space to public/semi-public.

Proposed university rezoning discussed

By JOHN RUDOLF

TODAY’S NEWS-HERALD, THURSDAY AUGUST 2, 2007

A request by the city to rezone a 320-acre parcel of land for the development of a four-year university, a municipal golf course and a performing arts center came up for public comment and review by the Planning and Zoning commission Wednesday. Bill Ullery, treasurer of the Lake Havasu Foundation for Higher Education, which has been advocating for a four-year university for the city, portrayed the city’s deal with the Bureau of Land Management to secure the parcel — valued, Ullery said, at as much as $128 million — as a potential coup for the city. Other than the cost of environmental studies, there would be no other direct costs to acquiring the land, Ullery said. “There’s no need to put tax dollars into it’ he said.

Located close to downtown and right by the lake, with beautiful views of the surrounding mountains, the location will be a big draw to out-of-town students, said Conard Blevins, a former city councilman and member of the higher education foundation. “We’ve got perhaps the premier location in the whole state of Arizona,” for a new university, he said. At the conclusion of comments, the zoning board pledged to take up the issue again at its next meeting Aug. 22. There was limited but vehement apposition by residents who said the development of a university, golf course and other facilities would be detrimental to their property values and their quality of life. “I’m not opposed to the college,” said Sweetwater Lane homeowner Paul Rhodes. “I’m opposed to our space being invaded.”

Rhodes said that when he built his home two years ago, he looked out on nothing but open land, designated as such by the federal government. He assumed it would stay that way. “Now we’ve got city and state government making some high-speed deal here. “It’s just not fair’ he said. Rhodes described hiking out on the open land in the early mornings. “There’s two bobcats out there, gray-horned owls, spotted owl, the desert tortoise — I’ve enjoyed all the wildlife. People look out there and they see basically barren land, but that’s not the case. There’s an array of wildlife out there.” Rhodes also worried that college students would cause trouble in the neighborhood. “College kids are not well ¬behaved,” he said. “I have visions of all sorts of people running about in my back yard.”

Ullery said that far from diminishing property values, the college — and particularly the new municipal golf course — would greatly boost the value of homes. “A golf course close to those folks would have a positive impact on the values of their homes,” he said. “Looks to me like a win-win,” One way or another, the city is likely to utilize the land, Ullery said. After a two-year process, which included opportunities for public input, the BLM put the land on the “federal disposal list.” While that land is general reserved for state parks, it was also available to city and state governments, Ullery said. Once the city realized that the land was up for grabs, it scheduled a meeting with the BLM and worked out a deal. To reverse the decision would mean a huge step backward for the federal government, which is unlikely, Ullery said. If the zoning commission and then the City Council approve the zoning alteration, which would change the zoning designation from ”parks/open space” to “public/semipublic,” ground could be broken on roads and basic infrastructure in as little as few months.

Council OKs marketing study to identify potential students for proposed university

By TONY RAAP

Today's News-Herald, Thursday, Tuesday, July 10, 2007 10:49 PM MST

The possibility of building a four-year university on the city's south side took a couple of steps forward Tuesday

City Council OK'd several items related to the proposed university, including a marketing study to find out where potential students are and whether they will come here.

The proposed university, which still does not have a cost estimate, would be a joint venture between the city and Northern Arizona University. NAU will be in charge of the study, with the city acting as a liaison, providing NAU access to city resources and to others involved in the campus' planning and development.

NAU will pay for the study, Community Services Director Stan Usinowicz said. He did not know how much it would cost.

The study will try to answer:

Which geographic landscape would create the greatest student interest?

How much marketing funding would be needed to bring in the first wave of students?

How much funding would be needed to sustain a reasonable growth?

Which curricular offerings are most appealing to the university's demographic?

What is the university's demographic?

Ralph Tapscott, president of the Havasu Foundation for Higher Education, said before Tuesday's meeting that the university's student base would come primarily from the surrounding region.

“We all agree that they would come from the West Coast, out of state, Las Vegas, and the other 50 percent of the population would come from in state. But that's pure speculation at this point,” he said.

With any college, the proposed university must attract students. To do so, it has to offer niche programs, Tapscott said. If it were to be a liberal arts college, it would fail.

“I don't mean to bash liberal arts colleges, but there's liberal arts colleges all across the country. We need to find out is there a specialty niche that might draw students from around the region?” Tapscott said.

The project will be done in stages. The next step is developing the land, Tapscott said. Talks have centered on building the college on two 160-acre parcels south of Contact Point off State Route 95 near the lake.

The Bureau of Land Management owns the property and has expressed interest in leasing the land. NAU officials said they liked the idea of being in city limits and within walking distance of the water.

Before construction begins, the city must do a biological assessment and cultural resource survey, both of which council approved Tuesday. The city will pay Southwest Technologies of Flagstaff $10,000 to conduct the studies - $7,000 for the cultural resource survey and $3,000 for the biological assessment.

