FCRn 13Q


Office of the President
December 9, 1997



Members, Board of Trustees:

  AUTHORIZATION TO TRANSFER OWNERSHIP OF THE HARRY L. CRISP
      HIGHER EDUCATION CENTER TO MURRAY STATE UNIVERSITY

Recommendation: that the Vice President for Fiscal Affairs be authorized and directed to
enter into a twenty (20) year lease/purchase agreement with Murray State University for
the transfer of ownership of the Harry L. Crisp Higher Education Center located at Bethel
Street and Irvin Cobb Drive, Paducah, Kentucky.

Background: The Harry L. Crisp Higher Education Center (formerly known as the
Marion Pepsi-Cola Bottling Company property) was conveyed to the Commonwealth of
Kentucky, for the use and benefit of the University of Kentucky, on December 16, 1993,
by Marion Pepsi-Cola Bottling Company, Inc., a Missouri Corporation, as a gift to
further its corporate purposes in promoting the general welfare of the University. The
University of Kentucky Board of Trustees accepted this gift on January 25, 1994, to
provide much needed space for Paducah Community College and to house University of
Kentucky activities in Paducah. The property is to be used for educational purposes
only.

Consensus has been reached by Murray State University and the University of Kentucky
regarding the development of a lease/purchase agreement to transfer ownership of this
property by January 1, 1998.

The lease/purchase agreement will be based on an appraised value of $2.2 million to be
paid to the University of Kentucky beginning on January 1, 1998, in annual installments
amortized over twenty (20) years with interest on the balance to be based on the interest
rate for state bonds as of June 17, 1996. These funds are to be utilized for debt service on
$2.2 million in bonds to be sold to construct a new educational facility on the Paducah
Community College campus.



Action taken:   I/Approved       L Disapproved       L Other_