Office of the President
                                   March 5, 1991



                                   FCR 7
Members, Board of Trustees:

  PROPOSED GIFT FROM MARION PEPSI-COLA BOTTLING COMPANY. INC.

Recnomndation: that the President be authorized to
acknowledge receipt of a Charitable Pledge from Marion
Pepsi-Cola Bottling Company, Inc. to contribute to the
University certain real property and buildings in Paducah,
Kentucky; and further, that the President be authorized to
execute an Agreement to Lease between the University and Marion
Pepsi-Cola Bottling Company, Inc. for the real property and
buildings in Paducah, Kentucky.

Background: The Board at its meeting on January 22, 1991,
authorized the administration to negotiate the terms of the
proposed gift in hopes of having the transaction ready for
presentation to the Board at the meeting on March 5, 1991.
Negotiations are complete and have resulted in Marion
Pepsi-Cola Bottling Company and its majority shareholder, Mr.
Harry Crisp of Marion, Illinois, making a pledge and an
agreement to lease property in Paducah, Kentucky, to the
University of Kentucky. The purpose of this charitable gift is
to extend higher educational opportunities of the University to
West Kentucky. Prior to the time that the Donor makes the gift
of the property to the University, the Donor agrees to permit
the University to use and occupy the property for University
purposes pursuant to the lease agreement. The tentative
schedule of the intended contribution is to convey a one-third
(1/3) interest in each of the years of 1993, 1994, and 1995.





Action taken:  Approved    I     Disapproved _        Other

Date: March 5. 1991



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