To the Editor:

On behalf of Clarkson University, I am providing information to clarify and address the assumptions and questions raised by Peggy Brusso in her letter to the editor posted Jan. 31 on North Country Now and printed in the Feb. 1-7 edition of North Country This Week (“Resident Wonders Why No PILOT for Clarkson.”

Clarkson works aggressively to bring grants and research opportunities to our Potsdam community from private corporations, and Federal and State resources. These funds are not given to Clarkson, but are competitively sought by universities across the country.

Federal and State grants are strictly monitored for their intended purposes based on the applications and plans we submit. The university is subject to an annual Audit of Federal Expenditures, known as the A-133 Audit, which reviews all Federal expenditures and ensures compliance with each program’s requirements and spending rules.

New York State grants are undertaken on a reimbursement basis. Upon demonstration that the activity or milestone is completed, reimbursement occurs; therefore, all funds are fully tracked to those projects that advance the goals of the agency that chose Clarkson’s application.

Some private donations received from individuals are unrestricted and can be used for the university’s highest priorities.

To clarify Ms. Brusso’s reference to the university’s board of trustees, they are not shareholders. They volunteer their time and expertise to fulfill the educational charter and mission established for Clarkson in 1896. We are grateful they all make financial donations to the university as well.

According to the Center for Governmental Research in Rochester, NY, Clarkson had a $225 million economic impact on this region in 2009 based on its direct expenditures and the spending of our students.

These expenditures create personal income tax revenue, as well as state and local tax revenues. To continue to attract and serve a diverse student population we do invest in our infrastructure.

To clarify the role of the St. Lawrence County Industrial Development Agency (IDA) that Ms. Brusso described, the IDA is an issuing authority for bonds and facilitates financing agreements.

They are not a grant maker of tax revenues to Clarkson. The tax free description for the bonds refers to those who purchase the bonds from the IDA -- not the recipient of the loan funds (Clarkson).

Private investors purchase the IDA issued bonds and entities like Clarkson use the proceeds to make capital improvements. We are obligated to repay these bonds with interest. In the case of the student dormitories Ms. Brusso mentioned, we have brought in more than 40 contractors and subcontractors from the region in the last year to help us complete these types of projects and bring jobs to our community.

Ms. Brusso also suggested an exception was made for Clarkson to access NYS Dormitory Authority Funds. The Dormitory Authority works with both the public and private nonprofit sectors to the extent that they can develop the economy of the State.

No special privileges exist for Clarkson. Beacon Institute is also a nonprofit organization founded in Dutchess County that now has research facilities in Potsdam through our affiliation.

Our regional legislative representatives supported legislation for funds that had previously been awarded by the Dormitory Authority to the institute so that they could be used in Potsdam, and therefore have local advantage as well as advantage to the institute.

Clarkson works diligently with our new employees and the local landlords and real estate agents to find them housing in the community, therefore, we do not own housing stock in Potsdam for the purpose of providing transitional housing for faculty and staff families.

As Ms. Brusso outlined, Clarkson pays taxes at the Clarkson Inn, the Bookstore and Lewis House. We pay taxes on any property or square footage that has commercial activities that go beyond our academic mission. These also include Clarkson Hall, Peyton Hall, and Old Snell Hall in the downtown campus which have portions rented to regional for-profit businesses.

Ms. Brusso questioned the status of Foster House, which is the official residence the president is required to live in as part of his or her employment agreement for the convenience of the University and fulfillment of our 24/7 operations.

More than 90 campus events were held in Foster House in 2011. The Riverside and Woodstock housing units cited by Ms. Brusso are residences for our undergraduate students similar to all residence units on every other campus across the country.

As a final aside to the information in the previous letter to the editor, projects such as that undertaken at Walker Arena in 2006 benefit multiple stakeholders.

We enjoy sharing this facility with Potsdam Central School students and their athletic teams as well as the research data being collected from a prototype energy-efficient boiler system.

As an anchor for employment and a steady stream of students who call Potsdam home during their education, we are fully committed to our local and regional community as well as fulfilling the role that nonprofit higher education has in providing public good for the betterment of society.

For persons who wish to learn more about economic development activities, our outreach in promoting math and science K-12 education, research projects advancing the quality of life in our region or our role in the local community, please feel free to contact me, chezumk@clarkson.edu.

Kelly O. Chezum

Vice President for External Relations at Clarkson University