xt74b853fr39 https://exploreuk.uky.edu/dips/xt74b853fr39/data/mets.xml Lexington, Kentucky University of Kentucky 20030929 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, 2003-09-oct29. text Minutes of the University of Kentucky Board of Trustees, 2003-09-oct29. 2003 2011 true xt74b853fr39 section xt74b853fr39 









MINUTES



                               Meeting of the Board of Trustees
                                   University of Kentucky
                                         1:00 P.M.
                                      October 29, 2003
                              18th Floor Patterson Office Tower

Minutes

Accompanying items:

President's Report and Action Items

PR 1        President' s Report to the Trustees
PR 2        Personnel Actions (Consent)
PR 3        Amend the Statute Which Mandates When the Board Shall Meet and How the Board Shall
Maintain the Record of the Board Meetings

Academic Affairs Committee Report

AACR 1      Doctor of Philosophy Degree in Theatre Practice
AACR 2      Change of Organizational Structure of the Center on Drug and Alcohol Research
AACR 3      Change in Name of an Educational Unit

Finance Committee Report

FCR 1        Acceptance of Interim Financial Report for the University of Kentucky for the Three
Months Ended September 30, 2003
FCR 2        Disposition of Property - Bequest to College of Agriculture
FCR 3        Kentucky Medical Services Foundation Gift of Property
FCR 4        Approval of the Terms of an Agreement with the Kentucky Medical Services Foundation
(KMSF) Regarding Real Property at 138 Leader Avenue
FCR 5        Authorization to Sell Property in Sharonville, Ohio
FCR 6        Estate of Darlene F. Duncan
FCR 7        Fluent, Inc., Gift-in-Kind
FCR 8        Toyota Motor Manufacturing, Kentucky, Inc. Gift-in-Kind
FCR 9        Charles D. and Jeanette D. Bennett Gift and Pledge
FCR 10       Gifts and Pledges to Robert G. Lawson and William H. Fortune Professorships Endowment
FCR 11       Edith D. Gardner Charitable Foundation, Inc. Gift
FCR 12       Kentucky Medical Services Foundation Gift
FCR 13       Approval of 2002-03 Endowment Match Program Annual Report
FCR 14       Design of a Basketball Practice Facility Memorial Coliseum
FCR 15       Multi-Purpose Facility Addition to the Nutter Field House




 







      Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Wednesday, October 29, 2003.

      The Board of Trustees of the University of Kentucky met at 1:00 pm (Lexington time) on
Wednesday, October 29, 2003 in the Board Room on the 18th Floor of Patterson Office Tower.

      Mr. Steven S. Reed, Chair, said that it would be quite appropriate to have a moment of
silence out of respect for President Emeritus Otis A. Singletary and former Governor Edward T.
Breathitt, who recently died.

      A.    Meeting Opened

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

      B.    Roll Call

        The following members of the Board of Trustees answered the call of the roll: James F.
Hardymon, Davy Jones, Michael Kennedy, Pamela R. May, Robert P. Meriwether, Billy Joe
Miles, Phillip Patton, Elissa Plattner, Steven S. Reed (Chair), Frank Shoop, Marian Moore Sims,
Alice Stevens Sparks, Myra Leigh Tobin, Rachel Watts, JoEtta Y. Wickliffe, Billy B.
Wilcoxson, Russ Williams, Elaine A. Wilson, and Barbara S. Young. Absent from the meeting
was Marianne Smith Edge. 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 Research Wendy Baldwin, Executive Vice President
of Health Affairs Michael Karpf and General Counsel Paul C. Van Booven.

        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 1:16 p.m.

