Kent State to Pay $4.25 Million to Lease Vacant Book Store
Final lease agreement inked between university and Portage Port Authority for 3.75 acres
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The final agreement between Kent State University and the Portage Port Authority shows Kent State will pay $4.25 million to lease the former DuBois Book Store property on South Lincoln Street.
In December, Kent State's trustees voted to agree to lease the 3.75 acres from the port authority, an economic development body comprised of members appointed by the Portage County Commissioners.
The exact total, $4,254,902, includes $4,165,502.98 for principal and interest, $89,400 for the annual administrative fee and a $3.7 million security deposit.
"The security deposit money will come back to the university," Kent State spokesperson Emily Vincent said.
The book store closed in the summer of 2011. Howard DuBois, whose family founded the store in 1936, agreed to sell the 16 parcels to the port authority.
The Portage Port Authority voted Dec. 4, 2012, to issue "development revenue” bonds to buy the property, according to the lease agreement.
Kent State President Lester Lefton said previously that immediate plans for the property are to use it as a construction staging area for the new College of Architecture and Environmental Design, which will stand on the new Esplanade extension into downtown.
Kent State has the ability to use the property "in furtherance of its educational and governmental purposes," according to the lease agreement with the port authority.
At the end of the 15-year lease, the university would have the option to buy the land outright from the port authority for a nominal amount, such as $1, or sell its option to a private developer or other entity, Gregg Floyd, vice president for finance and administration at Kent State, said previously.
"What it ultimately might be used for we’re not exactly sure, but given it’s proximity to campus and some of our key academic buildings we don’t want a Wal-Mart to spring up there," Lefton said. "It wouldn’t be consistent with the aesthetic of campus or the Esplanade. This gives us some control."
Chris (Kit) Myers
5:31 am on Friday, March 22, 2013
Is this more property off the tax rolls?
John Bard
6:13 am on Friday, March 22, 2013
The story should read KSU buy's property for 1.3 million as that is what $89,000 for 15 years would be. I hope the Dubois family got more from the county for the property. As more and more property within the city becomes purchased by government entities the taxpayers will carry a larger burden for schools and safety forces.
Joe S
8:11 am on Friday, March 22, 2013
The University better start paying property tax before the City of Kent becomes nothing more than a rental hell hole. Residents who moved here cannot afford to keep the schools and government running while KSU pays nothing and Lefton gets 6 digit bonuses for work he doesn't do but the no names that work there do for no substantial amount of money or benefits.
Chris (Kit) Myers
8:42 am on Friday, March 22, 2013
John, you are certainly correct about taxes. The real estate taxes on my rental on Sourh Willow went from $2697 per year to $4475 per year, an increase of $1778. Will I be voting for the school levy on the ballot in May and run them up even more? Not on your life. Will I vote for a new police station and pay more income tax? Not on your life. The powers that be either don't seem to understand the ramifications of decisions that they make or they don't care. How much property tax money was lost when so many properties were unnecessarily torn down for the Fairchild Avenue bridge? How much did other people's taxes increase? Is everyone in Kent making more money?
Renters need to understand that when real estate taxes increase so will their rent. The property owner does not just whistle, reach up, and catch money that magically falls from the heavens in order to pay the tax increase. He/she raises the rent. How much more rent, dear reader, can you afford to pay?
Sometimes things that look rosy are not. It's like buying a new car and suddenly discovering the you have to pay for it. In our case it's the city fathers buying it and the rest of us paying for it, with them not considering whether or not we have the money to do so. Everyone in Kent does not have the money. And it's time to tell the university that we can't afford their taking more property off the tax rolls.
With all the new development we should be rolling in money.
Debbie
9:02 am on Friday, March 22, 2013
"With all the new development we should be rolling in money." Do you mean the downtown food court? How much money is the City really going to make off of all the new bars and restaurants? We need businesses that pay their employees a livable wage that we can collect taxes from.....
