Des Moines Business Record 03-18-807 Change in Plans By Sharon Baltes sharonbaltes@dpcdm.com Some people call it "misleading." Others call it a "transformation." But all agree that the John and Mary Pappajohn Education Center is being used differently today than the plan originally envisioned when public resources and support helped build the facility. The 35,000-square-foot center opened in the fall of 2004 at 1200 Grand Ave. as the new home for the Des Moines Higher Education Collaborative, an organization formed in 2000 to promote continued education opportunities for the business community. Now, a building expansion is planned for the center to accommodate an increased need for space for the Collaborative's newest member, the Des Moines Public Schools. Having the school system so heavily involved in the Collaborative - an organization originally designed for the state's colleges and universities - was not anticipated when the community rallied behind plans for the downtown campus. Some of the colleges and universities in the Collaborative are already having difficulty reserving space in the Pappajohn Center because of capacity issues or are struggling to figure out how to use the center because they can't get enough adults to enroll in classes there. Now members of the community wonder what this decision to bring more high-school-age students to the center means for its future. I think our best opportunity for developing new programs lies in identifying areas where higher education, corporate and professional training, and community development overlap. - Kent Sovern executive director, Des Moines Higher Education Collaborative Nan Stillians, a community activist for education and leader of a group called Support & Save Our Schools, sees the change as a sign that the Collaborative is giving up on what it set out to do. "Several campaigns to attract adult-group support to the building floundered," Stillians said. "Giving up on their original mission, [the center's leaders] now negotiate an addition for high school students." The reality Since its opening, the Collaborative's partner schools - the University of Iowa, Iowa State University, the University of Northern Iowa, Simpson College, Grand View College, Drake University, Des Moines Area Community College, and Des Moines Public Schools - have used the building's classroom space to varying degrees. Most of the colleges and universities tend to offer classes during evenings and weekends, and Des Moines Public Schools uses a majority of the building's classroom space during the daytime. According to the Collaborative's enrollment figures, 576 adult learners took classes at the center last fall, compared with about 900 Central Academy students. Currently, the U of I, ISU and Drake offer graduate-level classes at the Pappajohn Center. The U of I's classes are part of its master's degree in social work program, ISU's classes are part of its master's degree in business administration program, and Drake's classes are business-oriented. DMACC offers business classes and emergency management services classes and some professional development workshops and training. The Des Moines school district's Central Academy started offering classes there for its scholars program in 2005, and has continued to expand the number of classes offered there. Simpson, Grand View and UNI have offered classes in the past, but are not doing so at this time. John Pappajohn, the building's namesake, said the center is meeting its projections, but he had expected to see more activity from the Collaborative's members. Karen Anderson, Grand View College's dean of the College for Professional and Adult Learning, said her institution experienced low enrollment when it offered classes at the Pappajohn Center, which prompted the college's decision this past year to stop using the facility as a satellite campus. "Adult learners have a lot of options in the metro area, and research shows that adults prefer to take classes closer to their homes in the suburbs," Anderson said. Walter Pearson, Simpson's associate dean and director of the Division of Adult Learning, said his institution offered courses downtown for three years through the Collaborative, but found that students would rather use the college's West Des Moines, Indianola and Ankeny campuses. "Since we're more connected to the Des Moines community, the need to have a downtown presence isn't as necessary," Pearson said. UNI, which does not have a local campus, would like to serve more students in Greater Des Moines, but has struggled with identifying the types of courses to offer. Jim Lubker, UNI's provost and vice president for academic affairs, said his school is using the center for occasional workshops and meetings. "We would gladly offer courses that meet market demand, but we need a lot of advice from the Des Moines area on the sorts of things to offer," Lubker said. "We're not getting that help at this time that I'm aware of." Market shift Kent Sovern, executive director of the Collaborative, said trends in education and training make it a challenge to increase the number of courses and professional development programs offered at the Pappajohn Center. "The whole market for higher education and training has changed dramatically since the time the Collaborative was formed in 2000," Sovern said. "Not only do we have competitors from our region, but from around the world. If anything, this area is over-served with a higher education product." Sovern said the Pappajohn Center is one of 15 locations where the Collaborative's member colleges offer classes. In terms of corporate training, many local companies, such as Nationwide Insurance and Principal Financial Group Inc., have onsite training centers at their downtown corporate campuses, and rarely need to arrange off-site training. In response to some of the challenges, Sovern said, the Collaborative is trying to develop programs that