TSSBA approves 99-year lease financing for University of Tennessee at Knoxville site
Get AI-powered insights, summaries, and transcripts
Sign Up Free
Summary
The Tennessee State School Bond Authority approved a resolution allowing the University of Tennessee at Knoxville to borrow by another method via a 99-year lease with a purchase option with UTFI Real Estate LLC for space at 2501 University Commons Way; the university will prepay roughly $15.6 million (not to exceed $16.5 million) and estimated annual operating costs are $1,266,356.
The Tennessee State School Bond Authority on Feb. 23 approved a resolution allowing the University of Tennessee at Knoxville to finance space via a lease with purchase option between the university and UTFI Real Estate LLC.
An unidentified university representative told the board the lease pertains to space in the University Commons complex at 2501 University Commons Way, intended primarily for student recreation and some storage. The presenter said the lease term is planned for 99 years and that “the university will prepay rent in the amount of approximately $15,625,000, but not to exceed a total amount of $16,500,000.” The estimated annual operating costs tied to the project were given as $1,266,356.
Speaker 1 moved to approve the project and a second was recorded. The presenter said the project had already been approved by the state building commission, pending TSSBA approval. Members voted by voice; those present responded “aye,” and Speaker 1 announced the item was approved. No roll-call tally was recorded in the transcript.
The board did not specify implementation steps, financing structure details beyond the lease term and prepayment amount, or a timeline for closing during the meeting.