xt72ng4gn22v https://exploreuk.uky.edu/dips/xt72ng4gn22v/data/mets.xml Lexington, Kentucky University of Kentucky 20040722 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 2004-07-jun22. text Minutes of the University of Kentucky Board of Trustees, 2004-07-jun22. 2004 2011 true xt72ng4gn22v section xt72ng4gn22v 






MINUTES



                        Meeting of the Board of Trustees
                              University of Kentucky
                                     1:00 P.M .
                                   June 22, 2004
                       18 th Floor Patterson Office Tower




Minutes

Accompanying materials:

President's Report and Action Items

PR 1     President's Report to the Trustees
PR 2     Personnel Actions
PR 3     Reappointment to Board of Directors of the FUND for Advancement of Education and
         Research in the University of Kentucky Albert B. Chandler Medical Center
PR 4     Appointment/Reappointment of Board of Directors UniversitV of Kentucky Research
         Foundation
PR 5     Agreement between University of Kentucky and Kentucky Medical Services
         Foundation
PR 6     Appointment of Vice President for University Initiatives/Associate Provost for
         Multicultural Affairs

Academic Affairs Committee Report

AACR 1    Candidates for Degrees - Community College System
AACR 2    Transfer of the Center for Minimally Invasive Surgery

Finance Committee Report

FCR 1    Charles W. Hammond Estate Gift
FCR 2    Dr. David B. and Sally Stevens Gift
FCR 3    Kentucky Medical Services Foundation Gift
FCR 4    Kentucky Medical Services Foundation Gift and Pledge
FCR 5    Gifts and Pledges to the Department of Psychiatry
FCR 6    Gifts and Pledges to College of Pharmacy Fellowship
FCR 7    Gifts and Pledge to College of Pharmacy
FCR 8    St. Joseph Health Care Pledge
FCR 9    Anonymous Gift of $150,000
FCR 10   Resolution of the Board of Trustees of the University of Kentucky ("State Agency")
         Approving a Financing Agreement among the State Agency, the Kentucky
         Asset/Liability Commission and the Finance and Administration Cabinet of the
         Commonwealth of Kentucky for the Purpose of Providing Interim Financing for an
         Authorized Proiect in Anticipation of the Issuance of Bonds to Provide Permanent
         Financing for Said Proiect
FCR 11   Disposal of Personal Property
FCR 12   Disposition of Surplus Property
FCR 13   Approval of Leases
FCR 14   Report of Leases
FCR 15   Operating Budget for Fiscal Year 2004-05
FCR 16   Acquisition of Real Property Referred to as the Lexel Building at Coldstream in Fayette
         County, Kentucky




 







      Minutes of the Meeting of the Board of Trustees of the University of Kentucky, Tuesday, June 22,
2004.

      The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington time) on Tuesday,
June 22, 2004, in the Board Room on the 1 8th Floor of Patterson Office Tower.

      A.    Meeting Opened

      Mr. Steven S. Reed, Chair, called the meeting to order at 1:12 p.m., and Ms. Marian Sims gave the
invocation.

      B.    Roll Call

        The following members of the Board of Trustees answered the call of the roll: James Hardymon,
Marianne Smith Edge, Michael Kennedy, Pamela May, Robert Meriwether, Billy Joe Miles, Phillip Patton,
Elissa Plattner, Steven Reed (Chair), Frank Shoop, Marian Sims, Alice Sparks, Myra Tobin, Rachel Watts,
JoEtta Wickliffe, Billy Wilcoxson, Russ Williams, Elaine Wilson, and Barbara Young. Absent from the
meeting was Davy Jones. The University administration was represented by President Lee T. Todd, Jr.,
Provost Michael Nietzel, Executive Vice President for Finance and Administration Dick Siemer, Executive
Vice President for Health Affairs Michael Karpf, Executive Vice President for Research Wendy Baldwin,
and Senior Associate General Counsel T. Lynn Williamson.

        Members of the various news media were also in attendance. A quorum being present, the Chair
declared the meeting officially open for the conduct of business at 1:15 p.m.

