Raleigh police say at least 20 dormitory windows were broken by vandals on the near-vacant campus of embattled St. Augustine's University in Raleigh. The private HBCU recently filed for Chapter 11 bankruptcy protection from creditors.
AS SAU DEALS WITH
BANKRUPTCY, PROPERTY
IS VANDALIZED
By Cash Michaels
Contributing writer
While St. Augustine’s University (SAU) in Raleigh deals with the reality of Chapter 11 bankruptcy and giving up its fight to reclaim its academic accreditation, vandals have caused at least $10,000 worth of damage to buildings on the deserted 160 year-old campus, Raleigh police say, including 20 broken windows.
All of this occurring while the embattled private Episcopalian HBCU is reportedly interested is selling off some of its 105-acre property in order to stay afloat.
As reported previously, along with the Chapter 11 bankruptcy filing several weeks ago, the Self-Help Ventures Fund, a Durham-based nonprofit group that helps underserved communities with financing challenges, agreed to loan SAU millions to meet many of its obligations, provided the school cut ties with two of its board members who previously served as chairman and vice chairman.
The school had to give up its legal battle to retain its eligibility for permanent accreditation. Without accreditation, SAU cannot receive federal student financial aid. Thus, SAU has implemented teach-out agreements for current students to finish their studies at other schools, like Shaw University across town. That, along with non-degree nursing and technical certificates, and apprenticeship programs.
According to published reports from a May 12th bankruptcy hearing in federal court, an attorney for SAU reiterated that the school owes between $50 million to $100 million in debts to well over 300 creditors. “There are some initial thoughts that there will be some sale of real and personal property that the university does not need at this point,” Atty Clara Rogers told the court about the early stages of a plan under consideration. “The hope is, of course, to be able to keep the core campus of the university and maybe sell some of the periphery.”
Currently, SAU is bringing in at least $10,000 per month from the rental of some of its apartment property in the neighborhood, and revenue from some other small properties owned elsewhere.
However, parts of the SAU campus are listed on the National Historic Registry, which would complicate any potential sale, Atty Rogers added.
One eyeopening fact that was revealed in bankruptcy court was that the new interim SAU president, Verjanis Peoples, who took over before the school’s Chapter 11 bankruptcy filing, earns $125,000 a year in salary.
Upon hearing that, given SAU’s documented financial struggles, bankruptcy administrator Brian Behr told the court, “It’s not a number that shocks the conscience, but I guess it depends on the conscience.”
It was also revealed that SAU has not filed its 2024 or 2025 tax returns yet, and needs to borrow another $2 million from Self Help to continue current operations. That was inclusive of $95,00 in payroll by May 15th, $82,000 to meet a subsequent payroll by May, 31st, in addition to $29,000 in utilities, $22.000 for tech services and $18,000 for repairs and maintenance.
The bankruptcy judge authorized an initial $200,000 of the $2 million request.
The next bankruptcy hearing is scheduled for May 27th.
Meanwhile, people living in the neighborhood of what was once a thriving, vibrant black college campus, have voiced concerns about its future amid reports of vandals taking advantage of boarded up buildings, empty classrooms, destroyed fencing and broken windows.
And nearby residents and alumni say it hurts to see the home of the Falcon nation in such failing condition.
“I hate that it’s come to this,” Ms. Gail Scheck, who lives across the street from the campus, told WRAL-TV. “I would give anything for some powerful people with a lot of money to come in and save the school and bring it back to what it was and what it could be.”
Only a handful of staff and faculty members have frequented the campus since SAU went to virtual learning months ago amid SAU’s financial and accreditation challenges.
Reportedly, only one security guard is on duty generally, the school's attorney says, which may contribute to vandals invading the property and causing damage.
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BLACK DEMOCRATS DROP
REDISTRICTING LAWSUIT
AFTER VRA RULING
By Cash Michaels
In the aftermath of the stunning U.S. Supreme Court Louisiana v. Callais ruling that essentially crippled Section 2 of the 1965 Voting Rights Act (VRA) and outlawed racial gerrymandering, two NC African-American Democrats - one a state legislator - have voluntarily dropped their federal lawsuit appeal against the state and NC Elections Board.
Rep. Rodney Pierce (D- Halifax) and Moses Matthews, a second African-American plaintiff dropped their federal lawsuit appeal against the NC Republican-led legislature that claimed its 2023 redistricting map diluted Black voting strength in the northeastern part of the state, commonly known as the “Black Belt.”
The appeal, which was pending in the 4th U.S. Circuit Court of Appeals, specifically targeted the redrawing of state Senate districts 1 and 2, which plaintiffs Pierce and Matthews alleged was deliberately redrawn by the NC General Assembly to deny black voters their choice of representation as previously assured by Section 2 of the VRA.
A federal judge had dismissed that claim in a ruling last September, and that decision was appealed subsequently.
But less than two weeks after the Louisiana v. Callais decision was rendered on April 29th, weakening the Section 2 of the VRA, the two plaintiffs in the North Carolina case filed a “stipulation of dismissal” with the 4th Circuit appellate court.
In turn, that court issued an order of dismissal of the appeal “with prejudice,” meaning that Rep. Pierce and Mr. Mathews cannot ever refile the lawsuit or appeal. The plaintiffs also have to assume some of the costs of their litigation.
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