Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Campus Facilities topic
No spam. Unsubscribe anytime.
UW–Madison to relocate fleet and waste operations under lease-to-purchase plan approved by Regents
Summary
The UW System Board of Regents approved UW–Madison’s request to lease two off-campus parcels (with options to purchase) to relocate fleet services and waste/recycling operations; the university said purchase prices are at or below appraised value and appraisals will be refreshed before State Building Commission review.
The University of Wisconsin System Board of Regents voted to authorize UW–Madison to enter two leases, each structured with an option to purchase within three years, to relocate fleet services and the campus waste and recycling operation.
Senior associate vice president Alex Roehl told the board the move is part of Madison’s long-range master plan and would free a centrally located site on Mill Street for future campus development. "As part of their long range master plan they intend to develop the site where fleet services are located on Mill Street," Roehl said, adding the two parcels would allow consolidation of vehicle storage, parking, and waste operations.
Regent Rai pressed university real estate staff on the lease-to-own economics, asking for assurance the approach would be cost-effective compared with outright purchase. "It's more the lease to own concept here and understanding what the value of the land is today, versus the purchase price and what we'll be paying over the next 1 to 3 years," Rai said.
Paula Veltham, identified as head of real estate at UW–Madison, replied that the parcels were on the market, that purchase prices were "very much in line with" sale listings and "the purchase price is under the appraised value." She said appraisals will be refreshed before seeking State Building Commission approval. "Before we would take it to the SBC, we would have to refresh those appraisals," Roehl added.
Board members discussed timing and the leases’ terms; Roehl said one site would carry a 15-year lease with two five-year renewals and the other a 10-year lease with two five-year renewals, and landlords would complete tenant improvements. After a brief discussion the board voted in favor of the authorization.
The vote was taken by voice; the presiding officer announced the motion carried. The authorization allows UW–Madison to proceed with lease negotiations and, if later approved by the SBC and based on refreshed appraisal data, to pursue acquisition of the parcels.
