Survey shows time not right for four-year campus in Lake Havasu City

A market study on the potential for a four-year campus in Lake Havasu City reveals there is not sufficient demand or funding currently available to establish a full-fledged, residential college campus.

Northern Arizona University contracted with the Chicago-based marketing and communications firm Lipman Hearne to conduct the market demand survey. The study follows discussions between NAU and the city of Lake Havasu about NAU establishing a four-year campus in the Colorado River community.

"When we look at a possible major expansion of Northern Arizona University, we take careful study of the area, the potential student population and all the costs involved," said NAU President John Haeger.

"The study indicates it is too early to consider a four-year campus in Lake Havasu City, but we will continue working with the community and Mohave Community College to expand higher education opportunities in the area," he said.

Haeger told a group of representatives from the city of Lake Havasu and the Havasu Foundation for Higher Education on Thursday that with sufficient community support, the university could consider a more gradual build-out of a physical presence in the community.

The Lake Havasu City group participating in the meeting indicated they did not envision imminent development of a comprehensive campus but anticipated a longer-term relationship with NAU to grow a campus as demand justifies.

NAU currently leases space in Lake Havasu City and offers access to 74 baccalaureate and master's degree programs as well as certificates and endorsements to students in Lake Havasu City through its Distance Learning program.

Lipman Hearne surveyed 500 high school juniors and seniors and 400 parents of college-bound children ages 12-16 in the Lake Havasu City region, including Phoenix and Las Vegas, as well as the greater San Diego and Los Angeles areas.

The survey explored three options for positioning the proposed campus: as a "green" campus built to the highest sustainability standards; a business campus with a focus on small business and entrepreneurship; or a complete experience campus offering a multidisciplinary education complemented by outdoor activities.

"All combinations of location and positioning fall short of strong interest," explained Rob Moore, managing partner of Lipman Hearne. The highest-ranked "complete experience" campus registered only 19 percent among students and 12 percent among parents.

A complete residential campus would require significant investment for facilities to attract students and deliver on the promise of a comprehensive college experience.

The cost to develop a viable Lake Havasu residential campus would exceed $225 million in capital costs alone, according to research on comparable institutions conducted by Lipman Hearne. Operating costs of about $35 million a year would not be offset by tuition and fees until about a decade after the campus opened.

"Funding of this magnitude is not available at this time," Moore said, citing the economic downturn in Arizona.

Competition is also a factor, according to the survey. The Lake Havasu City region is served by 16 existing four-year campuses in a 200-mile radius. Within a 250-mile radius of Lake Havasu City, the number of four-year campuses increases to 31, and when the Southern California markets are included, the number climbs into the hundreds.

Moore did cite a strong and growing employment market in the Lake Havasu City area. "Growth in Mohave County has outpaced state and national averages," he said.

This growth could dovetail with key areas for NAU, including teacher education, health professions, computer information systems, business administration, hotel and restaurant management and construction management.

"The beauty of our Distance Learning program is our ability to expand on demand—to offer new courses in a community where there is demonstrated need," Haeger said. "It's a system that works extremely well at our 37 sites across the state, and it's a system that also allows us to track when demand warrants consideration of an expanded campus."