Ordinance 01-23
To: Members of Dublin City Council
From: Megan D. O’Callaghan, P.E., City Manager
Date: January 3, 2023
Initiated By: Jennifer D. Readler, Law Director
Jean-Ellen M. Willis, P.E., Director of Transportation and Mobility
Re: Ordinance 01-23 –
Authorizing the Appropriation of Franklin County Parcel 273-009086-00 –
Vivo Living Dublin LLC, for the Public Purpose of Constructing a Bridge
Crossing over I-270, which shall be Open to the Public without Charge
Background
The City of Dublin aspires to be the most Connected Global City of Choice, which includes
advanced mobility options and state-of-the art infrastructure goals. In furtherance of these goals,
and to reunite neighborhoods separated by the physical divide created by I-270 and the interstate
system, Dublin is developing the Tuller Road to Emerald Parkway over I-270 Crossing project.
This project was first identified and included as a recommendation for further development during
the Sawmill Road Corridor Study, completed in June 2019.
I-270 currently forms a barrier between the Bright Road neighborhood and the Bridge Street
District. This Crossing project will improve safety for all roadway users, provide better mobility for
all modes of travel, including protected places for bicyclists and pedestrians of all ages and abilities
to cross I-270 safely in a low-stress environment, ease traffic on
Sawmill Road and extend the life of the I-270/Sawmill Road
interchange, and expand the roadway network to improve
connectivity and access north and south of the existing I-270
interchange.
The Bridge Alternatives and Location Study for this project,
completed in May 2022, investigated the feasibility of different
crossing locations, various pedestrian and bicycle facilities, and
types of bridges and intersections. The study concluded the best
location for a new I-270 crossing returns Village Parkway to its
previous alignment and extends north to Emerald Parkway. A
traditional cross-style intersection is currently contemplated for the
Village Parkway at Tuller Road intersection and a roundabout is
proposed at the future Emerald Parkway intersection, as shown in
Figure 1. This alignment results in a more direct traffic flow from
north of I-270 to Bridge Park Avenue and/or Dublin-Granville Road
immediately at opening and is not reliant on future extensions
south of Tuller Road.
Preliminary engineering for this project continued in the fourth quarter 2022. This work is
continuing to advance bridge and intersection details, mobility features, drainage and utility
infrastructure, aesthetic elements, and continued coordination with other agencies, such as the
Office of the City Manager
5555 Perimeter Drive • Dublin, OH 43017
Phone: 614.410.4400 Memo
Figure 1: Recommended
Location for I-270 Crossing
Memo re. Ordinance 01-23 – Authorizing the Appropriation of Franklin County Parcel 273-
009086-00 –for the Tuller Road to Emerald Parkway over I-270 Crossing Project (ET 215)
January 2, 2023
Page 2 of 3
Ohio Department of Transportation and the City of Columbus. Detailed design and utility
coordination will follow with construction planned for as early as 2024-2025.
Adoption of Resolution 53-22 began the appropriation process for this parcel. This Ordinance
authorizes the City Law Director’s office to file a petition for appropriation in the county Court of
Common Pleas should it become necessary and directs the City Manager, the Director of Law, the
Director of Finance, the Clerk of Council, or other appropriate officers of the City to take any other
actions as may be appropriate to implement this Ordinance, including the authority to reach a
reasonable administrative resolution with the property owners to acquire the property interest.
Funding for this acquisition will be advanced from the General Fund until bond proceeds are
available. The expectation is that the City will proceed to sell bonds later in 2023, though the
structure of these bonds (short or long-term financing) is yet to be determined.
Acquisition
In order to keep this project on schedule, it is necessary to begin the acquisition process now. The
property located at 4130 Tuller Road has been identified as a k ey parcel for the recommended bridge
alignment in the Bridge Alternatives and Location Study.
The acquisition consists of the following property interest from the property owner listed and as
depicted on the Parcel Location Map on page 3:
Property Owner Parcel
Number
Property
Interests
Auditor Parcel
ID Number
Appraised
Value
Vivo Living Dublin LLC
(4130 Tuller Road)
N/A 3.39 Ac 273-009086-00 $9,200,000
RECOMMENDATION
Staff recommends adoption of Ordinance 01-23 at the second reading/public hearing on January 30,
2023 to continue the appropriations process for Franklin County Parcel 273-009086-00 – Vivo Living
Dublin LLC, located at 4130 Tuller Road and to allow the project to remain on schedule.
Memo re. Ordinance 01-23 – Authorizing the Appropriation of Franklin County Parcel 273-
009086-00 –for the Tuller Road to Emerald Parkway over I-270 Crossing Project (ET 215)
January 2, 2023
Page 3 of 3
Parcel Location Map
Vivo Living Dublin LLC
(Cloverleaf Suites)
4130 Tuller Road
Parcel ID: 273-009086-00
AN APPRAISAL OF
FEE SIMPLE VALUE
FORMER CLOVERLEAF HOTEL
4130 TULLER ROAD
DUBLIN VILLAGE CENTER
DUBLIN, OHIO 43017
An Appraisal of
Fee Simple Value
Former Cloverleaf Hotel
4130 Tuller Road
Dublin Village Center
Dublin, Ohio 43017
FOR:
Mr. Philip K. Hartmann, Esquire
Frost Brown Todd LLC
One Columbus, Suite 2300
10 West Broad Street
Columbus, OH 43215
BY:
Horner Appraisal Group, Inc.