      C.    Consent Agenda

      Mr. Reed called attention to the items on the consent agenda, including approval of the Minutes. He
asked if anyone wanted any consent items removed from the consent agenda and entertained a motion of
approval of the consent agenda. Ms. Wilson moved approval. Her motion, seconded by Ms. Sims, carried
without dissent. The items on the consent agenda follow:

      Minutes - May 4, 2004
      PR 2         Personnel Actions
      AACR 1       Candidates for Degrees - Community College System
      FCR 1        Charles W. Hammond Estate Gift
      FCR 2        Dr. David B. and Sally Stevens Gift
      FCR 3        Kentucky Medical Services Foundation Gift
      FCR 4        Kentucky Medical Services Foundation Gift and Pledge
      FCR 5        Gifts and Pledges to the Department of Psychiatry
      FCR 6        Gifts and Pledges to College of Pharmacy Fellowship
      FCR 7        Gifts and Pledges to College of Pharmacy
      FCR 8        St. Joseph Health Care Pledge
      FCR 9        Anonymous Gift of $150,000
      FCR 14       Report of Leases




 




                                         - 2-



D.    President's Report

President Todd called attention to the following items in PR 1:

       1.    The College of Medicine has received $59 million in NIH funding and ranks 35th in
             NIH funding to public medical schools. The basic science departments are very
             strong at the University, and some are in the top 10 while others are in the top 20.
             The University's aging grants are ranked number 3. Dr. William Markesbery and the
             team are doing a lot of good things. Odyssey magazine has a very good article on a
             UK Alzheimer's study. The clinical departments are in the top 20. These rankings
             are good testimony to the effort that has been made at the University as it climbs the
             ladder.

      2.    The University announced a $5 million federal earmark for environmental assessment
             and research in the Paducah area with the Gaseous Diffusion Plant. This is money
             that was secured and earmarked for the University by Senator McConnell. The
             University was able to do this, along with Murray State and the University of
             Louisville, as it tries to build relationships that make sense with other institutions.
             The intriguing thing about this funding is that it is not just looking at the
             environmental side and the cleanup side. There are three areas that are going to affect
             the economy in the Paducah area: decontaminates of nickel they have that is valued
             in the $10 million to $20 million range, seismic performance to assess seismic risk
             because it affects building codes, and looking at other uses of spent uranium to make
             batteries. Three years ago the University's federal earmarks were at $5.4 million and
             this year, thanks to a strong delegation and the effort that Dr. Baldwin and Bill
             Schweri make in Washington, along with Jim Duff who was added as a lobbyist a few
             years ago, the University has reached $22.7 million. The University is getting very
             competitive in that arena and has a lot more proposals to put forward.

       3.    The Kentucky delegation led by Governor Ernie Fletcher attended the BIO 2004
             Annual International Convention in June.

      4.    There is a new research partnership between the UK College of Agriculture and
             Alltech that will produce further advancements in environmental nutrition and
             management for poultry producers in Kentucky and around the world. The company
             is headquartered in Nicholasville and has operations in about 16 countries worldwide.
             There are over 140 UK students and 16 Ph.D.'s from UK working there. UK
             announced an alliance with them called the Alltech UK Nutritional Research
             Alliance. It is on Coldstream Research Campus. Poultry has expanded to $680
             million industry in Kentucky and is second only to horses among the a top
             agricultural enterprises. Nearly 7,000 people are employed there with a payroll of
             $200,000,000. It is an area of importance to UK both economically and research
             wise.

       5.    UK inducted 29 eighth-graders into the Robinson Scholars Program.



6.    Professors Matthew Gabel and Martin Tracy received Fulbright Awards.




 




3-



              7.    Five former governors and four first ladies attended a fundraiser to support the

                     research on violence against women. The event raised quite a bit of money and
                     awareness for that institute.

              8.    Russ Williams was re-elected to the Board. The administration looks forward to
                     working with him in continued efforts for the institution. Roy Moore is going to be a
                     new faculty Trustee and will be sworn into office at the September Board meeting.

              9.    The Children's Miracle Network Celebration raised $1.26 million with the help of
                     WKYT staffers, Bill Bryant and Barbara Bailey. Michael Karpf and Jay Pearman
                     were on television, and it was a wonderful event.

              10.   Residential condominiums are now being built on Martin Luther King Boulevard.
                     This is part of the "Live Where you Work" program that the University has put into
                     place with the city and Good Samaritan that involves subsidizing mortgages for
                     people who buy property there. The homes start at $94,000 and go up to $170,000.
                     There is lot of capital construction going on by third parties in the vicinity which will
                     benefit the faculty, staff, and students.

              11.   The UK Center for Rural Health has provided technical support for the Kentucky
                     River Health Network's successful pursuit of a $200,000 federal outreach grant to
                     foster greater coordination of services and more partnerships in delivering health care
                     in rural Kentucky. The Center has also assisted successful grant applications from
                     Murray State University for $187,150 to partner with the Purchase Area Health
                     Education Center.

