Saint Augustine’s University and 50 Plus 1 Sports to Restructure Land Lease Deal, Bypassing Attorney General’s Review

View This Email In Your Browser

Good morning, readers.

Two weeks from today Saint Augustine’s University will face an accreditation hearing with the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC). Following a turbulent few years marked by declining enrollment, accumulating debt, and mounting criticism of its leaders, the hearing could conceivably determine whether the Raleigh HBCU continues to exist.

SAU has been eager to finalize a land lease deal with development firm 50 Plus 1 Sports ahead of the February 27 hearing. Just last week, I learned SAU and 50 Plus 1 will restructure their controversial land lease deal to encompass less than half of the university’s assets, according to the North Carolina Attorney General’s Office. The change eliminates a legal requirement for approval by the AG’s office.

SAU had planned to lease its entire 105-acre property to the Florida-based developer for an up-front fee of $70 million—a plan the AG’s office said under-valued the campus and could jeopardize the school’s nonprofit status. It’s unclear how much property SAU now plans to lease to 50 Plus 1, how much money the developer will now pay the university upfront, and whether the proposal will make a difference to SAU’s accreditors. 

If this isn’t ringing any bells, here’s a refresher on my recent reporting of SAU’s ups and downs:

• August 2024: SAU takes out a $7 million, 26 percent interest loan from Gothic Ventures in order to begin the fall semester. Critics call the loan predatory.

• December 2024: SAU announces it will lease its entire downtown Raleigh property to 50 Plus 1. The deal would theoretically help SAU out of debt with Gothic Ventures, the IRS, and other creditors. Later that month, SACSCOC votes to revoke SAU’s accreditation due to persistent financial and governance issues. SAU remains accredited pending an appeal.

• Mid January: The AG’s office steps in to review the contract between 50 Plus 1 and SAU, as it is legally obligated to do since the deal covers more than half the school’s assets. SAU publicly urges the AG to expedite the review so it can finalize its agreement with 50 Plus 1 before its accreditation hearing.

• Late January: The AG’s office writes a letter to SAU, raising questions about 50 Plus 1’s experience and financing and warning that the contract steeply under-values the property. Given these “red flags,” the AG is unlikely to approve the contract.

• Early February: With the clock ticking toward the accreditation hearing, SAU and 50 Plus 1 decide to restructure their deal to bypass the attorney general’s review. 

Read my latest on Saint Augustine’s University, and have a good Thursday.

 —Chloe

---

Durham

Duke University officials say President Trump’s attempts to slash National Institutes of Health funding could “slow or halt discovery in critical areas such as cancer, Alzheimer’s, infectious diseases and pediatric health,” The Duke Chronicle reports.

Wake

Animal advocates are pushing Raleigh officials to ban the commercial sale of dogs and cats, WRAL reports.

Orange

In 1795, UNC’s first student, Hinton James, walked over 150 miles from present-day Pender County to Chapel Hill. Or did he? Wilmington StarNews has the story.

North Carolina

Three North Carolina organizations are among faith groups suing to stop the Trump administration’s plans to reverse a policy that prevented ICE agents from raiding places of worship, reports NC Newsline.

---

If you’d like to advertise your business to the Daily’s 30,000-plus subscribers, please contact [email protected]

---