WRAL Investigates has obtained lease documents that give more details about Saint Augustine’s University’s land-lease deal with development firm 50 Plus 1 sports.
Saint Augustine’s University plans to lease its property to 50 Plus 1 Sports for 99 years. 50 Plus 1 will sublease the majority of the academic campus property (approximately 70%) back to Saint Augustine’s for $1 per year.
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50 Plus 1 Sports will have 30 days after the execution of the agreement to present a “master plan” for the land, including layout and design ideas.
The university confirmed plans for a mixed-use development, comprising of multifamily housing, condominiums, retail spaces and more.
“I think that's going to be great, especially for business,” said Renequa Mills, who works nearby.
Her hair salon, B Ann Studio, sits just across the street from the university campus.
“St. Aug is the community,” Mills told WRAL News.
She has seen the effects of the university’s struggles.
“It's been very dull, dry, sad,” Mills said. “If we could get the school open and have the businesses, restaurants and everything else, it would make the whole morale of the community positive.”
Another business owner, Crystal Clark, says development has to happen the right way.
“It would be nice if they did bring things over here, but again, they need to respect the history of the area,” Clark said. “I think it should be affordable housing. I think that it shouldn't exclude the people who live here.”
Documents say the university can restrict the use of the property. They say the property cannot be used for a flea market, pawn shop, dollar store, bowling alley, skating rink, massage parlor, adult store, barber college, funeral parlor, CBD/hemp store, gun range, abortion clinic, car rental agency, church, political campaign office or off-track betting parlor.
Currently, the school football field is behind the main campus gates. However, that could change, according to court documents.
“At the election of [50 Plus 1 Sports], the Football Field may be moved and the Football Field Site added as Development Site,” the documents read.
Parts of the “educational sites” could also be later used for development, as well.
Outside of its main campus, Saint Augustine’s owns several properties nearby its campus, including residential homes. WRAL went to multiple properties to ask renters what they think about the possible development.
Most were too nervous to share their opinions since they still live there.
Saint Augustine’s said the $70 million is structured in two components: A $60 million initial payment upon execution of the agreement, which the university says will "retire" all of its existing debts.
It includes lines from the IRS and Department of Education. It also includes $10 million for operating revenue until June 30, 2025.
The second $10 million payment is due 60 days after the initial payment.
Revenue generated from the proposed development will be split:
· For the first 10 years: 50 Plus 1 keeps 65% of the revenue and Saint Augustine’s keeps 35% of the revenue.
· From year 10 and onwards: 50 Plus 1 keeps 60% of the revenue and Saint Augustine’s keeps 40% of the revenue.
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.
However, as a nonprofit, the university must follow certain protocol to actually set the deal in motion. State law requires a written notice to the Attorney General’s office before selling or leasing all, or a majority, of its property.
“Looking into it is pretty standard,” said David Heinen with the North Carolina Center for Nonprofits Wednesday. “The Attorney General is going to look at a transaction just to make sure that there’s not any type of improper benefit.”
The Attorney General’s Office is still reviewing the deal.