      C.    Consent Agenda

      Mr. Reed asked for a motion of approval for the Minutes and PR 2 on the consent
agenda. On motion made by Ms. Wilson, seconded by Ms. Sims and carried without dissent, the
following items on the consent agenda were approved:
             Minutes - September 16, 2003
             PR 2 - Personnel Actions

      D.    President's Report to the Board of Trustees (PR 1)

      President Todd called attention to PR 1. He stated that there are always great things
throughout PR 1 and called attention to the following items in the report:

      Campaign Success Leads to $1 Billion Goal - President Todd recognized Vice President
      Terry Mobley and his staff for helping complete the $600M fundraising effort, achieving
      a total of $61 8M. He also commended Provost Nietzel and all the deans in the Medical




 




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Center for the amount of work that they put into the campaign. This was the first time
that the University had gone to a major capital campaign, and it was executed in a time
when the national market place was tough. To exceed that goal was very important to the
University.

President Todd reported that an announcement was made at the recent Fellows Dinner to
increase the goal to $1 billion dollars and to extend the campaign for another four years.
He said that work would begin immediately to take advantage of a very gracious donor
base that the University has found and others that it will find.

UK Launches System to Gather Information for Resource Planning - President Todd
announced that this project has been kicked off for the enterprise resource planning for
the University. It is a new computing capability to help integrate student and financial
records. This system has been discussed for a few years, and Dr. Phyllis Nash has been
asked to take the leadership of this project. This will not be an easy task because people
will be asked to change the University's business processes. It will take some negotiation
and good technology work, and there will be a significant staff associated with the
project. This is a very important project and something the University desperately needs.

President Todd introduced Dr. Doug Boyd, the new Chief of Staff, and said he is glad to
have Dr. Boyd fill Dr. Nash's position for this important role.

Student Population, Now over 35,000, Most Academically Talented in History -
President Todd emphasized the quality of the freshman class, noting 318 Kentucky
Governor's Scholars and Governor's School for the Arts students, 110 Legacy students (a
total of 289 in the two years of this program), 145 valedictorians, 45 National Merit
Scholars, and two National Achievement Scholars. Last year, the University ranked 15th
in the nation with National Merit Finalists.

President Todd reported that there is a 33% increase in African-American freshmen. He
said that this increase is a testament to the good work of Don Witt, Director of
Undergraduate Admission and University Registrar, and his staff.

UK Begins Second-cycle Work on NCAA Self-study and Athletics Certification -
President Todd reported that the University has begun the second-cycle of its National
Collegiate Athletic Association (NCAA) Self-study. He noted that this is a separate self-
study from the Southern Association of Colleges and Schools (SACS) review that was
completed for the University last year. He said that there would be discussions with the
NCAA about making this particular Self-study coincide with the SACS Self-study
because it would save the staff of the University a lot of time.

President Todd reported that there are a substantial number of committees involved in the
Self-study, and Vice President Connie Ray will chair this effort for the University.
People outside of athletics will be involved and asked to look at athletics. He said that he
was pleased to report that Barbara Young will be the Trustee representative for this Self-
study.




 




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      City Initiates First Employer-assisted Housing Program - President Todd reported the
      administration's interest in making money available to help subsidize mortgages for
      faculty and staff who would locate in the college-town area. The University will provide
      up to $15,000 for faculty and staff, and they can lock in mortgage rates with a Fannie
      Mae loan.

      Fannie Mae, Samaritan Hospital, and Lexington-Fayette Urban County Government
      representatives attended the recent press conference. The Samaritan Hospital and the
      City have similar programs.

      President Todd reminded the Board of UK retiree, Dick Barbella, who won the lottery
      and contributed $1M to an endowment that allowed the President of the University to use
      at his discretion. The University will be using the proceeds from this endowment to help
      provide these mortgages.

      President Todd Presents First Annual Awards for Diversity - President Todd reported
      that the First Annual Awards for Diversity was a recommendation from the Commission
      on Diversity. The reception to announce the awards was very well received and nearly
      300 people attended the event at the Boone Center. Outstanding winners were Joseph
      Lambert, Chief Justice of the Kentucky Supreme Court, and Joseph Kelly, Executive
      Vice President and Chief Operating Officer of Columbia Gas of Kentucky. Both
      gentlemen have done some great things. Don Witt, UK Director of Undergraduate
      Admission and University Registrar, and Lauretta Byars, UK Associate Provost for
      Multicultural and Academic Affairs, were also among the recipients as well as others
      listed in PR 1.