Parks Director Bill Mulcahy described the biological assessment as the “bugs and the bunnies” study. In it, Southwest Tech will study the land's soil, vegetation, wildlife, threatened species, air quality, etc.

For the cultural resource survey, it will inventory any known archaeological sites. If any American Indian remnants such as arrowheads or fire rings are found, Southwest will turn them over to the Arizona Preservation office, Mulcahy said.

Council in May OK'd a conceptual land use map for the site. It gives the most real estate - 156 acres - to a municipal golf course. A hundred acres is set aside for the university, 40 acres for State Parks future development and 24 acres for a convention and performing arts center.

The city's cultural resource survey and biological assessment only will cover the area for the municipal golf course and performing arts center. NAU will pay for its own studies on the land set aside for the university, Mulcahy said.

The marketing study is expected to be finished in about six months, Usinowicz said. The cultural resource survey and biological assessment should be done by early fall, Mulcahy said.

You may contact the reporter at raap@havasunews.com

Backer of Havasu 4-year university says funding plan is ready

City manager’s reaction tepid to possible timeline for financing

By DAVID BELL

TODAY’S NEWS-HERALD, Tuesday, June 12, 2007

Construction of a four-year university in Lake Havasu City could start in as little as three years.

That’s according to Bill Ullery, a member of the Havasu Foundation for Higher Education. Ullery said a financial plan has been worked out that will allow for development of a university in Mohave County.

“With the city as a major partner, we can implement a lease program similar to that of Phoenix and ASU (Arizona State University) and similar to what MCC (Mohave Community College) did with the 800 Building on the Havasu campus. The long-term lease allows bonding, which is used for construction,” Ullery said. “I can see no major impediments to the financing of a campus.”

Bonds would be issued for the total cost to construct the campus and other amenities such as housing and recreational fields. A lease agreement with Northern Arizona University would be worked out where a portion of tuition and fees would be used to pay off the bonds by the due date.

While City Council has taken no action on any bonding proposal, council has been consistent in its support of development of a four-year university.

“What we’ve been told is to explore financing options and that is what we’re doing,” City Manager Richard Kaffenberger said. “For example, we’re looking at naming rights as one avenue. And there are other things we’ve asked CIAC (Citizens Investment Advisory Committee) to look at.”

A general obligation bond would require a public vote. HFHE President Floyd Hamilton said a vote might not be required for a revenue bond.

“MCC was not required to go to a vote for the 800 Building,” he said.

“We knew we’d never get a penny from the state for a campus. And we knew we wouldn’t get operating money. We figured out a way around it,” Ullery said.

Since a potential location for a proposed four-year university was identified last summer, things have moved quickly in the effort to establish a resident undergraduate and -graduate university in the city.

In February, representatives from Grand Canyon University in Phoenix approached HFHE about establishing a campus in Lake Havasu City. GCU was unable to come to agreement with HFHE and the city about securing the land, but that inquiry spurred the local effort to cement the relationship with NAU.

“GCU confirmed we were on the right track with NAU,” Hamilton said.

On May 24, HFHE representatives, including Hamilton, Lake Havasu City Community Services Director Stan Usinowicz and Vice Mayor Margaret Nyberg went to NAU for a meeting with university president John Haeger.

“We sat down for two hours and hashed out how this could work,” Hamilton said. “NAU sent a letter to our legislators saying they (NAU) have expressed interest in a Havasu campus. NAU’s next step is to issue a letter of intent”

Haeger was unavailable for comment.

The desired land is made up of two parcels of Bureau of Land Management property totaling 320 acres. The land is adjacent to Partner’s Point, just south of the Water Safety Center at Contact Point, and is bounded by State Route 95.

Diane Williams, spokeswoman for the BLM Lake Havasu Field Office, said the parcels have been designated for disposal under the recently updated Area Resource Management Plan.

“Any lease would have to be for recreational and public purposes. Education falls under that criteria,” Williams said.

“NAU is a $l billion boost to the economy of that city (Flagstaff). If we can get anywhere near that, we’re looking at huge increases of tax revenues to Havasu. If we can increase taxes to the town, that can buy down the burden of the sewer system,” Ullery said. “First and foremost, this has always been an economic development project for the community’

Havasu’s newest economic development plan.

By Dr. Bill Ullery

Havasu’ newest economic development plan starts with a debt-free $128 million asset

The new “land plan” map for the university, marina, golf course, performing arts and convention center, and adjoining resort hotel is on the Havasu Higher Education Foundation’s (HFHE) website, www.havasufoundation.com Click on “News.”

