Board OKs lease for Oak Ridge National Security Prototype Center, citing $20M/year research potential

The University of Tennessee Board of Trustees approved a lease agreement and final execution authority for a proposed 63,000-square-foot National Security Prototype Center in Oak Ridge to be financed and developed by entities formed by the Roane County Industrial Development Board and a local developer. Under the plan, UTK would be a long-term tenant and research partner.

Chancellor Plowman said the center would accelerate UTK's research growth and help the university capture federal research contracts tied to the state's nuclear energy initiatives, calling it a "game changing moment" for UTK in nuclear engineering and security research. He said the facility "will enable us immediately to engage in $20,000,000 a year of research expenditure" and noted the goal to expand capacity further.

David Miller explained the lease-financing model: UTK's base rent is expected to cover the debt financing for construction, with an estimated base lease payment of about $3.3 million and combined operating costs bringing university obligations to just under $5 million annually; Miller said projected research funding and indirect overhead recovery would cover those costs. He described the arrangement as enabling access to secure, specialized space "without taking on construction or ownership risk."

Trustees asked about ownership, lease terms and contingency plans; officials said the base lease runs 20 years with extension options and no base rent during extension periods once debt is retired. The board voted by roll call to approve the lease and grant authority to execute final agreements and proceed with implementation.