[NovaSkegee]

Morris Brown College trustees turn down nearly $10 million



The Associated Press

ATLANTA — Trustees of Morris Brown College have turned down an offer of nearly $10 million in taxpayer money

The Atlanta Journal-Constitution reports that Atlanta Mayor Kasim Reed had offered the money that would have eliminated the bankrupt school's $35 million debt and solved its legal problems.

Morris Brown's lawyer Anne Aaronson has said the city's offer was insufficient because it covered the college's debt but didn't provide operating funds.

She says the school has a better offer on the table. Reed and city officials say that's hard to believe. The lawyer declined to give any further details.

Reed says the school's rejection of his offer puts the school's future in danger and also threatens the city's vision for a revitalization of the area around the campus.

[Branj2]

 

[Aggie D.]

I guess we will hear more about the better offer in the days to come. I am now really interested.

[Capler]

Something does not seem right. I hope we are missing parts of this. Perhaps the public money came with stipulations, (which  it usually does),  but MB did not want to give up control?  My feeling is that when you are down, you take what you can get, if it means you are given a chance.  You can work to regain control later.
 Back in the 80's Shaw lost control of it's historic Estey Hall to the Department of Interior. It was done to save the building and get federal funds to renovate. If that had not been done the building would have fallin down, which several others on campus did. We regained control years later.  We also had to sell apartment buildings that were built in the 70's.  They stayed out of our hands for about 25 years but we eventually reacquired them once they passed through several owners and fell on hard times.

It seems to me MB trustees are still ego tripping. They are not willing to give up any control in the name of saving/resurrecting the school.

The thing I have learned about this life is that few things are permanent. If you lose your beloved home to foreclosure, you will eventually get the opportunity to get it back, if that is what you really want.

[FAMUVenom]

Too early to prognosticate ... There's got to be more to it than the little that has been posted to date.

"We'll eliminate your debts ...  Don't worry about the sounds of those bulldozers with Falcons logos on them behind you!"

[EB]

Too early to prognosticate ... There's got to be more to it than the little that has been posted to date.

"We'll eliminate your debts ...  Don't worry about the sounds of those bulldozers with Falcons logos on them behind you!"

I think it is too early too especially since it looks like the mayor is so very willing to give the Falcons a new stadium.

[Capler]

Revitalization is the key word here.  I don't know the area, but perhaps the city has a grand revitalization plan for the area and a dilapidated MB campus would hinder that? Is this part of the stadium redevelopment area? If that is the case, maybe MB officials are hedging their bets, and holding the city hostage. Not only do they want the debt gone but also want money to operate?  This is just me thinking out loud, without knowing the particulars.

  It is a dangerous game to refuse money. Sometimes doors close and will not open back up. They should do the American thing and take the money, run like hell, then circle back around and ask for more. I don't think the local African American community will allow the city to foreclose on the campus and take it away based on that initial public investment. But you could also look at it another way. With no debt, there should not be any excuses for alum and the church not to be able to operate the school. They will have a clean slate to start over.

[lew9ball]

10 million is a lot of money to turn down. Let's just pray and hope they really have another plan awaiting.....

[j1908]

Well here is the layout of what was propose

http://hbcudigest.com/morris-brown-rejects-10-million-bailout-from-city-of-atlanta/

[Capler]

Well here is the layout of what was propose

http://hbcudigest.com/morris-brown-rejects-10-million-bailout-from-city-of-atlanta/

Thanks for that information j. From my experience with working with city government, that is a very good deal.  The city never wants to be in the business of owning private property and will make ever effort to eventually  return the campus to the trustees, students and community, even if the money is never paid back. The city is notorious for restructuring and reducing debt before it will take something away from a non profit. MB will not get this sort of sweet heart deal if they deal with an investor. Yes they may end up with more money but if they fail to meet the terms, that's it.  Back to the Shaw building situation, Shaw never paid the government back. They eventually got tired of fooling with us, and elected officials ask that the government just give it back to us.  MB officials got to know that government works for the people not against them.

[Jay_Thomas]

Well here is the layout of what was propose

http://hbcudigest.com/morris-brown-rejects-10-million-bailout-from-city-of-atlanta/

Per the link above^^^^^^..........

    Documents obtained by the newspaper show that Reed and Invest Atlanta, which is the city’s economic development arm, proposed giving the school $9.7 million. The proposal would have:

    — purchased the 37.22 acres tied up in bankruptcy;

    — paid the school’s creditors;

    — given the African Methodist Episcopal Church, which governs the school, $1 million in cash;

    — paid $480,000 in back pay to professors and staff;

    — allowed the school to rent the four buildings it still uses with an option to buy them back after three years;

    — allowed Invest Atlanta to work with developers to redevelop the rest of the property.

[FAMUVenom]

I'm trying to understand ...

* They are looking for "operating money" moving forward ... To educate probably no more than 35 students?

* How much revenue would be coming in from these - or any - future students to even warrant "operating", & just who would be on the payroll to service them - with most of the buildings already boarded up?

* Is The Mayor truly only concerned that the area doesn't turn into Amscot Plaza?

I'm all for holding out for the best deal, but I just have questions about what are their plans moving forward as an actual school.

[WileECoyote06]

Well here is the layout of what was propose

http://hbcudigest.com/morris-brown-rejects-10-million-bailout-from-city-of-atlanta/

That looks like a sweet deal.  I wonder if faculty and staff were involved in the decision?  They are stakeholders as well, and they probably could use that backpay.

[Capler]

I'm trying to understand ...

* They are looking for "operating money" moving forward ... To educate probably no more than 35 students?

* How much revenue would be coming in from these - or any - future students to even warrant "operating", & just who would be on the payroll to service them - with most of the buildings already boarded up?

* Is The Mayor truly only concerned that the area doesn't turn into Amscot Plaza?

I'm all for holding out for the best deal, but I just have questions about what are their plans moving forward as an actual school.

I guess that is a consideration. Paying debt is one thing.  It would take  a pile of money and years to get the school back to a position where they can even apply for accreditation. And you are not going to get the students back until that time.  I'm not sure how difficult it is for a new  school these days to get that. 

[Neymar]

This school should be nicknamed "Cant get right"

Makes for entertaining media though.