UT System approves option to hold Maplehurst site after resident appeals for engagement

Two Maplehurst residents told the University of Tennessee System finance committee they were alarmed at the speed and scope of the university’s planned purchase and future development of the Maplehurst apartment site, which contains about 199 units. The committee voted to approve an option and holding agreement that gives the system time to plan and engage the community while the property remains occupied.

John Cadotte, a neighborhood advisory council member and South Waterfront Advisory Board member who lives near the pedestrian bridge landing, told trustees he worries that continued campus expansion could erode Knoxville’s historic neighborhoods and displace longtime residents. “We have to be very careful that we’re not muscling out our community,” Cadotte said, adding that he supports community representation in planning for the site.

William (Will) Innes, a graduate student and Maplehurst resident, said residents had only two days’ notice to register to speak and that the university’s public engagement to date was inadequate. “I am livid that such little time was given to the residents to learn about, sign up, and attend this public hearing,” Innes said. He said residents feel ignored and urged trustees to take responsibility for those who could lose housing.

Trustees and senior university officials responded that the board had not intended to limit local input and described the approved agreement as a way to preserve community stability while the university does more planning. The board’s presentation stated the university would take a five‑year option and holding agreement with a one‑time five‑year extension available, and capped the system’s near‑term financial obligation at $1,500,000 per year during the option period. Under the agreement, the existing apartments would continue to be rented in the near term, and the University Financing Foundation would initially acquire the property and partner with the university on planning.

The board described the structure as a way to avoid leaving the site to a private developer with no university or community input. The agreement includes provisions for splitting potential capital gains or losses if the property is later sold; the university would receive 70% of the first $10,000,000 of gain and would assume the first $10,000,000 of loss up to that cap, after which losses would be limited.

Officials said the option does not obligate the university to purchase or to develop the property; instead it preserves control of future development while further study and community engagement occur. Trustees asked administration to produce a communications and engagement plan for Maplehurst residents and confirmed that no immediate redevelopment activity is planned.

The finance and administration committee approved the option and holding agreement by voice vote.