Urbana University will leave big holes in Urbana, region’s economy

URBANA — The closure of Urbana University, a branch campus of Franklin University, will have a big impact on the region’s economy, but economic leaders say the are already planning conversations about what will fill the void that the university leaves behind.

The news of the closure on Tuesday was a shock to everyone – including Urbana’s mayor and Urbana University alumna, Bill Bean.

“I was speechless. I didn't know what to say. We had no clue,” he said.

According to a study published in 2017, the university brought it nearly $60 million dollars for the Champaign and Logan county economies.

The university’s exit will have several trickle-down effects locally, including the absence of students, visitors and spectators who would shop at Urbana’s storefronts and eat at local restaurants.

Additionally, construction on a new hotel on the edge of Urbana is nearly complete.

It was built, in part, to accommodate visiting sports teams that would have played at the university.

But economic leaders say they still believe the area will be able to support the hotel through industry workers and weekend events.

“Last night I was on the phone with the hotel investors,” said Champaign Economic Partnership Economic Development Coordinator Marcia Bailey. “It's due to open in June. They're on track to open. They're remaining very positive.”

Franklin University owns the 128-acre campus, which will close permanently after the end of the spring semester.

Franklin University has not said if it has other plans for the campus once it’s vacant, but Champaign County officials are trying to keep an open mind about what opportunities this could present for further development.

“OK, Urbana University closes, and there's no other opportunity for an institution of higher learning to come in -- what's our next step? What's that campus suited for?,” said City of Urbana Director of Administration Kerry Brugger.

Brugger said dozens of parcels of land just next to the campus are already platted as residential areas, so housing would be potential option for the campus if it was possible to find a developer to make it happen.

But all talks of redevelopment are in the very early stages -- city and county leaders expect to talk with Franklin University for the first time next week about the future of the physical campus.

Franklin University cited several years of low enrollment and the additional stress of the coronavirus pandemic as reasons for the Urbana University closure.

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