Office of the President
April 30, 2002
Members, Board of Trustees:
COLDSTREAM RESEARCH CAMPUS GROUND LEASE
FIRST ALLIANCE CORPORATION
Recommendation: that the Administration be authorized to execute a ground lease between the
University of Kentucky and approximately one acre on Lot 21 of the Coldstream Research
Campus for the purpose of developing a 16,500 square foot commercial building to house First
Background: First Alliance Corporation was organized on February 16, 1993 for the purpose of
forming, owning and managing life insurance companies.
KEY TERMS OF GROUND LEASE
Lessor - University of Kentucky
Lessee - First Alliance Corporation
TERM OF GROUND LEASE
Not to exceed 75 years
SIZE OF PARCEL
Lot 21, approximately 1 acre; as shown
Research Campus Development Plan.
on the Coldstream
Until the last day of the calendar month in which
commencement of construction of the improvements has
occurred, the annual rent to be paid by the lessee shall be at
the rate of $300.00 per month.
After commencement of construction of the improvements
has occurred, Lessee will pay Lessor monthly at the rate of
$1,500 per acre per year (annual lease payment $18,000)
(Value per acre $200,000 times 1 = $200,000 x
Rent increases or decreases by 25% of the Consumer Price
Index every five years.