According to a 2017 economic impact study by the Southwestern Ohio Council for Higher Education, Urbana University provided more than $60 million to the Champaign and Logan County economy between the 2015 and 2016 school year.
“There are so many aspects to it. The university was a consumer of utilities and water from the city, there is the income tax of the employees, those are the immediate effects,” Bailey said. “But there are some that can’t be measured. If we have a family come into town and watch their student play a sport, and they buy gasoline and they shop for a while at one of our small businesses and they have dinner, we have no way of knowing how much of that is connected to the university — until it’s gone.”
Urbana University announced on Tuesday it would close and cease enrollment at the end of the 2020 Spring semester. The closure will directly affect 350 students and 111 full-time employees, according to school officials.
Urban University was founded in 1850 as a seminary by Rev. James Parke Stuart, Col. John James, Milo Williams and other members of the Swedenborgian Church. Since then, Urbana, “has evolved into a vibrant liberal arts institution,” according to the university’s website.
The stress of the COVID-19 pandemic after struggling with declining enrollment “for many years” led to the decision to close the campus, Urbana University Executive Vice President Christopher Washington said.
“We weren’t able to raise our enrollment above 500 students and that’s where we need to be to have a capable and economic campus,” Washington said.
Urbana University is a branch campus of Franklin University, which is located in Columbus. Franklin acquired Urbana University’s assets in 2014 in order to “effectively serve students,” according to Franklin’s website. In 2017, through approval by the Higher Learning Commission, Franklin brought Urbana under its accreditation as a branch campus.
READ THE FIRST REPORT: ‘It’s huge loss’: Urbana University closure to affect 350 students, 111 jobs
City of Urbana Mayor Bill Bean, also an Urbana University graduate, said he hasn’t spoken with Washington since a phone call on Tuesday telling him the university would be closing. Bean said as of Friday afternoon he had yet to hear from Franklin University at all.
“Everyone is looking for answers and has so many questions and I don’t have any answers,” Bean said. “That’s really where I’m at. I don’t have any idea what’s next.”
Bailey said the Urbana community, “as a whole,” is still reeling from the announcement.
“We’re a small community and a small college and it’s being felt throughout the community,” Bailey said. “It’s heartwrenching.”
One of the most surprised by the announcement was Terry Howell, one of the investors in a nearly complete hotel near the university.
“We are shocked and disappointed,” Howell said. “We were anticipating between 10% to 15% of our occupancy to come from the university.”
The new Cobblestone Hotel was built in part for lodging for visiting Urbana parents and sports teams. The project broke ground at a three-acre site near the intersection of U.S. 55 and U.S. 68 on June 18, 2019.
Bailey said Urbana University brings in roughly 2,500 visitors just for athletic events alone every year.
Howell said the hotel is slated to be opened around the first of June. The hotel will have 54 rooms, an indoor pool, a conference center and a breakfast bar that will be converted into a beer and wine bar at night.
“We are doing our best to stay upbeat and positive,” Howell said. “Even with the closing, I don’t think it alternates the need and the support of the community for this hotel.”
Sara Neer, executive director of the Champaign County Chamber of Commerce, said they are telling business owners like Howell that, “a plan is coming.”
“We just had a meeting on (Tuesday) about this,” Neer said. “We haven’t gotten there yet, we aren’t on top of it yet, but we are working on a plan for our community partners.”
Neer said Urbana University was a partner with the Chamber and offered a $9,000 scholarship to all dependent children of chamber members.
“This is something we never saw coming,” Neer said. “This is going to have an effect not only on the economy but also on tourism. We are going to have to completely change our strategy.”
MORE FROM URBANA: Coronavirus: Champaign County looking at ways to recover from economic impact
Urbana’s closure won’t just affect the economy, it will also impact local school districts.
Urbana Local Schools Superintendent Charles Thiel said that with Urbana’s closure, the district is now seeking a partner for College Credit Plus — among other things.
“Our school district offered a few CCP courses at our high school through an agreement with the university,” Thiel said. “Our swim team also had used the pool at the university for practice and meets, so we will be looking for an alternative.”
Thiel said the district is, “very sad to see an institution like Urbana University close and not to be able to serve our community.”
“The district staff enjoyed working with students who were in the education program as they completed observations and student teaching as part of their academic program,” Thiel said. “We feel badly for the current students and those who were planning to attend in the fall.”
Roughly three to seven students from Urbana High School attend Urbana every year, Thiel said.
Last year, nine Graham Local Schools students applied and four attended Urbana, Superintendent Matthew Curtis said.
“The working relationship between our schools and the university, established years ago, has long been an important partnership benefiting students, staff and the community,” Curtis said. “From clinical student teaching experiences, quality staff development and timely student and staff course offerings, to countywide STEM competitions and Career Days, to name only a few, the positive Urbana University brought to Graham will be greatly missed.”
Washington said he understands that Urbana’s closure will leave holes in the community.
“We created some really valuable partnerships and classroom career options for students,” Washington said. “We were really collaborating with a lot of different organizations, whether it be social service projects — Habitat for Humanity, supporting the YMCA — or at our local districts or with our small businesses. We invested a lot of time and energy into those relationships.”
Urbana University has struggled financially throughout much of its history, former president Kirk Peterson said in 2014 after the university was bought out by Franklin.
Numerous issues contributed to the university’s problems, Peterson said, including inconsistent fundraising, student recruitment efforts that never paid dividends and capital construction projects that led to higher debt.
Washington said he doesn’t have a, “final message,” to the Urbana community.
“I am hopeful that we will find a way to continue to serve this community,” Washington said. “How we are going to do that, I’m not sure yet.”
Facts & Figures
$60M: Amount of money provided by Urbana University to the Champaign and Logan County economy, according to a 2017 study
2,500: Visitors to Urbana every year just from Urbana University athletic events
4: Graham High School students who attended Urbana University last year
3 to 7: Amount of Urbana High School students who attend Urbana University each year
About the Author