Office ofthe President
June 14, 2011
Members, Board of Trustees:
AUTHORIZATION TO NEGOTIATE TO ACQ QUIRE UNIVERSITY LOFTS
Recommendation: that the Board of Trustees authorize the Executive Vice President for Finance
and Administration to enter into negotiations to acquire University Lofts located at 236 Bolivar
Street at a price not to exceed $6,700,000.
Background: The Executive Vice President for Finance and Administration requests the
authority to negotiate the acquisition of University Lofts to house student instructional space for
the College of Fine Arts.
The College’s instructional space is currently housed in the facility known as "Reynolds #1.”
Reynolds #1 was constructed in 1934 as atobacco warehouse and processing facility. The
University acquired the facility in 1962. The primary use of the building is class labs and studios
for art instruction and hands-on leaming for the College of Fine Arts. But because the facility
has never received a maj or renovation, the ventilation, electrical, and mechanical systems and the
lighting, restrooms, and flooring still are similar to that of an old tobacco warehouse. In
addition, over the last several years the number of students and faculty using the building has
increased substantially. The scope ofthe necessary renovation is estimated to cost $17 million.
University Lofts, a facility of similar size as Reynolds #1 (105,000 sq. ft.), is situated on 1.57
acres of land at 236 Bolivar Street in Lexington. The property to be negotiated also includes a
parking lot containing approximately 0.7039 acres. University Lofts is a fonner tobacco
processing facility that was converted into an 86 unit, loft style apartment building in 2004. As a
result, it has significantly fewer capital renewal/ deferred maintenance needs than Reynolds #1.
The proposed purchase price of $6,700,000 and later renovations (estimated at $8,000,000) is
cost-effective compared to the $17 million cost of renovating Reynolds #1. The additional cost
of relocating the College’s instructional activities to another facility during a year-long
renovation to Reynolds #1 also will be avoided by the purchase and renovation of University
Lofts. An extemal architectural consultant has confinned that current instructional activities in
Reynolds #1 can fit within the existing footprint ofthe University Lofts facility.