***** FOR IMMEDIATE RELEASE *****

Mississippi Industrial College Properties Sold to Rust College

On Wednesday, August 13, 2008, in Holly Springs, MS, the 63-acre plot that formerly housed the Mississippi Industrial College and surrounding properties, was sold to Rust College (a United Methodist institution) by officials of the General Board of Personnel Services, Inc. acting under the auspices of the CME CDC (Community Development Corporation) after holding the property for approximately 25 years.
After soul searching and prayerful consideration, it was decided to sell the property to the 142 year-old Rust College, a fellow institution sharing the same main street in Holly Springs with Mississippi Industrial College for 103 years, which bolsters the opportunities for higher education in the Holly Springs/north Mississippi area. The two colleges, arms of two sister denominations, have shared similar mission objectives for all of the years of their existence. Bishop Thomas L. Brown, Sr., Presiding Bishop of the Fourth Episcopal District and Bishop Paul A. G. Stewart, Sr., Chair of the General Board of Personnel Services and a graduate of MI College, have both expressed their desire that these newly acquired properties by Rust College become part of a plan for increased educational opportunities for young people.
The decision to sell the property was influenced by several factors including 1) the continued depreciation, decline and deterioration of the property, 2) the continued cost to service the debt on the property, 3) the inability to continue to secure property and casualty insurance (fire insurance and liability insurance) because of the deterioration of the property, 4) the limitations of the use and restoration of the property because of the historic status of the property, and 5) the inability to generate and/or secure funding for the restoration of the property.
In the early 1980’s, the General Board of Personnel Services (acting on behalf of the CME Church) proceeded to redeem the properties when the College went into bankruptcy and made the first investment in the reclamation of the properties. Several options were proposed for the use of the land such as a health rehabilitation center and, more recently, a housing development plan which would include low and moderate-income single family housing, senior housing, rental housing, and commercial units. After considering a myriad of unsuccessful funding proposals including the sale of Church sponsored bonds, solicitation of a bond proposal through the City of Holly Springs, partnerships with investment entities, and funding from philanthropic entities over this 25 year period, the increased cost of maintaining the property coupled with investments to qualify for certain funding opportunities led to an accumulated debt of approximately $1.8 million (including a $975,000 mortgage with a current balance of $685,811 and accrued interest of $27,752). The $1.1 million sale of the property leaves approximately $700,000 in outstanding unsecured debts owed to entities, Episcopal Districts and individuals.
  Although the property was deeded in the name of the General Board of Personnel Services, the Board, serving primarily as fiscal agent for the properties, lent its financial and credit history to the support of the project, but at the request of the College of Bishops and the Board of Directors of the CME Church, it was delegated to the CDC the responsibility of developing strategic funding proposals and other important decisions regarding the MI College Properties. After considering the magnitude of the potential liabilities that would threaten the CDC and the CME Church because of the insurance exposure, the increasing costs to service the debt and pay down principal, and the additional impact of such losses on the operational ability of the General Board of Personnel Services to perform day-to-day operations, the CDC approved the sale to Rust College and directed the General Board of Personnel Services to conclude the transaction. Both entities, the CDC and the General Board of Personnel Services were pleased that this resulting transaction allows this historic property, which is dear in the memory of the CME Church, to continue to be used for educational purposes for the benefits of persons in the Northern Mississippi and surrounding areas.
At the sale and representing the CME CDC Chairman, Retired Bishop Marshall Gilmore, was Bishop Thomas L. Brown, Sr., Vice Chairman of the CME CDC. Signing on behalf of Rust College was Dr. David L. Beckley, President. Signing on behalf of the General Board of Personnel Services were Bishop Paul A.G. Stewart, Sr., Chairman of the Board and Presiding Bishop of the Third Episcopal District, Mr. Matthew R. Davis III, Secretary of the Board and Reverend Dr. Tyrone T. Davis, General Secretary of the Board.

Submitted by General Secretary of Personnel Services Dr. Tyrone T. Davis.