In a relationship as nuanced and intricate as that of the University and its host city, even a $150,000 grant can be ambiguous.
In a letter addressing the city of Durham's requests for financial support from Duke, President Nan Keohane defended the University's tax-exempt status, praised Duke's positive economic impact on the city and rejected the notion that Duke is not fulfilling its obligations to its hometown.
At the end of the letter, Keohane pledged $153,500 to bolster the city's law-enforcement efforts. Although the new donation's amount and purpose are clear, Duke and Durham officials interpret the significance of the gift differently.
A week ago, the University agreed to pay the city almost $800,000 in impact fees under the condition that both sides would analyze the fee structure; Keohane's letter, dated June 18, addressed two other contentious aspects of Duke's financial relationship to Durham.
Duke is currently fulfilling a five-year initiative that pledges $300,000 dollars per year to "support the work of the Durham Fire Department," according to a letter from Executive Vice President Tallman Trask in 2001. The pledge will hold until 2006, when the University will reevaluate its contribution. Recently, the city has asked for an additional $1 million annually.
"[The request for additional funding] was reached by a number of scenarios," Durham Fire Chief Otis Cooper said. "We looked at how much the state pays to various fire departments, and we looked at a number of responses [to fires] at Duke."
Keohane's letter rebuffs the requests for fire department funding, citing the $1.5 million that Duke University Health System gives annually to Durham County. Part of that payment goes toward fire-related services such as emergency medical services support. The letter concludes that Duke will not supplement its annual fire grant.
Another issue Keohane addresses in the letter is the city's petition for Duke to donate $10 million to a proposed downtown theater. Keohane effectively denied any money beyond that which the University had committed to upgrading the theater's stage for American Dance Festival performances. Duke, she wrote, will only contribute "the necessary funding for the stage."
The letter was not simply a list of denials. Keohane guaranteed the $153,500 for law enforcement in Durham, including a $50,000 matching grant allowing the Durham Police Department to improve its computer communications system as part of a joint effort with the North Carolina Crime Commission. The rest of the funds are designed to improve the department's Citizen Observer Patrol program, its communications systems with the courts and its public safety radios.
The matching grant has been in the works for a roughly a year, since a leadership breakfast organized by Keohane that brought together city and University leaders. City leaders identified police communications as a "critical need," said Michael Palmer, director of community affairs at Duke.
The rest of the contributions were organized several weeks ago, when Duke officials asked Durham Budget Director Julie Brenman for a list of areas where donations could help. Brenman said the city is grateful, but that Keohane's letter was not the end of the discussion.
"I don't think this puts the issue to bed," she said. "We'd like to discuss the University paying more for the services it utilizes," noting the University's tax-exempt status, which she estimates costs the city $13-15 million per year.
Keohane and other administrators defended the contributions Duke has made to the community. John Burness, senior vice president for public affairs and government relations, specifically cited the Duke University Hospital, the operation of which he called "a cost Duke eats." Referring to the Neighborhood Partnership Initiative, Burness said, "I don't know of any University that contributes $10 million to local non-profits."
"There's a reason why tax-exempt status exists," he added.
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