'Operating at a loss' for words

Deficit dining: Luxurious restaurant takes up two floors of $50 million ‘science building’

By Patrick Bober and Cheryl Hehl

While the faculty and teachers’ union at Kean University has been digging deeper and deeper into school president Dawood Farahi’s background, concern has also been growing over the school’s extravagant spending in the past few years, including a luxurious restaurant that sources say is operating at a loss.

Kean built several new facilities at the Union campus in the last two years, including a $50 million state of the art facility on Morris Avenue, The Center for Science, Technology and Math Education.

Another building, The College of Business, currently under construction at the corner of Morris Avenue and Green Lane, is expected to cost $30 to $40 million.

Meanwhile, in 2009, the College of Business and Public Administration at Kean University applied for accreditation, but their application was denied.

“The Association of Advance Collegiate Schools of Business — and its PreAccreditation Committee thanks you for your eligibility application. After careful review or your application the PAC has various concerns and questions that preclude the committee from accepting your application at this time,” stated a letter sent to the dean of the College of Business and Public Administration.

The university itself is also in jeopardy of losing its accreditation if it does not comply with necessary standards by the time an inspection is conducted in March.

In addition, the fact that Farahi was the force behind the building boom at Kean has some concerned about not only the academic status of the university, but the bond rating of the institution as well.

In 2010, Moody’s, the credit rating agency, did give the university a stable outlook, but they also stressed that they were concerned about Kean’s rapidly rising debt service requirements.

The Center for Science, Technology and Math Education building has not become known for its educational benefits in any way. Two floors of this glass building are devoted to the restaurant Ursino, which was written up in the New York Times.

However, the restaurant itself does serve some educational goals. According to a release from Kean, Ursino features a small farm which grows lettuce, tomatoes and apples, among other things, and has beehives, all of which are used by the restaurant.

“Kean University has added to its restaurant operations the job of sustainability within the context of Union County’s food systems, working on cost effectiveness of balancing local, organic and sustainable elements of the operation. Fiscally responsible is not a dirty word here,” the release says.

The release also states that the building “doesn’t skimp on aesthetics and pleasure,” and that it features a wood-burning hearth, a bar made of quartz, a wine suite, a second floor bar and lounge, and a rooftop area.

The restaurant itself is operated by food caterers for the university, Frungillo Brothers, who in turn received a ten-year, no bid contract extension for food services at Kean, according to a source with knowledge of this deal.

But while Ursino is supposed to be a culinary trend setter, it is bleeding money. Sources confirmed that while the facility is losing money, this loss will be made up by Kean’s food services contract.

The structure has created additional concerns from faculty, however, about the academic integrity of a university more concerned with a luxurious restaurant then housing faculty and students.

Although completed, the Center for Science, Technology and Math Education building only houses seven faculty members and 150 students.

Meanwhile, the restaurant’s liquor license was not obtained in the usual way, because universities can go through the state. Although a local liquor license can run $100,000 or more, it is reported that Kean spent just $1,000 for the right to serve alcoholic beverages.

These expenditures, among others, have helped Kean’s debt rise from $48 million to more than $350 million since Farahi became president, the Kean Federation of Teachers continues to stress.