Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Real Estate Sale Quaker Square topic
No spam. Unsubscribe anytime.
Controlling Board approves sale of University of Akron’s Quaker Square after questions on deferred maintenance and price
Summary
The State Controlling Board on April 7 approved the sale of the University of Akron’s Quaker Square property. Lawmakers pressed university and Department of Administrative Services representatives on the property’s 2007 purchase price, roughly $57 million in deferred maintenance, prior listing history and how outstanding bonds will be satisfied.
The State Controlling Board on April 7 approved item 19, authorizing the sale of Quaker Square, a University of Akron property that the university bought in February 2007 for $22,700,000.
The sale drew sharp questions from members of the board because the university and state officials say the site now has an estimated $57,000,000 in deferred maintenance and the reported current purchase price is $800,000. Lawmakers pressed university and Department of Administrative Services officials about prior appraisals, listing history and how bond obligations on the property will be handled.
Senator Wilkin, a member of the controlling board, summarized the concern in blunt terms: “So we paid 22.7 and we are now gonna turn around and sell this for $800,000.” The university representative confirmed the original purchase date and the $22,700,000 figure and told the board the facility was used for student housing until enrollment declines left it underused after 2019; it was also used as a quarantine site during COVID.
Ally Buccello, appearing on behalf of the Department of Administrative Services (DAS), told the board the DAS Office of Real Estate and Planning works with the jurisdictional entity to perform due diligence. A DAS Office of Real Estate and Planning representative described that due diligence as including “confirmation of the review of the bond indebtedness of the property, a review of the legal boundary and description to ensure that the property to be sold has a transferable legal description,” title reviews, easement and encumbrance checks, environmental issue confirmations and a market evaluation to determine value and appropriateness of sale.
On the question of bonds, the DAS representative told the board 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.” In other words, proceeds must be applied to satisfy outstanding bond obligations tied to the property.
Board members asked whether an appraisal was available from the 2007 purchase; the university representative said that information was not prepared for the meeting and that about $5,000,000 had been put into the property at the time of acquisition. Board members also asked whether the property had been publicly listed; the university representative said it was listed four years ago, worked with a broker and at one point had a $4,000,000 asking price before the listing price was removed to solicit offers.
After discussion and questions, the board approved the sale. The item record shows DAS and the university participated in the review and that the purchase proceeds will be applied to satisfy bond obligations connected to the property.
The university and DAS provided the board the factual details above at the meeting; board members requested no further specific actions beyond approval, though several asked for and received clarifications about listing history and bond handling.
