Board approves house take-over

The IU board of trustees approved a proposal to exercise "statutory authority" over the Pi Kappa Alpha fraternity house Thursday. The University's initial appraised offer of $640,000 was refused by the owner, but the new proposal could mean the University will be able to acquire the house. \n"In this particular case, the owner wanted to sell the house for more than IU was offering," said Lynn Coyne, assistant vice-president of University Real Estate and Economic Development. \nHe added the University had been interested in the house since last year. \n"IU's interest in this property began in late September of 2002," he said. "We've been engaged in this ever since."\nThe procedure IU will have to go through consists of appraising the property and offering the owner the appraised value. If the owner refuses the offer, the University can file a complaint in court. \nThe court will then appoint three of its own appraisers who will report back with their own appraised value. If this court-set value is also refused by the owner, there will be a court hearing.\nTrustee Peter Obremskey affirmed the University does intend to buy the house.\n"If we go through the statutory procedure, we will be able to acquire the house," he said. \nHe added the house would be used for administrative offices for the College of Arts and Sciences.\nCoyne was wary of court proceedings which, he said, were unpredictable.\nHousing costs likely to increase\nA proposal put forth by Residential Programs and Services to increase housing costs by 6 percent next year has been delayed until the next board of trustees meeting. Housing costs normally increase an average of 3 to 4 percent per year.\n"One of the things that pushed the rates was the building of a new learning center," said Bruce Jacobs, associate vice chancellor for administrative services at IU.\nRHA President Ilia Smith said although the rate increase was understandable, it would also discourage existing students to stay in the halls. \n"We understand and appreciate the reasons given for the rate increase, but we are concerned with retention rates," Smith said. \nJacobs said despite the 6 percent increase, IU is ranked eighth in housing costs out of all the universities in the Big Ten. \n"If you look at what we've done in relation to the rest of the Big Ten, we have been very conservative," Jacobs said.\nHe added the increases were tied to various factors including the stagnant national economy.\n"We're one of the largest employers on campus and when something like that hits, it hits us hard," he said.\nConnor also said RPS plans to introduce Web-based assignment program that would enable students to sign-up for housing online.\nBoard to discuss health care costs today\nHealth care costs for the next four years are expected to be $173 million, said the Director of IU's benefit programs, Daniel Rives. IU funding for the health care programs have increased 21.3 percent ($74.2 million) for 2002-03. \nRives named technological advances, newer, more expensive prescription drugs and a larger aging population as some of the health care inflation factors. The rise is also expected to affect tuition costs. \nThe trustees will vote and take action at the next set of meetings, April 3 and 4.