Land Plan: The map was approved by the city council 3-27-07 as recommended by the “Partners.” Chaired by city manager Richard Kaffenberger, the Partners include; the City, NAU, HFHE, BLM, State Parks, MCC, PED, CVB, Havasu Riviera (Ken and Jim Komick), L.H. Schools, and the Chemehuevi Tribe.

The map defines 320 acres of BLM land the city hopes to acquire within the year. It’s next to Contact Point State Park and within yards of the lake. With awesome vistas and near the center of town, it may be the most valuable prime lakefront land in Havasu.

This property is worth over $128 million and certain to appreciate. The BLM disposal process allows governments to acquire title to such public land at from zero to $10 per acre. In this case, a $128 million asset for about $1,290 plus some acquisition costs such as a management plan and ecological impact study.

HFHE with its 1,700 members takes great pride in its role with this acquisition and what it means for the future of our town.

The Bigger Picture: The kingpin project is a marina that could include multiple launch sites, boat slips, beaches, parking, and an educational facility.

Moreover, for years, a priority of the city council was the development of a resort hotel and convention center. It’s been an illusive goal.

However, the Komicks saw the potential of a resort hotel on their adjoining Havasu Riviera land. Such a project became economically feasible with the expanded state park, the marina, an arts and convention center, and the adjoining university campus.

The Komick's portion of the plan also includes a "town center," similar to what is being built at their Foothills development. Included will be shops, restaurants, cantinas, recreational areas, and faculty and student apartments. All as a thriving mixed-use project along the shores of Lake Havasu with a projected value over $1 billion at build-out.

Then add the rest of the elements of the public portion as illustrated on the land plan map, and one can see the magnitude of this project.

Challenges: For example, the southeastern area of the BLM land was too rough to be used for what we had hoped might be a future high school. But, as a golf course like Emerald Canyon in Parker, it could be one of the key elements in attracting the resort hotel and a boost to university enrollments.

The new plan also allocates 24-acres for a fine and performing arts center and convention facility. Thus, with the pieces of the bigger puzzle emerging, all of the key elements of one very powerful economic development project and strategy were in place. Everything interconnected and interrelated. And very much interdependent. A true public-private partnership. A project that could forever change the face and social fabric of our city.

Financing Improvements: The appreciating value of the land along with the revenue generating elements of the larger project, with significant increases in future tax revenues for the city, create all the basic foundations for financing the improvements including the buildings for the university campus. Initially, student tuition and fees will be set to cover all operational costs, building leases, and contingencies. Thus, the business plan will provide the structure to finance all campus construction. Construction that could start within 3 to 5 years.

Mr. Kaffenberger, in his visit to Phoenix, found one of the keys to getting the Phoenix downtown campus project started was an Economic Impact Study. For Phoenix, it gave them a clear picture of the expected outcomes of their downtown university project. And, it was the projected huge increases in tax revenues and the economic impact that motivated that city to get started without delay.

Proposed new university and land plan. The elements are in place to get it done. - April 3, 2007

By Dr. Bill Ullery

Check out the impressive colored map of the current land plan for the proposed site of the new university.

Land Plan: This conceptual land use plan was approved by the City Council March 27, 2007. The city’s General Plan will be amended accordingly. The plan was recommended by the “Partners” group as established by the Council last year. Included in this group chaired by city manager Richard Kaffenberger are; the City, NAU, HFHE, BLM, State Parks, MCC, PED, CVB, Havasu Riviera (Ken & Jim Komick), L.H. Unified School District, and the Chemehuevi Indian Tribe. And yes, NAU is the preferred university partner by formal action of the City Council, May 22, 2007.

The plan centers on the 320 acres of BLM land the city hopes to acquire in 2007. It’s next to Contact Point State Park and within a few yards of the lake. With awesome vistas and near the center of town, it may well be the most valuable prime lakefront real estate in all of Havasu.

You can drive through this area on a limited access dirt road to Partner’s Point. The gate is next to the city maintenance yard on Sweetwater and open mornings only.

This property is worth over $128 million and certain to appreciate. The BLM disposal process allows governments under the R and PP Act to acquire title to such public land at from zero to $10 per acre. In this case, a $128 million asset for about $1,290 plus some acquisition costs such as a management plan and ecological impact study.

This was land that appeared to be earmarked for State Parks until HFHE aggressively stepped in. Former mayor Harvey Jackson helped HFHE uncover this gem as an alternative to another BLM site north of town being considered for the university project

HFHE with its 1,700 members takes great pride in this acquisition and what it means for the future of our town. When in the history of Havasu, has a local group ever presented such an asset and economic development opportunity to our city and its citizens?

Because of the potential appreciation value, HFHE is hoping the Partners group can evolve a land use plan that will enable NAU to apply for the university portion of some 100 acres, which is presently valued at over $40 million. (As a comparison, MCC’s Havasu campus is about 17 acres.) Later in this article, we’ll discuss some options for constructing and leasing buildings for university use.

