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Purdue board OKs building 3rd luxury dorm tower

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Purdue University trustees have approved building a third luxury dorm tower even through the school has vacancies in the existing towers for the coming semester.

The board on Friday approved a $20.6 million construction contact for the First Street Towers project. University officials say the bid from Hagerman Inc. of Fort Wayne was $5 million less than expected.

The new tower will include 174 rooms with single air-conditioned rooms with private baths like the towers that opened last year. The room-and-board fee of about $14,900 is about $5,000 more than Purdue's next most-expensive housing plan.

Purdue Treasurer Al Diaz said that despite about 40 vacancies in the current towers, he believed the construction project should go forward because the tower could not be built at this price in the future.

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  • Real World .. edit
    Edit...

    "When was the last time a university president announced a wage and benefit wage FREEZE for faculty? Why are the presidents NOT pressing for their employees to join the state health insurance program that is estimated to save the state hundreds of millions. "

  • Real world
    The real world is one in which one has to reduce expenses when income falls and not continue to spend in the face of a deteriorating economy.

    The universities should be striving to provide valuable learning experiences at a lower cost today than yesterday.

    I have few clients who can continually raise prices. In fact, most have had to reduce prices or become much more efficient to maintain profitability.

    As long as universities and private school attendees can tap student loans, the schools have no incentive to become more efficient.

    When was the last time a university president announced a wage and benefit wage hike for faculty? Why are the presidents pressing for their employees to join the state health insurance program that is estimated to save the state hundreds of millions.

    What people say and write means nothing. It's what they do that defines them and schools are doing virtually nothing to adjust to a slowing economy, loss of jobs and students with fewer resources except cry, "Uncle".
    • Construction Cost
      If it's truly "luxury housing" the $118,000 per unit is about right, and comparable to what a nice apartment unit would cost to build. Again, if the students (or their parents) have the money and wish to pay for it, so be it.
    • Dorms Are Paid With Resident Fees
      The school is charging market rate for the housing, so who cares? A private developer would not charge more. And, probably a private developer would have a hard time getting financing to build the tower in the first place. Not to mention, they would not have access to the land, since Purdue controls it. I think it's pretty absurd for a student to pay that much for dorm housing. That said, if a student or (more likely) their parents have the money and wish to pay for "luxury housing" so be it.
    • Nauseating...
      Define "real world" Bob.
      • Expensive
        Hmmm, $20.6M for 174 single rooms + baths? That's >$118k each. Seems a little expensive to me, but hey, maybe that's why higher education is so expensive!
        • What are these people thinking
          Let's find private investors to build these dorms if they're such good deals.

          Cut tax flows to universities now and make them live in the real world.
          • Architect?
            Who's the architect for this project?

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          1. As a St. Vincent employee of over 20 years, I am saddened and disheartened by this announcement. Unfortunately, as the healthcare "industry" continues on this political and corporate path, all that St. Vincent Hospital has stood for spiritually for its employees and this community is being sucked dry. I know it truly has no choice. It is not just Obamacare or just competition or just any single thing. This trend started long before I was even born when the government became involved in healthcare and it became an "industry." I grieve for those who will lose their jobs, one of whom may be me, but I also grieve for this hospital which I have served for over 20 years. May God give us and it the grace to withstand the future of healthcare.

          2. Why do people constantly harp on this issue and act ignorant about what a city population measures? A city's population is the city's population. There is no argument or debate about it. If you want to measure the density of a city--measure it. If you want to measure the size of a metropolitan area, then measure the metropolitan population. City boundaries cover different sized areas--and they always have (though the disparity has probably increased since about 1900 or so when more cities began annexing their surrounding communities). For example, San Francisco only covers 49 square miles while Houston cover nearly 600 square miles. No one argues about the population rankings of either city even though they clearly cover extremely different sized areas. Indianapolis is the 13 largest city by population in the U.S. That is a fact. While the population of a metropolitan area may give you a better sense of how large a community is, as noted, even metro areas can vary widely in the size of geographic area they cover--so that is not a perfect comparison either.

          3. If Whole Foods went in, I doubt the Nora one would stay open, and with all those customers coming to Broad Ripple traffic would be horrible, and forget about a run to the grocery on weekend nights. I think concern over the number of apartments is misplaced, but the 400 space parking garage has me concerned - someone needs to ask the developer just how much traffic they think this development is going to generate. I am not against more neighborhood residents, but heavy commercial traffic going in and out at that location sounds like a mess.

          4. I thought everyone was innocent until guilt was proven. Seems people have already convicted Reggie in the press. My nephew was a good kid and is a good man, more to this story im sure

          5. Going by the Marion County population only is of little use. 13th largest? No Way! To judge the real size of a metro area, the easy way is to look at the Arbitron rating list. Indianapolis hovers around 40th largest in the nation--sometimes more, sometimes less. Advertisers want to know exactly how large the population is before they buy radio advertising. Arbitron figured it out long ago. Indianapolis is estimated at 1,427,500. The real #13 is Seattle-Tacoma with a metro population of 3,470,400. So, the population of just Marion County is completely irrelevant to anything useful as far as metro area planning.

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