Multnomah University Transfers Campus in Controversial Deal

Multnomah University has entered into a controversial agreement that relinquishes its campus in Portland, Oregon, to Jessup University, a similar evangelical institution located in Northern California. This decision, announced by President Jessica Taylor in the fall of 2023, aimed to prevent a closure akin to that of Concordia University in 2020, which left many students without the opportunity to graduate.

In exchange for all its assets, including the Portland campus, Multnomah would become a branch location of Jessup University, ensuring that current students could continue their education until 2027. Taylor characterized the arrangement as a “transformative partnership,” asserting that it would allow Multnomah’s legacy to endure. John Jackson, then president of Jessup, referred to the collaboration as a “merger of missions,” emphasizing a shared vision rather than a typical asset acquisition.

The initial optimism surrounding this deal quickly diminished. By May 2025, Jackson announced the closure of the Portland campus and the transition of the seminary to an online format. This decision resulted in the termination of Portland staff and faculty, leading many alumni and former employees to express feelings of betrayal, believing that Jessup had not fulfilled its commitments.

Financial records reveal that Jessup was grappling with its own fiscal challenges at the time of the acquisition. The institution, which had over $100 million in debt, faced a projected deficit of nearly $11 million for the fiscal year 2023-2024. Instead of rescuing Multnomah, the acquisition provided Jessup with a financial lifeline. Following the agreement, Jessup secured a $15 million loan against the Multnomah property, which raised questions about the integrity of the partnership.

The value of Multnomah’s assets was estimated at $30.4 million, while the acquisition cost Jessup $7.7 million. This financial arrangement effectively yielded Jessup approximately $22.6 million. Jackson, who stepped down as president in December 2025 but continues to hold the title of chancellor, and other college leaders have not publicly commented on the criticism surrounding the partnership.

Longtime professor Garry Freisen, who taught at Multnomah for 37 years, expressed skepticism regarding Jessup’s intentions. He suggested that the leadership either misled Multnomah or demonstrated a lack of competence in handling their financial situation. Freisen, along with other alumni and former staff, believes Jessup has a moral obligation to return some of Multnomah’s assets. They are particularly concerned that the campus may be sold to settle Jessup’s debts.

In discussions with Jessup’s board, the group, known as the Multnomah Family Team, has received little more than vague apologies. Freisen emphasized that failing to uphold promises should not justify selling the campus for profit. “Not doing what you promised does not qualify you to sell the campus potentially at a profit,” he stated, highlighting their intentions to preserve Multnomah’s legacy.

The closure has deeply affected the alumni community, some of whom have contemplated ways to revive Multnomah or continue its mission. One member of the Multnomah Family Team, Rob Trenckmann, noted the sense of loss felt by those connected to the school. He expressed hope that Jessup could collaborate in a spirit of friendship to support these efforts.

The financial status of Jessup remains uncertain, as its audit for the fiscal year 2025 has yet to be released. Public records indicate that Jessup has continued to incur debt, including a $5 million loan from a trust linked to former Intel CEO Pat Gelsinger and a subsequent $6 million lien on the Multnomah property.

The broader implications of this situation reflect a troubling trend for small colleges, particularly those with religious affiliations. Gary Stocker, founder of College Viability, noted that rising operational costs are outpacing revenues, leading to a wave of closures and mergers in the sector. In the previous year alone, 16 colleges announced closures, including five with religious ties.

The story of Multnomah University serves as a cautionary tale for other institutions facing similar challenges. Jon Nichols, author of “Requiem for a College,” articulated the profound sense of loss associated with the closure of small colleges, likening it to losing a home. “It’s like the center of the universe has fallen out,” he remarked, emphasizing the emotional toll on former students and faculty.

As Multnomah alumni grapple with the reality of their school’s closure, some have expressed a desire to reconnect with one another and preserve the institution’s legacy. Bethany Aldrich Myers, another alumnus, lamented the loss of the alumni network and hopes Jessup will return the Multnomah name to facilitate reconnection among graduates.

Despite the challenges ahead, the Multnomah Family Team remains hopeful. They believe that the legacy of Multnomah University lives on through its graduates, who continue to serve in various capacities throughout the Pacific Northwest and beyond. “God could do something,” Freisen concluded, expressing a commitment to pray for Jessup and for a positive resolution to the situation.