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State of Ohio - Controlling Board Request
STATE OF OHIO
CONTROLLING BOARD
30 East Broad Street, 34th Floor
Columbus, Ohio 43215-3457
(614) 466-5721 FAX:(614) 466-3813
CAPITAL REQUEST Controlling Board No.
DNR0101918
Status:  Approved
Meeting Date:  6/15/2020

GENERAL INFORMATION

Agency
Natural Resources


Division/Institution
Wildlife

Eligible for Local Administration?
Yes
Real Estate Acquisition
    Release of Capital Funds(R.C.Sec. 127.14G) and/or R.C.126.14
    Transfer of Capital Funds (R.C.Sec. 127.14G and/or Sec. 127.15)
    Higher Education Authorization Request (Sec. 3333.071)
    Other Statutory Authority/Bill Section:
Fiscal Year(s)
2020
Bill No.
HB 166
Eligible for OBM
Director Approval?
No
Capital Request
    Release of Capital Funds (R.C.Sec. 127.14G)
    Transfer of Capital Funds (R.C.Sec. 127.14G and/or Sec. 127.15)
    Waiver of Competitive Selection (R.C.Sec. 127.16B)
      No Competitive Opportunity
      Agency Released Competitive Opportunity
    Agency Released Competitive Opportunity (R.C.Sec. 127.162)
    Release Percent for Arts (R.C.Sec. 3379.10)
    Other Statutory Authority/Bill Section:
    Other:

REAL ESTATE DESCRIPTION
Owner No. of
Acres
Acres Previously
Purchased in Area
Balance of Acres
to be purchased
Purchase is Additional to
Real Estate Area of
Ohio Franklin Realty, LLC  31335 10500 18500 AEP Recreation Lands
Option Price Name of 1st Appraiser Name of 2nd Appraiser
Total Per Acre Cushman & Wakefield  American Property Analysts, Inc. 
$47,000,000.00 $1,500.00
Taxation Value (100%) Value of 1st Appraiser Value of 2nd Appraiser
Total Per Acre Total Per Acre Total Per Acre
$0.00 $0.00 $11,340,000.00 $1,703.00 $10,600,000.00 $1,607.00
County Township/Municipality If local funds are to be used, state the source of the funds
Morgan  Bristol & Manchester  N/A 
Most Recent Sale of Real Estate Second Most Recent Sale of Real Estate
Date Price Date Price
09/27/2019  $7,793,643.00  06/25/2018  $11,238,175.00 

TRANSFER INFORMATION
FromToFYFund GroupFund CodeAppropriation Line ItemAppropriation Line Item NameTransfer AmountPrev Rel Amount
         

FUNDING INFORMATION
Fund GroupFund CodeAppropriation Line ItemAppropriation Line Item NameTotal Amount
CPF 7035 C72513 Land Acquisition $23,000,000.00

SIGNATURES
     
Mary Mertz 06/15/2020
   
Agency Director or Authorized Agent On The Date Of
   
05/26/2020 W. Fletch Zimpher
   
Date Controlling Board President/OBM Director
   
AGENCY CONTACT
Name:  Danielle Vandegriff Title:  Legislative Director
Phone:  (614) 265 - 6878 Fax:  (614) 261 - 9601 E-Mail:  Danielle.Vandegriff@dnr.state.oh.us
REQUIRED EXPLANATION OF REQUEST
  The Ohio Department of Natural Resources (ODNR) respectfully requests Controlling Board approval to release capital appropriation in the amount of $23,000,000 from Fund 7035 (Parks and Recreation Improvement), ALI C72513 (Land Acquisition) in FY20 for the purchase of 31,335 acres of real estate from Ohio Franklin Realty, LLC (an American Electric Power (AEP) subsidiary and willing seller) for the Year 3 acquisition of AEP Recreation Lands. (This is request 2 of 2)  
  On October 2, 2019, Governor Mike DeWine announced that ODNR and AEP reached an agreement to secure a historic addition of more than 31,000 acres of public land in perpetuity for conservation and outdoor recreation. Governor DeWine further stated "With this acquisition, we ensure that all of our citizens and future generations will continue to enjoy this scenic area and its resources." This land is located in Morgan (Bristol, Manchester, Center, and Meigsville Townships), Muskingum (Meigs & Bluerock Townships), and Noble (Brookfield Township) Counties. The majority of this acquisition is located in Morgan County (Bristol & Manchester Townships).