Challenges and Reality: One challenge is the small population of county. Simply stated, our town does not have the population base to support a full campus of a university operation.

But, for that matter, neither does Flagstaff and all of Coconino County. Actually, Havasu now has a larger and faster growing population than Flagstaff. So, how can NAU make a go of it in Flag? A campus that now has a billion dollar-a-year impact on the local economy?

The simple answer is non-resident students. NAU in Flagstaff draws 97% of its students from all over Arizona and the neighboring and northern states. Particularly, students from California. Fortunately, Arizona is a part of a western states compact (under A.R.S Title 15, Article 8) that allows students to attend colleges in our region at affordable near in-state tuition rates.

Given Havasu’s traditional draw from the southern California area for tourists and homebuyers, as well as being a major destination for spring-breakers from all over our nation, our town is uniquely positioned to draw on this historical market base for non-resident and Arizona students. There’s no rocket science to this basic and simple strategy. It works for Havasu! And, of course, the lake is the big draw as is the climate, clean air, low crime, good government, and friendly residents.

More Challenges: For example, we simply can’t afford to tackle the university project independent of a much larger set of economic development goals and elements.

Thus the reason for the proposed land use plan as depicted in the map. But, the kingpin project is a major new marina with a small expansion of Contact Point State Park. In a marina plan proposed by Ken and Jim Komick, there would be multiple launch sites, boat slips, beaches, parking, comfort stations, and even an educational facility.

This project has been talked about and advocated for over 30 years. Fortunately, the city and State Parks have made progress with some formal agreements on roads and infrastructure. All of which would be crucial to the university project. State Parks is also making application for ADOT grants for road construction and intersections on H-95. Things are happening!

As noted by State Parks board president Bill Porter, a Kingman attorney, the growing safety issues from the congestion on streets and the highway to Windsor State Park and the number of boats around the island require action. The Contact Point marina will help save lives while giving a big boost to Havasu’s economy and boating industry.

Since Contact Point State Park and the private property of the Komicks adjoin the BLM 320 acres, acquisition of the BLM land by the city and NAU will enable a better overall master plan, including infrastructure for the bigger project. More importantly, the master planning the entire site will allow the smaller components to move forward. The Partner’s intention with a plan of this magnitude, constructed with all entities involved, is to create a major new landmark for the both the City and the County.

The Bigger Picture: There’s a lot more to the bigger picture and what is being considered with the land plan. For example, for years the number one priority of the city Council in its annual contract with the PED, was the development of a resort hotel and convention center. But, it was not ever an accomplishable goal. Until that is, Ken and Jim Komick looked at the bigger picture.

Several months ago in a meeting with HFHE, the Komicks suggested the possibility of a resort hotel on their adjoining Havasu Riviera private land. The expanded state park, the marina, and the adjoining university campus, presented many of the essential elements to make consideration of a resort hotel economically feasible.

The Komick's portion of the master plan also includes a "town center," similar to that planned at their Foothills development east of Cherry Tree Blvd. Included would be shops, restaurants, cantinas, recreational areas, and possibly, some faculty and student apartments. The town center could be a thriving mixed-use project along the shores of Lake Havasu. The proposed town center, resort hotel and residential community could be valued at over $1 billion at build-out. All on private land and with a huge economic benefit to Lake Havasu.

Then add the rest of the elements of the about to be acquired BLM section as illustrated on the land use plan map, and one can see the magnitude of this project. The bigger picture. The most significant economic development effort ever undertaken by our city.

More Challenges: For example, the far southeastern area of the BLM land is so rough as to not be useable for what we had hoped might be a future high school. To golfer Mayor Nexsen, it had the topography of the Emerald Canyon Golf Course in Parker. Which lit a light for Mr. Kaffenberger. The golf course idea could be one of the key elements in attracting the long desired resort hotel and convention center. And, a very attractive addition next to the university campus as a complement to the recreational opportunities of the lake.

Which then led to the concept of allocating a small portion of land next to the proposed resort hotel (also adjacent to the university site), for a fine and performing arts center and convention facility. Models from other cities have included a sports arena in the design with little additional cost.

Thus, with the pieces of the bigger puzzle emerging, all of the key elements of one very powerful economic development project and strategy were in place. Everything interconnected and interrelated. And very much interdependent. A true public-private partnership.

An exceedingly valuable property to be ultimately owned by the city and NAU and earmarked for economic development. All within the guidelines of the complex BLM disposal process. A project that could forever change the face and social fabric of our city. A project with a huge potential impact on our economy. And clearly, the potential of huge increases in sales tax and property tax revenues.

Moreover, the expanded proposal includes a potential large profit center in the new marina (the details of which have not yet been addressed by the city and State Parks). And, the profit potential of a revenue generating championship quality municipal golf course anchored with the resort hotel. (The golf course revenues could be used only for activity only within the public portion of the plan.) Add to the mix, a multi-use facility of fine and performing arts, convention center, and sports arena. All positioned next to the new university.

