In another blow for Saint Augustine's University, accreditation board denies appeal
The Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) has denied an appeal by Raleigh's Saint Augustine's University (SAU) to restore its accreditation. The historic HBCU was stripped of its accreditation by SACSCOC last December following a series of financial challenges.
As NC Newsline previously reported, the college failed on multiple occasions to meet payroll, leaving faculty unpaid as they cancelled classes.
In late November, the university announced a strategic partnership with Florida-based 50 Plus 1 Sports with the hope that the land-lease deal could generate $70 million in revenue to benefit students, faculty, and a fast-growing section of Raleigh.
But the state Attorney General's office raised concerns that under the controversial partnership, the university could lose control of its land if it defaulted on the arrangement.
'We have requested information on how this transaction will preserve and revive SAU's educational mission and finances, including site plans showing which property 50+ intends to develop and which it will preserve for educational purposes,' wrote senior deputy attorney general Kunal Choksi in a January letter.
A separate $7 million loan by Gothic Ventures was called 'predatory.'
Raleigh's News & Observer reported in February that SAU restructured the deal with 50 Plus 1 Sports to alleviate concerns.
On Thursday as news of the university's lost accreditation made headlines, school leadership vowed to find a way forward.
'We have made substantial progress and are confident that our strengthened financial position and governance will ensure a positive outcome,' said Board of Trustees Chairman Brian Boulware. 'SAU is resilient, and we are resolute in our commitment to academic excellence.'
SAU plans to pursue binding arbitration to contest the accreditation decision. University officials say the 90-day arbitration will allow SAU to demonstrate its financial stability and commitment to compliance with accreditation standards.
SAU also insists the bridge loan of up to $70 million will provide the financial resources to eliminate past debt and make campus improvements.
'This funding is a game-changer,' said Vice Chairman Hadley Evans in a release on the school's website. 'We now have the financial leverage to protect SAU's legacy, enhance academic offerings, and create sustainable revenue streams through strategic campus development.'
For students graduating this May, they will receive their degrees from an accredited institution.
But if SAU is not able to restore its accreditation, it would be barred from participating in federal aid programs in the future.
Interim President Dr. Marcus Burgess said Thursday's decision would not define Saint Augustine's, which was established in 1867.
'We urge our alumni and supporters to stand with SAU as we strengthen our foundation and ensure our mission continues for generations.'
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