      Gatton College Partners with Greek University to Offer MBA in Athens - President Todd
      reported that the Gatton College is partnering with a Greek University to offer a MBA in
      Athens. He said that he would probably be able to announce that UK is partnering with a
      university in China very soon. This partnership is something that Dean Devanathan
      Sudharshan has promoted. SACS commented that this type of program change is one of
      the best-prepared significant changes that they have seen offered. President Todd
      congratulated Provost Nietzel on moving quickly with the program. UK has to get more
      international programs, and this is a great step in that direction.

      President Todd said that concluded his report. He noted that PR 2 was on the consent
agenda and said that a decision had been made to table PR 3 until a later date.

      E.    Doctor of Philosophy Degree in Theatre Practice (AACR 1)

      Alice Sparks, Chair of the Academic Affairs Committee, reported that the Committee met
that morning, and there were three items to recommend to the Board. The first item is the
establishment of a Doctor of Philosophy Degree in Theatre Practice. The Dean, the Department
Head and Provost were at the meeting and explained the recommendation in great detail. They
talked about what the degree would mean to the University and said that UK would be the first




 




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university in the state to offer it. She recommended approval of AACR 1. Ms. Sims seconded
the motion, and it carried without dissent. (See AACR 1 at the end of the Minutes.)

      F.    Change of Organizational Structure of the Center on Drug and Alcohol Research
(AACR 2)

      Ms. Sparks reported that AACR 2 is the Change of Organizational Structure of the Center
on Drug and Alcohol Research. She said that the Center would transfer to the College of
Medicine, and the recommendation has gone through the usual procedures. She moved approval
of AACR 2. Ms. Wilson seconded the motion, and it carried without dissent. (See AACR 2 at
the end of the Minutes.)

      G.    Change in Name of an Educational Unit (AACR 3)

      Ms. Sparks reported that AACR 3 is the Change in Name of an Educational Unit, the
Department of Ophthalmology to the Department of Ophthalmology and Visual Sciences. This
recommendation has gone through the usual procedures and has met with approval. She moved
approval of AACR 3. Ms. Wickliffe seconded the motion, and it carried without dissent. (See
AACR 3 at the end of the Minutes.)

      Ms. Sparks informed the Board that the Committee discussed some upcoming challenges
and had some reports on matters that it will be dealing with on a future agenda. One item will be
the report from the Lexington Community College. Another item will be for the Committee to
look at the retention and graduation rates and hopefully, see a big increase in those rates.

      Mr. Reed thanked Ms. Sparks for her report and called on Mr. Hardymon for the Finance
Committee report.

      H.    Acceptance of Interim Financial Report for the University of Kentucky for Three
Months Ended September 30, 2003 (FCR 1)

      Mr. Hardymon, Chair of the Finance Committee, reported that the Committee met that
morning and had a quorum. There were 15 items on the Committee's agenda, and the Board has
received material on these items. He noted that the items do require Board action.

      He said that FCR 1 is the Interim Financial Report for the three months ending
September 30, 2003, and this report is being recommended for the Board's approval. He
mentioned some of the details in the report. The realized income is now 3 1% of the $1.4 billion
budget, and the expenditure is 25%. He referred to the balances on page one of the report and
said that the key items the Board needs to look at are the cash and cash equivalents that is up
23% over last year. That is driven by an increase in endowment funds mainly and certainly does
show that the structure is moving in a positive direction. He said that the University is on good,
sound footing.