The appreciating value of the land along with the revenue generating elements of the larger project, with significant increases in future tax revenues for the city, create all the basic foundations for financing the improvements including the buildings for the university campus. For the university campus, student tuition and fees can be set to cover all operational costs, building leases, and contingencies. Such leases become the primary vehicle for financing construction.

So, there it is. The bigger picture. All of which is quite accomplishable. But, how long will it take?

The Phoenix and Sierra Vista Projects: One example might be that of Phoenix’s new downtown university campus. It took that town with a much larger government bureaucracy, only 2 ½ years to open the doors on their new campus. They projected initially, 2,500 students. But, they opened in September 2006 with 4,000 students.

What motivated that accelerated effort was the potential huge increases in tax revenue and the projected economic impact on all of Phoenix, particularly the downtown area.

In another example, the small town of Sierra Vista spent possibly 20 years getting the land and its campus up and operating. Their non-profit foundation with the city as a partner did it without a dime from the legislature. Sierra Vista also faced resistance from competing interests in Maricopa County. And, their project was not supported initially by Arizona University and the Board of Regents. The Sierra Vista campus was a totally locally initiated and funded project.

In contrast, HFHE in only three years has brought this project and the land acquisition process to where we are today. We’re only about 17 years ahead of the Sierra Vista model.

Maricopa and neighboring counties are already jockeying for the next state university campus. But, are they ready to pony-up a $40 million hunk of prime lakefront land with knockout vistas for a university campus? Next to a marina, performing arts center, resort hotel, convention center, a community center and shopping area, anchored with a championship golf course? All within a mile of the center of town?

The answer is NO. Moreover, their expectation is that the legislature will fund everything. Which is a real “pie in the sky.” We’ll just have to see if they have the political muscle to pull that off. In the meantime, Havasu has a plan that will require no state funding for buildings and campus operations.

Degrees and Programs: We get lots of questions and suggestions on the degrees and programs that might offered. NAU president Dr. John Haeger’s initial guess of a focus for programming was that of the allied health technical professions. Primarily because of the lack of degree programs in this field within the present Arizona university system. Moreover, many health field programs within the southern California college system have 3-4 year waiting lists for admission. There are also shortages of available workers and the pay is very good in these fields.

Such a medical technical focus would be a good base for growing a broader range of degrees and offerings such as teaching. Moreover, allied health 4-year technical programs also have a strong liberal arts component, particularly in the sciences. It’s just sometimes called “general education.”

Dr. Haeger also suggested rethinking the university delivery system for such a new and potentially innovative campus. A campus boarding the lake with all its summer attractions offers new options. One possibility would be 4-year programs compressed into three years by simply shortening some of the school vacations. Students and parents save money while getting the benefits of a good-paying job a lot sooner.

Also important for Havasu is that faculty, staff and administrators of health programs are paid very well. Those folks have considerable disposable income. It’s quite a contrast to the low-paying hospitality jobs of a tourist town.

The medical industry in Lake Havasu City needs to take note of this likely evolution of medical technical programs and begin to mobilize support for this project. The influx of well-trained medical educational professionals and motivated quality medical students would be a welcome addition to our community. Particularly, with our aging population and their medical service needs. It’s also another potential growth industry for Havasu.

NAU, MCC and GCU: It is also notable that NAU already has in place on the Flagstaff campus, world-class hospitality management and technical programs. Many of which could be easily replicated on the proposed NAU Lake Campus.

NAU also has been recently re-affirmed by the legislature and Regents as the primary delivery institution of university level education to rural Arizona. So, there’s a good fit with the proposed Havasu Lake Campus project.

There is also a key role for MCC. Having been a faculty member of both Ball State University and the University of Illinois, the CEO of an entire statewide system of 2-year colleges, and a State Director of Vocational Education, I have a little knowledge of what might be in store for MCC. Also, having worked or visited most 2-year college systems in the country, I have never seen or heard of 2-year college that did not reap tremendous benefits from a close relationship and proximity to a university. So, for MCC, it’s all good news.

Let’s chat a minute about the recent proposal of a possible campus of Grand Canyon University.

Because of federal laws and BLM regulations, GCU as a private for-profit corporation would have had to pay fair market value for that BLM land. And at 100 acres or about $40 million, that was quite a hurdle. GCU did not have the $40 million.

Financing, Bonds, Buildings: What about financing buildings for the proposed university campus? Fortunately, Mr. Kaffenberger has some sound ideas for financing the larger project. Moreover, we have some folks on the HFHE board with solid experience in finance and campus development. For example, Mohave State Bank CEO Ralph Tapscott takes the helm as HFHE president July 1.

