xt78kp7tn29x https://exploreuk.uky.edu/dips/xt78kp7tn29x/data/mets.xml Lexington, Kentucky University of Kentucky 2002025 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, 2002-02-mar5. text Minutes of the University of Kentucky Board of Trustees, 2002-02-mar5. 2002 2011 true xt78kp7tn29x section xt78kp7tn29x 


                              Meeting of the Board of Trustees
                                  University of Kentucky
                                        1:00 P.M.
                                      March 5, 2002
                             18th Floor Patterson Office Tower


Accompanying Materials:

PR 2    Personnel Actions
PR 3    Appointment of Dean of College of Education
PR 4    Assistant Dean of Admissions and Student Affairs Emeritus be Conferred Posthumously upon
Daniel C. Seaver
PR 5    Honorary Degree Recipients

Academic Affairs Committee Report

AACR 1 Change in Name of an Educational Unit (Consent)
AACR 2 Establishment of a Center for Structural Biology (Consent)

Finance Committee Report

FCR 1   Report of Leases
FCR 2   Authorization to Lease 1.76 Acres on College Way to American Cancer Society
FCR 3   Disposition of Personal Property
FCR 4   International Education Quasi Endowment
FCR 5   Redesignating Urology Research Fund to a Professorship
FCR 6   Profigen, Inc., Gift
FCR 7   Arthur E. Walker Jr. Gift and Pledge
FCR 8   Frank and Tress Nichols Gift and Pledge
FCR 9   Gifts and Pledges for Horticulture Research Fund
FCR 10   Kenneth H. and Susan W. Beard Pledge
FCR 11   Alice Sparks Gift and Pledge
FCR 12   Nicholas S. Hellmann, M.D. Gift and Pledge
FCR 13   Charlotte R. Schmidlapp Trust and McDowell Cancer Foundation Gift
FCR 14   Wyeth-Ayerst Pharmaceuticals, Inc. Gift
FCR 15   Kentucky Housing Corporation Pledge


      Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Tuesday, March 5, 2002.

      The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington
time) on Tuesday, March 5, 2002 in the Board Room on the 18th Floor of Patterson
Office Tower.

      A. Meeting Opened

      Mr. Billy Joe Miles, Chairperson, called the meeting to order at 1:00 p.m., and
Mr. Tim Robinson gave the invocation.

      B.    Roll Call

      The following members of the Board of Trustees answered the call of the roll:
Mr. Paul W. Chellgren, Ms. Marianne Smith Edge, Mr. John "Jack" Guthrie, Dr. Loys
Mather, Ms. Pamela May, Dr. Robert P. Meriwether, Mr. Billy Joe Miles (Chairman), Dr.
Claire Pomeroy, Mr. Steven S. Reed, Mr. Tim Robinson, Mr. Frank Shoop, Ms. Marian
Sims, Ms. Alice Sparks, Dr. Grady Stumbo, Ms. JoEtta Wickliffe, Mr. Billy Wilcoxson,
Mr. Russ Williams, Ms. Elaine Wilson, and Ms. Barbara Young. Absent from the
meeting was Dr. Elissa Plattner. The University administration was represented by
President Lee T. Todd, Jr.; Acting Senior Vice President Jack C. Blanton; Senior Vice
President and Chancellor of the Medical Center James W. Holsinger; Jr., Acting Provost
Michael Nietzel; Acting Vice President for Research James Boling, and Mr. Richard E.
Plymale, General Counsel.

      Members of the various news media were also in attendance. A quorum being
present, the Chairperson declared the meeting officially open for the conduct of business
at 1:03 p.m.

      C.    Consent Agenda

      Mr. Miles entertained a motion to approve the following items on the Consent
            Approval of Minutes
            PR 2        Personnel Actions
            AACR 1      Change in Name of an Educational Unit
            AACR 2      Establishment of a Center for Structural Biology

      On motion made by Mr. Shoop and seconded by Ms. Edge, the Consent Agenda
was approved. (See PR 2, AACR 1 and AACR 2 at the end of the Minutes.)


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

      President Todd reported that he had been officially inaugurated since the last
meeting. He thanked the inauguration committee and said they had a dinner the evening
before the Board meeting for JoEtta Wickliffe, past member of the Board Dan Reedy, T.
Lynn Williamson and the Inauguration Committee who really made an effort to have the
inauguration with quality, in a short time to get it done. He informed the Board that it
was the event of his lifetime. He thanked his wife, Patsy, for making sure he agreed to
have the inauguration because she was determined to have it. He said that he had learned
that when his wife is determined to do something, it generally happens.

      President Todd said he would give a report on the review done by the Athletic
Review Committee at the end of the meeting under Other Business. He announced that
the Board meeting would adjourn following the Athletic Review Committee report, and
there would be a short break with a press conference immediately following the break.

      President Todd encouraged the Board to read PR 1 because it contains a lot of
great information. He called attention to the following items in PR 1:

      The Mayor of Lexington is putting up $1 00K and the University of Kentucky is
      putting up $I OOK to enter into a joint venture to develop a "College-Town
      Concept" for an area of the city bordering the UK campus. Ayers/Saint/Gross
      Architects and Planners, who are the master planners, will develop the plan.

      He reported that a press conference was recently held to announce the
      University' s leasing of two stories in the former Kentucky Utilities building on
      Vine Street to expand educational services tailored to downtown Lexington
      clientele. Lexington Community College, the College of Social Work, and the
      University's interdisciplinary health institute will be utilizing space in the
      building. This action shows the University' s commitment to downtown

      The University of Kentucky has been selected as one of only five Research I
      universities in the nation entitled to award Beckman Foundation undergraduate
      research scholarships totaling $105,000 over the next three years to six students.
      President Todd said that he had mentioned this earlier in his inaugural address.
      This puts the University of Kentucky in company with Duke, Boston University,
      University of Washington, and UCLA.

