Finance Committee Report
February 17, 1970
Members, Board of Trustees:
EASEMENT TO KENTUCKY UTILITIES COMPANY
Recommendation: that the Board of Trustees of the University of
Kentucky authorize the Acting Vice President - Business Affairs and
Treasurer to execute, on behalf of the Board, and in consideration of
the payment of a purchase price based on fair market value, a trans-
mission line easement to Kentucky Utilities Company over University
of Kentucky property on the Viley Road in Fayette County.
Background: The proposed easement provides for the installation of
two 138 KV double circuit steel towers, with conductors attached, on
property of the University located approximately three miles from the
City of Lexington, Fayette County, Kentucky, near the southeast corner
of the Leestown Pike and Viley Road, and containing approximately
89. 39 acres. This property was conveyed to the University of Kentucky
by deed from the United States of America, by and through the Secretary,
Department of Health, Education, and Welfare, dated March 28, 1957.
The compensation which Kentucky Utilities Company proposes to pay for
the easement from the University of Kentucky is $7, 750. This sum is
based on the fact that 3. 1 acres will be included within the easement area.
Kentucky Utilities Company's independent appraisers have placed a value
of $2, 000 to $3, 000 per acre on land in the vicinity of Viley Road and
Old Frankfort Pike. This represents approximately $2, 500 per acre in
the easement. In any event, the easement will be executed upon receipt
of payment of the purchase price based on fair market value.
The proposed easement will cover a period of five years, and such time
thereafter as any electric transmission and distribution line may be
maintained by Kentucky Utilities; further, Kentucky Utilities Company is
granted the right, power, and privilege to construct, inspect, maintain,
operate, rebuild and repair the transmission line. Additionally, the
proposed easement provides the usual protective covenants.