Alabama A&M's Attempt to Acquire Birmingham-Southern Campus Falls Through

Alabama A&M University’s proposal to purchase the shuttered Birmingham-Southern College campus has failed as the cash offer was “considerably lower” than the top bid, according to documents obtained by 205focus.com.

Officials from Alabama A&M, a historically Black university in Huntsville, stated they accept Birmingham-Southern’s decision to “entertain other offers” for the 192-acre campus in west Birmingham.

“As a public institution, we have a responsibility to the taxpayers of Alabama to have shown fiscal discipline with our offer as we operate under certain constraints,” said Shannon Reeves, vice president of Government Affairs & External Relations at Alabama A&M. “With no deal in Birmingham, we will shift our resources to be invested on our main campus in Huntsville as we achieved record enrollment in the 2023-2024 academic year,” Reeves added.

Virginia Gilbert Loftin, spokeswoman for Birmingham-Southern, declined to comment on the offers from Alabama A&M but confirmed that negotiations are still active with Miles College. “We considered what was presented to us, and we signed an LOI agreement with Miles,” she said, referring to the letter of intent, a document that acknowledges plans to enter a legally binding agreement between two parties. “I think it speaks for itself that we have an LOI with Miles,” she added.

Miles College signed its letter of intent on June 19 as part of negotiations to buy the campus, as first reported by The Birmingham Times. The private, historically Black college in Fairfield enrolls roughly 1,200 students, according to its latest numbers from 2022. It’s unclear how much Miles College proposed for its purchase. Spokespeople did not respond to requests for comment.

However, if Birmingham-Southern’s current negotiations don’t proceed, Alabama A&M officials say they are willing to renew their bid. “AAMU remains committed to acquiring Birmingham-Southern College,” said Carlton Spellman, the university’s vice president of business and finance. “Therefore, if the higher bid fails to be agreed upon for any reason, we are open to resuming negotiations.”

Since the private liberal arts college closed on May 31, uncertainty has swirled around the future of the campus. Along with buildings and equipment, it’s valued at roughly $65 million, according to an audit and tax records.

The proposal from Alabama A&M, a public university, was originally called “Operation Southern Comfort,” and then dubbed “Alabama A&M University at Birmingham,” according to documents obtained by 205focus.com.

On May 6, Alabama A&M President Daniel Wims signed a letter of intent and offered $52 million in either cash or cash and the assumption of Birmingham-Southern’s debt in exchange for the campus and certain assets. In statements to the press, Alabama A&M touted the proposal as having the “Potential to Create One of the Largest HBCU Expansions in the Country.”

On June 21, Alabama A&M sent a second offer letter to Birmingham-Southern President Daniel Coleman. This offer was for $35.5 million, per the letter obtained by 205focus.com. A&M officials told the press a much higher figure of $65.5 million — $35.5 million cash, and $30 million in “maintenance.” But that letter does not mention the $30 million.

“Although you indicated that the bid was considerably lower than your top bid, I wanted to communicate that Alabama A&M remains interested and committed to acquiring the campus of Birmingham-Southern College,” Spellman said in the letter. “Therefore, if the higher bid fails to be agreed upon for any reason, Alabama A&M would like the opportunity to resume our negotiations.”

Alabama A&M’s vision for the Birmingham campus would have transformed the campus at 900 Arkadelphia Road into the first public, historically Black university in the metro area. It would have also placed the school and its athletics program much closer to the headquarters of the annual Magic City Classic.

Alabama A&M projected that 1,000 students would enroll at the Birmingham campus by fall 2025, and 3,500 students by 2029. The university stated in its proposal that the campus would bolster Birmingham’s workforce with a focus on healthcare and science academic programs, as well as other professional programs like business administration and construction management.