After languishing dormant for almost two years since the closing of financially failing Birmingham-Southern College, the sprawling 192-acre campus on the city’s west side has a new owner.
U.S. Homeland Security has agreed to purchase the property and make it the newest home of the U.S. Coast Guard, according to an announcement on Wednesday. The campus is slated to be utilized as a training facility for 1,200 recruits and 400 staff members, said the agency.
“We’re very excited to announce that 1,000 jobs are on their way Birmingham,” Mayor Randall Woodfin posted on Facebook. “Major thanks go out to BSC President Daniel Coleman for working to keep the campus viable and attractive for this next phase of use, as well as Senator Katie Britt.
“And a big shout out to the residents of Bush Hills and the western corridor of Birmingham. This is your victory as well.”
“Today’s announcement is further proof that this is the most exciting time to join the Coast Guard in 235 years,” Secretary Kristi Noem said in the announcement. “Thanks to President Trump’s visionary leadership and historic investment in the Coast Guard, the Service is shattering records across the board — including in recruitment. Last year’s recruitment exceeded 110% of active-duty enlisted goals, and the Coast Guard is on track to add 15,000 new members by 2028.”
The announcement came from the office of Sen. Katie Britt, chair of the Homeland Security Appropriations Subcommittee, which funds DHS and USCG.
“This is a huge day for Birmingham, our great state, and the U.S. Coast Guard,” said Britt. “I have long been dedicated to strengthening Alabama’s military installations and the warfighters they serve. This exciting announcement further positions Alabama as a national leader in supporting our incredible U.S. Armed Forces and law enforcement personnel.”
“This move will save the American taxpayers hundreds of millions of dollars,“ added Sen. Tommy Tuberville. ”Alabama and the Coast Guard are a natural partnership. Alabama is already home to every branch of the military and we have the infrastructure, resources, and personnel ready to make sure our United States Coast Guard continues to be elite.”
“After a nationwide selection process, I couldn’t be happier that the former Birmingham-Southern campus has been chosen to serve as a new Coast Guard training facility!” said U.S. Rep. Terri Sewell. the campus is in her district.
“The Birmingham-Southern campus has served as a cultural and economic anchor for more than a century,” she added. “This monumental investment will breathe new life into the campus while bringing hundreds of new jobs and economic opportunities to the surrounding communities.”
The purchase price was undisclosed. However, according to sources, all creditors, including the City of Birmingham, which loaned BSC $5 million in November 2023, will be made whole.
Other creditors included ServisFirst Bank, numerous bondholders, and a consortium that provided emergency bridge funding.
“As a proud alumnus of Birmingham-Southern, it is important to me that this campus continues to serve those seeking to learn and improve their lives,” said Rep. Robert Aderholt. “I’m confident the United States Coast Guard will do exactly that.”
The acquisition is part of Force Design 2028, which was announced earlier this year by Noem. She called it the Coast Guard’s “bold blueprint for change to ensure the service is ready for the challenges of the future.”
The property has been in limbo since 168-year-old Birmingham-Southern closed on May 31, 2024, after failing to secure a $30 million loan from the state legislature to help address long-standing financial troubles. In November 2023, the city of Birmingham approved a $5 million loan to BSC, but it wasn’t enough to keep the school afloat any longer.
State Treasurer Young Boozer III denied the school’s application for a loan from the legislature, saying the school could not make the legislature first in line to be repaid.
“If you loan it, you will own it,” Boozer told a House of Representatives committee. “It is a falling knife.”
Ultimately, efforts to approve the loan failed to gain enough support in the House.
In a letter dated March 26, 2024, announcing the closure, Keith D. Thompson, the chair of the school’s board of trustees, wrote: “Without that funding, the College does not have the resources to continue… This is a tragic day for the College, our students, our employees, and our alumni, and an outcome so many have worked tirelessly to prevent. We understand the devastating impact this has on each of you, and we will now direct our efforts toward ensuring the smoothest possible transition for everyone involved.”
In the subsequent months, HBCUs Alabama A&M University and Miles College, jockeyed to acquire the campus, which had been valued at $65 million.
In May 2024, A&M, located in Huntsville, made a $52 million offer to purchase BSC with the intention to retain the school’s credentialed faculty and staff and operate a standalone campus in Birmingham.
On June 21, Alabama A&M sent a second offer letter to Coleman. This offer was for $35.5 million. A&M officials told the press a much higher figure of $65.5 million — $35.5 million cash, and $30 million in “maintenance.” But that letter does not mention the $30 million.
Alabama A&M sought some state funding to help with the purchase. However, their efforts stalled in July when BSC said it had higher offers.
By then, Miles College in Fairfield, just outside of Birmingham, had made its move to acquire the campus. On June 19, it signed a letter of intent with BSC as part of its negotiations.
However, after a second extension request was denied, the bid expired and failed.
“This was the best possible outcome,” said state Rep. Juandalynn Givan, D-Birmingham. “The Coast Guard will be a stakeholder in the community. The site will no longer be deserted and it will be secure.”
“This next generation of heroes deserves training centers and support facilities worthy of their mission, and that is exactly what they are going to have in Alabama,” Noam said.
Said Sewell: “We in Alabama are thrilled to continue playing a central role in supporting the brave men and women of our Armed Forces!”
Added Woodfin: “This investment delivers real, lasting economic impact to our city and ensures future growth.