offer a product addressing the needs of the community. After discussions with local employers and professional associations, the highereducation members of the Collaborative spent about a year and a half developing a course called "The Art and Science of Project Management," which started in February. "The real promise of collaboration is in new product development," Sovern said. "I think our best opportunity for developing new programs lies in identifying areas where higher education, corporate and professional training, and community development overlap. Our board is going through that transformational process right now to redefine our missions and goals." Sovern may be undergoing a transition of his own in the near future. His employment contract is set to expire at the end of June, and he doesn't expect to continue working in this role after that point. The vision The idea for the Pappajohn Center started in 1998 when a local task force identified a need for continued education geared toward the business community. This recommendation led to the formation of the Collaborative in 2000. The organization initially operated out of leased space downtown in the Capital Square building. The Greater Des Moines Partnership supported the lifelong learning mission of the Collaborative, and in its 2003 Project Destiny vision statement for the city, it recommended that the Collaborative have its own downtown campus to serve as a central location for classes, certificate programs, professional development and other educational opportunities. The Pappajohn Center was identified as the home for the Collaborative.The city of Des Moines donated the land for the Pappajohn Center, and the Vision Iowa committee designated $1.5 million for the project. John Pappajohn donated $2 million for the center and helped raise the remaining $6 million to build it. The Collaborative generates revenues through three streams: annual membership fees, room fees for classroom space and leases with office tenants. The annual fee for each member of the organization is $37,500. Filling the space As a venture capitalist, Pappajohn has learned that when plans don't come together as expected, you reorganize and take a different approach. That's the strategy he is encouraging. "I've helped put a lot of business plans together, and the business plans never work out quite the way you originally plan," Pappajohn said. According to Pappajohn, the scenario of Central Academy students taking classes at the education center dates back to 2004, when he and Des Moines' former school superintendent, Eric Witherspoon, started putting a plan together. What clinched the deal was a federal grant from the U.S. Department of Education, which pays for Central Academy's fees to rent classroom space at the Pappajohn Center. This revenue stream has benefited the center's bottom line. "We weren't programmed initially to generate that kind of revenue from daytime usage," Sovern said. "So we've met our expectations for traditional higher education and exceeded our expectations in the afternoons and evenings." Enrollment in Central Academy's scholars program has grown every year for the past seven years, according to Dennis Johnson, program coordinator for the academy. Enrollment this year exceeded 1,000, and 1,100 students are signed up for the 2007-2008 school year. Students have indicated that they plan to take 25 percent more classes next year. Johnson said the academy currently offers about a third of its classes at the Pappajohn Center. Sovern said the Central Academy scholars program fills about two-thirds of the center's classrooms during the daytime, leaving limited space for corporate development, training or other programs. "With two-thirds of your assets occupied, it does reduce your flexibility to an extent," Sovern said. Grand View's Anderson said she has noticed that it can be challenging to book a room for training during the daytime hours, but said that Sovern has always been willing to help her. "I think that having the Central Academy students there is a good way to utilize the space that wasn't being used, but it makes it challenging as we've tried to schedule some things down there and you have high school students," Anderson said. "They behave differently than an adult learner might." If the expansion for the Pappajohn Center proceeds as planned, it will bring even more of the high-school-age learners to the center. Des Moines School District Superintendent Nancy Sebring said when the district closes Central Campus, possibly for the 2009-2010 year, it would move the Central Academy scholars program entirely to the Pappajohn Center. The school district has set aside $8 million in its budget for an addition to the center, which would double the size of the current building. Construction is expected to begin in the fall of 2008, with the addition being completed for the 2009-2010 school year. So far, no members of the Collaborative have canceled their memberships based on the new plans for the center. But not everyone thinks the plans for the building's expansion are a good idea. Stillians thinks it's a poor use of public money that could be used to repair aging schools. She is also concerned that the Pappajohn Center's non-traditional design is not well-suited for a public school learning environment. She would like to see more public discussion about these plans before the school district builds an addition to a building it does not own on land that it does not own. Pappajohn said he plans to invest some of his own money in the addition and launch an entrepreneurial center for students to learn about starting their own businesses. He has financed five entrepreneurial centers across Iowa, and this would be the first one not based at a college. "This would be a major plus for students, and I think the other members of the Collaborative could benefit by having access to these bright students," Pappajohn said.