On April 26, 2019, the Board of Directors of the USA Foundation approved a Purchase and Sale Agreement for 290 acres of the Brookley property with 24/7 Development Partners of Alabama, LLC. Under the Agreement, the developer will pay $45 Million for approximately 290 acres located between Mobile Bay and the Mobile Downtown Airport, pending a period of due diligence, which is ongoing.
Under the Agreement, the Foundation will retain ownership of approximately 30 acres of wetlands and another 10 acres along the periphery of the environmentally sensitive area.
The retained acreage will become a Wetlands Preservation Area, protected from commercial development. The prospective buyer has expressed their intention to substantially preserve the property’s shoreside wetlands that lie outside the Wetlands Preservation Area.
The Foundation acquired the property in 2010 to support a critical need of the University of South Alabama, its expansion of USA Children’s and Women’s Hospital.
The sale of the asset, once it closes, will allow the Foundation to provide continued support to important programs at the University of South Alabama.
The Foundation adopted a set of objectives to ensure it maximizes the return achieved on its valuable asset.
The objectives include:
- GENERATING a return on the investment;
- PRESERVING wetlands that make up part of the site;
- CONTRIBUTING to the economic development of the region;
- MINIMIZING future maintenance costs and capital outlays;
- PRESERVING positive relations with local stakeholders, like the City, the Chamber and the Mobile Airport Authority, among others;
- DEVELOPING the property in ways that reflect positively on the Foundation and the University; and
- CAPITALIZING on the unique qualities of the Brookley site.
From time to time, the Foundation has received indications of interest in the property from potential buyers.
Recently, a real estate development firm expressed a strong interest in acquiring and developing the property in an environmentally sensitive way that would further the economic development of the area.
The Foundation’s Investment and Audit Committee evaluated the options before it and found that the objectives laid out for the property can best be achieved by entering into a Letter of Intent with a private developer, 24/7 Development Partners of Alabama, LLC, who possesses the financial wherewithal to responsibly develop it.
The Foundation’s Board of Directors accepted the committee’s recommendation. The buyer will conduct its own due diligence prior to an anticipated closing in roughly six months’ time.
The Foundation is confident that the path embarked upon, once it reaches its conclusion, can represent a win for everyone:
- The Foundation fulfills its mission and legal duty to maximize the return on its investment.
- The environment benefits from a Wetlands Preservation Area.
- The City Airport Authority benefit from major private investment.
- The citizens of Mobile and the surrounding communities benefit from economic development, with new jobs and corporate tax revenues.
Please visit www.Brookleyproperty.org.