University of Iowa’s expansion gains fans, critic

IOWA CITY - A day after the University of Iowa announced plans to open a second campus in Des Moines by merging with a business college, a Board of Regents member said he was 'caught off guard” by the announcement and has concerns.

'I think it's a long ways from being a done deal, frankly,” Regent Larry McKibben said Tuesday.

UI is not buying the AIB College of Business, a non-profit institution that was founded in 1921 and today sits on 20 acres, includes 16 buildings and enrolls more than 1,000 students. But through a proposed partnership, UI would take ownership of the campus, valued at $21.5 million, acquire its students and faculty and change its name to the University of Iowa-Des Moines.

If the Board of Regents approves the deal, UI also would take over AIB's nearly $7 million endowment and $1.4 million in debt, recently incurred for remodeling, according to college officials.

Regents President Bruce Rastetter attending a news conference Monday praised the deal, calling it a 'wonderful opportunity for Central Iowans and businesses in and around Des Moines.”

Despite McKibben's reservations, other regents, college officials and lawmakers interviewed this week mostly said the proposal appears to be a smart move that could expand opportunities and options for Iowa students.

UI President Sally Mason, who recently announced her Aug. 1 retirement, said the goal is to complete the merger by June 2016. And, she said, AIB students could become UI students as soon as this fall's semester.

The merger is not listed on the agenda for next week's Board of Regents meeting and it's unclear when the board will be asked to approve the partnership. But McKibben said he plans to bring it up anyway.

'We are a long way from being up to speed, and I'm looking forward to the meeting Thursday,” he said. 'I assure you, I will have questions” for Mason.

He said he was frustrated to learn about the proposed merger on Monday - at the same time the public became aware. He recalled criticism the board levied on Mason last year for failing to promptly communicate with regents about sexual assault-related outcry on campus.

'This has not been the president's strong case,” he said. '... And so, when I picked up the paper this morning, I thought this was something that deserved a call to the regents.”

Although McKibben said he doesn't have 'enough information to make a solid decision,” he has initial concerns the merger could ramp up competition among the public universities and hurt regents' efforts to improve efficiency across its system.

As coordinator of an ongoing efficiency review, which launched last year and has produced recommendations being implemented, McKibben said he's going to make sure there isn't overlap.

But Regent Bob Downer said he believes increasing UI's presence will be 'quite positive” and improve its ability to reach Iowa students and connect with the Des Moines business community.

'This should help with employment opportunities for graduates,” Downer said.

According to the most recent Iowa college and university enrollment report, about 85 percent of AIB students - or more than 800 - are Iowa residents. That means UI could see a bump in allocations under a new funding proposal that ties a majority of state appropriations to resident enrollment.

But Downer said he doesn't see the merger's potential boost to state funding as one of its top attributes. And, Downer said, he doesn't see this changing the competitive landscape much among the universities.

Downer had some knowledge about the proposal earlier this month. 'It seems to me that there was communication with board leadership about this,” he said. 'If there are faults regarding communication, I wouldn't see those as being on the part of President Mason.”

Regent President Pro Tem Katie Mulholland said she, like McKibben, heard about the merger for the first time Monday. But Mulholland, who was among the regents to criticize Mason last year, said she doesn't have the same concerns in this case.

'I have a lot of trust in what they're doing,” she said.

She called the proposal an 'unexpected” and 'unique” opportunity but said she does have some questions.

Regent Hannah Walsh, a UI student, called the deal 'incredibly exciting” and said it will increase accessibility and flexibility for students.

UI officials declined to comment on criticism of Mason's communication with regents about the proposal.

Sen. Bob Dvorsky, D-Coralville, weighed in on the merger Tuesday, saying he thinks it accomplishes exactly what the Board of Regents has been asking of UI.

'One of the things the regents were looking at was to make sure the UI reach is larger across the state and they are getting more Iowa students there,” he said. 'This certainly will do that.”