      Mr. Hardymon reported that the revenues are up 3%, and at this time of year, revenues do
get ahead of expenses because of the tuition. He said that the expenditures have decreased




 







$7.7M versus last year. The main reason for that decrease is the renovations and capital
equipment have slowed down. He pointed out that the debt service expenditures are down
because of some refunding in June.

      Mr. Hardymon reiterated that this compares very favorably with last year. The 310% in
realized income is exactly where the University was at the end of three months last year. At the
end of September 2003, the University's expenditure was 25%, and it was 27% at this time last
year. The capital expenditures and some of the debt service items have held to 25%. It is a very
sound financial report, and the Committee recommends approval. On motion made by Mr.
Hardymon, seconded by Ms. Sparks and carried without dissent, FCR 1 was approved. (See
FCR 1 at the end of the Minutes.)

      I.    Disposition of Property - Bequest to College of Agriculture (FCR 2)

      Mr. Hardymon said that FCR 2 is a recommendation to authorize the legal instruments to
sell a partial of land. This is a piece of property containing approximately 330 acres near
Somerset, Kentucky. The property was a bequest to the College of Agriculture by the Simpson
family. It is known as the Ava Christine Simpson property. The University has had the
appropriate appraisals made, and the property appraises around $370,000. The University will
sell this property, and it will be moving pretty quickly. From the sale of the property, the
University will be required to establish the James W. and Ava Christine Simpson Endowment
Fund for the benefit of the Department of Forestry. He said that the Committee recommends
approval of FCR 2. Ms. Wilson seconded the motion, and it carried without dissent. (See FCR 2
at the end of the Minutes).

      J.    Kentucky Medical Services Foundation Gift of Property (FCR 3)

      Mr. Hardymon said that FCR 3 is asking the Board to accept a gift of real property. It is
property located at South Limestone Street in Lexington. It is a gift from the Kentucky Medical
Services Foundation. The property has been appraised at $1.425 million. It is a one-story office
building consisting of 15,658 square feet on a 0.7 acre lot. The property will be used as an
education center for UK medical students. The University will maintain and operate the facility.
The Committee recommends acceptance of the gift. Ms. Tobin seconded the motion, and it
carried without dissent. (See FCR 3 at the end of the Minutes.)

      K.    Approval of the Terms of an Agreement with the Kentucky Medical Services
Foundation (KMSF) Regarding Real Property at 138 Leader Avenue (FCR 4)

      Mr. Hardymon said that the important part of FCR 4 is for the Board to approve the terms
and an agreement. The agreement is with the Kentucky Medical Services Foundation, and it
regards some property at 138 Leader Avenue. He provided some background information on the
property. He explained that the University needed the property where the former KMSF
building was located for the Biomedical/Biological Sciences Research Building that is now
under construction. The University made an agreement with KMSF that they would move to a
piece of property owned by the University and leased at a nominal rate to KMSF. The appraised
value is $3.2M. If the property consisting of 30,000 square feet were ever needed by the




 




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University, the University would be required to pay KMSF for the construction costs. Mr.
Hardymon added that the University participated in the construction oversight, and although it
does not expect to have the property back, it would be used more if the University did get it
back. He said that the Committee recommends approval of the terms of this agreement. Ms.
Sparks seconded the motion, and it carried without dissent. (See FCR 4 at the end of the
Minutes.)

      L.    Authorization to Sell Property in Sharonville, Ohio (FCR 5)

      Mr. Hardymon said that the last item dealing with property is FCR 5. This is a piece of
property in Sharonville, Ohio that is deemed surplus as far as the University is concerned. The
Board is asked to authorize the Executive Vice President for Finance and Administration to sell
the property. Mr. Hardymon noted that the University had the property appraised, and it
appraised around $225,000. There is a building on the property; however, it is not a useable
building for a future owner. He explained that the University had the property up for bid once
but did not receive the appraised amount. The University turned that bid down and did get the
$225,000 appraised value. The net proceeds from the sale of this property will go to the Tracy
Farmer Center for the Environment. Mr. and Mrs. Farmer previously donated the property to the
University. The Committee recommends approval to sell the property. Mr. Kennedy seconded
the motion, and it carried without dissent. (See FCR 5 at the end of the Minutes.)

