Major New Development Project for the University

[vu72]

This is big news!  I don't think anyone has posted anything about this but it looks like it includes old campus.

https://www.yahoo.com/now/avro-development-announces-vitalize-valpo-150400227.html

"There is tremendous potential for this land. The energy and impact the redevelopment can offer is really valuable to the University's endowment, and to the entire community. We are thrilled to get started," said Tim Jensen, Owner & President of The Veridus Group.

Total speculation on my part, but could the sale/development of some of this land free up money for the ARC??

[bb33]

I hope so.  The ARC needs a desperate renovation.

[SlimJimJZ]

I have always viewed Eastgate as an enigma. There's an old soccer stadium still there, and the baseball team is getting stadium upgrades. As far as I can tell, all intramurals have been moved to the hospital fields.

It's always been puzzling me as to why it hasn't been developed by the university as it is such a massive plot of land. It's great to hear that plans are now in the works to at least do something with the rest of the eastgate property.

[crusader05]

If I remember correctly I once asked this and was told that partly it was because the land is just mostly field with no infrastructure of plumbing/electrical underneath .  I guess the cost of making it suitable to put anything besides fields on it was too high. That's why the baseball field is set so far back so it can connect to the stuff that runs along 30.  I don't know if this is actually true as I know little to nothing about land devleopment and how all of that works

[vu72]

with no infrastructure of plumbing/electrical underneath . 

I'm no engineer either but it is not uncommon to see farm fields being developed into major housing units and because it is adjacent to housing (in the area) I would think this isn't a deal breaker.

[vu72]

This site lists Porter County lots for sale.  Based on a brief overview it looks like it could be in the area of $150,000 per acre.  130 X $150,000 = 19,500,000.  I would think the property on old campus, with all those beautiful giant trees, would be worth more.  If the University enters into some sort of deal where they retain an annual compensation then it not only could produce a big cash infusion but a continuing cash flow as in an annuity.

https://www.landsofamerica.com/Porter-County-IN/undeveloped-land/

[crusader05]

I have heard rumors of wanting a retirement village in the old campus area as well as some form of data center. I've also heard wanting to develop the 3D property into a boutique hotel with some event space or another similar set up as promenade.  I think those are all ideas but developers and partners are needed. It will be interesting to see what comes now that they seem to actively be seeking this vs just general conversation about what they'd like to do. Also, with the old phi psi house empty and some movement for Sig Ep to build a new house that whole mound street area is just old unused buildings(not counting the german house) the university can raze or do something else with.

[78crusader]

Yes, this news about development might be a really good thing.  Or maybe not.

The City of Valparaiso hasn't exactly set world records when it comes to consistent and attractive development of new residential and commercial areas (except for downtown, the revitalization of which has been done tastefully and in accordance with a well thought out plan). 

The area east of campus is a good example - the dozens of stores and restaurants are crammed together, too close to the road, and it appears very little thought was given to the traffic patterns that such a development would create.  I think the whole area is unattractive.

Newer residential areas haven't fared much better. There is a lack of consistency in the quality, overall look, and pricing of many of these homes.  Many feature older design plans that have been outdated for quite some time, instead of newer, "fresher" looks that you see in many other towns and cities. 

There are quality, upscale retirement "villages", apartment complexes, and "boutique" hotels -- and then there are others that are not.  What sounds good on paper or in press releases often meets up with budgets, with the result of less-than-pleasing final products.  What a developer might consider a "boutique" hotel might turn out to be a Best Western with a fancy coffee maker in the lobby. 

The areas which are included in this proposed development have in many cases been vacant or awaiting new buildings for many years.  I hope the VU Board didn't leap at the first developer to appear on the scene.  The folks who run VU have made wise and thoughtful decisions concerning new buildings on campus over the last 30 years.  Let's hope they made a wise decision in choosing a developer for these properties. There is only going to be one chance to redo this area and it needs to be done the right way, in a manner that compliments our beautiful campus.

Paul

[crusadermoe]

I am usually a top Valpo cynic on this board about VU financial decisions.  But this property sale is a very logical step for Valpo unless I am missing something.  That Eastgate property always seemed like a "when" sale not an "if." Now that the hospital sale freed up potential rec field spaces, it makes even more sense. I can't recall what the master plan called for in that area.

Maybe VU won't get the best deal out there 78 or sign with the best developer. But timing is also really important and urgent right now. They are going down the drain fast without a big step. Moody's might take us down another notch based on the enrollment targets and the crazy deficit run over the last two years.

If you are in a house and you can't make a mortgage on your primary home, I think it's urgent to sell your vacation home quickly. That's even more true with borrowing rates for buyers going so low. Low interest rates kept low might be the window to seize in early 2022.   

At some point, if the Fed keeps its signal for 2022, the Fed may start pricing money more honestly even if it hurts Biden politically. Eventually they will implode the USA budget with interest payments at higher bond rates. Then SS will become obsolete by 2028 and certainly Medicare will end two or three years ahead of SS.

Full sarcasm intended: imploding Medicare and SS should really help the low-earning groups the Dems say they want to help. It's either very naive international policy and virtual signaling logic. Or its a deeply cynical game played by certain international firms that benefit from outsourced production.  OK....I will go on another thread with this point I guess.   

[wh]

Just took my first look at what the university is doing here, and I have to say I am highly impressed with the strategy and timing.

"AVRO was founded in 2018 by Valparaiso University's board of directors as a pioneering approach for visioning and executing strategic economic development on property surrounding its campus."

Rather than simply selling off assets to the highest bidder to leverage debt, the university will control the use, the pace, the timing, the developers, the price, everything. This is so darn smart on someone's part. A lot more responsibility and work, but so worth it over the long run IMO. One word of caution. Real estate values are at an all time high, but it won't last forever. I think most people secretly feel that we're sitting on a bubble. In the old tried-and-true 5-stage economic bubble model, we're still in the exuberance stage, but that won't last forever. IMO, it would have been better to roll this out a year ago, but maybe they simply couldn't pull the trigger then, maybe it took President Padilla to push for this, who knows. There could be any number of factors that affected the timing.

[crusadermoe]

Glad the details are good and better than the simple sale without closer review. In any case I am just glad their 6,000 student masterplan of 2013 has moved onward quickly now to the part whey leverage that Eastgate property. They certainly can't wait for enrollment revenue to bounce back. 

[vu72]

It looks like the plan is moving along as the University (AVRO) has now sold the former mail center to Litko Aerosystems.

The article says it is a 8100 sq foot building.  Where is it located?

https://www.insideindianabusiness.com/articles/valpo-sells-mail-office-to-gaming-company#:~:text=VALPARAISO%20%2D%20The%20real%20estate%20company,which%20is%20based%20in%20Valparaiso.

[mj]

Looks like this is it.

https://www.loopnet.com/Listing/2006-Warbler-Dr-Valparaiso-IN/19031108/

[valpotx]

Does this mean that the land is now not part of VU, or is it just the building that was sold?

[vu72]

Does this mean that the land is now not part of VU, or is it just the building that was sold?

Given its location (across 30 no where near the campus or Eastgate) I would guess it was a total sale.  It will be interesting to see how the development of old campus or Eastgate are handled.  It could be a land lease situation where the University will generate a source of income, who knows.

[valpotx]

Oh, I thought that it was still down by the law school.  I never really went to the mail center, but that is where it was located when I was in school.

[NotBryceDrew]

Has anyone heard or seen anything on this initiative/project since it was announced?