In addition, current president Floyd Hamilton was an MCC board member for 10 years and as board president, played a major role in the development of both the Bullhead City and Havasu MCC campuses. I have similar experiences from my years in higher education.

Floyd points to the current 800 building on the Havasu MCC campus as an example of sound facility financing. MCC and NAU developed a simple lease agreement for that building which guaranteed MCC a source of revenue for 5 years. Based on the value of the property, the value of the building, and the 5-year guaranteed lease, MCC readily found low-interest bonds to finance construction of the 800 building. Which was paid off free and clear in 5 years.

NAU has such arrangements in other areas of the state and the method is a widely accepted practice of doing business not only for universities, but also for cities, counties and states.

There are also other bonding options such as those used by several of the churches in our town in financing new buildings and major renovations.

For NAU, it’s a straightforward management process and business plan. If they have students and the prospect of reasonable growth, they can do the deal. The non-resident students including those from Arizona are the key. Initially, student tuition and fees will be set to cover all operational costs, building leases, and contingencies. Thus, the business plan will provide the structure to finance all campus construction. Construction that could start within 3 to 5 years.

Market and Economic Impact Studies: A part of any sound management plan is the marketing study process. NAU presently has underway, a multi-faceted market study and management plan for the proposed Havasu campus. That study should reveal those career fields where there are shortages in technicians and shortages of degree programs in both Arizona and California. And, a shortage of applicants for well-paying job opportunities.

So, what about the management planning and financial studies our city needs to approach the larger project? Planning that addresses all the elements including the city’s role in the marina, the resort hotel, the fine and performing arts center, convention center, and sports arena (all in one facility), the municipal golf course, and the university component?

The answer can be found in what Mr. Kaffenberger has already discovered in his visit to Phoenix. The key to getting the Phoenix downtown campus project started was an Economic Fiscal Impact Study. For Phoenix, it gave them a clear picture of the expected outcomes of their downtown university project. And, it was the projected huge increases in tax revenues and the economic impact that motivated the Phoenix city council and the voters to get started without delay.

The Phoenix voters readily approved a $220 million dollar bond issue to jump-start their project. But, that won’t work in Havasu. And, nobody I know has any intention of going to the voters for anything.

We think Mr. Kaffenberger has a lot to work with considering the unanimous votes of support from the two previous city councils, and the support of current mayor Nexsen and the six council members (all unanimous votes to date). He also has the solid support of the Partners and the HFHE with its 1,700 members.

What Can You Do: With the total support of the entire community and the key business and profession groups in our town, we can get the larger project done. And get it done soon.

If you would like to join HFHE and help us with this project within the larger framework of economic development, please log onto our website and click on the membership form. There is also an opportunity to contribute money as it takes hard cash to keep this project and HFHE’s efforts going. Click on; http://www.havasufoundation.com/ 6/1/07

University plans coming to forefront

BY MICHAEL HAYS
Today’s News-Herald, Thursday, March 1, 2007

If someday a four-year university should call Lake Havasu City home, it would likely need to share the 320-acre site with a golf course, performing arts center, resort and more.

At Tuesday’s meeting, City Council members got a first glimpse of a conceptual land use map. It gives the most real estate, 156 acres, to a municipal golf course. The map sets aside 100 acres for the school, 40 acres for State Parks future development and 24 acres for a convention and performing arts center.

No size allotment is given for a resort, which is depicted adjacent to the arts center.

Northern Arizona University and Grand Canyon University, a private, accredited Christian school in Phoenix, are considered to be the top two interested institutions.

Floyd Hamilton is the president of the Havasu Foundation for Higher Education, an organization of 1,700 members dedicated to bringing academic institutions to town. Mohave Community College does have a local campus.

So why such a large golf course?

Hamilton said the rough, rocky terrain is conducive to building a “signature golf course” similar to Emerald Canyon near Parker.

“It’s green, next to university and compatible with all other uses there,” he said.

The Bureau of Land Management owns the property, two 160-acre parcels adjacent to the Arizona State Parks Marina south of Contact Point. BLM has expressed interest in leasing the land for public use.

“Education, recreation and public uses…these elements would fit the (requirement,” Hamilton said.

One hundred acres would dwarf NAU’s Flagstaff campus. According to its Web site, the school has 738 acres. The Flagstaff campus has the potential to expand, while GCU’s Phoenix hub has 90 acres but is landlocked, said Hamilton.

Another important question remains for the city to tackle: Which university to partner with?

“We have to either screen in or screen out one of these two universities. Which one is the best?” Hamilton said.

NAU still is interested, said Fred Hurst, vice president for extended programs at the college. He described his institution as being “sort of on hold” because Grand Canyon threw its hat in the ring in January. Hamilton is meeting with Brent Richardson, GCU’s chief executive officer, on March 8.

