Rowan County board approves three-year lease-purchase sale of old middle school to University of Kentucky
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Summary
The board approved a three-year lease-to-purchase agreement to sell the district's old middle school property to the Commonwealth of Kentucky for the use and benefit of the University of Kentucky; the motion read a purchase sum of $6,402,400 and the agreement includes auction reversion if payments are not made.
The Rowan County Board of Education voted Dec. 16 to approve a real property lease-purchase agreement that would transfer the district's old middle school property to the Commonwealth of Kentucky for the use and benefit of the University of Kentucky's affiliated entities.
Speaker 4 described the arrangement as a three-year lease-to-purchase in which the lessee would be required to pay the full appraised price over the term; the chair read the motion as authorizing the agreement in the sum of $6,402,400. Speaker 4 said the House Capital Appropriations Committee had approved the purchase on UK's behalf earlier in the day and that UK plans capital improvements in the downtown area.
Board members raised questions about clause 12 in the agreement addressing lessee nonpayment (which could lead to auction and reversion of the property to the district), and about the right to renovate or demolish on the property; the board discussed an appraisal that accounted for demolition costs and concluded the land appraisal could be higher if buildings were removed. Speaker 4 noted attorneys had reviewed the payment and reversion language.
After discussion, the board moved, seconded and approved the lease-purchase agreement by voice vote. The board asked staff to finalize documents and follow state processes required for closing.