              12.   The Kentucky Science Engineering Foundation has awarded the UK Center for
                     Applied Energy and Research (CAER) three grants totaling $430,000. These are
                     funds given by the state to be awarded to faculty throughout the state of Kentucky
                     who compete. There are outside reviewers for this. The project concerns acid mine
                     drainage reduction and new ways to form concrete out of ash. Some of those things,
                     we feel, will take our research into the economy and help change the economy and
                     improve the job profile. So, that's to be applauded.

       President Todd said that there were some really good things in PR 1 and asked the Board to read
through the details, especially the things about the good students and faculty mentioned in the report.

       President Todd said that PR 2 was on the consent agenda; however, he wanted to call the
appointment of Mr. Bob Wiseman to the Board's attention. Mr. Wiseman currently serves as Associate
Vice President for Facilities. He is being promoted to a Vice Presidential level because of the value that he
brings to that job and the breadth of the job that he has. Mr. Wiseman received his undergraduate and
graduate degrees in public administration from the University of Kentucky. He previously served as
Lexington Commissioner of Public Works overseeing five operating divisions and numerous construction
projects involving buildings, parking garages, roads, utilities, historical structures, and renovation. In
addition, he served two Lexington mayors in the capacity as executive assistant overseeing major capital
projects and serving as liaison to UK and to the General Assembly. He has been involved with the




 




4-



University over a long period of time. He has served on the Campus Master Plan Committee, the
College/Town Steering Committee, the Martin School Board of Visitors, and in the initial creation of
Coldstream Research Campus. In recent years, he has actually taught some graduate level courses in public
administration at UK. Mr. Wiseman was asked to stand and be recognized, following which he received a
round of applause.

       President Todd called upon Dr. David Watt to introduce the Acting Dean of the new College of
Public Health.

       Dr. Watt said it was his pleasure to introduce the Board to Mr. Tom Samuel who, pending Board
approval, will be the Acting Dean of the new College of Public Health. The Board's recent approval of the
College of Public Health reaffirms the University's great commitment to its land-grant tradition. Everyone
is confident that Mr. Samuel will help provide the leadership that the University needs to move the College
forward. He asked Mr. Samuel to make a few comments

       Mr. Samuel said that they needed to talk at length about the health status of Kentucky, but the
                          t1h                                                               th
University of Kentucky is 39 in terms of health care outcomes according to a recent survey and 37 in
terms of health risk. The addition of a College of Public Health will add a lot to the University's
contribution to the state in terms of trying to address those problems. In addition, he pointed out that the
University has 150 students currently in the MPH program in the College of Public Health. Of those, 30
already have degrees in some kind of health profession (M.D.'s, dentists, etc.), and of those 14 are currently
on the faculty of the University of Kentucky. That is a strong statement as to the importance of public
health in terms of what is done at the University of Kentucky.

       The College of Public Health has a very diverse student body (28 percent are African-American),
and the administration is very proud of the fact that it has been able to recruit a sizeable portion of minority
students. They also work closely with other colleges. For example, the HEEL program, which uses
cooperative extension agents out of the College of Agriculture, has contributed in terms of collecting health
information throughout the Commonwealth using the extension agents, along with public health
professionals, in order to provide current health information.

       Mr. Samuel mentioned the Council of Postsecondary Education (CPE) meeting that he had attended
earlier. CPE is putting together a statewide strategic plan for academic public health in Kentucky, including
the four institutions that offer graduate programs in public health in addition to the state department of
public health. That plan will be presented to the Provost and President the first part of July. The Council
will vote on the plan July 1 9th. Mr. Samuel said that he thinks the Board will be very pleased with the
involvement of the University of Kentucky, as well as with the other academic programs, in trying to
improve the workforce in Kentucky in order to improve the health status of the population.

       He reported that the College is on track and is certainly reaching for national status as quickly as
possible. The Board approved the College in May, and they have been working toward accreditation
throughout the last year. They fully expect to achieve a status that will permit them to be eligible for about
$80 million in grants that are applicable only to the 33 accredited colleges of public health in the country
today. In addition, the President of the Association of Schools of Public Health will be in Kentucky to
present the plan to the CPE Board at the July 19th meeting. This shows the kind of support not only
statewide but also nationally that they think this plan will achieve. Mr. Samuel thanked the Board from the
point of view of the faculty, staff, and students of the College of Public Health for their support and also the
support of President Todd and the administrators. Mr. Samuel received a round of applause.