22 East Gay Street
Suite 300
Columbus, Ohio 43215
Horner Appraisal Group, Inc.
REAL ESTATE APPRAISERS AND CONSULTANTS
22 EAST GAY STREET, SUITE 300
COLUMBUS, OHIO 43215
James R. Horner, MAI TEL. 614/246-8383 Samuel R. Horner, MAI, AI-GRS
james@hornerappraisal.com sam@hornerappraisal.com
May 5, 2022
Mr. Philip K. Hartmann, Esquire
Frost Brown Todd LLC
One Columbus, Suite 2300
10 West Broad Street
Columbus, OH 43215
Re: An Appraisal of
Fee Simple Value
Former Cloverleaf Hotel
4130 Tuller Road
Dublin Village Center
Dublin, Ohio 43017
Dear Attorney Hartmann,
Pursuant to your request and in accordance with your directives, we have visited the property
and have gathered and analyzed applicable data for the purpose of estimating the Market Value of the
Fee Simple Estate, as a whole, in terms of financial arrangements equivalent to cash, as of the most
recent visitation date, May 2, 2022.
As a result of our appraisal and analysis, it is our opinion that the Market Value of the Fee
Simple Estate, subject to the Extraordinary Assumptions, as set forth within this report, as of May 2,
2022, is:
NINE MILLION TWO HUNDRED THOUSAND DOLLARS
($9,200,000)
Allocated:
$100K/”Room”
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This Appraisal Report is being completed without the benefit of an interior visitation or the
opportunity to review the previous Income and Expense history as an operating hotel. The Subject is
proposed to be converted into an affordable housing apartment project with rents projected at
$1,300/month to comply with the financing requirements (see Exhibit on page 9).
The Appraisers reserve the right to reconsider the valuation should an interior visitation of the
property be completed and/or if the Appraisers are provided with the opportunity to review anticipated
renovation costs or the “financials.”
The Intended Use of this report is to determine the Market Value of the Fee Simple Estate as it
relates to its possible acquisition by the City of Dublin, for the purpose of constructing a bridge over
adjacent I-270 that would connect to Emerald Parkway. The Intended Users of this Report are officials
of the City of Dublin, and possibly, a copy of the Report may be provided to the current property
owner, Vivo Investment Group.
The Appraisers recognize that the Covid-19 pandemic had a significant impact on the overall
climate of the travel industry including limited-service hotels. We have included within Tab 2 a copy
of the most recent STRS report and have estimated the average daily rate for the Subject as well as
occupancy levels based on “normal” travel conditions. We have also taken into consideration the
dynamic nature of the immediate neighborhood including the proposed redevelopment of the Dublin
Town Center.
The value is based upon the definition of Market Value which is found within the Addendum.
In accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) adopted
by the Appraisal Standards Board of the Appraisal Foundation, we certify that we have prior
experience in, and are familiar with, the type of property being appraised. Our qualifications are
included in this Report.
Our compensation is not contingent upon the reporting of a predetermined value or direction in
value that favors the cause of the Client, the amount of the value estimate, the attainment of a
stipulated result, or the occurrence of a subsequent event.
The appraisal is intended to conform to the Uniform Standards of Professional Appraisal
Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of
the Appraisal Institute, applicable state appraisal regulations, and the appraisal guidelines of the City of
Dublin.
To Report the assignment results, we used Standard 2: Real Property Appraisal, Reporting of
USPAP. Accordingly, this Report contains summary discussions of the data, reasoning, and analyses
that are used in the appraisal process whereas supporting documentation is retained in our file. The
depth of discussion contained in this Report is specific to the needs of the Client and the Intended Use
of the appraisal.
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We certify this Report is within the scope of our certification, not contingent upon any fee and
is provided by ourselves as disinterested and unbiased third parties. The Appraisers have visited the
property and have concurred in the valuation and analysis.
Thank you for this opportunity to be of service.
Sincerely,
James R. Horner, MAI
GA Certification #380744
Samuel R. Horner, MAI, AI-GRS
GA Certification #430914
JRH/acr
CERTIFICATION
I certify that, to the best of my knowledge and belief,
1. The statements of fact contained in this Report are true and correct.
2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and
limiting conditions and is my personal unbiased professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the Subject of this Report and I have
no personal interest or bias with respect to the parties involved.
4. I have no bias with respect to the property that is the Subject of this Report or to the parties
involved with this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting predetermined
results.
6. My compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the Client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent
event directly related to the Intended Use of this appraisal.
7. The reported analyses, opinions and conclusions were developed, and this Report has been
prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of
Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of
Professional Appraisal Practice.
