Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Real Estate Sale Quaker Square topic
No spam. Unsubscribe anytime.
State Controlling Board approves sale of University of Akron’s Quaker Square amid questions on deferred maintenance and bonds
Summary
On April 7 the State Controlling Board approved the University of Akron’s planned sale of Quaker Square; lawmakers pressed university and state officials about the property’s purchase price, an estimated $57 million in deferred maintenance and how outstanding bonds will be satisfied.
The State Controlling Board on April 7 approved the University of Akron’s planned sale of the Quaker Square property, despite questions from lawmakers about its purchase history, current condition and bond obligations.
Senator Wilkin pressed agency and university representatives over the economics of the sale, noting, “we paid $22,700,000 and we are now gonna turn around and sell this for $800,000.” The university representative told the board the state acquired the property in February 2007 for $22,700,000 and used it for student housing until enrollment declines made the facility largely surplus after 2019.
Board members and staff said the property currently has an estimated $57,000,000 in deferred maintenance. Ally Buccello, speaking for the Department of Administrative Services (DAS), and a university representative said the property was listed for sale about four years ago; at one point an asking price of $4,000,000 was posted and later removed while the university solicited offers. DAS confirmed it performed a coordinated review and due diligence on the transaction and said its Office of Real Estate and Planning worked with the university to evaluate title, easements, environmental issues and bond indebtedness.
Why it matters: the sale price, deferred maintenance estimate and outstanding bonds affect state finances and future obligations tied to the asset. Senator Serino and others pressed DAS to explain its oversight role after a recent law aimed to streamline university property sales under $10,000,000.
Details provided at the meeting show the state bought Quaker Square in 2007 for $22.7 million; the university estimates about $57 million in deferred maintenance; the property was marketed starting about four years ago; an asking price of $4 million had briefly been used; and the current proposed sale price discussed at the meeting was $800,000. DAS told the board the sale proceeds will either be used to satisfy outstanding bonds or the bonds must be defeased, meaning bond obligations linked to the property must be satisfied as part of the transaction.
The board approved item number 19 without recorded objections. The university and DAS did not provide an appraisal from 2007 at the meeting and said the exact length of time the $4,000,000 asking price was posted was not available during the hearing. Senator Wilkin and Senator Serino asked DAS to make the administration of such transactions clear to the legislature going forward.
