Miles College signs agreement to purchase Birmingham Southern campus

Miles College has signed a purchase agreement with Birmingham-Southern College for the 192-hectare campus, which has been closed since the end of May.

The notice from Miles College on Wednesday, first reported by The Birmingham Timescomes after months of uncertainty about the future of Birmingham-Southern’s Bush Hills campus.

The purchase price — and the long-term future of the property — remain unclear. The land, buildings and equipment were valued at about $65 million by Birmingham-Southern last year, according to an audit and tax records the college filed with the IRS.

Spokespeople for Miles College and Birmingham-Southern College declined to provide further details or comment beyond a statement released Wednesday.

The two schools are approximately 6 miles or a 10-minute drive apart by highway, but have historically served different populations of students.

Birmingham-Southern President Daniel B. Coleman said in the statement that the institution was “very pleased” to move forward with Miles College.

“We were hoping to find a buyer whose mission aligns with BSC's mission to educate young people for lives of service and significance, and whose presence on the Hilltop also benefits the surrounding communities that have been such good neighbors to BSC for more than 100 years,” Coleman said. “With its roots in the Methodist tradition of service and its commitment to preparing young people for lives of leadership, Miles College fits that description. We will continue to work diligently with President Bobbie Knight and her team to ensure a smooth process through to the closing of the sale.”

The boards of trustees of both institutions voted unanimously to conclude the agreement, Miles College said.

Miles College first signed its letter of intent to begin negotiations to purchase the Bush Hills campus on June 19. The private liberal arts college in Fairfield is a historically black college and has about 1,200 students, according to the latest fall 2022 numbers. According to the United Negro College Fund, the college generates an economic impact of nearly $70 million.

“BSC will continue to operate as a company during the remainder of the wind-down period, which will include the winding-down of a number of business matters,” Coleman said in a statement.

Once the sale is completed, Birmingham-Southern will work with the Alabama Attorney General's Office to develop a plan for the university's endowment and seek court approval.

“We expect this process will take many months or even years, and we will be in touch with our foundation contacts as soon as we know more,” Coleman said.

Last year, the college was nearly $36 million in debt, according to its tax returns. However, the institution has not filed for bankruptcy or otherwise publicly presented a plan to pay off its debts.

Birmingham-Southern was financially troubled in the years before his closureBut the 168-year-old institution had financial problems for Decades agoIn March, the Board of Trustees decided Stop operationand gave the Rejection by the State Treasurer a bridge loan of US$30 million.

Because the college owes ServisFirst Bank $16.5 million, the bank has first claim on the proceeds from the sale of the campus.

Previously, Alabama A&M University had not made any more offers to purchase the campus. $52 million offer in May, followed by another offer of $65.5 million.