January 21st 2025.
Over the past few years, Saint Augustine University, one of North Carolina's oldest HBCUs, has faced numerous challenges. In December 2022, the university was placed on probation by the Southern Association of Colleges and Schools Commission on Colleges for failing to meet accreditation standards. This was a result of significant financial issues, including a $32 million debt and an ongoing battle with the IRS. However, there is now a glimmer of hope for the university as 50 Plus 1 Sports, a Black-owned development company, has invested $70 million to help save it.
The founder and CEO of 50 Plus 1 Sports, Monti Valrie, shares that his company was introduced to Saint Augustine University in October and immediately expressed their desire to help the university maintain its land and become self-sufficient. Based in Miami, 50 Plus 1 Sports is a rapidly growing stadium and mixed-use development firm that is committed to promoting diversity in all of its projects. They have made it a requirement to have at least 50% minority and women participation in every project they finance or partner with.
After negotiations, 50 Plus 1 Sports and Saint Augustine University agreed on a long-term ground lease. This arrangement allows 50 Plus 1 Sports to develop on the university's land, and they have invested the lease payment upfront to help the university clear its debts and move forward. The revenue split between the two parties will be 65/35 for the first 10 years and 60/40 thereafter, with the university estimated to receive over a billion dollars in revenue by year 50. Valrie is excited about the potential for the university to fulfill its mission in the community through this partnership.
Despite being based in Florida, Valrie considers this project a "homegrown" one as the majority of the workforce needed for development will come from the Raleigh area. This investment from outside of North Carolina comes after facing roadblocks from local business leaders. Board of Trustees Chairman Brian Boulware shares that the university had previously asked for financial assistance from Durham-based Self-Help Credit Union, but they did not show interest. However, when the university's land was appraised for over $200 million, the credit union and other local investors were suddenly interested in loaning the university money. But the deal came with conditions that the university's land would be removed from their name, and business investors would have a say in the university's leadership and receive all revenue.
Boulware also shares a concerning encounter with Raleigh business leaders who suggested merging Saint Augustine University with another HBCU and taking over their land for development. The university rejected this proposal and instead opted for a short-term solution, receiving a $7 million loan from Gothic Ventures, LLP with high interest rates and fees. The university has since been waiting for the attorney general's approval for the agreement with 50 Plus 1 Sports, which will not only resolve their debt but also provide operational funding and secure their financial sustainability for the future.
Board Member Sophie Gibson believes that the partnership with 50 Plus 1 Sports will not only benefit the university but also bring opportunities for students, scholarships, community engagement, and economic development for the entire Raleigh area. With a deadline of 10 days to respond to SACSCOC's concerns over the university's sustainability, the future is uncertain, but there is hope for Saint Augustine University to overcome its challenges and thrive once again.
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