 









      President Todd said that he really appreciated Mr. Samuel taking the lead on this. He reminded the
Board that Mr. Samuel chaired a committee to look into somewhat of a volatile topic when he took office,
and that was the whole issue of the health care. He conducted very open, frequent meetings and came up
with some extremely innovative things. The University and its employees are benefiting today from the
thoughts of Mr. Samuel and his committee as the administration tries to keep health care costs down. He
said that he appreciated Mr. Samuel and his energy. This must be a record for getting Board approval to
establish a college and having an accreditation visit this soon. It is very admirable.

      E.    Reappointment to Board of Directors of the FUND for Advancement of Education and
Research in the University of Kentucky Albert B. Chandler Medical Center (PR 3)

      President Todd said that PR 3 is a recommendation to reappoint the Board of Directors of the FUND
for Advancement of Education and Research in the University of Kentucky A. B. Chandler Medical Center.
He recommended that the Board give approval to the reappointment of Mira Ball for a two-year term ending
June 30, 2006 to the Board of Directors of the FUND. Dr. Meriwether moved approval. Ms. Sims
seconded his motion, and it carried without dissent. (See PR 3 at the end of the Minutes.)

      F.    Appointment/Reappointment of Board of Directors University of Kentucky Research
Foundation (PR 4)

      President Todd said that PR 4 is to appoint and reappoint two individuals to the Board of Directors
of the University of Kentucky Research Foundation (UKRF). He recommended that approval be given to
the appointment of Phil Patton as a Trustee member for a three-year term and the reappointment of Ken
Roberts, the Dean of Pharmacy, for a three-year term to the Board of Directors of UKRF. Mr. Shoop
moved approval. His motion, seconded by JoEtta Wickliffe, carried without dissent. (See PR 4 at the end
of the Minutes.)

      G.    Agreement between University of Kentucky and Kentucky Medical Services Foundation
(PR 5)

      President Todd recommended that the Board approve the agreement that was circulated in the Board
packet between the Board of Trustees and the Kentucky Medical Services Foundation (KMSF). It was
negotiated pursuant to the Board of Trustees resolution regarding medical practice plans and was adopted in
1978. There are only minor changes in the modifications. They include updating the dates to reflect 2004-
05 and the revision of section 6B of the agreement to establish payment dates for certain services that are
provided under the agreement. Ms. Elaine Wilson moved approval. Ms. Smith Edge seconded the motion,
and it carried. (See PR 5 at the end of the Minutes.)

      H.    Appointment of Vice President for University Initiatives/Associate Provost for Multicultural
Affairs (PR 6)

      President Todd reminded the Board of their approval at the last meeting to establish a position
entitled Vice President for University Initiatives/Associate Provost for Multicultural Affairs. He said that he
was pleased to recommend that Dr. William H. Turner be appointed Vice President for University
Initiatives/Associate Provost for Multicultural Affairs effective July 1, 2004. Dr. Turner could not attend
the Board meeting because of a family commitment. President Todd reported that he had met with Dr.




 




6-



Turner, and Dr. Turner agreed to the terms that they discussed. President Todd reviewed Dr. Turner's
credentials.

       Dr. Turner received his B.A. degree in 1968, which was an interesting year for Patsy and him
because that is the same year they graduated from UK. He got his M.A. in 1971 and his Ph.D. from Notre
Dame in 1974. His areas of interest in research are sociology and anthropology. In 1966 as a member of its
charter class, Turner studied at Howard University in the Ford Foundation and U.S. Department of State-
sponsored Foreign Affairs Scholars Program. He has held several postdoctoral appointments: Senior
Fellow, University of Pennsylvania, Morton Center for Independent Studies; Senior Fellow, Institute for
Educational Leadership, George Washington University; Senior Research Fellow, Institute for the Study of
Educational Policy at Howard University; and Postdoctoral Fellow in the National Academy of
Sciences/Ford Foundation, and the Duke University Center for the Study of Civil Rights and Race
Relations.

       Dr. Turner has held teaching, research, and administrative posts at several colleges and universities,
including Fisk, Howard, UK, Kentucky State, and Winston-Salem University and has been a Distinguished
Visiting Professor at Berea and Brandeis. He has published in many areas. His real interests, too, are
African-Americans and Appalachia. He will bring a wealth of experience to the University.

