Ave Maria Florida venture going broke

The Ave Maria Town and University venture is going broke. But don't take my word for it - this is coming directly from AM town and university officials. Below is a news story from the Naples Daily News, which is currently on the AMT website, and talks about the massive scaling back of the project due to rising building costs. Inside sources reveal that construction costs have ended up being 2 to 3 times original estimates for the AMT and AMU project! Fr. Fessio's appeal letter (reproduced in post below this) paints a bleak economic picture for the university in Florida.
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"When Ave Maria founder Tom Monaghan, who also founded Domino’s Pizza, and Barron Collier Cos. first launched their plans for the site, they thought in grandiose terms. But when building became a reality, they were forced to scale back the project by about 30 percent, said Don Schrotenboer, Ave Maria project director.“The one and only reason is the rising cost of materials and labor,” he said.Schrotenboer said the expanded plans are far from scrapped. Six other buildings are designed and ready for construction as soon as endowments and donations are received to make them possible."
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On the rise
Friday, August 5, 2006
The Naples Daily News

Intertwined steel beams protrude from the muddy ground 100 feet toward the sky, casting an arcing shadow over the future of Collier County’s newest university and town.
Ave Maria University and portions of its surrounding town have transformed from blueprints to being over the course of a few short months.
The 10,000 acres of former wetlands and farm fields situated near Immokalee in eastern Collier now house 5,000 acres of half-finished concrete buildings, water treatment facilities and lakes. The most notable new development on the site is the makings of a 100-foot tall steel-framed oratory, already visible from miles away.
Since the school’s groundbreaking in February, construction has begun on 10 buildings, some of which are near completion.
The university campus is scheduled to open to students next fall. Retail buildings and homes are expected to stagger their openings, beginning next summer.
“We are extremely excited about where we are in the process today, and the cooperation we’ve had from the local government,” said Blake Gable, project manager for Barron Collier Cos.
“We’ve still got a lot of hard work to do in the next eight to 12 months to make this a reality.”
So far, 48 percent of the university and its utilities are completed, including 32 percent of the library, 24 percent of the student activity center, 31 percent of the science, math and technology building and 16 percent of the undergraduate dorms.
Gable said the university buildings are a top priority, and should be completed between May and July 2007. The college, which is modeled after Princeton University in New Jersey, will house about 600 students next year, and about 6,000 at build-out in 2016.
The easiest building to spot on the muddy, equipment-strewn grounds of the future town is the private Catholic K-12 school, which is 89 percent completed.
The oratory, where future students will attend daily Mass and Holy Communion ceremonies, is 29 percent complete. The steel arc will be encased in stone shipped from New Mexico, and should be completed by December 2007.
In a county notorious for its difficult permitting process and behind-schedule developments, how are Ave Maria planners staying on-task?
“I think a project of this magnitude requires the cooperation of everyone involved,” Gable said. “We set a realistic schedule from the beginning, and set reasonable targets to accomplish with top-notch consultants.”
When Ave Maria founder Tom Monaghan, who also founded Domino’s Pizza, and Barron Collier Cos. first launched their plans for the site, they thought in grandiose terms. But when building became a reality, they were forced to scale back the project by about 30 percent, said Don Schrotenboer, Ave Maria project director.
“The one and only reason is the rising cost of materials and labor,” he said.
Schrotenboer said the expanded plans are far from scrapped. Six other buildings are designed and ready for construction as soon as endowments and donations are received to make them possible.
Each of the university buildings will be constructed in styles inspired by architect Frank Lloyd Wright. Each school building will be topped with a copper roof.
Rising copper prices put the value of the roofs at more than $4 million, but because copper materials for the school were purchased about three years ago, developers paid a little more than $1 million, Schrotenboer said.
Initial phases of the town center have begun and should be completed next summer or fall. The town center will include a university bookstore, admissions office, coffee shops, clothing stores and other retail and office spaces on about 100,000 square feet.
Eventually, the town will open up to retailers, such as McDonald’s, Burger King and Walgreens.
Although Ave Maria founders can ask retailers to comply with their religious preferences, such as not selling contraceptives or meat on Fridays, legally, they can’t make them, spokesman Rob Falls said.
“Tom (Monaghan) would like this to be as sin-free of a place as possible, but you can’t legislate lifestyles,” Falls said.
About 70 condominiums also will be available next fall in the town center. Once the town is completed, Ave Maria will house about 30,000 residents, including the students.
Recreation areas, including a water park, ball fields and walking trails, also will be completed next fall, Gable said.
The on-site water and wastewater treatment facility, which will hold up to 1.5 million gallons of water, will be up and running in September. The first test sips already have been taken, Gable said.
Developers are already optimistic about beginning the second phase of the project late next year. They received final approvals for the project’s final phase from Army Corps engineers this month.
Tours of the campus are open to students and their adult family members every Friday at 3:30 p.m.
Senior Thomas DeCaro already has taken advantage of the chance to see the permanent home of his future alma mater. The political science major said he plans to take a year off after graduation to work on the new campus next year.
“It was amazing,” DeCaro, 21, said. “I was hopeful I’d get to be able to be there as a senior, but it’s neat to see the foundation.”
Meanwhile, at Ave Maria’s temporary campus in Golden Gate Estates, new students moved into the dorms Thursday and began preparing for their first year of college. About 140 new students will attend school this year, increasing the school’s enrollment to about 420.
DeCaro, a resident assistant at the men’s Canterbury dorm, busied himself Thursday directing freshman to their rooms and answering routine questions about appliances, schedules and university policies.
“So far, everything has gone really well,” he said. “Everyone seems to be enjoying themselves, and really getting to know the campus.”
Classes begin at Ave Maria’s temporary campus Monday morning.