Alabama A&M took its second shot.
In the days before Miles College signed a letter of intent to enter into negotiations to purchase Birmingham-Southern College, Alabama A&M made a $65.5 million second offer to buy the educational institution on the hill on Birmingham’s west side that closed May 31, according to Shannon Reeves, AAMU’s VP of government relations and external affairs.
The offer included $35.5 million in cash and $30 million in “maintenance” and was a $13.5 million increase from A&M’s $52 million offer ($22 million cash, $30 million maintenance) made on May 1, Reeves conveyed in a text message to AL.com.
“We see this increase as a reasonable increase that will clear all BSC outstanding debt,” Reeves said. “As a public institution, we must be good stewards of public funds. Therefore, we hope BSC Trustees will accept our offer.”
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“The letter was signed on Juneteenth,” said Miles spokesperson Mya Jolly.
Miles President Bobbie Knight offered no further comment on the letter and would not confirm any of its contents.
A letter of intent typically creates a window of exclusivity for the potential buyer to reach an agreement, during which time the seller cannot engage in negotiations with any other party. It also contains a fee the potential buyer must pay if it cannot come to an agreement with the seller.
“I want to reiterate, what’s important is AAMU’s commitment to maintain the entire BSC property as an academic facility focused solely on higher education,” Reeves added. “Furthermore, we are committed to attempting to bring economic development and increased property value to the surrounding neighborhoods.
“However, we cannot be fiscally irresponsible with our offer to purchase this beautiful campus at any cost. If another entity is selected, we will wish them well, knowing that we love the people of Birmingham and we will continue to try to make a difference whenever we can in the future.”
