Dive Brief:
- Burlington College in Vermont is planning to reverse course on its 2010 decision to buy 32 acres of waterfront property on Lake Champlain as part of an attempt to double its enrollment.
- The college is proposing to sell 25 acres of the lakefront property for $7 million to a developer, or preservationists if they can beat the developer’s offer, the Burlington Free Press reported.
- The deal would help the college pay down its $11.4 million debt, which includes $3.5 million owed to the Catholic Diocese of Burlington, which sold the property in 2010, and $6.5 million to the People's United Bank, which financed the purchase.
Dive Insight:
Christine Plunkett, the college’s president who resigned abruptly last month, had proposed selling 16 acres to allow the school to cut its debt by $5 million. But the $5 million wouldn’t have been enough, and the college wouldn’t have seen it for several years, said Michael Smith, the interim president. While the proposed sale would reduce the college’s debt service and property taxes, it still needs to raise $250,000 by June 30 to balance its operating budget. The college will also have to increase its enrollment, now at 188 students, to become financial viable over the long term.