N&O Quotes Andrew Atkins on Proposed St. Augustine Lease Agreement

In the article "Lease could put St. Augustine’s at risk of losing access to its own campus, documents show," The News & Observer sought insight from Smith Anderson attorney Andrew Atkins on the proposed lease agreement between St. Augustine’s University and Florida-based real estate investment firm 50 Plus 1 Sports. The deal, one of two key arrangements the university has sought, has raised concerns among alumni and the North Carolina Attorney General’s Office, potentially jeopardizing the university’s access to its own campus.

Andrew provided perspective on key provisions of the agreement, noting that while developers commonly use long-term ground leases as collateral, the lease terms grant 50 Plus 1 “pretty broad discretion in what it chooses to develop,” leaving the university with little control. He also pointed out that the requirement for 50 Plus 1 to “consult” with St. Augustine’s about development plans falls short of giving the university the authority to approve or deny projects. “Ultimately, the duty to consult is a lesser right than a right to approve each development,” Andrew explained.

The Attorney General’s Office has raised serious concerns about the transaction, including whether 50 Plus 1 has the financial ability to meet its obligations. The lease was subsequently withdrawn by the University; however, it is expected that a revised lease will be submitted in the future for the Attorney General’s review and approval.

Andrew co-chairs Smith Anderson’s Construction and Real Estate Litigation practices, focusing on construction law, litigation and contracting. He regularly represents owners, contractors and developers in multi-party disputes involving public and private commercial projects, as well as other commercial, contract and business-related disputes. Andrew is recognized in The Best Lawyers in America® in Construction Law and in Benchmark Litigation’s® "40 & Under” List.

Read the full article here.