8. The use of this Report is subject to the requirements of the Appraisal Institute relating to review by
its duly authorized representatives.
9. I have made a personal visitation of the property that is the Subject of this Report.
10. No one provided significant real property appraisal assistance to the persons signing this
certification.
11. As of the date of this Report, I, James R. Horner, MAI, have completed the continuing education
program of the Appraisal Institute.
12. I have performed no services, as an Appraiser or in any other capacity, regarding the property that
is the Subject of this Report within the three-year period immediately preceding acceptance of this
assignment.
13. The real estate which is the Subject of this Appraisal Report was valued as of:
May 2, 2022 (Visitation Date and Effective Date).
HORNER APPRAISAL GROUP, INC.
___________________________________ May 5, 2022
James R. Horner, MAI Date
GA Certification #380744
CERTIFICATION
I certify that, to the best of my knowledge and belief,
1. The statements of fact contained in this Report are true and correct.
2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and
limiting conditions and is my personal unbiased professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the Subject of this Report and I have
no personal interest or bias with respect to the parties involved.
4. I have no bias with respect to the property that is the Subject of this Report or to the parties
involved with this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting predetermined
results.
6. My compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the Client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent
event directly related to the Intended Use of this appraisal.
7. The reported analyses, opinions and conclusions were developed, and this Report has been
prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of
Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of
Professional Appraisal Practice.
8. The use of this Report is subject to the requirements of the Appraisal Institute relating to review by
its duly authorized representatives.
9. I have made a personal visitation of the property that is the Subject of this Report.
10. No one provided significant real property appraisal assistance to the persons signing this
certification.
11. As of the date of this Report, I, Samuel R. Horner, MAI, AI-GRS, have completed the continuing
education program of the Appraisal Institute.
12. I have performed no services, as an Appraiser or in any other capacity, regarding the property that
is the Subject of this Report within the three-year period immediately preceding acceptance of this
assignment.
13. The real estate which is the Subject of this appraisal Report was valued as of:
May 2, 2022 (Visitation Date and Effective Date).
HORNER APPRAISAL GROUP, INC.
___________________________________ May 5, 2022
Samuel R. Horner, MAI, AI-GRS Date
GA Certification #430914
TABLE OF CONTENTS
PREFACE
COVER PAGE
IDENTIFICATION OF PROPERTY
TRANSMITTAL LETTER
CERTIFICATION
PROJECT ............................................................................................................................................................................... 1
PRESENT OWNER OF RECORD ...................................................................................................................................... 1
SALES HISTORY .................................................................................................................................................................. 1
TAXING INFORMATION ................................................................................................................................................... 1
LEGAL DESCRIPTION ....................................................................................................................................................... 2
LAND SIZE ............................................................................................................................................................................ 2
LOCATION AND DIMENSIONS ........................................................................................................................................ 2
STREET AND UTILITIES ................................................................................................................................................... 2
TOPOGRAPHY ..................................................................................................................................................................... 8
ACCESS .................................................................................................................................................................................. 8
DEED RESTRICTIONS ........................................................................................................................................................ 8
ZONING .................................................................................................................................................................................. 8
PRESENT USE ....................................................................................................................................................................... 8
PROPOSED USE ................................................................................................................................................................. 11
PROPERTY RIGHTS APPRAISED .................................................................................................................................. 11
ASSIGNMENT CONDITIONS .......................................................................................................................................... 11
ENVIRONMENTAL STATEMENT .................................................................................................................................. 11
PURPOSE OF THE APPRAISAL ...................................................................................................................................... 12
INTENDED USE / INTENDED USER .............................................................................................................................. 12
SCOPE OF THE APPRAISAL ........................................................................................................................................... 12
BRIEF AREA AND NEIGHBORHOOD DISCUSSION ................................................................................................. 32
DESCRIPTION OF IMPROVEMENTS ........................................................................................................................... 35
HIGHEST AND BEST USE ................................................................................................................................................ 49
LAND VALUE...................................................................................................................................................................... 49
COST APPROACH ............................................................................................................................................................. 50
SALES COMPARISON APPROACH – AS A HOTEL ................................................................................................... 50
SALES COMPARISON APPROACH – AS AN APARTMENT COMPLEX ............................................................... 67
INCOME CAPITALIZATION APPROACH – AS A LIMITED-SERVICE HOTEL .................................................. 75
INCOME CAPITALIZATION APPROACH – AS A MULTI-FAMILY COMPLEX ................................................. 78
RECONCILIATION AND FINAL VALUE OPINION.................................................................................................... 79
ADDENDUM
SUBJECT PHOTOGRAPHS
PROPERTY SKETCH/MAP
PROPERTY RECORD CARD
PROPERTY DEED
FLOOD ZONE MAP
ZONING REPORT
LOCATION AND AREA MAPS
DEFINITION OF MARKET VALUE
QUALIFICATIONS OF APPRAISERS
APPRAISER DISCLOSURE STATEMENTS
APPRAISER LICENSES
Horner Appraisal Group, Inc. 1
PROPERTY IDENTIFICATION
Project
An Appraisal of
Fee Simple Value
Former Cloverleaf Hotel
4130 Tuller Road
Dublin Village Center
Dublin, Ohio 43017
Present Owner of Record
Vivo Living Dublin LLC
Sales History
The property transferred on March 8, 2022, from Hotel 2345 LLC, for $8.6MM as verified by
Public Records and Realtor Eric Belfrage, CRE, ISHC, MAI and Senior Vice President for CBRE’s
Hotels Columbus office.
