Editor's Picks: Old Kent Hotel Sold to Acorn Alley Developer

Editor's Note: perhaps one of the most unexpected stories of 2011 was the sale of the old Kent hotel first to the city of Kent and then to Acorn Alley developer Ron Burbick.

We sat down with Burbick to , but we thought it would be more interesting to re-run the story that was written on deadline the night Kent City Council voted to sell the building to Burbick.

Below is that original story, republished today as one of the editor's picks for top stories of 2011.

City Manager: Old Hotel Sale an 'Investment'

Nov. 3, 2011

Five days after buying it, Kent City Council members voted Wednesday night to to Acorn Alley developer Ron Burbick.

The city closed on the sale of the building Friday for $735,000, plus closing costs, after former owner following court-ordered mediation between himself and the city over the property.

Council agreed to sell the property to Burbick for $400,000 following a closed-door executive session Wednesday night that lasted about 45 minutes. The meeting included all nine council members, Burbick, Kent Economic Development Director Dan Smith, Kent City Manager Dave Ruller, Kent Mayor Jerry Fiala and Kent Law Director Jim Silver. Councilman Wayne Wilson, who requested the executive session in the middle of council's regular committee meetings, said the purpose was for property acquisition.

After the meeting, Ward 4 Councilman John Kuhar said he would liked to have seen the building posted on the real estate market for at least a week in the city's ownership.

"So someone doesn’t think we’re trying to do some kind of a backroom deal," Kuhar said. "As someone who doesn’t like to lose money, this is the one time I do. I couldn’t think of anybody better to own that hotel but Mr. Burbick because he will do it and do it right and do it fast."

Burbick declined to comment on the pending sale Wednesday night.

It's no secret Burbick has had an interest in the building.

He made an offer to buy the building from Vilk recently. Burbick also owns all the property along South DePeyster Street from behind the old hotel to Erie Street. His first Acorn Alley project wraps around the building to the west, and abuts the hotel property to the south. This fall, council voted to in Burbick's honor.

Kent Mayor Jerry Fiala said city officials didn't start working on the sale to Burbick until Wednesday. Fiala said the $335,000 difference between what the city paid for the building Friday and then agreed to sell it for Wednesday was acceptable because that money will eventually be recouped through income and real estate taxes after the property is redeveloped.

"It's no new news Burbick wanted the building," Fiala said. "I think our overall goal was to get it in the hands of somebody who wants to redevelop it, and this is an avenue for us to do that."

Ruller said, since Friday, the city talked with past parties who previously made offers to Vilk for the property. And most of those past interested parties wanted close to $1 million or more from the city to make the sale and redevelopment possible, Ruller said. Even one interested party told the city he would pay the demolition costs if the city woud just give the building away.

Ruller described the $335,000 loss the city took on the transaction as an investment that "is absolutely money well spent."

"Burbick's reputation is outstanding," Ruller said. "He's the most obvious candidate to do this right ... he's talking significant historical restoration that honors the character of the building."

Councilman Robin Turner said he was not as concerned as Kuhar about putting the building on the open market so the sale didn't look like a back-room deal.

"I think Mr. Burbick has quite honestly given us a sweetheart deal as a community," Turner said. "People are worried about the appearance of a sweetheart deal between the city … and the reality is this man has put $14 million in this community at a time when other people are keeping their wallets in their pocket. For the city of Kent, he’s just been a Santa Claus what he’s been able to give to this community."

Burbick hasn't said publicly what his Acorn Alley redevelopment projects have cost him in total, but he has said the first phase of Acorn Alley cost about $6.2 million. And the only public dollar figure attached to Acorn Alley II was a $4.2 million construction cost listed on the building permit for the project.

Councilman Erik Valenta said he doesn't think the Kent community will be surprised to see Burbick taking over the old hotel.

"It’s already been the gut feeling that Mr. Burbick is going to be the gentleman who’s going to rehab that structure," Valenta said. "And I think it’s going to be a great addition to that whole section that he’s done."

The quick sale to Burbick follows a whirlwind of activity over the building in the past two weeks after decades of dormancy. First, council voted Oct. 19 to make to buy the building following court-ordered mediation. Less than a week later, to make the offer. Three days later, on Oct. 28, the city then closed on the sale.

The sale to the city marked the end of a decade of litigation between Kent and the building's owners, as the purchase agreement with Vilk included an arrangement to settle all lawsuits involving the property. The first lawsuit, filed by the city in 1999, was against the previous owner, Joseph Bujack, for failing to keep the property up to city building, health and safety codes. Vilk, who obtained the building from Bujack in 2004, sued the city in 2008 claiming its suit prevented him from selling or redeveloping the property.

Silver, Kent's law director, said part of the deal with Vilk included him settling up with Portage County for more than $10,000 in back taxes that were owed on the property.

Ruller said the next step is for attorneys for the city and Burbick to draw up the legal contracts to sell the property.

"I'm hoping to have that paper work for council's next meeting in the next two weeks," Ruller said.