BURLINGTON — The sale of a large portion of the Burlington College campus to a developer has been finalized, the college said Tuesday.
Developer Eric Farrell is paying $7.65 million for 27 acres on the campus of the financially strapped college. He plans to build housing on the North Avenue property, which overlooks Lake Champlain.
Farrell also plans to buy the main building on the campus, a former orphanage, for $2 million in 2016.
The two purchases are estimated to cut the school’s debt from $11.4 million to $3 million, as well as reduce operating expenses such as heating and taxes.
The first sale includes a house on the property, a parking lot and an apartment house, according to a news release issued by the college after sale closed.
The college retains 6 acres of land and the former orphanage that it purchased from the Roman Catholic Diocese of Burlington.
“With this transaction behind us, the College can turn its focus to growing enrollment, strengthening programs, and educating a workforce that will benefit Vermont,” college President Carol Moore said in a statement. “Burlington College has a bright future and this is the first step in that direction.”
The college in 2010 borrowed $10 million to buy the property under former President Jane Sanders, wife of Bernie Sanders,I-Vt. It borrowed $3.6 million from the diocese and $6.5 million from People’s United Bank. Since then, the school has failed to meet the fundraising and enrollment growth goals it used to borrow the money.
Burlington College is on academic probation from the regional accrediting agency because of financial concerns, as well as concerns about the school’s governance. Former President Christine Plunkett resigned abruptly in September.