      M.    Gifts and Pledges (FCR 6 through 12)

      Mr. Hardymon said that with Chairman Reed's permission he would go through FCR 6
through 12 and have one approval for the items.

      FCR 6 is entitled the Estate of Darlene F. Duncan. The Board is being asked to accept a
distribution of $537,783 from the estate of Darlene Duncan to create and endow the Joseph G.
Duncan Endowed Scholarship Fund in the College of Agriculture. Mr. and Mrs. Duncan were
long-time friends of the College of Agriculture, and Mr. Duncan was an employee of the
Agricultural Communications Department of the College. They recognized the importance of
support for undergraduate students in the College and wanted to leave a legacy reflecting their
desire. Mrs. Duncan died in 2002, and Mr. Duncan died in 1997. They lived in Lexington.

      FCR 7 is entitled Fluent, Inc., Gift-in-kind. This is a gift-in-kind of software. The
appraised value is $1,160,000 from this New Hampshire firm to the Department of Mechanical
Engineering in the College of Engineering. This software will assist Dr. Huang, a Department of
Mechanical Engineering Professor and Director of Graduate Studies, with his research in fluid
dynamics. The software will allow Dr. Huang to more quickly look at prototypes and simulate
the performance of the proposed designs, allowing them to improve the design quality while
reducing cost and increasing the speed. This is a very nice gift and looks like it can be put to
good use.

      FCR 8 is asking the Board to accept a gift-in-kind of research and manufacturing
equipment valued at $243,560 from Toyota of Georgetown, Kentucky to the Center for
Manufacturing in the College of Engineering. This gift will allow the Center for Manufacturing




 




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to use the company's patented optical image enhancement technique for surface inspection of
sheet metal, glass, plastics, and tooling. This continues a longstanding and mutually beneficial
partnership with Toyota and the College of Engineering.

      FCR 9 is entitled Charles D. and Jeanette D. Bennett Gift and Pledge. This is a gift of
$20,000 and a pledge of $230,000. The pledge is to be paid in 2004. The gift and pledge are
from Charles D. and Jeanette D. Bennett of Hardinsburg, Kentucky, to establish the Provost
Discretionary Fund to enhance program excellence. Mr. Bennett, a 1946 graduate of the College
of Agriculture, is a banker and a businessman. He and his wife are generous supporters of the
University and hold UK Fellows recognition. This $250,000 reflects their great appreciation for
the University and their desire to support its advancement. The funds can be used at the
Provost's discretion.

      FCR 10 is entitled Gifts and Pledges to the Robert G. Lawson and William H. Fortune
Professorships Endowment. This is for gifts of $42,180 and pledges of $43,500, a total of
$85,680 to create and establish the Robert G. Lawson and William H. Fortune Professorships
Endowment in the College of Law. This endowment is being established to honor two long-time
College of Law professors. Mr. Lawson has been a member of the faculty since 1966 and has
served twice as dean. Mr. Fortune has been a faculty member since 1969 and served as associate
dean during 1989-91 and is currently serving as associate dean. Both are UK College of Law
graduates, and the professorships will be awarded to support the research and teaching endeavors
of members of the College of Law faculty. The gifts and pledges are eligible for matching funds.

      FCR 11 is a gift of $760,449 from the Edith D. Gardner Charitable Foundation of
Lexington. It is for the Edith D. Gardner Professorship/Chair in Cancer Research and the
Madeline F. James Professorship/Chair in Cancer Research in the Markey Cancer Center. From
the $760,449 gift, $635,449 will go toward the Edith Gardner Professorship/Chair. That will
take the fund over $1M; therefore, the word "Professorship" will be dropped. The remaining
$125,000 will go to the Madeline James Professorship/Chair. Again, that takes this fund over
$1M, and the word "Professorship" will be dropped. The two funds will be renamed.

