FCR 20


Office of the President
January 11, 2005


Members, Board of Trustees:


     APPROVAL OF LEASE OF COLDSTREAM RESEARCH CAMPUS LOT

Recommendation: that the Executive Vice President for Finance and Administration be
authorized to negotiate and execute the following:

      A lease between the University of Kentucky and Lexington Dark Star,
      LLC, for Lot 9, 19.38 acres, in the Coldstream Research Campus.

Background: Lexington Dark Star, LLC, is a Kentucky corporation recently formed by
Mr. Kale Roscoe, owner of PCMG, LLC. PCMG is a comprehensive commercial
property company with operations in Michigan and Kentucky and is the owner and
managing company of the IBM building on Coldstream Research Campus. PCMG
operations include property/asset management, brokerage and land acquisition, leasing,
and land development.

Through Lexington Dark Star, LLC, Mr. Roscoe proposes to build two multi-tenant
facilities on Lot 9, with the initial building project anchored by a tenant occupying
approximately 25,000 square feet. The total size of the proposed facilities is estimated to
be 250,000 square feet. The term of the lease is expected to be 100 years with an annual
lease rate of $209,304. Ground rent payments will begin upon completion of the
construction of each building.

Any building to be constructed at the Coldstream Research Campus must be approved by
the University's Design and Review Committee. In addition, tenants must comply with
the Guidelines for Permitted Uses of the University of Kentucky Coldstream Research
Campus which is included as part of the land lease contract.



Action taken:  El Approved



Li Disapproved



L]Other