The property sold for $5.1MM to Batra Hospitality on 6/22/2016 with financing of $3,825,000
being provided by Richwood Banking of Plain City. A copy of the prior sale information is included
within the Addendum.
According to testimony at the Ohio Board of Tax Appeals, the Subject transferred in May of
2013 for $2.9MM of which, $300K was allocated to personal property. The Plaintiff, who are the
former owners of this property, Batra Hospitality, testified that the Prior Sale was a result of “pre-
bankruptcy” conditions.
In July of 1995, Hardage Hotels purchased the property, accordingly to public records, for
$4,991,342.
Taxing Information
We have included within the Addendum, a copy of the taxing information as provided by the
Auditor’s Office. It is noted that, in many counties within the State of Ohio, the Auditor will reappraise
the property when it has been sold at Market Value. The Subject is in Taxing District 273 (City of
Dublin) and the current tax rate for this Taxing District is 89.801685 per $1,000 of Assessed
Valuation. The Market Value of the property reflects the valuation based upon the real estate taxes that
would be applicable. The Auditor’s Current Market Value of the property is estimated at $3,680,000.
The current annual taxes are $115,664.
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Taxing Information – Continued
Typically, when a property in this value category sells for significantly more than the valuation
by the Auditor, the schoolboard would file a Complaint to request that the valuation be increased to
reflect the purchase price. This has been considered with respect to our valuation.
Included within Tab 1 is the summary of the most recent information from the B.O.R. and
B.T.A. regarding the tax valuation of the property.
Legal Description
A copy of the Legal Description from public records is included within the Addendum.
Land Size
The tract contains 3.39 AC.
Location and Dimensions
The site is situated on the north side of Tuller Road across from the intersection of Village
Parkway and abutting the south limited access line of I-270 within the southwest quadrant of the
interchange of I-270 and Sawmill Road, Dublin, Ohio.
The site has 189.5’ frontage along Tuller Road and continues west a distance of 198.8’. The
rear property line, along I-270, is 387.27’. The west property line is 408.81’. The east property line is
349.27’.
Within the Addendum are various Exhibits which are incorporated within this section by
reference.
Street and Utilities
Tuller Road extends north off of Dublin Center Drive, to the east of the Subject, at a point just
south of the interchange with I-270. It then progresses in a westerly direction, intersecting with Village
Parkway and continuing west to Riverside Drive (SR 257).
Tuller Road is a moderately travelled, east-west thoroughfare, through this area of Dublin.
Village Parkway, which extends to the south, will have an intersection with the extension of
John Shields Parkway to the south.
All utilities are available to the property.
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Street and Utilities – Continued
Street Scenes –Tuller Road
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Street and Utilities – Continued
Street Scenes – Village Parkway
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Street and Utilities – Continued
Street Scenes – John Shields Parkway
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Street and Utilities – Continued
Shared-Use Path
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Street and Utilities – Continued
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Topography
The site is relatively level and at grade with Tuller Road with catch basins within the driveways
which are connected to the roadway drainage system.
There is a tree line along the Subject’s north property line adjacent to the LA line of I-270.
Access
There is a single drive approach along the Subject’s Tuller Road frontage near the intersection
of Village Parkway.
General access to the Central Ohio area is excellent by reason of the proximity of the
interchange of Sawmill Road with I-270.
Deed Restrictions
The Appraisers claim no expertise into matters which are legal in nature, but our investigation
has found no special deed restrictions and we have appraised the property assuming it to be "free and
clear" except for typical utility easements and for the zoning regulations of the City of Dublin.
Zoning
A copy of the zoning map for Dublin is included within the Addendum and indicates that the
Subject is zoned BSC-SCN (Sawmill Center Neighborhood).
Present Use
The Subject is improved with a former hotel known as Cloverleaf which consists of (6)
structures with a combined area of 60,298 SF. This (92) room hotel was constructed in 1989. A brief
description of the improvements will be provided within a subsequent section of this Report.
We have been provided with an email on a site visit between the owners of the property and
officials of Dublin. The reader is referred to the following Exhibit.
Included within Tab 2 of the Addendum is the most recent STRS report for January 19, 2022.
Horner Appraisal Group, Inc. 9
Present Use – Continued
March 30, 2022 Site Visit to Cloverleaf Property
4130 Tuller Road, Dublin, OH 43017
Site visit took place on March 30, 2022 at 12:30 p.m.
