BEXLEY, Ohio (WCMH) – Bexley City Schools has less than two weeks to decide if it will go through with a $6 million land purchase that has raised questions among taxpayers. 

Bexley schools announced in September it had entered into an agreement to purchase over 28 acres of land at 935 N. Cassady Ave, which the Franklin County Auditor valued at $10.18 million in 2023. The agreement included a 75-day grace period, which will expire on Dec. 2.

District representatives said the purchase was an opportunity they could not pass up, as the land is just a short distance north of city limits and would cost the district $6.03 million for a 28.36-acre parcel of land. However, community members raised questions about who the land was bought from and how the price nearly tripled from its last purchase.

According to documents from the Franklin County Auditor, the land is worth $2,413,700, but coupled with $7,771,600 in improvements, the total market value for the site is $10,185,300.

Who sold the land?

The land is currently owned by 935 Cassady LLC, which is managed by Fatih Gunal, according to purchasing documents obtained by NBC4. Gunal owns Cafe Istanbul, a Mediterranean restaurant with locations in Bexley, Dublin and at Easton.

Under the name 935 Cassady LLC, Gunal purchased the land on March 4 for $2,225,000. This is the only property owned by the company, according to the Franklin County auditor.

According to business records from the Ohio Secretary of State, 935 Cassady LLC was established Aug. 25, 2023. The timing and the name of the corporation indicate the March purchase could have been in the works for at least eight months.

This is also not the first time Gunal has purchased land using a company named after the purchase, as he is the man behind several city permits for 198 McNaughten LLC. The 198 McNaughten company is behind a 300-unit apartment to be built in the Far East neighborhood against resident wishes.

Why was the last purchase only $2 million?

Gunal purchased the property while its owners were involved in litigation, according to court documents. The district’s website states Gunal bought the land for $2,225,000 in receivership, or when a court nominates a neutral third party to operate a property during a lawsuit. Often when a property is in receivership, it sells for a much lower price because sellers are typically motivated to sell more quickly.

The land is the former site of Summit’s Trace nursing home, which lost its authorization to practice in April 2023 after it was found noncompliant with 56 necessary health standards by the Centers for Medicare and Medicaid Services. The facility was also in trouble with the Ohio Department of Health.

According to court documents, the nursing home was owned by Falcon Four Property Holding LLC, but managed and rented by another firm. The latter was unable to pay its lease to Falcon Four after the nursing home fell into jeopardy of losing its license in the months before it was disbanded. The renters owed $2 million in rent as of March 1, 2023, mostly in late fees and in a security deposit payment. 

Falcon Four sued the managers in 2023, and the lawsuit is ongoing. Early into the litigation, 935 N. Cassady Ave. was placed into receivership, with the court-appointed property manager taking control due to financial concerns. In February 2024, court documents show Falcon Four was given permission to sell the property.

What has the district said?

Bexley schools have repeatedly said the purchase agreement is not final, but have stressed it is a good opportunity for the district to address facility needs. NBC4 obtained the closing agreement and letter of intent between Gunal and the district, which said after the grace period, the district would close the deal before the end of December.

According to the purchase agreement, the district should have already paid a $100,000 refundable deposit after signing. If the district does pull out of the agreement, they owe Gunal $100. Gunal and the district are splitting associated closing costs fairly evenly.

Community members have voiced concerns about the physical and environmental safety of the location. According to the agreement, Gunal did not have to make any promises regarding environmental concerns or removal of hazardous materials, with the latter initially written and then crossed out in the letter of intent. 

However, he did have to provide the district with any pre-existing site reports and assessments the district requested for the sale to go through, and the district has publicized recent environmental reports. The district has also insisted safety would be a top priority if the sale goes through, discussing added security measures and transportation for students to get them safely to and from the property.

Although some Bexley residents have questioned the district paying Columbus taxes, property owned by public school boards are exempt from taxation, so no matter where land was purchased by the district, it would not owe property taxes. The district said it does benefit from expanding outside city limits, as it ensures it is not taking up space in Bexley’s 2.5 square miles that could be funding the district through property tax revenue.

Ahead of the grace period’s expiration, Bexley residents can provide feedback for facilities planning, including the land purchase, online. Bexley schools also offered two community engagement sessions this week, one Tuesday from 7 to 8:30 p.m. and another Wednesday from 9 to 10:30 a.m.