Jun 28, 2013 10:01 AM EDT By Staff Reporter, UniversityHerald Reporter

Ohio State University (OSU) has agreed to pay more than $12.8 million to St. Stephen's Episcopal Church to stop them from undertaking a housing project. The church located in OSU's north campus premises and will be receiving $7.5 million initially and then will be given $213,000 annually for 25 years.

Rev. George Glazier, rector, calling the agreement a 'win-win,' said that the church was in consultation with developers to build a housing to accommodate about 280 students. OSU officials were unhappy with the project a year ago started negotiating with the congregation.

The agreement states that OSU authorities felt the project didn't fit with the zoning rules and that it 'constituted a potential functional and aesthetic detriment to an important gateway into the surrounding campus area and the North Residential District.'

The agreement now makes available ample parking spaces during church functions. The apartments were to be constructed on an adjacent half-acre area estimated to be at about $212,000.

The Ohio State University Board of Trustees introduced a new $396 million plan to transform the North Residential District into a dynamic living environment with more number of beds and new dining, recreation and support facilities. This project is set to double the second-year residential experience and to improve retention rates and student engagement.

"We know that students who live in the residence halls for two years have significantly higher second-year retention and graduation rates than those who have never lived on campus," said Ohio State President E. Gordon Gee. "We are creating another exceptional living environment, complementing work already underway in the South Residential District, incorporating the elements of student success, programmatic needs, architectural innovation, and student and faculty interaction."

"We're happy that we're going to get more student neighbors," Glazier said. "We're really pursuing the same end ... serving students and faculty."

"I'm very happy for St. Stephen's Episcopal Church to get that money" from OSU, said J. Eric Peters, a church member for 15 years. "I'm confident they'll use it to do a great deal of good for a great number of people," Peters said.

Glazier said that together they will determine ways to allocate the funds effectively. Part of the funds will be given to the campus ministry.

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