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State Controlling Board approves sale of University of Akron’s Quaker Square after members press for details
Summary
At its April 7 meeting the State Controlling Board approved the University of Akron’s planned sale of the Quaker Square property after members questioned the purchase history, deferred maintenance estimates and how outstanding bonds would be handled.
The State Controlling Board on April 7 approved the University of Akron’s planned sale of the Quaker Square property after members pressed agency representatives for details about the property’s purchase price, deferred maintenance and outstanding bond obligations.
Board members repeatedly questioned the financial history of the site and the disparity between the university’s 2007 purchase price and current repair estimates. Senator Wilkin asked several times for background and said, “So we paid $22,700,000 and we are now gonna turn around and sell this for $800,000,” adding that she was “hard pressed to believe” deferred maintenance had grown to the amount reported.
Why it matters: The board accepted assurances from the Department of Administrative Services (DAS) and university representatives that due diligence had been performed and that any bond indebtedness connected to the property would be satisfied with sale proceeds. Board approval allows the university to complete the disposition process; the record shows the item was approved by voice with no objections.
Details from the meeting: Ally Buccello, speaking on behalf of DAS, and a university representative said the property was purchased in February 2007 for $22,700,000. The university representative told the board that the property had been used for student housing but “because of declines in enrollment, we have not needed that facility since 2019,” apart from COVID quarantine use. The university representative also said an estimated $57,000,000 in deferred maintenance is currently associated with the property.
DAS described its role in vetting the sale. A DAS real estate representative said the Office of Real Estate and Planning works with the owning entity to confirm bond indebtedness, legal description and title issues, easements and encumbrances, known environmental matters and a market evaluation to determine appropriateness of a sale. On whether bonds must be defeased, a DAS representative said the purchase price will be applied to satisfy outstanding bonds “one way or the other.”
The board approved the item after discussion and no formal roll call vote was recorded in the transcript.
Background: Board members noted the property was listed for sale about four years earlier and that the university had at one point advertised a $4,000,000 asking price before switching to solicit offers.
Outcome and next steps: The item was approved by the State Controlling Board; the transcript indicates DAS and the university will proceed with the sale process, including satisfying bond obligations tied to the property.
