Alumni return to college towns for retirement

Intellectual appeal
The appeal was slightly different for Bill Kinley and his wife, Mary, when they bought a unit at University Commons, a senior development near the University of Michigan's campus. The couple already lived in the university town of Ann Arbor, but were enticed by the idea of living in a setting that provide intellectual stimulation in a place they knew they enjoyed.

"I spent an hour and a half with a Shakespeare (discussion) group last night," Kinley said. "We have kids here, we love the community and I think that's what a lot of people here share is a love of Ann Arbor."

The Michigan development has close ties with the university's music school and often hosts two student or faculty recitals a week. Residents also gather for regular lectures onsite. On Friday nights, a potluck cocktail party in a common area known as the Brass Rail Cafe draws 50 to 60 residents.

Financial arrangements vary, but generally, living in the developments does not come cheap.

At Michigan, the condominium units sell for $250,000 to $750,000, and residents pay a monthly maintenance fee to the homeowners' association.

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At Penn State, the Davises paid about $200,000 for the right to live in the Penn State development for as long as they choose, as well as a monthly fee of about $2,600. That entitles them to nursing and assisting living care when and if they need it. If they move out within the first four years, they get a limited portion of their investment back. Another option, requiring a larger initial payment of about $285,000, returns 90 percent of that amount to residents or their estate on move out.

"You're not buying any real estate. You're buying lifetime use of a particular unit," said Jill Lillie, the development's director of community relations. Other units at Penn State are priced from $166,000 to $360,000.

The Penn State project is not run by the university but has strong ties. The development was the idea of university President Graham Spanier, and was built on 80 acres leased by the university to a private development team that includes football coach Joe Paterno and Carol Herrmann, a former university administrator. Residents are allowed to take one class on campus free of charge each semester, and get reduced rates for the university's golf course and other facilities.

Some friends still have trouble believing they left the Sun Belt and moved into a place with a nursing home onsite, Jim Davis says. What they don't appreciate is just how much energy flourishes in a campus environment.

"Everybody thinks when you move into a place like this that they have a walker for you waiting at the door," he said. "And there are some pretty active people around here."

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