Olivia Allery, news editor
Last month, the Augsburg House, located on West River Parkway, went up for sale for $1.5 million. With the recent university wide changes due to the budget shortfall, many have speculated on why the decision was made and what the profits from the sale will be used for.
The Augsburg House has been a part of the university since 1998, and formerly housed Augsburg University President Paul Pribbenow and his family for 17 years. It has also served the university as a venue for hospitality and community engagement for alumni, staff and faculty, students and donors. The question remains, why is Augsburg selling it?
In a quote to the Echo from Rachel Farris, director of Public Relations and Internal Communication at Augsburg, “Augsburg’s Board of Regents, which has sole decision-making authority over university real estate assets, voted to sell Augsburg House at its October meeting. The board made this decision based on a number of factors, including reduced demand for event space following the pandemic and a movement away from maintaining presidential residences among urban colleges and universities.” Pribbenow in a quote to the Echo continues this point by explaining, “As with any university asset, we needed to assess its use and value. The Board’s decision to sell was a prudent move as part of overall strategies to enhance Augsburg’s financial strength.”
Another question has arisen as to what the university intends to do with the profits when the house is sold, and overall that decision has yet to be made. Pribbenow explained in a quote to the Echo, “When the house is sold, the Board of Regents will decide how to direct the proceeds. The faculty and staff retirement benefits are scheduled to be restored in the 2024-25 operating budget as a result of increased enrollment and fundraising results and cost savings from various efforts. Selling an asset like Augsburg House is a one-time event and thus any proceeds would not be used for an ongoing expense (like the retirement contributions).” Pribbenow continued by saying, “The decision to sell Augsburg House fits into a larger financial context, not simply the current year budget challenges.”
Pribbenow also expressed that the decision to sell the house was also a personal change for him and his family, “I would say that the decision to sell Augsburg House was an emotional one – both for the Board and for me and my family. We have lived in the house for more than 17 years. We raised our children there. We built community in our neighborhood. We hosted hundreds, if not thousands, of folks at the house for events. The house was a sign on West River Parkway of Augsburg’s presence in the city.”
Explicit reasons for The Board’s decision still remain unclear as do their intentions for allocating the money made from selling the house. For now, students, staff and faculty must wait for further information.