Developer launches scholarships linked to Ankeny housing project
By GUNNAR OLSONREGISTER STAFF WRITER
The some 3,000 houses to be built in Ankeny's new Prairie Trail development will come with a unique incentive for buyers and renters alike: a chance at as much as $10,000 in college scholarships for eligible students.
The man behind the development, Ankeny native and self-made billionaire Dennis Albaugh, announced Monday that he is starting the Prairie Trail Scholarship Fund with a donation of $100,000, to be matched with federal grants.
"I got a $300 scholarship after high school, and that made me to go DMACC," Albaugh said, referring to his alma mater, Des Moines Area Community College in Ankeny. He said he wanted to give the same opportunity to other Ankeny students.
Additionally, every time a property is sold in the development, 0.5 percent of the sale price will go toward the scholarship fund - or about $1,000 for every $200,000 house sold.
This will apply to houses, apartment complexes or commercial sites, and not only when they are originally sold, but also when they are resold. The goal is to sustain the fund indefinitely.
Students will have to apply for the scholarships; they are not guaranteed to home buyers.
The DMACC Foundation will manage the scholarship fund, and preference will be given to students living in Prairie Trail and going to DMACC. However, consideration will be given to any student living in Ankeny and those planning to attend one of Iowa's public or private universities.
Rob Miller, director of the Des Moines-based Iowa Student Loan College Access Network, said the program was unique to Iowa but fit with a national trend of scholarships aimed at students of certain areas.
"No longer is it enough to just get good grades and apply to college," he said. "You have to begin the financial planning process early, and communities are realizing that."
Albaugh has an interest in both DMACC and Prairie Trail.
He graduated from DMACC in 1970 with an agricultural business degree and, after making his fortune selling farm chemicals, is now the chairman of the DMACC Foundation board.
He is also owner and president of DRA Properties, the master developer of the Prairie Trail development.
Albaugh expressed concern about the number of bright, young Iowans leaving the state. He said he hoped the scholarship fund would persuade more of them to stay in Iowa.
The program also serves his business.
"To be honest, it will help the development sell," he said.
Starting with the class of 2008, college-bound students will be eligible for $2,500 per year for tuition, with a limit of $10,000.
How many scholarships are given out each year in the future will depend upon sales in Prairie Trail, said Ganesh Ganpat, executive director of the DMACC Foundation.
Using estimates - an average house will sell for about $175,000 and change hands every seven years or so - Ganpat projected that as much as $500,000 could be available for scholarships each year within 10 years.
In addition, teachers in the school district can qualify for $2,500 grants.
Reporter Gunnar Olson can be reached at (515) 284-8039 or golson@dmreg.com
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