       Dr. Turner recently served as the interim president at Kentucky State University. He is very
articulate and very passionate. He is from Lynch, Kentucky. His father was a coal miner. In the role of
Associate Provost for Multicultural Affairs, he will get an opportunity to go around the state frequently and
to keep the state aware of some of the initiatives that are going to be started -- outreach, especially, in the
eastern part of the state. Dr. Turner is a very great asset to this community and this position. In this role, he
will report to the Provost. In the role for University Initiatives, he will report to the President.

       Ms. Wilson moved approval of the appointment of Dr. Turner. Because of her years with Dr.
Turner, she believes that he is truly a good person for this position, and she totally supports him. Ms.
Sparks seconded the motion.

       Mr. Reed added that Dr. Turner certainly has a stellar background resume, but it also helps when
there is someone from Kentucky who goes away, does well, and excels to the extent that he has a
homecoming and a career topped off by coming back to Kentucky. That is very special. He called for a
vote and PR 6 carried without dissent. (See PR 6 at the end of the Minutes.)

       I.    Academic Affairs Report

       Alice Sparks, Chair of the Academic Affairs Committee, reported that AACR 1 was on the consent
agenda. She pointed out that this is probably the last time the Board will be approving the Community
College Systems degrees.

       J.    Transfer of the Center for Minimally Invasive Surgery (AACR 2)

       Ms. Sparks said that AACR 2 is the transfer of the Center for Minimally Invasive Surgery. In 1999
the University established the Center and at that time the Center reported to the Chancellor of the Medical
Center. It was funded by a substantial gift of $5 million from the U.S. Surgical Corporation. With the
change in administrative organization and the exhaustion of the current funding, the Center needs to be
reassigned and restructured to report to the dean in the College of Medicine. This has gone through all of




 




7



the proper procedures, and the Provost and Executive Vice President for Health Affairs support this
recommendation. It was passed unanimously by the Academic Affairs Committee. She moved approval of
AACR 2. Professor Kennedy seconded the motion, and it carried without dissent. (See AACR 2 at the end
of the Minutes.)

      K.    Finance Committee Report

      Mr. Hardymon, Chair of the Finance Committee, reported that the Committee met that morning with
all committee members present and most of the Board present. It was a very good time for other Board
members to join the Committee because the Committee had an information item that will not be presented at
this time to the full Board on the systems program IRIS. It was kind of a lead in to get us up to date on what
is going on. There will be a full presentation when they finalize the budget and get some of the timing
down. It was good to get started on that one because it was not only important but also costly.

      Mr. Hardymon reported that there were a number of consent items. FCR's 1 through 9 were gifts
and pledges. The Committee did have an opportunity to go thoroughly through each of those and very
much appreciate the gifts. They total $1.9 million, and $1.3 million of it is for the match. It was a very
good meeting from that standpoint. Mr. Mobley did bring the Committee up to date saying that $667
million is in house now towards the $1 billion goal. The Committee is anxiously watching that.

      Mr. Hardymon noted that FCR 14 is also a consent item. That is the one detailing leases with annual
costs of less than $30,000. The administration negotiates such leases and then reports to the Board what
they did.

      L.    Resolution of the Board of Trustees of the University of Kentucky ("State Agency")
Approving a Financing Agreement among the State Agency, the Kentucky Asset/Liability Commission, and
the Finance and Administration Cabinet of the Commonwealth of Kentucky for the Purpose of Providing
Interim Financing for an Authorized Project in Anticipation of the Issuance of Bonds to Provide Permanent
Financing for Said Project (FCR 10)

      Mr. Hardymon said that FCR 10 is for financing an educational building project, some parking, and
infrastructure projects. It includes things like the central facilities management project, replacing the steam
pipes which are very important although probably not something we think about every day, improving the
central heating plan, and replacing high voltage wiring. The resolution is for the purpose of providing and
financing the project in anticipation of the issue of some bonds. The Committee will be back to the Board
when the bonds are issued. He said the total is $10 million, and $4 million in is parking. The University
will pay that bond off with parking receipts. The other $6 million is for the piping, central heating items,
etc. He moved approval of FCR 10. Ms. Wilson seconded the motion, and it carried without dissent. (See
FCR 10 at the end of the Minutes.)

