Council: No Back-Room Deal on Old Hotel Sale

Members of Kent City Council responded to criticism this week of their to Acorn Alley developer Ron Burbick for less than what the city paid for the building.

"There’s been a lot of flack about us purchasing the property for $750,00 and selling it for $400,000," Councilman Erik Valenta said during council's meeting Wednesday. "I look at it this way: we’re actually making an investment in our city for the $350,000 for the simple fact Mr. Burbick is going to invest in this property and redevelop it."

Kent residents criticized the sale privately by calling council members and publicly in comments on news stories and Facebook posts about the sale. Council agreed to sell the building during a closed-door, executive session where Burbick was present — less than five days after acquiring the deed.

"We got a statement from the law director that this was appropriate, we could take this kind of business action," Councilman Robin Turner said. "It may not have appeared as pristine as some people would like, and I certainly appreciate and respect that as well. I think now what most people want us to do is move forward, and we’re doing that."

Ward 4 Councilman John Kuhar was the only council member who did not vote to approve the final sale agreement Wednesday.

Kuhar said he abstained because the city should have posted the property for sale publicly for at least a week before selling it to Burbick.

"When I (voted) no to not support this it’s not because I believe it’s not going into the right hands," he said. "I think this hotel is going to go to the perfect person."

Burbick has and not demolish it, per his 8-page contract with the city for the buy, but that same contract also gives him the option to demolish the building. If it were demolished, then the city would have at least 14 days to buy it back for the same price the building sold for, according to the contract, which is attached to this story as a .pdf file.

Burbick's goal is a community-based restoration of the beloved, 91-year-old building with monetary, time and in-kind donations from anyone willing to help.

Part of that sale agreement, Burbick said previously, was that he would invest between $500,000 and $750,000 of his own money in the building, which will be owned by his non-profit. The actual restoration is estimated to cost around $3.6 million — excluding purchase price — and Burbick hopes to raise $3 million from other non-profit and community based organizations, and a fund also will be established at so residents can donate any amount to the restoration.

The city also agreed to help apply to add the property to the National Register of Historic Places in Ohio. If the building gets on the registry, state and federal tax credits would become available for the restoration work.

According to the sale agreement, the first and second floors of the old hotel will be ready for occupancy within 2 years of the closing date on the property. The upper three floors will be ready for occupancy within 48 months.

Councilwoman Heidi Shaffer, during her opening remarks at Wednesday's meeting, pleaded for support from the community to help make the restoration happen.

"We all have a chance to purchase this building the way that it’s being set up," she said. "And I hope that many, many citizens will step up and see that this is a community project. This is a community endeavor that celebrates all of us."

Burbick's foundation will own the building, so he won't profit off any future rent or other profit generated by the old hotel. Burbick said that, each year, 25 percent of income generated by the building will help support Kent-area non-profits. Another 25 percent will go to Portage County area non-profits, and the remaining balance will go to other non-profits Burbick has worked with in the past.

"It’s a gift that will keep giving back to the city long after we’re gone," Valenta said.