University officials to explain hotel plan

University of Akron officials will try to explain again the appraisal of the property.

COLUMBUS (AP) — University of Akron officials will make another attempt to publicly explain the school’s plan to buy a 190-room hotel complex for $22.7 million, a price more than double its tax valuation.

The university sent a letter of apology to the bipartisan state Controlling Board, which approved the deal unanimously last week, making it one of the most expensive real estate deals by an Ohio public university in two decades.

University attorney Ted Mallo had told the board that Summit County appraised the hotel at $28 million, but the full value set by the county was $9.8 million. Board members were left with the impression the university was paying $5 million less than the value of the property, when it is paying 2.3 times more.

In the apology, Mallo said he made a mistake, confusing the county’s figures with three independent property appraisals, which placed a value on the eight-story, Quaker Square hotel complex between $22.7 million and $29.8 million.

Will explain further

After last week’s meeting, Controlling Board member Sen. Ray Miller, a Democrat from Columbus, asked university officials to speak to the board again, to further clarify the numbers, and school officials plan to attend a Sept. 10 meeting of the board.

When officials return, board members will be allowed to ask questions and make comments but the purchase request will not be reconsidered.

The university plans to turn the hotel complex into dormitory housing for 382 students, offices, a banquet hall and 450 parking spaces. Money for the project will come through the issuance of tax-free bonds.