The University of Wisconsin System Board of Regents voted to authorize UW–Madison to execute two leases — each with a purchase option — for sites to relocate the campus fleet services and the waste and recycling operation, the board chair announced after the motion carried.

The leases would allow UW–Madison to move a vehicle garage and fleet operations from Mill Street and move the waste and recycling operation currently in Fitchburg into nearby parcels identified through a request for information process. Alex Breaux, senior associate vice president for capital planning and budget, told regents the parcels are adjacent and will allow administrative consolidation, parking and transportation functions, garage storage and a park‑and‑ride lot. The landlords will perform tenant improvements on behalf of the university, Breaux said.

Regents said they understood the planning rationale for removing the garage from central campus to free a prime site for academic or student‑oriented uses; several members pressed the university for specifics on costs and timing for a lease‑to‑own approach. "I remember when we've done this in the past … it's more the lease to own concept here and understanding what the value of the land is today, versus the purchase price and what we'll be paying over the next 1 to 3 years," said Regent Rai.

Paula Veltham, head of real estate at UW–Madison, said both parcels had been offered for sale, that the university conducted appraisals and that the purchase prices are below the appraised values. Veltham said the university will refresh appraisals before any State Building Commission (SBC) acquisition request — appraisals must be current to SBC rules — and that the sellers were willing to assemble additional land to meet program needs. She also said the university locked the purchase price for three years, giving UW–Madison time to decide whether to continue leasing or complete acquisitions once tenant improvements are finished.

Breaux described two different lease structures: the site with an existing building will be a 15‑year lease with two five‑year renewal options; the other will be a 10‑year lease with two five‑year renewals. UW–Madison would still need SBC approval to acquire the parcels; leasing does not require SBC authorization, Breaux said.

The motion to adopt the resolution passed on a voice vote. The minutes show regents voiced support after discussion and no member recorded opposition.

Looking ahead, the university will refresh appraisals before any purchase request is presented to the SBC and will decide, when tenant improvements are complete, whether to convert the leases into purchases or continue leasing at agreed rates.