The Department of Administrative Services seeks the authority, on behalf of Ohio University, to convey real estate under the jurisdiction of Ohio University. Substitute House Bill 135, of the 134th General Assembly, grants the Department of Administrative Services the authority to convey real estate valued under $10,000,000.00 with the approval of the State Controlling Board. The legislative authority requires that this real estate conveyance be appraised by a third-party vendor.
Ohio University desires to sell 27.13 acres of undeveloped land, along with a portion of the real estate known as The Ridges consisting of twenty-one (21) historic structures that contain approximately 459,427 square feet, situated on 4.8 acres, and located just south of the University's campus in Athens, Athens County. The subject property was originally constructed in the 1870's and used as a mental health facility but was transferred to Ohio University in 1990 at a nominal consideration. Since that time, the University utilized some of the buildings for its purposes, including housing the Kennedy Museum of Art and the Voinovich School of Leadership and Public Affairs, however, the majority of the buildings remain vacant and are in a state of disrepair due to significant deferred maintenance which is estimated at over $100 million dollars.
Ohio University developed a Strategic Framework plan in 2015 to explore ways to rehabilitate the subject property, seeking cost-effective and collaborative ways while being mindful of the community desire to preserve portions of The Ridges and the historical structures. After several years of conversation with over twenty developers, the University engaged Buckeye Hills Regional Council and Community Building Partners in April of 2021 as the development consultant for the rehabilitation and redevelopment of the subject property. The University, along with its consultant, worked with the community to identify the regional need for affordable homeownership opportunities, and the growing need for senior housing in the area which resulted in a redevelopment plan for the twenty-one buildings and adjacent land for the development of a new community authority, pursuant to ORC 349, that will be responsible for establishing the development priorities within the formed community. Ohio University will have member representation on the Board of the community, along with the City of Athens and the Developer. As part of the development of the subject property, a condominium association will also be formed that will have oversight and management of the Ridges community.
The subject property has been appraised by a third-party appraiser at $866,000.00. The sale of the property will occur in two phases, the transfer of the buildings will happen first, then the conveyance of the developable land. The total purchase price for the subject property will be $534,218.04. Ohio University has determined that based on the magnitude of deferred maintenance and projected costs to cure the dilapidated buildings into a habitable state, estimated over $100 million, the negotiated purchase price is acceptable. The Purchaser will pay for all costs and fees associated with the conveyances, including closing and deed recordation costs, and any costs related to the establishment of a new community authority and the condominium association.