      The Gardner Foundation was created through the will of Edith D. Gardner of Lexington
who died in 1989. She attended UK, and her husband, who died in 1982, was a 1924 graduate of
the College of Agriculture. They have designated the Markey Cancer Center as the beneficiaries
of the Foundation's contributions.

      FCR 12 is entitled the Kentucky Medical Services Foundation Gift. It is a gift of $50,000
from the Kentucky Medical Services Foundation for the Belinda Mason Carden and Paul Mason
Professorship in HIV/AIDS Research. This Professorship was established in September, 2000.
Unfortunately, Belinda Carden died in 1991 after contracting HIV through a blood transfusion.
These gifts totaling $51,960 were matched in September, 2000 by the Research Challenge Trust
Fund (RCTF). This gift supplements the endowment and is eligible for matching RCTF funds.

      Mr. Hardymon said that the Committee recommends the acceptance of FCR 6 through
12. Ms. Watts seconded the motion, and it carried without dissent. (See FCR 6 through 12 at the
end of the Minutes.)




 




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      N.    Approval of 2002-03 Endowment Match Program Annual Report (FCR 13)

      Mr. Hardymon said that FCR 13 is recommending the Board's acceptance of the 2002-03
Endowment Matching Program Annual Report. According to regulations in House Bill 1
established in 1997, the Kentucky Postsecondary Education Improvement Act encourages the
research activities at the University of Kentucky and the University of Louisville. The
University is to give an annual report on the endowment. Mr. Hardymon noted that some
additional documents, including hundreds of pages on a disk, were provided to the Board. The
summary, however, is rather complete. It stands for $217M in actual value. This is state, cash,
state funds, the matching funds and cash received. He noted that there are only $32M
outstanding pledges. This money has provided 126 Chairs/Professorships and 155 Fellowships.
He pointed out that 240 staff members have been added because of these new programs. The
Committee recommends the acceptance of the annual report. Ms. Wilson seconded the motion,
and it carried without dissent. (See FCR 13 at the end of the Minutes.)

      0.    Design of a Basketball Practice Facility - Memorial Coliseum (FCR 14)

      Mr. Hardymon said that FCR 14 and 15 are for facility expenditures, and both of the
projects will be funded from private sources. FCR 14 is the design of an expansion adjacent to
Memorial Coliseum. There will be 92,300 square feet added and another 7,700 square feet of
renovation to Memorial Coliseum. This facility will include two basketball courts for practice,
equal facilities for men and women, and the second and third floor of the facility will be used for
offices. This new facility will make available 17,000 square feet of space that the Athletics
Department has around campus.

      Mr. Hardymon explained that this project is being presented to the Board in two ways.
With this recommendation, the Board is only asked to approve the cost to contract for the design
phase of a practice facility and administration facility. That amount is $2.5M. At this time, it is
estimated that the total cost will be around $25.5M. He noted that this does include a portion of
upgrading Memorial Coliseum as well as the new facility. He reported that the University did
quite a bit of benchmarking with other schools, and the costs appear to be in line with the
estimate. He said that the Committee recommends approval of FCR 14.

      Mr. Reed asked for any questions from the Board.

      Ms. May asked if the location to the facility was consistent with the overall Campus
Development Plan that had been brought to the Board earlier.

      President Todd said that it is consistent, and it will be behind Memorial Coliseum.

      Mr. Hardymon said that he had spent a couple of hours with the administration reviewing
the Plan that morning, and it was a very well done plan. He concurred that the new facility was
on the Plan.




 




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       Dr. Jones asked for clarification that this is not going to detract from the academic
mission or resources available to the academic mission of the University.

