UI’s Green: Phoenix deal makes sense

MOSCOW — University of Idaho President Scott Green on Tuesday responded to concerns about the school’s intended affiliation with the University of Phoenix.

Green participated in a question-and-answer session organized by the UI Office of Alumni Relations where he was asked about the University of Phoenix deal, Home Depot and enrollment, among other topics.

In the face of criticism from politicians, Green encouraged the public to write letters of support for the University of Phoenix affiliation to their legislators because, he said, this deal makes sense for the school and the state.

“Oftentimes the silent majority goes unheard,” he said.

Last week, Sens. Richard Blumenthal, D-Conn, Richard Durbin, D-Ill., and Elizabeth Warren, D-Mass., urged UI to walk away from the $685 million purchase. In the letter, the senators expressed concern about the UI acquiring liabilities from Phoenix.

Under the deal, Phoenix will be owned by the newly created not-for-profit Four Three Education, which is affiliated with UI.

Green was asked how this affiliation compares to the University of Arizona’s purchase of for-profit Ashford University, which was found by a California court in 2022 to have lied to students to get them to enroll.

Green said the Phoenix deal is structured differently than the Ashford deal. He said UI is structuring the nonprofit so it is a “clean break.” The sellers will not have any role in the institution when they sell it, and the UI Board of Regents will serve as the sole member of the not-for-profit.

In a letter responding to the senators, Green wrote that this means UI will not own Phoenix. Each school will be a separate institution that is part of a separate legal entity. That letter can be found on the UI website.

On Tuesday, Green praised Phoenix’s management team and its process for student loans. He said accreditors think highly of Phoenix and that this is one of the best business opportunities he has seen in his career.

He said a major reason for the affiliation is to prepare for an anticipated enrollment cliff that is a result of families having fewer children during the recession that began in 2008. He said Phoenix will help offset that loss by serving older students.

In the meantime, UI is still bringing in sizable enrollment numbers. Green said this year’s incoming freshman class will be the second-largest class in UI’s history, second only to last year’s class.

Green also responded to a question about its ground lease with Home Depot to build a 136,000-square-foot store and garden center on UI land just north of the Palouse Mall.

UI has received criticism for this deal and its potential effects on local businesses. But Green said Home Depot was planning to locate in Moscow even without a UI deal.

He said the lease will benefit the university and its students, as revenue from the lease will support the College of Agriculture and Life Sciences programs.

Green said it is his job to look out for the best interests of the university and its students, which is why UI went ahead with the lease.

Kuipers can be reached at akuipers@dnews.com.