Richardson did not respond to requests for comment in time for this story.

Prices on leasing land from BLM vary greatly, depending on its ultimate use, Hamilton said.

For a private, for-profit institution like GCU, the low end of the scale begins at $400,000 an acre, Hamilton said. Whereas NAU, a public university, could get the land for a lot less.

Although costs associated with land acquisition, construction and operations are important, Hurst said student demand is their highest concern.

“Probably more important than (costs) is would we have the students required to make a campus successful?” he said. “From the beginning, we emphasized to folks at Lake Havasu City that we didn’t think the population would be enough. It would need to be a residential campus drawing from (outside states).”

If the city goes with his employer, Hurst said NAU would conduct a marketing study.

Hamilton did say that because the Havasu Foundation has been working with NAU for years, it would tend to favor the Flagstaff school because of its public nature, established programs and lower tuition.

‘The downside is we have to work through the Board of Regents, state Legislature and a lot of hurdles,” he said. “With GCU, they are private. They can come in and not jump through all those hoops.”

On Feb. 2, a group of various stakeholders agreed to the map, City Manager Richard Kaffenberger said Tuesday. The groups include Havasu Foundation for Higher Education, Havasu Riviera, BLM, Arizona State Parks, Chemehuevi Indian Tribe, NAU, MCC, the Lake Havasu Unified School District and Partnership for Economic Development.

Proposed Land Site As Of March 2007

The red area is the site we are proposing to be used for a University.

City Council Meeting - September 26, 2006

LAKE HAVASU CITY, AZ
A packed city council chamber was in evidence at a special Lake Havasu City Council meeting yesterday to hear a progress report on a proposed four-year university for the city. The residence institution would be built on Bureau of Land Management land next to the lake and many in the community are excited about it becoming a reality in a relatively short time. City Manager Richard Kaffenberger told TSN “task forces will explore intergovernmental agreements” and exploring a study for marketing and economic impact.: He added, he is certain there would be “tremendous interest” and it could be happen within five years, saying “I have no doubt this is a doable thing…the primary market will be California from students who want to come to Lake Havasu City to attend the university, and from locals from Mohave County.”

e-Press, Wednesday, September 27, 2006

Officials survey campus location

By TONY RAAP
Today's News-Herald, Thursday, July 12, 2006 11:09 PM MDT

Northern Arizona University officials visited Lake Havasu City Wednesday to explore the possibility of building a four-year university on the city's south side.

The proposed university would be a joint venture between NAU, the city and Lake Havasu Unified School District No. 1. John Haeger, Northern Arizona University president, spoke about the groups' progress at a public luncheon at the Lake Havasu City Association of Realtors building.

“This is a very exciting project for the university,” Haeger said. “I thought the meetings (with the city and the school district) were very, very good.”

The project, which still does not have a cost estimate, will be done in stages. The next step is developing the land, Haeger said. Talks have centered on building the college on two 160-acre parcels south of Contact Point off State Route 95 near the lake.

“I can visualize a campus there,” he said. “At the end, you got to trust your gut. If you can see a building there and see something happening, that in the end is how the decision is made-on that basis.”

The Bureau of Land Management owns the property and has expressed interest in leasing the land. NAU officials said they liked the idea of being within city limits and within walking distance of the water. Before construction begins, there are several issues that need to be addressed, the most important of which is size, Haeger said.

“We have to realize: What's the size we're talking about?” he said. “Is Lake Havasu City in the next 10 years going to have a university of 20,000 students? The answer's no, that's not going to happen. Could it eventually have a campus of 1,000? 5,000? Yeah, but it's going to take a substantial amount of time.”

This is not a two- or three-year project, Haeger said. It will take at least 10 to 20 years for the college to mature into a several-thousand-student campus.

“What we're involved in right now is something that's going to happen in full bloom long after any of us are connected with it,” he said. “In a sense, we're doing something for this community and for this university that other people are going to enjoy the benefits of.”

The other issue is cost. NAU cannot build this campus alone, Haeger said. It does not have the money to do that. The groups will have to work quickly to figure out the costs and who the partners are-“how we're actually going to pay for this,” he said. What NAU brings to the table is enormous intellectual capital.

It has been around for more than 100 years and in that time has built a reputation for being a quality institution. Today, it has more than 105 undergraduate, master's and doctoral programs.

“There's no reason why much of that infrastructure can't begin to be moved around in the state,” Haeger said.

As with any school, the proposed university must attract students. After the land and financing issues are settled, the groups must do the “most sophisticated marketing studies imaginable” to find out where the students are and whether they will they come, Haeger said.

The proposed university has to offer niche programs like nursing, occupational therapy, radiology to attract students, he said. If it were to be a liberal arts college, it would fail.

“There's already too many of them,” he said. “The competition will be too stiff. So we'll do a lot of thinking about what's the niche that would make a difference.”