      M.    Disposal of Personal Property (FCR 11)

      Mr. Hardymon said that FCR 11 is strictly an administrative item. It is the Board's requirement each
year to look at an advanced plan that allows for the disposal of items of value less than $10,000. Disposal is
done by an auction with different methods to try to get as much as possible for those items. It includes
things such as equipment, machinery, vehicles, and library books. The Board approves the plan annually,
and that gives the administration the authority to dispose of items of less than $10,000. He recommended




 




8-



approval of FCR 11. Ms. Tobin seconded the motion, and it carried without dissent. (See FCR 11 at the
end of the Minutes.)

      N.    Disposition of Surplus Property (FCR 12)

      Mr. Harydmon said that FCR 12 is for disposal of surplus property over $10,000. One of the items
on the list is over $10,000; therefore, the full list is included. These are items that were involved with Dr.
Michael Carrithers' research work. Dr. Carrithers is moving to Yale University. It is definitely an item that
the University needs to pass on with him so he can continue his research work. Mr. Hardymon
recommended approval of FCR 12. Ms. Wickliffe seconded the motion, and it carried without dissent. (See
FCR 12 at the end of the Minutes.)

      0.    Approval of Leases (FCR 13)

      Mr. Hardymon said that FCR 13 recommends the approval of leases which have an annual value of
over $30,000. In this case, the Committee looks at each of the leases -- whether they are renewals or new --
and decides whether to approve them before the administration can conclude final negotiations. They are
then brought to the Board for approval. The Committee went through these. They involve distribution
space, and some of those are $6 a square foot. They involve clinical offices which cost up to $15 to $16 per
square foot of clinical space. They are all over the state and vary in amounts by the areas they are in. Two
are renewals, and they have been through the process before. He said that Mr. Siemer had given the
Committee a report on the leases. Mr. Hardymon moved approval of FCR 13. Ms. Sims seconded the
motion, and it carried without dissent. (See FCR 13 at the end of the Minutes.)

      Mr. Hardymon said that the Committee spent about an hour on FCR 15, the operating budget for
Fiscal Year 2004-05. The Committee received a presentation from Angie Martin of the finance department.
President Todd will make a presentation on the budget and discuss some of the things to get the University
to Top 20 status.

      President Todd asked if Mr. Hardymon would take FCR 16 prior to FCR 15, as they did at the
Finance Committee meeting so the Board would end with the budget presentation.

      P.    Acquisition of Real Property Referred to as the Lexel Building at Coldstream in Fayette
County. Kentucky (FCR 16)

      Mr. Hardymon said that FCR 16 is the acquisition of some property known as the Lexel Building at
Coldstream on Newtown Pike. The Committee recommends that the Board authorize the Executive Vice
President for Finance and Administration to negotiate the acquisition of the Lexel Building. It is on land
already owned by the University of Kentucky, and the purchase price is not to exceed $9.6 million. This
price is not to exceed the appraised fair-market value. He added that the purchase price is probably half of
the replacement value of a building of this type because it is a high-technology building which will fill the
need for space to house engineering projects, and it is a building with cleanrooms. That is a very special
thing when you consider that it is part of a research park. The Committee did approve this and authorized
the finalizing of this negotiation. He asked President Todd to comment on some of the other facets of the
acquisition..

      President Todd said that this is a very exciting opportunity. He thanked Wendy Baldwin, John
Parks, Dick Siemer, and Clay Owen for the work that they have put into bringing this to pass. It is an




 




9-



investment that the University needs to make, and the University will have a return as it leases that property.
President Todd said that he has a fondness for the building, although he has no financial interests in the
building whatsoever, in that he helped design the building when Hughes Aircraft came to Kentucky. The
building was built to Hughes Aircraft standards back when the air and space industry was at its peak. It has
the amenities that are attractive to engineering and hopefully pharmaceutical and biological companies
coming into this area.

       President Todd explained that there is a business there now called Lexel Displays. They will occupy
about 80,000 square feet, which will leave another 85,000 square feet for the University to sublease. Lexel
is the holder of one of the University's licenses. One of the University's patents is in the visualization area.
Lexel has been in a business that is in a declining market, and they are looking at UK and some of its
researchers in the visualization area to give them new products to sell. There is a very good relationship
between them and the University.

       President Todd said that UK is also having discussions with companies in the automotive area about
doing some research at Coldstream. This would give UK a home for that, and the concept behind this is that
this gives the University a landing ground where it can bring in operations that could live there for a period
of time, hopefully, while the University builds them a facility on Coldstream if they choose to expand there.

       President Todd said that the University has some biotech conversations going on as well. He
referred to a biotechnology conference that he mentioned at the previous Board meeting and noted that
Gover