Editor's note: Since the modified deal is expected to be less than 50%, it will not require state approval.
Saint Augustine's University has modified its request to sell property as part of an ongoing effort to shore up its finances.
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After the North Carolina Attorney General's Office raised "serious concerns" about the plan to sell much of the university's property to a Florida-based developer, Saint Augustine's withdrew its request for approval and plans to restructure the deal, correspondence between university lawyers and the AG's office shows.
In rejecting the initial proposal, Senior Deputy Attorney General Kunal Choksi wrote, "Based on our review of the documents submitted thus far, we are concerned about SAU’s ability to continue to operate and fulfill its mission if this proposed lease agreement is finalized without substantive improvements."
Because Saint Augustine’s University is a nonprofit, state law requires that it give written notice to the North Carolina Attorney General’s Office before any sale or lease of all or a majority of its property. However, since St. Aug’s has indicated it will restructure the deal to be less than 50 percent, the AG's Office said the deal would not require approval.
The revised proposal will be for about half of the university property.
WRAL News first discovered a $70-million land-lease deal in November in the school’s 2024 financial audit. In the agreement, 50 Plus 1 Sports was expected to pay Saint Augustine's University $60 million by the end of 2024 and then another $10 million by June 2025. The deal is designed to eliminate its debt and secure operating funds.
It's not clear what the parameters of the revised deal would be – either how much of Saint Augustine's land would be made available or what the value of the deal would be.
After the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) Board voted to remove the university from its membership, university leadership pointed to the deal as a Hail Mary to fully regain accreditation.
Currently, the school is on probation as it tries to prove leadership and financial stability and longevity.
The next hearing on that accreditation is scheduled for Feb. 27.