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After running into obstacles with a state review of a proposed lease and development deal, Saint Augustine’s University is restructuring an agreement to lease its campus, INDY Week reported.
The historically Black university in North Carolina had originally planned to lease all of its 105-acre property to 50 Plus 1 Sports, a fledgling Florida company. The deal would have provided $70 million to SAU for a 99-year lease, money that is much needed as Saint Augustine’s faces pressure from the Southern Association of Colleges and Schools Commission on Colleges on its finances. SAU—which previously had its accreditation stripped by SACSCOC—remains accredited on appeal and must demonstrate financial stability in a hearing later this month.
Saint Augustine’s officials hoped to close the 50 Plus 1 Sports deal well before that meeting.
Last month the North Carolina attorney general’s office expressed concerns in a review required by state nonprofit law, given that the deal involved more than half of SAU’s assets. State officials noted that SAU property was valued at around $200 million, far more than what 50 Plus 1 Sports was offering, and that the university failed to answer outstanding questions.
Now INDY Week reports the deal has been modified to fall below the 50 percent threshold that triggered the review. However, it is unclear how many acres SAU intends to lease out. University officials did not respond to a request for comment from Course Strat on Friday.
Saint Augustine’s also suspended in-person classes last week, moving to a virtual format due to deferred maintenance, local TV station ABC 11 reported. University officials did not provide details about the maintenance issues or a timeline for students to return in person.