Attendees:
Brad Fagrell, P.E., Director of Building Standards
Janet Rusanowsky, AIA, Commercial Plans Examiner
Chad Hamilton, Washington Township Fire Department
Akash Rohera, Vivo Investment Group
Joel Hostetler, Anderson Smith Group, LLC
Contractor Representative
Several On-Site Cloverleaf Staff
1. We walked around Building #1 (see legend on next page). This building was the lobby, office,
breakfast area with small kitchen and housekeeping/laundry area. It will be turned into the
leasing office, community gathering areas on 2nd floor, workout area on the 1st floor and the
kitchen will be removed and the laundry and housekeeping area will be maintained. This is
the only building that has fire sprinklers.
2. We looked at the fire alarm panels and electrical services on Buildings #5 and #6. We
discussed their non-complaint fire alarms, non-complaint detection system and lack of CO
alarms.
3. We looked at unit/units in Building #6, #5 and #3. We looked at an existing one bedroom unit
and an existing two bedroom unit. We also looked at an already remodeled one bedroom
unit and an already remodeled two bedroom unit. We discussed the removal of any fireplaces
in any unit (only a handful) and also the framing in and closing off of existing doors that lead
between units.
4. We looked at Building #7, which is the small building off of the outdoor pool. This building
was an existing laundry area for guests. They said they were going to spruce that area up a bit
and keep it as a laundry facility for the complex.
Throughout the tour/inspection Mr. Rohera kept emphasizing that they were going to do the
minimum work necessary to turn the property around and be able to start renting units ASAP. He
said they had some kind of financing that required them to keep their rents low. He said they were
shooting for the $1,300 range for a one bedroom and that the market rate for a one bedroom was in
the $1,800 range. The remodeling that they described was basically some interior painting, new
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Present Use – Continued
flooring, install a sliding barn door for the bedrooms and new countertops in the kitchen. He said all
of the material needed for this remodeling work had already been purchased by the previous owner
and all of those material were given to them and were included in their purchase price.
I drove by the property on 4/29/22 and did not see any construction activity. As of this date, we
shared the existing plans we had for the property, with their Architect. I told them that they needed
to submit a set of plans, that shows all of the proposed work they intend on doing. We have not seen
any plans submitted for our review and approval yet.
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Proposed Use
We understand that the Subject may be acquired by the City of Dublin for the purpose of
construction of a bridge over I-270 which would connect the Dublin Town Center to an area along
Emerald Parkway near the 35-acre tract that is to be developed by Mount Carmel Health System and a
complementary 35-acre tract proposed for use as a Senior Citizen Community.
Property Rights Appraised
The Property Rights being appraised is the Fee Simple Estate which is defined as:
Fee Simple: An absolute fee without limitations to any particular class of
heirs or restrictions, but Subject to the limitations of eminent domain,
escheat, police power, and taxation. An inheritable estate with good
marketable title.
Assignment Conditions
We have been requested to value this property based only on an exterior visitation and
information provided to us from officials of Dublin including previously submitted Building Plans and
Specifications and a recent meeting to the determine the current status of the property as it relates to its
conversion from a hotel to an apartment complex.
We have not been provided with any “financials” or cost information in regard to the
conversion costs.
Environmental Statement
The Appraisers assume that there are no hidden or unapparent conditions of the property,
subsoil or structural, which would render the property more or less in valuation. The Appraisers
assume no responsibility for such conditions or for engineering which might be required to discover
such factors. In this appraisal assignment, the existence of potentially hazardous material used in the
construction or maintenance of the building, such as the presence of urea-formaldehyde foam
insulation, and/or the existence of toxic waste, which may or may not be present on the property, was
not observed by the Appraisers, nor do they have any knowledge of the existence of such materials on
or in the property. The Appraisers, however, are not qualified to detect such substances.
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Purpose of the Appraisal
The Purpose of this appraisal is to estimate the Market Value of the Fee Simple Estate of the
Subject, as a whole, in terms of financial arrangements equivalent to cash, as of the most recent
visitation date, May 2, 2022.
Intended Use / Intended User
The Intended Use of this report is to determine the market value of the Fee Simple Estate of the
property with the Intended Use being to acquire the property for the construction of a bridge that
would connect Tuller Road to Emerald Parkway via a bridge that would progress over I-270. The
Intended Users of this Report are the legal representative and officials of the City of Dublin including
members of the Dublin City Council and also a copy of this Report may be provided to the property
owner. No one other than these individuals or organizations should utilize this report in any manner
without the written consent of the Horner Appraisal Group.
Scope of the Appraisal
This report type is being conducted through the analysis of the three recognized approaches to
value, which are identified as the Cost Approach, Sales Comparison Approach, and Income
Capitalization Approach. These three approaches are defined as follows:
The Cost Approach: In this approach, the cost to replace the existing improvements is estimated. A
deduction for depreciation is made and the result is combined with the estimate value of the land, as
though vacant. This approach is applicable when each component is independently measurable, and
when the sum of all components is believed to reflect market value. This approach is not applicable to
unimproved land or obsolete improvements or to properties that have high levels of depreciation.
