Maroon

              The MAROON Vol. 62, No. 14 Loyola University, New Orleans, Louisiana 70118 January 27,1984 Buyers await decision while Dominican stalls By Tammy L. Collins Despite the rapidly approaching deadline set by St. Mary's Dominican College, officials have not yet made a decision on the future of its existence, reports Dominican's Development Director Pat Watts. But, when and if the decision is made, Loyola University is ready to begin negotiations to purchase Dominican, said the Rev. James C. Carter, S.J., university president. This announcement was made at Carter's annual State of the University address during the Faculty Convocation on Jan. 18. Watts said a possible decision will not be made until mid- February. "Everything is still up in the air," she added. Dominican officials announced last summer that the college would close its doors after the 1984 summer session unless $6 million were raised by Jan. 31. According to Dominican's Board of Trustees, about $1.3 million is needed to pay the college's bills. The rest would be spent on programs, buildings and other facilities over the next few years. Approximately $500,000 has been raised to date, Watts said. Although he did not want to reveal what the Loyola Board of Trustees is prepared to offer Dominican, Carter said that the backbone of the bid would come from the liquidation of portions of the Kenner land owned by the university. Other organizations have expressed interest in acquiring the land and the Board would prefer keeping Loyola's bid secret until the negotiations actually begin, Carter said. "I hope it will not be a bidding war," he said. Other groups interested in the campus are Tulane University, the Orleans Parish School Board and several private developers. According to Watts, the atmosphere on Dominican's campus is somewhat calm. "I feel like everybody, including the development office, has worked very hard to achieve the fundraising goal," she said. "The faculty, staff and alumni have all been fabulous," she added. This is evident by the $92,726 check the faculty and staff recently presented to Sister Waldia Warden, president of the college. Watts said courses were offered over the Christmas break and, while the regular semester course schedule continues, additional courses are being offered during both the spring and summer sessions. This is to assist students who want to finish their credits at Dominican. In addition, opening discussions have been made with presidents of local universities to help Dominican students transfer to other institutions without losing any credits in the event that the college closes, according to Watts. There are plans for fundraisers to be held throughout the semester. Dominican College will postpone making a decision on its possible closure until mid-February. —I'hoto by \ancee H. l ewis Funding solid, Loyola ready to buy By Ted Mahne Loyola University is in "excellent shape" financially and is ready to begin negotiations to purchase St. Mary's Dominican College, according to the Rev. James C. Carter, S.J., university president. Carter announced this at his annual State of the University address during the Faculty Convocation held Jan. 18. After recent contact with Dominican, Carter said there have been no new developments regarding the college's closing; but when the announcement is made, Loyola will be ready to negotiate. Carter began his address with an explanation of the system of fund accounting with which the university operates. The biggest fund the university has is its endowment fund. According to Carter, it is desirable tohave an endowment fund whose worth is equal to one year's expenditures. "We're spending atLoyola roughly $30 to $35 million a year right now, which would say it would be desirable, a highly desirable situation, to have an endowment whose worth is $35 million," Carter said. Carter described Loyola's endowment as very non-traditional since it is primarily composed of broadcast operations and real estate. "If we try to put a value on our endowment it comes to something like $120 to $130 million, which says that we are in very, very good shape in that respect," he said. According to Carter, the real estate portions of the endowment generally do not produce income but have a market value of over $40 million. He said that most of the land will be liquidated within the next 10 to 20 years. Of the broadcasting operations, all operations associated with WWL produce more than $8.5 million per year for the university. KATC-TV in Lafayette will begin producing a profit for the university in about five years, Carter said. The university purchased KATC-T1 with $4 million from its investment portfolio and the balance with a business loan. "The total transaction was something in the neighborhood of $20 million," he said. Any profits currently being made from the station are being used to pay off the loan used to purchase it. Although accurate projections in enrollment and revenue increases can be made, Carter said that predictions in broadcasting revenue are always changing. "Broadcasting is a timely, volatile industry," Carter said. He cited the recent gubernatorial campaign as an example. When Edwin Edwards proposed a quiet, low cost campaign, "we had to watch that closely." Carter added, "1 object to the obscene expenditures for political campaigns, but I'm happy to report where most of that money has gone [WWL]." Carter concluded, "Our endowment is in excellent shape." See Carter /page 2 Student views on nuclear war, starting p. 7