       President Todd said that private funds would be raised for this project. He said that he is
very pleased with Mitch Barnhart and the Athletics Department's willingness to help with the
University's academic mission by contributing $1M for ten years to scholarships. He pointed
out that another area of cooperation is the exposure to academics at athletic events. This is
getting some of the University's advertisers that support sports to also support the academic
events. The cost of this facility will not, in his mind, take away from academics.

       President Todd reported that the University just announced a $400M expansion of the
program, and this is only a small part of that expansion. He said at one point he asked Mr.
Mobley to calculate how much of the $600M Capital Campaign money went toward athletics,
and it was 7%. The University is still finding plenty of investors who are investing in the
academic program.

       Ms. Young said that she thinks that it is important to point out that the operational
expenses of the new facility will be absorbed by Athletics.

       President Todd said that was a very good point, and the operating costs as well will be
borne by the Athletics Department. One piece of information that came up at the Athletic Board
meeting is that 25% of the Athletics Department's budget is spent on UK's campus, presently
with staff workers and with other things that they pay for on campus.

       Mr. Williams said that it is probably too early to estimate the operating costs for this new
facility.

       President Todd indicated that it is too early for him to estimate that, and he did not know
if Mr. Rob Mullens had that information. This facility will provide much needed improvement
for women's basketball, volleyball, gymnastics, and men's basketball.

       Mr. Reed noted that it is his understanding that the men's basketball team and other
athletic programs have had to practice outside Memorial Coliseum because of scheduling
problems. The University has an increasing number of sports that it is emphasizing and to good
measure and good reason. It is also a matter of logistics and a matter of need as far as having
practice facilities available not only for men's basketball but freeing up needed space for other
programs as those programs are enhanced as well.

       Mr. Reed reiterated what President Todd said. The University is along its way toward its
march in untreaded waters for a billion dollars, having exceeded the $600M mark. When you
look at the $25M facility, the context of a billion dollar capital campaign is very important,
especially when you consider the benefits to the other programs and the other sports.

       He stated that the University has the number one basketball program in the country. It is
important for people to understand that the University must raise its academic programs so that it
can have the same tradition, ranking and prestige as the number one basketball program. There




 




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is a thin line. We must make sure we do nothing in our efforts to raise the academic program to
somehow do anything that hurts the tradition of basketball. The basketball program reflects
more than just who wins a game. It reflects a lot about who we are as Kentuckians, a lot about
the fight in us, and a lot about the zeal never to give up and to always achieve and accomplish in
the win. It is important for everyone to know that value that we embody in the UK basketball
program is very important to us.

       Mr. Reed mentioned the $1M per year for ten years that athletics is contributing to
academics. He said that he had to consider the $25M proposal balanced by a billion dollar
capital campaign on one end and $1 OM from athletics on the other end.

       Mr. Wilcoxson pointed out that there are schools that subsidize athletics from their
general funds. He said that he did not think that there were state or academic dollars going
towards subsidizing the University's Athletics Department. The figure is 25% or more coming
into the University from athletic dollars. It is substantial. There are about 16 schools now that
are doing this, and out of that, there are three of them already in the Southeastern Conference.
The University needs to be competitive if it is still going to be number one.

       Ms. Sims asked if this facility would help house some of the offices for coaches who
presently have very diminished places in Memorial Coliseum. These coaches need to have
lovely places to bring recruits and nice offices to just work in. These are professional men and
women that serve the University. It appears that this facility will help other faculty and coaches
at the University.

       Mr. Shoop said that he is glad the Board is talking about a practice facility for the team.
It is needed while the University is keeping its commitment to Rupp Arena. That commitment is
in place for a number of years. This project is a practice facility and not a full-blown stadium.

       Mr. Reed said that there was a motion for approval of FCR 14 and called for a second.
Ms. Sparks seconded the motion, and it carried without dissent. (See FCR 14 at the end of the
Minutes.)

       P.     Multi-Purpose Facility Addition to the Nutter Field House (FCR 15)

       Mr