Ball State University's "master plan" for expansion has left some Muncie landlords angry about its effect on property taxes, which is forcing them to raise rental rates for students.
Ball State has bought property in neighboring areas for the past few decades, said Tom Morrison, associate vice president for human resources and state relations.
"We don't do it in a haphazard way," he said. "You realize the campus just has to grow."
Landlord Jane Harman of JWT Properties said when Ball State buys land, Delaware County no longer receives taxes for that property because the university is exempt from property taxes. As a result, county residents' property taxes are raised to compensate for the lost income, Harman said.
"That's ridiculous and it's unfair," she said. "I think Ball State should help out."
Landlord Kimberly Duncan said noticeable increases in taxes take a toll on landlords and tenants.
"It makes us cut back on maintenance and things we want to do with the houses, and it forces us to raise rent," she said.
Morrison said Ball State's intention is smart growth that will benefit students, faculty and the community. If Ball State was not in Muncie, the local economy would be severely affected, he said.
The university's payroll is more than $3 million, and employees pay income taxes. The money from the taxes and employees' spending stimulates the local economy, he said.
"The state decided a long time ago that the benefits provided to the community far exceed what we could pay in taxes," Morrison said.
Not every landlord resents Ball State's property buying. Landlord Doug Eckerty is aware of the issue he said, but he sold one of his properties to Ball State a few years ago. Now the Music Instruction Building stands where his house was.
"They were pleasurable to work with," he said. "It was a fair transaction and I worked with a first class guy."
Junior elementary education major Natalie Swedenberg lived in a house on Neely Avenue when Ball State bought it during the spring semester of the 2006-2007 school year. She and her roommates knew about the sale for almost a year, she said. They lived in the house until the end of the lease in July, she said.
Morrison said Ball State is not actively acquiring property, but it listens to offers from areas that fall in its "master plan" for expansion.
"We're not pushing people out of their houses," Morrison said. "It's just natural growth of the university."
The areas of interest for the university are east of Worthen Arena, east of the Music Instruction Building and on Riverside Avenue. Offers from other areas are not considered, he said.
When negotiations are initiated, either by Ball State or a land owner, the first step is to have the property appraised, Morrison said. From there, the two parties try to arrange a fair deal. Occasionally, an agreement on the value of the property can't be reached, he said.
The long term plan for campus expansion has limits, Morrison said. Ball State has no plans to move west of campus, north of Bethel Avenue, east of New York Avenue, south of University Avenue or east of Dill or Dicks streets.
The fraternity houses on Riverside Avenue are not owned by Ball State, Morrison said. Ball State does, however, act as co-signers for the houses' leases. If a fraternity can't keep its house, Ball State will buy the house, he said. Depending on the needs and abilities of the university at that point, the house will either be leased to another fraternity or the land will be used to suit other needs.
"It's an ongoing process that happens over generations," Morrison said. "Neely [Avenue; future site of North Residence Hall] looks like it happened overnight, but it took a long time."
The funding for Ball State's property expansion comes from its land acquisition account given to them by the Indiana General Assembly. Other sources include land donations from the Ball State University Foundation, Morrison said. The foundation is aware of the long term expansion plan of the university and contributes to it, he said.
Most of the lots are bought in the range of $80,000 to $100,000, Morrison said. After they are property of the university, most are used as temporary "swing space" for faculty offices, university programs or research projects. Others are used to temporarily house faculty, he said.
After years of buying land in an area the prospect of using it to construct a university building becomes apparent, Morrison said. Once the area "hits critical mass," the university analyzes its needs and means to fulfill them and determines if a new building will be constructed.
The most recent realizations of those prospects are the Music Instruction Building, the new sorority houses on Riverside Avenue and North Residence Hall, which will begin construction later this semester.
What used to be residential areas have produced "tangible" results on campus, Morrison said. When properties are purchased one house at a time it can seem random, but it's a drawn out, "logical and strategic" process of growth, he said.
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