The contract sale of the former Ashford University campus in Clinton, Iowa to the Asian Education Foundation, an Oregon-based non-profit organization, has been canceled. The sale was intended to help with creation of an international STEM Academy for the education of local, state, national and international students. Due to an adverse ruling by the Clinton City Assessor, the AEF is withdrawing from the acquisition of the campus.
Clinton City Assessor John Moreland confirmed he did not grant the property the non-profit status and it remained as property owned by the Clinton Catalyst group and paying property taxes. Moreland told KROS NEWS the decision was based on a legal opinion from the city legal counsel. KROS NEWS asked City legal counsel for an explanation, but has not yet received an update
The Asian Education Foundation released this statement
“We are disappointed that our application for property tax exemption has been rejected. Accordingly, we will be terminating our contract purchase with Clinton Catalyst. We have been committed to maintaining the campus and working with the community as it seeks support to develop this facility. The decision by the assessor to continue accruing property taxes as if we are a for-profit company is not sustainable in addition to our other ongoing expenses, including maintenance and security.
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Clinton Catalyst also issued the following statement:
Clinton Catalyst would like to thank the Asian Education Foundation for its efforts related to the international STEM Academy. We understand the significant hurdle created by the recent decision. We will work with local leaders to pursue a strategy for re-use of the former Ashford University campus with the reality that we are a private, for-profit company paying full property taxes on a facility not presently generating revenue, and will need to act in our best business interests, said David Glass, Managing Partner of Clinton Catalyst. We believe in the redevelopment of the campus as a STEM educational facility and have helped champion this initiative on behalf of the community since purchasing the property. We continue to support this important endeavor but, due to the decision of the city assessor, we cannot be limited to this course of action, Glass added.
“Clinton Catalyst is proud of our philanthropy since joining the Clinton community. We have made significant charitable contributions to Clinton since our acquisition, including providing over $50,000 toward development of the STEM academy, donating an automatic volleyball machine to the Clinton High School volleyball team as well as nearly our entire musical instrument collection to the school, sending 50 beds to last summer to flood victims in Cedar Rapids, and most recently providing a $5.8 million gift to the Clinton Community School District in the form of the former Ashford football complex, locker rooms and nearby fields.
