UT System approves 99‑year lease to convert former Walmart into campus recreation space
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Summary
The University of Tennessee System approved a prepaid 99‑year lease with the University Financing Foundation to convert 120,000 square feet of a former Walmart at University Commons into student recreation facilities, with a $15.625 million prepayment and a $10 million cap to trigger a separate board review of tenant build‑out costs.
The University of Tennessee System finance committee approved a long‑term lease arrangement that will let the university convert the former Walmart building at University Commons into campus recreation space.
Administrators said the space offers about 120,000 square feet in a building whose structural capacity is well suited for weight equipment and courts; proposed uses include expanded fitness equipment, basketball courts and climbing features. Under the arrangement described to trustees, the University Financing Foundation would acquire the building and the university would prepay a 99‑year lease in the amount of $15,625,000, paying all triple‑net costs (utilities, maintenance and common area charges) as if the university were owner.
The agreement gives the university an option to acquire the building for $1 on 180 days’ notice if condominium or property arrangements change to allow direct purchase. University officials said they expect to build out the interior for recreation uses; if the required build‑out budget exceeds $10,000,000, the project would return to the board for further approval.
Trustees approved the lease by voice vote. Speakers said the leased space will relieve pressure on existing campus recreation facilities that serve large daily volumes of students.
