08807
October 31, 2008
Sheldon Jackson College trustees approve plan for settling nearly $13 million in debts
School seeks coordinated effort with local government to return educational programs to campus
LOUISVILLE — Officials at troubled Sheldon Jackson College (SJC) in Sitka, AK, have announced a proposed plan to sell property to satisfy the school’s nearly $13 million in debts and eventually return training and educational programs to the dormant campus.
Sheldon Jackson College leaders have approved a plan they hope will return training and educational programs to the dormant campus in Sitka, AK. PNS file photo Under the plan, originally approved by SJC’s board of trustees in May and reaffirmed by the board earlier this month, the college would sell enough property to satisfy its creditors by early 2010.
Then the debt-free campus would be made available to an academic or government entity, preferably one sensitive to career needs of Alaska natives, which would use the campus for educational purposes and programs.
If the local planning and zoning commission signs off on the proposal, it would go before the City and Borough of Sitka Assembly for final approval, hopefully as early as December, said the Rev. David Dobler, president of Sheldon Jackson College.
However, it was not immediately clear how soon academic programs would resume at the school if the plan is approved by Sitka leaders.
The college is aggressively pursuing the state of Alaska as a potential suitor, particularly for establishing a regional workforce development center on the campus, Dobler said. An outside college or university is another possibility.
“The school’s trustees are determined for the main campus to continue as a center of education and culture, and as a setting for workforce development training to prepare Alaskans for Alaska jobs,” Dobler said.
After years of financial struggles, Alaska’s oldest educational institution announced last year that academic operations at the small four-year college would be suspended for the 2007–2008 school year as trustees explore options for SJC’s future. One hundred employees were laid off as a result.
Under the proposed plan, properties at SJC tentatively valued at a combined $14.7 million will be listed for sale. They are the Hames Physical Education Center, the Stratton Library, a number of residential properties owned by SJC, and a 216-acre tract of undeveloped land that starts across the street from the main campus.
A fish hatchery and aquarium, which are considered essential to the school’s future, both remain open on campus and will not be sold, Dobler said.
He emphasized that the college would sell only enough property to settle its debts. He said the campus could be made available to a group for conducting educational programs in a variety of ways without selling the entire site.
“We could convey it to them or let them use it for free,” Dobler said of the campus and interested parties. “We could rent it or make it available to them through some sort of lease.”
In an initial meeting last month, Sheldon Jackson trustees encouraged Sitka leaders, including Mayor Scott McAdams, to play a strong role in a unified community approach for formulating and implementing plans for funding large purchases on the campus, such as the Hames Center and the library.
Meetings are also taking place with others, including SJC alumni and the Sitka Economic Development Authority, to explore ways to bring about the school’s goals.
“The board [of trustees] is very pleased that the new mayor and city administrator met with us to discuss possible collaboration,” said board of trustees chair Shirley J. Holloway.
Dobler echoed Holloway’s comments, saying, “While we continue to work our plan of satisfying fully the debts of Sheldon Jackson College, we welcome the partnership with the City and Borough of Sitka in ensuring the continuing mission of Sheldon Jackson College.”
SJC has more than $35 million in assets, primarily land and buildings, but has virtually no cash and about $12.7 million in debts, almost half of which is owed to Alaska Growth Capital (AGC). The commercial lending institution continues to advance money to the school to support basic operations such as insurance, utilities and maintenance. | 