Haeger believed the groups made a lot of progress Wednesday and that they were headed in the right direction.

“I think we've taken that next step, and we'll be back again to talk with you in a couple of months,” he said.

You may contact the reporter at raap@havasuenews.com.

Shoreline Location Now Favored For Campus Site

BY DAVID BELL

Today's News-Herald, Thursday, June 8, 2006 11:09 PM MDT

A site south of Contact Point (in orange) has been chosen for the proposed site of a four-year college campus in Lake Havasu City. How about a dorm room with a lake view?

The Havasu Foundation for Higher Education has turned its attention to two 160-acre parcels of Bureau of Land Management land south adjacent to Partner's Point, just south of Contact Point, as the potential home for a four-year college. The new location comes after both BLM and Northern Arizona University officials said they were not completely enamored with land near Havasu Heights along State Route 95, saying it was too far north of the city.

NAU has long been a resident of Lake Havasu City, partnering with Mohave Community College on the 2+2 program, which allows students to stay in the city and take two years of schooling at the community college and finish with two years at NAU with a 4-year degree. NAU has expressed interest in sponsoring the full 4-year university proposed by the Foundation.

Foundation board member Bill Ullery took Lake Havasu City Councilman Al Sturtevant and Partnership for Economic Development CEO Gary Kellogg out for separate tours of the land Thursday. Ullery said that BLM officials have been open to leasing the land and that NAU officials like the idea of being within city limits and within walking distance to the water.

He also said the large size of the two parcels enables multiple use of the land, which would reduce the financial burden across numerous entities. He said Lake Havasu Unified School District No. 1 officials have inquired about possibly partnering in an educational complex as well as Mohave Community College and various city departments such as Parks and Recreation. Plus he would like to see the development modeled after what was done in Flagstaff.

The City of Flagstaff and NAU partnered for a convention center, performing arts center and a hotel on the campus. “Will that model work on this site? In this town? We think it will,” Ullery said.

The shoreline to the north is controlled by State Parks, including the proposed State Parks/city joint venture marina. Along the shore to the south is BLM property with its shoreline campsites. Inland to south is private property.

Only one major wash runs through the property, which cannot be developed, however a number of small dry washes can house commercial buildings and with the severe grade, can be developed into multi-story buildings before reaching Highway 95 level. No matter what other agencies share use of the land, Ullery said it's critical to have on-campus housing as part of the college. “We can't grow a university without residential students. No dorms means no chance so if we build a single classroom, we have to build a dorm.”

The Foundation conducted a survey of spring break participants this year and found the majority would consider attending a four-year university in Lake Havasu City. The survey respondents said tuition and housing costs and recreational opportunities were the top three concerns they had when looking at a college.

The Foundation and its partners have a little more than a year to make an application to BLM for use of the land. During that time Ullery said a comprehensive master plan of all uses needs to be completed and he said only the city can take leadership on that. Ullery pressed Sturtevant on the creation of a city employee dedicated solely to the master planning of the complex.

“The challenge is to undertake the most thorough planning process possible in just over a year,” Ullery said. “If the council can't fund a person to coordinate this, it won't get done. It's too big for the Foundation and its one staff member.”

Sturtevant has been supportive of developing a four-year college and liked the location near Havasu Heights. His reasoning was the city has a poor reputation as an “anything-goes city” already and college in city limits might exacerbate that perception.

“But the Heights is out of the question now and this is the only thing left. I have to say though, it looks pretty good. Let's get it done,” Sturtevant said as he looked over the land.

NAU officials will take a tour of the location in July and Ullery is recommending the city council, LHUSD officials and foundation members travel to Flagstaff to see the NAU/city joint venture and speak with local officials. NAU has an estimated impact of $1 billion per year for Flagstaff.

There are no cost estimates yet on development of a college complex, as that's dependent on the facilities put forward in a master plan. /p>

City Council's Approval

The City Council approved a partnership with the Havasu Foundation for Higher Education to pursue the creation of a four-year college in the area at its regular meeting Tuesday night. Along with Mohave Community College and a representative of Northern Arizona University, all parties were eager to lay the foundations for a four-year university that would sit in or near the Lake Havasu City.

Floyd Hamilton of the foundation stated the most important thing to get the ball rolling on a four-year university was land, as much as they could get and as close to the city as possible, noting that if they could put the university on the Island, it probably would be full of students “tomorrow.”

Hamilton said 15 acres was the minimum needed to begin, noting that MCC occupies that much right now.

Mayor Harvey Jackson said the city needed to be involved in this process due to options available to the city that may not be available to the foundation.

Hamilton also informed council of the economic benefits of having a four-year university in the area, saying about $1 billion is pumped into the economy in the area around NAU every year.

The council communication noted that knowledge-based industry fuels local economic engines and assist in workforce education.

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