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University of Tennessee board approves short-term housing lease and five-year holding agreement for Maplehurst site
Summary
The State Building Executive Subcommittee approved two University of Tennessee requests during its meeting: a one‑year housing lease for medical and dental clinical participants in Knoxville and a five‑year holding and option agreement for the Maplehurst property adjacent to the UT Knoxville campus.
The State Building Executive Subcommittee approved two University of Tennessee requests during its meeting: a one‑year housing lease for medical and dental clinical participants in Knoxville and a five‑year holding and option agreement for the Maplehurst property adjacent to the UT Knoxville campus.
Associate Vice President Austin Oakes told commissioners, "This lease will provide program participants, specifically, MD residents and those in clinical rotations in the dentistry program, with housing in Knoxville through up to 9 2 bedroom units. The lease term is for 1 year, and the proposed monthly rate is identical to the request last year at $3,703 per month per unit." The committee moved and approved the item by voice vote.
Oakes then described a separate holding and option agreement with TUF UT Park LLC, an affiliated entity of the University Financing Foundation. He said the agreement would give UT Knoxville the ability to control development of "approximately 5.6 acres of land currently improved with a 199 apartment units" at 814 West Hill Avenue. The proposed term is five years with a single five‑year extension option, and the maximum annual holding cost is $1,500,000. Oakes added that "in the unlikely event that the university either does not elect to purchase the Maplehurst property or if the university financing foundation does not move forward with the development and elects to sell the property, the university would compensate TUF for losses on a third party sale, up to $10,000,000." The committee approved that item by voice vote.
Committee staff clarified that approval of the Corporate Quarters lease is contingent on approval by TSSBA; Oakes confirmed the university would meet with TSSBA later in the day. No roll‑call vote totals were recorded in the public discussion; both items passed on voice votes.
The two approvals give UT short‑term housing capacity for clinical rotations and secure a multi‑year option to shape redevelopment of the Maplehurst site immediately adjacent to campus. The holding agreement establishes financial caps on annual carrying costs and potential reimbursements tied to a third‑party sale.
The university and TSSBA process remain next steps for the housing lease and the formal execution of the Maplehurst option agreement.
