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Controlling Board approves University of Akron sale of Quaker Square after members question purchase, maintenance and bonds
Summary
The State Controlling Board approved the University of Akrons sale of Quaker Square after members pressed university and Department of Administrative Services officials about the propertys 2007 purchase price, an estimated $57 million in deferred maintenance and how outstanding bonds will be handled.
The State Controlling Board on April 7 approved the University of Akrons proposed sale of Quaker Square after board members questioned the university and Department of Administrative Services officials about the propertys history, costs and outstanding debt.
Board members pressed the university and DAS on details of the transaction and on the condition and valuation of the property. Senator Wilkin asked whether an appraisal had been done at the time the university purchased the site and how deferred maintenance reached the current estimate. A university representative told the board, "Madam President, Senator Wilkin, this property was purchased in 02/2007 and it was purchased for $22,700,000." The representative also said the university had put about $5,000,000 into the property at purchase and that declining enrollment left the facility largely unused since 2019 except as a COVID quarantine facility.
Senator Wilkin said the boards materials indicated about $57,000,000 in deferred maintenance and asked whether the property had been publicly listed for sale. The university representative said it had been listed and that "there was originally a $4,000,000 asking price for that property after it was on the market for a little bit." The senator also asked about the current sale price; the university representative said "yes" when asked if the property was being sold for $800,000.
Ally Buccello, speaking for the Department of Administrative Services, described DASs role and the departments due-diligence checks. Buccello said DAS conducts review of bond indebtedness, legal boundary and description, title defects, easements and encumbrances, known environmental issues and a real estate market evaluation. On how bonds would be handled, a DAS representative said "the bonds will not be defeased. However, the purchase price will actually, you either have to defease bonds or you apply the purchase price to bonds To satisfy the outstanding option." The representative summarized, "So 1 way or the other, there is bonds, there are bonds, and they will have to be satisfied whatever by whatever method."
Board members also asked how long DAS had been involved; Buccello said DAS had been involved for about six months. After discussion and questions from multiple members the board voted to approve the item.
The vote record was not read into the public transcript. The board did not provide an appraisal figure from 2007 at the meeting and said the university did not have the 2007 appraisal or deferred-maintenance detail on hand.
