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There will be an economic return to the university through the foundation. Terms will be worked out to provide a lease fee for the acreage the project eventually takes up. Also, there will be a return to the university based on the number of living units and the occupancy rate. These sums will be determined and presented to the UK Board when the Task Force returns with the second and final phase of the contract and ground lease once it is quite certain the project will go forward.
As for the timetable, there is very likely a four-year time line between today and move-in. In August 2009 the Task force would expect the first residents to move into the Coldstream Continuous Care Retirement Community. The average age of the resident population is estimated to be 78, and it is expected that the minimum age for eligibility to be between 62 and 65.
Ms. Sparks said, in her opinion, this is one of the most exciting issues presented to the Board in her six-year tenure. She said that she appreciated President Todd's interest in bringing this to the Board, and she certainly hoped the Board would approve it. She said that she or Dr. Blanton would be happy to answer any questions.
Mr. Wilcoxson said that he was the one that made the initial motion to approve the project, and he still approves of the project. He said his main concern is the placement of the facility on the Coldstream property. The location recommended appears to be on an expensive piece of property at Coldstream. He asked if anyone had looked into whether the recommended property is the most expensive property there that could possibly generate income for the university in the future.
Dr. Blanton displayed a map of the Coldstream property. He agreed with Mr. Wilcoxson that it is probably the most valuable piece of property there; however, it is very likely the project will go there. He reported that a housing development had started, and the value of that land today is estimated to be in the $50,000 range per acre. The problem is that the LFUCG Planning Commission said the only thing that they would consider at this time for this property is residential. There is, of course, a longtime horizon, and no one knows what will happen in the future.
Dr. Blanton said, in his opinion, the nursing home facility would be comparable to residential property. When you take all of the facts into consideration, this is a pretty good decision for that property. Obviously, if the university could get commercial zoning out there, it would have a higher value. The Planning Commission said that as they look at the comprehensive land use plan for the community, it is just not in the cards at this time. That is not looking into the future.
Dr. Blanton explained that the recommendation before the Board today is to have the Praxeis company study this acreage and show exactly where everything will be, such as how many units will be built of each type, the charges for those units, and any other pertinent kind of facts. That would then be a part of the lease agreement that would go from the Board to the independent foundation. He explained that there will be one more opportunity for the Board to consider this project; however, the Board must act in good