The Sales Comparison Approach: This approach compares the Subject property to other properties
that have changed hands fairly recently, at known price levels. The approach is most meaningful
when there is adequate market data involving comparable properties. Reliability of the approach
varies directly with the quantity and quality of available market data.
The Income Capitalization Approach: This approach analyzes the property’s capacity to generate
income (or other monetary benefits) and converts this capacity into an indication of market value. The
approach is suitable for properties that have obvious earning power and investment appeal but is
inappropriate for properties that have no readily discernible income potential.
Research and Analysis: The type and extent of our research and analysis is detailed in individual
sections of the Report. This includes the steps we took to verify comparable sales and data, which are
included within their respective valuation sections. Although we make an effort to confirm the arm’s-
length nature of each sale with a party to the transaction, it is sometimes necessary to rely on
secondary verification from sources deemed reliable.
Included on the following pages is information from CoStar.
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Applicability to the Subject: The first step in the analysis of the Subject is to determine the Highest
and Best Use based upon economic justification and financial feasibility. The Subject was originally
constructed as a hotel and had been operating as such until the early part of 2022. We have
therefore given consideration to the value of the property under this Highest and Best Use premise.
We also recognize that this property has had some economic problems within the past decade. It was
in a pre-bankruptcy status in 2013. The property has therefore been considered as a conversion from
a hotel to apartments. We have therefore analyzed the economic value of the property under this
scenario and have estimated the renovation/remodeling costs including contingencies.
To conclude, both the Sales Comparison and Income Capitalization Approaches have been
considered with respect to the value of the property as of May 2022.
As real estate does not exist within an economic vacuum, we have included in the following
section, a brief Area and Neighborhood Discussion.
Brief Area and Neighborhood Discussion
The readers of this Report are familiar with the City of Dublin and the surrounding area.
The neighborhood is bordered on the north by I-270, on the west by the Bridge Street District,
on the south by Dublin Granville Road (SR 161), and on the east by Sawmill Road.
The East Bridge Street District was developed with 328K SF of Class A Office, 167K SF of
Retail, (760) Apartments, (73) Townhouse Condominiums, a (150) unit Hotel, and a (500) person
Event Center.
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Brief Area and Neighborhood Discussion – Continued
The primary thoroughfare through this district is John Shields Parkway which is being
proposed to be extended to Village Parkway. Along John Shields Parkway are (420) Apartment Units
being developed by the Castor organization and at the intersection of Riverside Drive is a large
Assisted Living and Senior Citizen housing development.
Further along Tuller Road are various “flex” buildings typically developed in the 1970’s.
Included on the following page is an Exhibit relating to the adjacent Bridge Park East District.
The property is situated directly across from a site that is proposed for the construction of an
Iceplex that would be utilized by the Columbus Blue Jackets AAA club. Surrounding this proposed 5-
acre site, the area is proposed for redevelopment by Stavroff Land and Development Company.
The surrounding commercial complex consists of approximately 444K SF including the Dublin
Village Cinema. These buildings were constructed in the late 1980’s and early 1990’s.
Within the Appraiser’s file memorandum is a voluminous amount of information in regard to
the surrounding commercial buildings which encompass this area of the northeast quadrant of Dublin
which is experiencing new development within its neighborhood life cycle.
On the opposite side of I-270 from the Subject, within the northwest quadrant of I-270 and
Sawmill Road is a developing area which includes a proposed large hospital constructed on a 35-acre
site by Mount Carmel. On the opposite side of Emerald Parkway is a 35 +/- acre tract which is to be
developed as a large senior citizen community, similar to Friendship Village along Riverside Drive
within the Dublin area and First Community Village within Upper Arlington. Satellite uses are
expected along Bright Road.
The Land Use Plan is for there to be a connection (bridge) over I-270 between these two
developing areas.
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Brief Area and Neighborhood Discussion – Continued
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Description of Improvements
The Subject is improved with a (92) room, limited-service hotel, which was constructed in
1989 and has a total floor area of 60,298 SF within (6) separate structures. When the property was
renovated in 2013-2014, financing was provided by Richwood Bank and an appraisal was prepared by
Mr. Bradley Plummer, MAI, of the Pillar Valuation Group (Cincinnati). Mr. Plummer provided to us
architectural renderings of the one- and two-bedroom units and indicated the following unit mix:
(80) one-bedroom suites
(8) two-bedroom suites
(4) standard suites
In addition to the (5) separate structures which contain between 16-20 units each, there is a
two-story reception building that is utilized for continental breakfast, reception area, small kitchen,
lobby, housekeeping, and 650 SF of meeting space. There is also an outdoor swimming pool. The site
improvements are in reasonably good condition.
Following the Exhibits provided to us by Mr. Plummer, we have also included selected pages
of the Building Plans and Specifications, as provided to us by the Building Standards Department of
Dublin.
The reader’s attention is invited to the following Exhibits.
