Burlington College has updated the purchase and sale agreement with developer Eric Farrell, which continues to be on track for a late January 2015 closing. The college would sell the main building to Farrell who would turn it into a dorm for the college. The deal, Burlington College said in a statement, is moving forward smoothly with no forseen obstacles. The North Avenue college has faced ongoing financial crises that have threatened to close it down. However, it sits on prime real estate overlooking Lake Champlain. The college has sold most of the property to keep itself afloat.
This revised purchase and sale agreement builds on the prior agreement. Of the 33 acres of property currently owned, the College will retain 6 acres with Farrell purchasing the balance. Two acres of the property will remain undeveloped and open to the public, in addition to an easement allowing access to the beach from the northern boundary of the property. A non-refundable upfront payment of $150,000 has already been made by Farrell as a part of this agreement.
Farrell will purchase the 1880s building known as "the Orphanage" with the intention of renovating the space into student housing. This additional sale will yield the college an additional $2,000,000, with a deposit of $250,000 for this property. This deposit towards this transaction will take place at the same time as the real estate deal for the land in late January. This transaction is scheduled to close in 2016.
The current land deal, with a closing price of $7,650,000, is scheduled for late January 2015. In January of 2016, the purchase of the 1880s building is planned to close.
The results of these two transactions will leave the College with a debt total of less than $3 million reduced from the current $11.4 million, as well as reduce the operating costs from mortgage payments, utilities, maintenance, and taxes.