Chris (Kit) Myers
9:26 am on Friday, March 22, 2013
There are hundreds of new jobs in the new bars and restaurants and boutiques and shops, and they all pay income taxes. According to this morning's Record-Courier, PARTA's Frank Hairston said that the PARTA building is expected to bring about 700 jobs to the city. That's a lot of income tax money.
Is there no real estate tax being generated by Burbick's buildings?
We also have new industries in town.
Debbie
9:39 am on Friday, March 22, 2013
How many of the new bars and restaurants have closed or changed hands within the last 30 days? Bars and restaurants do not pay their employees a livable wage, most of their income is not reported to be able to collect taxes on it.
Pad Womack
9:32 am on Friday, March 22, 2013
There is a parking crisis on campus. Students are using equipment for class that is decades old and broken. There are buildings on campus where class is being held that are literally falling apart. How does Mr. Left propose we solve this? Apparently by paying $4mil for a parking lot for construction workers.
veronica j falletta
9:42 am on Friday, March 22, 2013
Make it stop.
Chris (Kit) Myers
9:47 am on Friday, March 22, 2013
Also new apartment buildings on South Lincoln. Should be a lot of real estate tax there.
KSUstaff member
11:36 am on Friday, March 22, 2013
more money on the backs of students...lefton should be ashamed
Sa;;y
9:01 am on Saturday, March 23, 2013
I have a nice little lot on the west side. Is Kent State looking to branch out here? I'll gladly sell and get the -ell out of Dodge.
Mars
11:28 am on Saturday, March 23, 2013
On Kent State's website they have posted an outright lie.
On the site it states:For the second straight year, Kent State University has earned a place in the Best National Universities category with its inclusion in the 2012 edition of Best Colleges by U.S. News & World Report. Once again, Kent State received a coveted spot in the first-tier list of Best National Universities. The exclusive rankings, which include rankings of more than 1,500 schools nationwide, are available Sept. 13 at www.usnews.com/colleges. Kent State’s ranking is 194, tied with eight other schools out of more than 1,500 schools.
https://www.kent.edu/news/announcements/success/usnews2012.cfm
They don't even rank anywhere in the Best Colleges by U.S. News & World Report. Here is the report that names them as unranked. Way to lie Lefton. Thanks again!
http://colleges.usnews.rankingsandreviews.com/best-colleges/kent-state-university-3051
Jason J
4:24 pm on Saturday, March 23, 2013
Mars, clueless once again. The link you posted states KSU's "Rank Not Published". That is certainly not the same as "unranked". Your posts are becoming more and more ridiculous, and you spread more disinformation than just about anyone on Patch. Before calling someone a liar, maybe you should have some idea about what you're talking about. Buy your subscription to US News, and you will be able to see KSU's ranking.
Mars
4:57 pm on Saturday, March 23, 2013
A new fan of mine. I'm flattered Jason J. Truly I am. I'm clueless, yet still appreciative.
Funny how KSU always lauds Mothersbaugh as a graduate. Apparently giving him an honorary doctorate makes him an alumni?
Mars
11:35 am on Saturday, March 23, 2013
And hey, wouldn't you know, the people KSU always pushes as their shining stars didn't even graduate. They attended Kent, but didn't graduate.
"The members of new wave band Devo attended Kent, as did actor Michael Keaton, comedian Drew Carey, and writer David Sedaris, although they did not graduate."
Go Kent?
ernie mcfee
6:52 pm on Sunday, March 24, 2013
That amount of $$$ is a lot of students' tuition!
KSUstaff member
8:06 pm on Sunday, March 24, 2013
Unfortunately students are paying ridiculous amounts to cover all the games played by the administration. And further, a bachelors may not get them a job so they can repay it. Sad.
Chris (Kit) Myers
9:55 pm on Sunday, March 24, 2013
Students upon graduation can get a job. It may not be the ideal job and it may not be in their field, but it is a start.