There is no single factor that caused this current state of affairs. Higher education has been experiencing a dwindling admissions base (i.e., fewer students of traditional college age, particularly in the northeast), which affects the budgets of private universities, while these same institutions continue to invest in their students and programs to remain competitive. Meanwhile, State expenditure in New Jersey for higher education dropped to less than a tenth of its previous value in the 2010s, with a small increase in 2021 compared to recent years. Likewise, the onset of the pandemic introduced additional financial hurdles and troubling trends that exacerbated these challenges, necessitating the exploration of options that would secure Drew’s financial health in the long term.

Drew must take swift action to secure the long-term health of the University, preserving our ability to continue our legacy of funding educational programs and financial aid for students.

Drew University prides itself not only as a staple of Madison for 154 years – with a storied history deeply intertwined with the surrounding community – but also an institution that has uplifted generations of people through its academic programs.

In order to fulfill our duties to students, alums, employees, and the surrounding community, Drew has been evaluating numerous options to combat the fiscal challenges facing higher education institutions. The University has already taken strides to create new programs to attract and retain students, while also reducing operational expenses. But, in order to fully satisfy the pressing needs of the institution, it is clear that Drew University must explore opportunities to leverage its resources to secure the long-term health of the University. The sale of a portion of the lands at the periphery of the University’s campus—outlined in more detail below—can help improve and strengthen the endowment, preserving our ability to fund educational programs and financial aid for students.

All monies from this land sale endeavor will go directly to improving the strength of the University’s endowment. This will help ensure the University is able to provide scholarships and academic opportunities to our students, as well as support for our faculty, now and in the future.

Amid the spread of misinformation and rumor, let us be very clear. This endeavor is not about the repayment of an ancillary debt. This endeavor is not part of a larger cost-cutting measure. This endeavor is not about funding deferred maintenance on campus buildings. This is singularly about the University’s endowment. Any suggestions to the contrary are simply misinformed and inaccurate.

The Drew campus encompasses 168 acres, but only a portion of the lands on the periphery of Drew’s campus is being considered for sale. The University is considering the “Drew Forest Preserve,” as well as two parcels on the north side of campus near Madison Avenue, one being the open lands in front of Tilghman House, and another being University lands behind the United Methodist Church (UMC), including two University buildings containing faculty offices, Lewis and Sitterly.

To be clear, the Zuck Arboretum and sloped regions containing the aquifer are not going to be developed regardless of any sale. Additionally, if the University lands behind the UMC are sold, campus space would be allocated to replace the office spaces in Lewis and Sitterly for effected faculty.

Drew is not suing Madison. We have requested that the Superior Court reopen its decision concerning Madison’s affordable housing obligation.

A brief history:

Madison approached Drew in 2018 about rezoning the property that includes the Drew Forest Preserve. At the behest of the Borough, Drew incurred hundreds of thousands of dollars in consultant costs related to rezoning and other studies to move toward a sale of some of these lands. Drew engaged in this process with Madison because, even at that time, there was interest in selling land in an effort to strengthen the University’s endowment.

The Borough’s offer changed over the years from rezoning for development to purchasing a conservation easement on University lands. As talks progressed toward a rezoning of lands, Madison suddenly broke off the negotiations earlier this year. At this stage, Madison has not taken the measures necessary to move this situation forward, including a lack of a rezoning of University lands, a measure that directly impacts the Borough’s affordable housing burden by keeping it at a much lower requirement. The Borough has now ceased negotiations with Drew and missed a critical annual deadline for applying for Morris County Open Space Trust Fund funding, leaving the University unable to even explore the sale of its property at a fair market value to any potential buyer.

This process has languished for four years and with Madison’s recent breaking off of negotiations and subsequent failure to even apply for this preservation funding, it has become clear that the Borough had no intent to be a partner in this process. As such, we must act now.

Drew has been drawn into this issue because of the actions of Madison. The Borough started a discussion with Drew in 2018 relating to the Borough’s interest in rezoning and purchasing a portion of the Drew Forest Preserve for development. Drew engaged in these discussions to explore potential benefits to the University, including the strengthening of Drew’s endowment.

When Madison’s affordable housing obligation was calculated in 2020, Madison omitted Drew’s available but undeveloped property, artificially decreasing Madison’s affordable housing obligation.

Through their misleading negotiations with Drew, Madison avoided its constitutional affordable housing requirements as required by the Mt. Laurel doctrine. During its negotiations with Madison, Drew has consistently asked the Borough to consider measures which allow for a fair market value appraisal. This would include a rezoning of University lands, which would increase the Borough’s greater affordable housing burden. Madison has not done this.

Drew University’s priority has always been to strengthen the endowment. This requires a rezoning by the Borough. Without the Borough as an active partner in a rezoning and appraisal process, and having missed the critical deadline to apply for Morris County Open Space funding, which could help fund a conservation proposal for Drew’s land, Drew is now forced to actively explore the sale of property for residential development. Drew remains committed to preserving the Zuck Arboretum and Buried Valley Aquifer.