This area has long been a popular destination for hunting, fishing, camping, and hiking. The property has 24 continuous miles of the Buckeye Trail traversing the area and includes 350 lakes and ponds and six campgrounds. It adjoins the existing Jesse Owens State Park & Wildlife Area.

Valuation and Pricing - Year 3
The year 3 tract "A" property has been appraised by two firms: Cushman & Wakefield (retained by AEP) at $1,703 per acre and American Property Analysts, Inc. (retained by ODNR) at $1,607 per acre. The negotiated price per acre is $1,500.00. The total Year 3 purchase amount from these funds is $47,000,000 and is expected to be completed in quarterly installments with the entire purchase to be completed on or before June 30, 2021.

The taxation value of this property is unable to be determined. The County Auditors have not established a new taxation rate as the property is not currently parceled in the form in which it will be acquired. Additionally, as this land has been held by AEP or one of its subsidiaries for over 60 years, the lack of arms length transactions prevents the listing of meaningful recent sales. The year 1 purchase price was $1,963.00 per acre, and the year 2 purchase price was $1,850.00 per acre.

Objective
The purpose of this project is to acquire as much of the AEP ReCreation Lands as feasibly possible to be dedicated as a stand-alone state park & wildlife area. For the year 3 acquisition, ODNR will acquire approximately 31,335 acres with the capital funds sought in this request.

Results and Benefits
The acquisition of land at the AEP ReCreation Lands will keep substantial acreage of existing public hunting agreement land open to the public. This AEP property supports a variety of habitat types. As a result of past surface mining for coal, grasslands and shrub land exist in large quantities. Woodlands in varying stages of growth and development also dominate a large portion of the landscape. The combination of diverse habitats provides for excellent hunting of white-tailed deer, turkey, squirrel, rabbit, and mourning dove. Small wetlands and water impoundments ranging in size from 1 acre to 30 acres exist and offer opportunities for waterfowl hunting, furbearer trapping, and angling.

Hard Minerals
In accordance with section 4 of the attached Purchase Agreement, ODNR will work with AEP and any mineral rights owner to enforce mineral lease provisions that may affect surface conditions, which includes environmental remediation, environmental testing, etc. In addition, ODNR will work with AEP to minimize the frequency or extent of surface impacts prior to the disturbance necessary for reasonable access to leased minerals.

Dams
Multiple dams have been identified on the property, and all of them have been inspected for deficiencies in accordance with ORC and the Division of Water's Dam Safety Program. Per Section 2.h. in the attached Purchase Agreement, AEP will correct the outstanding items listed in the dam inspection reports before closing on this acquisition.

Management and Monitoring
ODNR has had a management agreement on the land since 1962. Over these 58 years, the ODNR has provided law enforcement and fish and wildlife management on the property. ODNR district staff, including officers, area supervisors, and technicians, are responsible for administering, monitoring and all signage on state wildlife areas. This would include habitat management and protection to ensure that ODNR lands remain in a natural state and continue to serve the purpose for which they were acquired. Boundary lines are continually monitored to avoid encroachments. Any potential encroachments are investigated and, if necessary, researched and addressed by ODNR Office of Real Estate staff.

Survey and Closing Costs
Per the Purchase agreement, AEP will cover 75% of the survey and closing costs. ODNR/DOW will reimburse their 25% share at closing.

Future Plans
The State of Ohio also has the option to purchase 18,500 additional acres in the area by June 2023, which could bring the total acquisition close to 60,000 acres.
 
  Year 1:
DNR0101473
DNR0101474
DNR0101477
DNR0101478
DNR0101479
(all approved 4/9/18)
Year 2:
DNR0101733
DNR0101734
(all approved 9/23/2019)
Year 3:
DNR0101849
(approved 6/1/2020)
 
Attachments Controlling Board Request No.: DNR0101918
Attachment TypeAttachment Description
Other Real Estate Purchase Agreement
Other Year 3 AEP acquisitions map
Real Estate Appraisal Cushman & Wakefield appraisal
Other Cushman & Wakefield appraisal review
Real Estate Appraisal American Property Analysts, Inc. appraisal
Other American Property Analysts, Inc. appraisal review