Austin Peay trustees approve 45-year land lease for Lot 26 with Urban 6 Realty

The Austin Peay State University Business and Finance Committee voted to approve a 45-year land lease for Lot 26, a parking lot at 210 College Street, with Urban 6 Realty.

Dr. Sharous Roopavar, vice president for finance and administration, told the committee the lease would allow Urban 6 to develop both the former Masonic building and the university-owned parcel into an apartment complex and parking garage. "You have before you our request for approval for the university to enter into a land lease agreement with Urban 6 Realty for our property located at 210 College Street," Roopavar said. He said the apartment complex would be developed on university land, the lease averages $50,000 per year, the building on the university land will transfer to Austin Peay at the end of the lease, and the university will retain a right of first refusal if Urban 6 later decides to sell its building.

The chair asked for a motion to approve the Lot 26 lease; the motion was moved and seconded. The secretary called the roll and recorded aye votes from Trustees Kimbrough, Johnson, McInnis and O'Malley. The chair announced the motion carries.

Roopavar said the draft lease and a nonbinding letter of intent were included in committee packets and that, upon approval, the university would execute the nonbinding letter of intent and begin seeking approvals from the appropriate state departments. The committee did not record any amendments to the lease during the meeting.

Next steps include finalizing the lease documentation and obtaining required state approvals before execution, per Roopavar.