09-12-96 University Signs Contract on Firestone Estate

UNIVERSITY SIGNS SALES CONTRACT FOR FIRESTONE ESTATE
	
	COLUMBUS -- Ohio State University officials Wednesday (9/11) 
signed a preliminary contract with Biskind Realty Co. Inc. of 
North Olmsted for sale of the 1,503-acre Firestone estate located 
primarily in Bath Township, Summit County.  The contract will be 
presented for approval Friday (9/13) at the next regular meeting 
of the university's Board of Trustees, which must authorize the 
sale.
	The sale price is $13 million and is expected to net the 
university approximately $4.2 million, which, in accordance with 
the wishes of the late Raymond Firestone, will be invested in the 
university's endowment and provide a lasting source of support 
for university programs.  The $8.8 million difference between the 
selling price and the net gain reflects the $5 million cost of 
buying the property as well as the cost of maintaining it for the 
past 18 months and the various acquisition and disposition 
expenses.
	
	Biskind has announced that it is pursuing a partnership with 
The Conservation Fund, a Washington-based non-profit 
environmental organization, to develop the Firestone estate as a 
national model of an ecologically sensitive and economically 
viable "exurban" residential community.  Biskind also plans to 
open immediate discussions with Bath Township regarding the 
township's interest in purchasing the wetlands on the estate, and 
with the Medina County Park District regarding possible sale of 
the 214 acres located in Medina County.
		
	"I am very pleased to recommend this sale to the trustees," 
said Ohio State President E. Gordon Gee.
	
	"I feel confident that Ohio State has -- to the very best of 
its ability -- fulfilled the multiple obligations implicit in 
this process: to honor the wishes of Mr. Firestone, to seek and 
consider input from the local community, to be sensitive to the 
unique environmental features of this property, and to fulfill 
the university's fiduciary responsibilities to its students and 
the citizens of Ohio."   
	
	The contract is the culmination of a nine-year process which 
began in May 1987 when the university entered into a bargain 
purchase agreement with Raymond Firestone.  It was agreed that 
upon Firestone's death, the university would purchase the estate 
for $5 million.  Since the estate was then appraised at $8 
million, this constituted a $3 million charitable contribution by  
Firestone with the expectation that the property very well might 
be substantially more valuable by the time the university sold 
it.
	
	Raymond Firestone died in September 1994.  His wife, Jane 
Firestone, who had a life interest in the main residence of the 
estate, died in December 1994.  The university closed on purchase 
of the property in January 1995.
	
	Since before purchasing the property, the university has 
consistently and conscientiously sought and received input from 
the local community and kept the citizens informed.  University 
officials have attended numerous public meetings in the Bath 
area, as well as met with elected officials, the news media, 
civic and community organizations and interested citizens.  The 
university has responded in the same way to student concerns 
about environmental and other issues.
	
	The university concluded that there was no funded academic 
use for the property.  David Brennan, a university trustee from 
Akron, chaired an ad hoc committee which oversaw the sales 
process. "In order to minimize the holding costs, we felt it was 
important to sell the property as expeditiously as possible, and 
in order to do that it was best to seek a single buyer for the 
entire estate," Brennan said.
	
	To assist the sales process the university engaged a number 
of preliminary land studies, including a survey and soils study.  
Two appraisals, resulting in values of $9.3 to $12.2 million were 
also conducted.  In November 1995, in a competitive bid process, 
Ohio State hired The Galbreath Company (Cleveland and Akron 
offices) to market the property and coordinate the sales process 
under the university's active direction.
	
	In response to Galbreath's marketing efforts, five proposals 
for the entire property were received.  

	Galbreath then coordinated negotiation with the four bidders 
who submitted firm proposals: Biskind Realty Co. Inc., North 
Olmsted; John Chlebina, Bath; the Trust for Public Land, 
Minneapolis Regional Office; and Forest City Land Group, 
Cleveland area.  The contract to be recommended to the Board of 
Trustees on Friday is a result of those negotiations.
	
	The terms and conditions of the sale are: the price will be 
$13 million cash on closing; a $150,000 deposit received on 
execution of the contract Wednesday; and a 90-day contingency 
period.

#

Contact: Robert Haverkamp, assistant vice president for
business and administration, (614) 292-7970.


[Submitted by: Ruth Gerstner  (rgerstne@magnus.acs.ohio-state.edu)
               
Thu, 12 Sep 1996 08:39:06 -0400]
All documents are the responsibility of their originator.