Iowa State President Martin Jischke announced a $35.5 million College of Business initiative to students, faculty and others who packed the Great Hall of the Memorial Union Friday morning.

The initiative will generate public and private funds for a new building, a faculty endowment, scholarships and program enhancements.

The initiative is part of ISU’s mission to be the best, Jischke said.

However, he said members of the College of Business Advisory Council felt goals could not be reached because of physical and financial limitations.

The initiative is the start of “providing the resources, the facilities, to address each of the limitations,” Jischke said.

The university is asking for $10 million from the state and $25.5 million from alumni and friends. The ISU Foundation will solicit private donations.

The goal is to have the $25.5 million raised by 2000, and $10 million already has been earned.

“This initiative is being launched today because one couple decided to take the lead in transforming our College of Business from a good college to a great college,” Jischke said.

Russell and Ann Gerdin, of Coralville, donated $10 million, the third-largest gift in ISU history.

The couple had a plaque presented to them during the announcement, in honor of the “Gerdin Business Building,” which is scheduled for completion by 2002.

According to a press release, the building is expected to cost $21.5 million to complete.

Russell Gerdin is president, chairman and CEO of Heartland Express, Inc., an Iowa-based trucking firm he founded in 1978.

The Gerdins attended Moorhead State University in Minnesota. Russell Gerdin received his degree in business, and Ann Gerdin received her degree in elementary education.

One of the biggest reasons the couple donated the money was a strong belief in the importance of education.

“My wife and I are strong advocates that education, especially of young people, is the key to improving our state and nation,” Gerdin said. He said it is his way of giving something back to the state and to students.

What sealed the deal, Jischke said, was that both the College of Business and the Gerdins wanted to focus on education.

“This is, in reality, an investment —ÿnot a gift. The Gerdins have seen to it that their gift will create synergy growth and gains for our College of Business, and most importantly, in the education and opportunities for future business leaders,” Jischke said.

As a businessman, Gerdin said he tries to choose the right opportunities for investment.

Another factor in developing the initiative was Jischke himself, Gerdin said.

“I have never been more impressed with a man’s desire to help an institution,” he said.

Jischke’s desire to make ISU a top land-grant university drives this initiative, said Ben Allen, dean of the College of Business.

This initiative will provide many opportunities for the College of Business, Allen said.

“The Gerdin Business Building will have a profound impact on [how the college provides] learning opportunities and serves students and how we work and interact with the business community,” Allen said.

It will enhance the ability to recruit staff and attract interested students, he said.

However, there is a challenge along with the Gerdin’s gift — to raise the additional money to fulfill the initiative’s goals.

“I have absolutely no doubt that we will meet this challenge,” Jischke said.

One student said she agrees that the College of Business will complete the task.

“We will succeed, and we will make [the Gerdins] proud,” said Renee Mullins, junior in management information systems.

Gerdin offered another challenge.

“With this gift we challenge you, the students, to learn and to work with a passion,” he said.