This process has been spearheaded by Drew’s leadership, including: the president’s office, led by Tom Schwarz; the Board of Trustees, led by William W. Landis III C’85; and the University’s Land Use Committee. This unified front has been proactive in its efforts to identify feasible options to enhance Drew’s endowment in partnership with third-party experts and the Borough of Madison. This process has benefited from President Schwarz’s extensive experience and recent work at Purchase College, where he helped steer the college out of steep financial difficulties.

Drew’s top priority is securing a market-value sale on a prompt schedule to safeguard the University’s mission and dedication to supporting a diverse student body and their top-tier educations, as well as the long-term financial health of the institution.

In order to accomplish this, the University is working with the Borough of Madison to implement a reasonable and appropriate rezoning that will permit non-University uses on the peripheral lands outlined above. Following collaborations with the Borough to amend the current zoning classification, an objective appraisal on the lands will be done to determine the fair market value of the lands in anticipation of a sale to one or more entities for development and/or conservation purposes. The fact that land may be rezoned to allow development does not, of course, mean that development will necessarily occur—in fact, Drew remains hopeful that the Borough will propose a conservation offer as a result of this rezoning and appraisal process.

Drew has evaluated a wide variety of options to secure its financial future, including a potential sale to a conservation group. A market price conservation offer competitive with what developers would be willing to pay is a win-win for the University.

The first and most important commitment the University must make is to our core mission: To offer a diverse community of learners a challenging and individualized education shaped by a deep-rooted culture of mentoring, thoughtful engagement with the world beyond its campus, and a steadfast commitment to lifelong cultivation of the whole person. In order to succeed in making this mission a reality, it is imperative to fund financial aid to a diverse student body, as well as academic programs and faculty that support our students’ learning, professional development, and success. The Board of Trustees has a fiduciary responsibility to prioritize the long-term viability of the University and is guided by this responsibility.

Furthermore, in the event of a market-value sale to a private buyer, Drew is considering the prospect of placing key environmental easements within the language of the contract to ensure that any developer that comes to the table would be committed to being a steward of any lands designated for preservation.

While a precise figure is not available, the University’s need necessitates a significant sum that far exceeds any proposed alternative solution, such as soliciting additional piecemeal donations or fundraising for the purpose of preserving designated portions of the campus. Drew is only exploring measures that will safeguard its endowment and provide long-term financial stability.

The endowment is a long-term investment that is a critical component of financial well-being. A university’s endowment is a cohesive fund that comprises many individual financial donations from alumni and other supporters. The collective fund is invested carefully, and the university withdraws a small percentage of market earnings each year to support mission-aligned aspects of its operating budget—i.e. financial aid and academic programs.

The principal of the endowment, known as the “corpus”, is never spent. It remains invested in perpetuity, generating returns year after year, and generation after generation. The Board of Trustees, as an important component of its fiduciary duty, has the responsibility for overseeing the endowment’s investment and annual spending rate. The size of a university’s endowment is directly related to its financial health and to the amount of financial aid it can offer deserving students.

The endowment’s primary function is to support ​​student financial aid and scholarships, academic programs, faculty research, and salaries for professors. Donors make gifts to the endowment with restrictive purposes as to how they can be used, and these donor wishes must (legally) be honored permanently.

The health of Drew University’s endowment directly correlates with our ability to preserve the University’s future, and fulfill our duties to our community.

It is a fact that nearly 100 percent of endowment spending at Drew—and at colleges and universities across the nation—goes towards directly improving the student experience and providing resources to ensure access to higher education. Consequently, swift action needs to be taken to preserve Drew University’s future.

Securing Drew’s financial future safeguards all of Drew’s educational programs, including those that focus on environmental science, sustainability, and environmental justice. We are committed to preserving Drew’s unique position in the higher education space in New Jersey, offering experiential and internship opportunities that are critical for students’ professional development. Drew is the only nationally recognized liberal arts university in the state aside from Princeton University. Our students, who are primarily from New Jersey and often remain in the state after graduation, have access to a top-tier education, and we want to make this education accessible to as many students as possible. Additionally, we support more students who have high financial need than similar peer universities. A market-value sale of peripheral land will allow Drew to continue to offer the robust academic experience for which we are known and recognized.

No. It is simply untrue that any proposed land sale would involve the complete deforestation of Drew’s campus. Drew University is consulting with a highly experienced team of land use and environmental professionals to develop a plan, which is still in the preliminary stages. Parcels in consideration are located on the periphery of Drew’s campus, as outlined in FAQ #3. The land central to the main, wooded campus will remain intact after a sale. We are in discussions with the Borough of Madison concerning these issues and recognize their interest in preservation.

Drew University is consulting with a world-class team of highly experienced land use and environmental professionals to create a plan that will maximize the benefit to the University and Borough while minimizing the impact on its campus. Any development of the peripheral lands would incorporate the protection of wetlands and steel slope areas through buffers and other measures.

Drew University will not be responsible for the development or design on the lands under consideration for sale, but it is likely that any development would include multifamily residences and/or single family homes that will adhere to Borough of Madison zoning standards.

The development that could stem from this endeavor has the potential to generate a significant new source of tax revenue for the Borough of Madison, thus providing some relief for existing taxpayers.