Oct 312013
 

newsobserver

Editorial

Published: October 30, 2013 Updated 5 hours ago

 

If a deal is done in the forest and no one hears about it, does it make any noise? Not if it’s the sale of Hofmann Forest, a research center bought by an N.C. State University fund in 1934 and named for Julius “Doc” Hofmann, who founded the forestry program in 1929.

Some level of controversy has swirled around the 79,000 acres near Jacksonville since word of a possible sale got out. That’s one problem. For a public institution, N.C. State didn’t share much information about the sale of Hofmann with the public. The ownership of the forest fell under the trustees of the university’s Endowment Fund, but in the public’s mind, and many in the university community agreed, this was public property.

But fund administrators seemed to want to move on the sale without much discussion and certainly without dissent. The logic, supported by NCSU Chancellor Randy Woodson, was that Hofmann wasn’t used that much as a research site and that its sale could produce revenue to support the College of Natural Resources. That’s what will happen now that an agribusiness company based in Illinois has bought it.

Because North Carolina has military bases in the area, the company will sell easements to the federal government for aviation training, and it will not use the land for housing development. An endowment fund will use investment income from the $150 million sale to help the university.

All this sounds fine, as it stands. But it must be noted that if the buyer decided to sell the property, none of the agreements with the university – allowing student research, for example – would move to a new owner.

Has the university made a good deal? It’s impossible to say.

But one problem is the secrecy with which this was handled, and in particular the fact that, after opponents went to court, a Wake County Superior Court declined to issue a restraining order blocking the sale because the state Attorney General’s Office assured the court that a sale wasn’t imminent.

But then there was a sale – something for which the court might require some explanation.

One of the opponents correctly cited a “lack of transparency” and said he felt “blindsided” by the sale. That seems an accurate description.

Universities, particularly public ones, aren’t businesses. And they shouldn’t operate in even partial secrecy when land deals are involved. Credibility is the issue here, and N.C. State has not handled this well. Woodson, who has seemed refreshingly comfortable with his duties to maintain openness, talked in the wake of the sale about realizing the forest’s “full potential.” He spoke of an “obligation to our stakeholders – the students, faculty, staff and alumni” with regard to the forest property.

How about the obligation to the spirit of the intent of those who supported the purchase of the forest as an academic research center? This is 79,000 acres that will be gone forever in terms of the university’s ownership. How many 79,000-acre pieces of property are left in North Carolina? Even if the university isn’t using the property much for research now, that could have changed. But the option is gone now, assuming opponents of the sale don’t win points in court.

N.C. State should better explain the reasons behind the sale, how many people or businesses showed an interest and why it was not more transparent in this process. The obligation to openness comes before making a transaction comfortable for buyers and bidders. That obligation is the most important one N.C. State has to its real stakeholders: the people of North Carolina.

via Hofmann Forest sale seems rushed, with no public input | Editorials | NewsObserver.com.

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