Burlington
People’s United Bank, the college’s main creditor, has hired the Thomas Hirchak Co., a Morrisville, Vt.-based auctioneer, to conduct the sale at 10 a.m. on Dec. 7 at 351 North Ave. People can also participate online.
The items to be auctioned include a 3,600-square-foot commercial tent, flat-screen TVs, artwork and “Hearthstone Hardwood Executive Desks with Granite Tops,” as well as many other furniture and electronic items.
Burlington College closed in May after People’s refused to extend the college’s line of credit. School officials blamed the closure on the burden of debt incurred to purchase a 33-acre North Avenue property.
The college borrowed more than $10 million to buy the property from the Roman Catholic Diocese of Burlington. Burlington College was ultimately unable to fully pay back the diocese or People’s United Bank, both of which made loans to finance the purchase.
The proceeds of the auction will go to paying down Burlington College’s bank debt, which trustees estimated at $3.7 million in June.
Board Chairman Yves Bradley has said the proceeds from the auction and the sale of its remaining property are unlikely to cover Burlington College’s debt to People’s United.
Burlington College has a contract to sell its remaining land, including the 351 North Ave. building, to developer Eric Farrell, who has already purchased portions of the Burlington College site. Farrell plans to build more than 600 condos and apartments on the land.
Bradley and Farrell have both said the property will sell for close to $3 million. That means the items to be sold at auction are combined likely to fetch less than $700,000 — though how much less is unclear.