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Description of Improvements – Continued
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Highest and Best Use
Highest and Best Use may be defined as:
The reasonably probable and legal use of vacant land or an improved property
that is physically possible, appropriately supported, financially feasible, and that
results in the highest value. The four criteria the highest and best use must meet
are legal permissibility, physical possibility, financial feasibility, and maximum
productivity. Alternatively, the probable use of land or improved property –
specific with respect to the user and timing of the use – that is adequately
supported and results in the highest present value1.
The Highest and Best Use of the land, If Vacant, would fall into a primary commercial
classification, focused strongly on highway oriented commercial uses including hotels. There are 593
hotel rooms within the immediate area including Hampton by Hilton, Sonesta, Homewood Suites,
Residence Inn, and Fairfield Inn.
Architecturally, the Subject does not appear to be a typical hotel, but rather has a style and
configuration that would be oriented more towards an apartment complex.
It is our understanding that there has been a plan to convert the Subject from hotel use to
apartments. Since “closing” on the Sale of the property in the early part of March 2022, it does not
appear that any significant improvements have been made.
In order to determine economic justification and financial feasibility, we have processed both
the value of the property as a hotel and also as a multi-family community. The valuation for hotel use
is somewhat limited because of the lack of historic income and expense information other than the
STRS report.
The value of the property as an apartment project is somewhat subjective as we have no “firm”
information regarding renovation costs, even though the owners of the property indicate that these
costs would be nominal.
The final value of the property will be correlated within the Reconciliation and Final Value
Opinion section.
Land Value
A separate Land Value is not necessary as the Cost Approach is not considered to be relevant.
LAND VALUE: N/A
1 The Dictionary of Real Estate Appraisal, Fifth Edition, 2010, Appraisal Institute
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Cost Approach
The Cost Approach is not considered applicable due to the age of the structure. Estimating all
forms of obsolescence and depreciation would rely almost exclusively upon the judgment of the
Appraisers.
COST APPROACH: N/A
Sales Comparison Approach – As a Hotel
As a basis for estimating the value of the Subject as a hotel, we have given consideration to
sales of hotels that have taken place within the City of Dublin beginning in January of 2017. The
reader’s attention is invited to the following comparables which are summarized below.
Summary of Sales
Sale Sale Date Price/”Room” Price/SF
1925 9/3/2021 $67,049 $95.12
1853 10/30/2019 $33,750 $79.30
2047 12/23/2019 $96,750 $127.98
1455 6/20/2019 $71,428 $112.94
1957 11/6/2019 $62,865 $126.02
1559 7/18/2019 $135,140 $187.16
1698 8/16/2018 $93,421 $167.12
1029 1/24/2017 $164,401 $190.55
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Sales Comparison Approach – As a Hotel – Continued
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Sales Comparison Approach – As a Hotel – Continued
Sale 1925 cont.
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Sales Comparison Approach – As a Hotel – Continued
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Sales Comparison Approach – As a Hotel – Continued
Sale 1853 cont.
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Sales Comparison Approach – As a Hotel – Continued
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Sales Comparison Approach – As a Hotel – Continued
Sale 2047 cont.
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Sales Comparison Approach – As a Hotel – Continued
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Sales Comparison Approach – As a Hotel – Continued
Sale 1455 cont.
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Sales Comparison Approach – As a Hotel – Continued
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Sales Comparison Approach – As a Hotel – Continued
Sale 1957 cont.
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Sales Comparison Approach – As a Hotel – Continued
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Sales Comparison Approach – As a Hotel – Continued
Sale 1559 cont.
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Sales Comparison Approach – As a Hotel – Continued
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Sales Comparison Approach – As a Hotel – Continued
Sale 1698 cont.
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Sales Comparison Approach – As a Hotel – Continued
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Sales Comparison Approach – As a Hotel – Continued
Sale 1029 cont.
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Sales Comparison Approach – As a Hotel – Continued
The Appraisers have analyzed each of the Sales and have made qualitative adjustments. The
average per/SF purchase price of these (8) Sales is $136.30/SF. Recognizing the negative impact, the
Pandemic had on the value of properties that sold in 2020/2021, a modest upward adjustment is
warranted. Applying $150/SF x the Subject’s 60,298 SF indicates a value of $9,045,000.
On a per room basis, the Sales indicate an average of $91,058/room. Again, adjusting this
upward approximately 10% to reflect the negative impact of marketing conditions for the past two
years, would reflect a value of the Subject at $100K/room.
Applying the $100K/room x the Subject’s 92 rooms indicates a value of $9.2MM.
To conclude, the Sales Comparison Approach – As a Hotel, reflects a value range from
$9,045,000 to $9,200,000. Both analyses are considered reasonable and therefore, we have selected
the median range of $9,122,500.
SALES COMPARISON APPROACH – HOTEL: $9,122,500
Allocated:
$99,158/”Room” or $151.29/SF
Sales Comparison Approach – As an Apartment Complex
There have been very few multi-family sales that would be considered comparable with respect
to the locational attributes and physical characteristics of the Subject. This type of property is typically
purchased based solely upon the quality and quantity of the anticipated Net Income.
