stripping away all the other stuff, from a purely financial standpoint, I read it as this:
5 Year Tuition Revenues: $20,000,000 + room and board
Cost to Renovate Buildings: ($1,500,000)
Cost of First Year Tuition paid to SG: ($3,200,000)
Subsequent Year Tuition paid to SG: ($4,500,000) (liberal estimate, but without actual enrollment numbers)
Net Proceeds from Venture: $10,800,000 + profit from room and board
This is clearly way oversimplified and back of the envelope in nature, but if it generates $10 million in revenue, requires no additional expenses to be incurred by the university system, and offsets declining enrollments based on economic and population issues, then i do not see the issue on that front... I have to believe that if the numbers didn't add up to net a boost in university revenues, the program wouldn't have made it off of the ground....
on another note, the parent company is the one that jock mckernan got in hot water with... he is their current board chairman...