Chancellor University prepared to relinquish title to its building in Cleveland - Cleveland Business News - Northeast Ohio and Cleveland - Crain's Cleveland Business
Chancellor University prepared to relinquish title to its building in Cleveland - Cleveland Business News - Northeast Ohio and Cleveland - Crain's Cleveland Business
Monday February 28, 2011
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Chancellor University prepared to relinquish title to its building in Cleveland
By JAY MILLER
12:58 pm, August 18, 2010
Chancellor University appears prepared to turn over title to its home at East 40th Street and Chester Avenue to the Cleveland-Cuyahoga County Port Authority, which holds a $2.25 million first mortgage on the renovated, 54-year-old building.
Brent Leslie, chief financial officer of the Port Authority, told the agency's board this morning that Chancellor has proposed to the Port Authority that the university turn over title to the agency by Dec. 31 and make payments to the agency totaling $500,000 between next week and the end of the year.
Mr. Leslie said Chancellor would continue to operate in the building until Dec. 31, but that there is no guarantee the university will remain in the building beyond that date.
As Crain's reported this week, Chancellor's enrollment has not met expectations articulated in mid-2009 by the current owner, and the university is working to maintain its accreditation with the Higher Learning Commission.
Catherine Nita, Chancellor's executive director of human resources, acknowledged negotiations with the Port Authority and said the university would be vacating the building. But she said the university would not announce when it was moving or to where until a deal for new space is complete. She would only say that Chancellor will continue to serve Greater Cleveland.
Ms. Nita declined to discuss the reasons for why the university was turning the building over the Port Authority.
According to a letter dated Aug. 17 from Chancellor that is addressed to its faculty and staff and takes issue with the contents of the Crain's story, Mr. Daugherty has scheduled a university-wide meeting for Thursday.
The 162-year-old, for-profit school, formerly Myers University, was bought for $5.25 million in 2008 by Significant Partners LLC of Solana Beach, Calif. The purchase price included $3 million in cash and a $2.25 million mortgage note owed to the Port Authority, which financed the renovation of the building on Chester Avenue in 2004. That mortgage note comes due Aug. 21.
The Port Authority board this morning was told that instead of paying off the mortgage, the university's owner has proposed paying the Port Authority $250,000 within 30 days and another $250,000 by Dec. 31. The university also would give the Port Authority a $250,000 note payable over five years and title to the building.
Mr. Leslie told the Port Authority board that recent appraisals peg the building's value at between $1.76 million if the building is vacant and $4.4 million if it continues to be occupied. He said the Port Authority would recoup the full value of its mortgage even if the building sold at the low end of the appraisals because of the cash expected from Chancellor.
do they give out scholarships for Barbizon Modeling agency at Chancellor?
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