As a guide to judgment only, we have given consideration to Sales that are included on the
following pages.
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Sales Comparison Approach – As an Apartment Complex – Continued
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Sales Comparison Approach – As an Apartment Complex – Continued
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Sales Comparison Approach – As an Apartment Complex – Continued
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Sales Comparison Approach – As an Apartment Complex – Continued
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Sales Comparison Approach – As an Apartment Complex – Continued
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Sales Comparison Approach – As an Apartment Complex – Continued
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Sales Comparison Approach – As an Apartment Complex – Continued
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Sales Comparison Approach – As an Apartment Complex – Continued
Adjusting qualitatively, the Comparable Sales for differences in physical features and
locational attributes would indicate a per SF value of the Subject at or near $200/SF. Applying
$200/SF to the Subject’s 60,298 SF would indicate a future value of approximately $12MM.
On a per unit basis, the adjusted value would reflect $125K/unit. Applying $125K/unit for the
Subject’s 92 units would indicate a value of $11,500,000.
The Prospective Market Value of the Subject falls into a range from $11.5MM to $12.0MM.
As we discussed within the Income Capitalization Approach, we have adjusted to reflect the
Direct and Indirect costs involved with converting the Subject to apartments as well as a consideration
of Entrepreneurial Overhead and Profit. This sub-totals approximately $2.4MM.
Deducting the costs of conversion to reflect the current value would indicate an adjusted range
from $9.1MM to $9.6MM.
We have correlated at the median range of $9.4MM.
SALES COMPARISON APPROACH – APARTMENTS: $9,400,000
Allocated:
$156/SF or $102,173/Unit
Income Capitalization Approach – As a Limited-Service Hotel
The reader is referred to the STRS report that is included within the Addendum. A Summary
of this data for the Subject property is provided below.
STRS Report
Year Occupancy % ADR RevPAR
2019 73.0% $89.61 $65.45
2020 67.7% $77.65 $52.58
2021 75.6% $87.34 $66.01
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Income Capitalization Approach – As a Limited-Service Hotel – Continued
We have had the opportunity of appraising numerous Limited-Service Hotels of this type
within the Central Ohio area. From these prior appraisals, we have estimated the Expenses that would
be applicable to the Subject.
We have also abstracted overall rates from the market.
The N.O.I. for the Subject is estimated at $723,803. The capitalization rate is 8.25% and the
indicated current value of the Subject as a hotel is $8,775,000. A Summary of the Income Approach is
provided on the following page.
INCOME APPROACH – LIMITED-SERVICE HOTEL: $8,775,000
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Income Capitalization Approach – As a Limited-Service Hotel – Continued
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Income Capitalization Approach – As a Multi-Family Complex
The Appraisers have given consideration to rent comparables throughout the Central Ohio area
but have given special attention to those Sales that are located within the Bridge Park East District.
We have estimated the Economic Rent of the Subject at $2.00/SF except for the small studio
units which are projected at $2.50/SF.
Occupancy levels within the immediate area are “strong.” Anticipated Vacancy and Credit
Loss is estimated at 5%.
We have added 3% for Miscellaneous Income, including items such as forfeiture of deposits,
laundry, pet fees, etc.
The current level of Real Estate Taxes would change as a result of the conversion of the
Subject from a hotel to an apartment complex. Utilizing a Tax Additur, the Real Estate Taxes are
estimated at $300K.
We have added for Insurance Costs, a Management Fee of 7%, Maintenance Reserves at
$1K/unit, Grounds Maintenance at $3K/month, and Utilities at $1K/month.
The Net Income has been capitalized at an overall rate of 6% indicating a Prospective Value of
the Subject, after renovations to an apartment community, at approximately $12.0MM.
From this Prospective Value, we have deducted at total of $2,418,060 to reflect the costs of
Lease-Up and Advertising, the Direct Costs involving the Conversion, and an allocation of 10% of the
Prospective Value for Entrepreneurial Overhead and Profit, as well as a consideration for the Rent
Loss that would occur during the Lease-Up period.
The Current Market Value of the property is estimated at $9.6MM and a Summary is included
on the following page.
INCOME APPROACH – MULTI-FAMILY COMPLEX: $9,600,000
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Reconciliation and Final Value Opinion
COST APPROACH: N/A
SALES COMPARISON – HOTEL: $9,122,500
SALES COMPARISON APPROACH – APARTMENTS: $9,400,000
INCOME APPROACH – LIMITED-SERVICE HOTEL: $8,775,000
INCOME APPROACH – MULTI-FAMILY COMPLEX: $9,600,000
All four approaches to value have some inherent weaknesses but fall into a close range. We
have correlated at the median of the valuation spectrum.
As a result of our appraisal and analysis, it is our opinion that the Market Value of the Fee
Simple Estate of the Subject, As a Whole, in terms of financial arrangements equivalent to cash, as of
the most recent visitation date, May 2, 2022, is:
NINE MILLION TWO HUNDRED THOUSAND DOLLARS
($9,200,000)
Allocated:
$100K/”Room”