      The UK Alumni Association bestowed its coveted "Great Teacher Awards" on six
      instructors at a luncheon ceremony in mid-February.

      Former Indonesian Finance Minister Bambang Sudibyo, along with an Indonesian
      banker, the chairman of a leading accounting firm and a major eastern Kentucky
      banker, were inducted into UK' s Gatton College of Business and Economics
      Alumni Hall of Fame in mid-February.


- 3 -

      Four alumni of the UK School of Music were inducted into the Carl A. Lampert
      Music Hall of Fame in late February.

      The UK College of Human Environmental Sciences (HES) inducted three people
      into its Hall of Fame in late February as part of its HES Week celebration.
      President Todd said one of his goals is to have all of the Hall of Fames on the
      same day and bring back to campus a wealth of alumni who would be speakers.
      This would be another way of creating a tradition that would show people what
      the University of Kentucky has accomplished.

      Fujio Cho, president of Toyota Motor Corporation, received an honorary Doctor
      of Engineering degree from the University of Kentucky in late January.

      Sonja Feist-Price, an associate professor in the College of Education' s
      Department of Special Education, has been named 2001 "Researcher of the Year"
      by the National Council on Rehabilitation Education.

      The University' s Capital Campaign moves forward. It has raised nearly $455
      million. President Todd reminded the Board that anything they can do to help
      ensure that the University gets another round of "Bucks for Brains" is crucial to
      completing the $600 million goal. He said that he and Dr. John Shumaker,
      President of the University of Louisville, would be reporting to the Senate
      Appropriations and Revenue Committee on Thursday morning to give them
      answers to any questions they might have. He said he appreciated Terry Mobley
      and his team, and the fact that they have raised $455 million. He said he is eager
      to close out the $600 million Capital Campaign and start a new one.

      Winston Ho, professor in Chemical and Materials Engineering in the College of
      Engineering, has been elected to the National Academy of Engineering. President
      Todd said this is one of the measures of Top 20 universities. He reported that
      there have only been four in the history of the institution, and he believes the
      previous members are retired. The University needs more of these honors. It is
      certainly an honor for Professor Ho and an honor for the University.

      More than $10,000 has been raised for the Pediatric Aids Foundation at the annual
      UK Dance Marathon, an event sponsored by the Panhellenic Association, the
      Interfraternity Council, Student Government and the Student Activities Board.

      President Todd reported that his wife, Patsy, was ajudge at the Greek Sing and
      noted that Marian Sims was there, too. It was a nice event, and it was for the
      Make a Wish Foundation. They raised at least $16,000, if not more.

      President Todd called attention to the other significant activities for faculty,
students and staff in his report and asked the members of the Board to take time to read
them and congratulate those people when they see them on campus.


- 4 -

      E.    Appointment of Dean of the College of Education (PR 3)

      President Todd called on Provost Mike Nietzel to introduce a special guest.

      Dr. Nietzel thanked President Todd and Chairman Miles. He said it was his
privilege to be able to summarize very briefly the credentials of the candidate, Dr. James
G. Cibulka, who is being recommended to become the next Dean of the College of

      Dr. Nietzel explained the search process. He said the search for the Dean of the
College of Education began last spring when Dr. Shirley Raines announced her
resignation to accept the position of President at the University of Memphis. The search
committee was put in place, and the search began in July, 2001. It was a national search.

      He reported that he was very pleased with the leadership of Deneese Jones and
Howard Grotch as chairs of that committee and also pleased with the many members of
the committee who served. The committee recommended the top candidate, and that was
Dr. James G. Cibulka. Dr. Cibulka was brought to campus for an interview in November
where he had an opportunity to meet with the College of Education students and faculty,
and with deans and other administrators at the University. Dr. Cibulka was asked to
return for a second visit and met with individuals on campus.

      Dr. Nietzel reported that he received a great deal of support from the College and
other administrators that Dr. Cibulka join the University of Kentucky as Dean of the
College of Education. That certainly was confirmed by Dr. Cibulka' s national reputation
and recommendation from external referees that were received.

      Dr. Nietzel briefly reviewed some features of Dr. Cibulka' s academic career. Dr.
Cibulka was educated as an undergraduate at Harvard and then received his Ph.D. from
the University of Chicago. He has served at some very fine universities in a variety of
faculty and administrative positions. He was the founder and first chair of the
Department of Community Education at the University of Wisconsin in Milwaukee. At
the University of Maryland, he was Chair of the Department of Educational Policy and
Planning and then became the Associate Dean of the College of Education at the
University of Maryland. Dr. Cibulka has also earned a wonderful reputation as a scholar.
He is the author or editor of eight books. So, his trajectory in terms of scholarly activity
is still ascending. He is a consultant and expert witness nationally on a number of very
important matters in the field of education, including desegregation and public financing
of education. He has had a very wonderful record of extramural support for his
scholarship as well as on behalf of developments in the College of Education at Maryland
and on behalf of public education in the State of Maryland.

      Dr. Nietzel said he was pleased with Dr. Cibulka' s decision to join the University
of Kentucky. In his opinion, Dr. Cibulka can be a terrific Dean for this College. It is a
vital area obviously for the University both in terms of degree programs and research


- 5 -

agenda but also for the contributions this College must make to the State of Kentucky and
the local community.

       Dr. Nietzel thanked Dr. Ed Sagan, who served as an excellent interim dean during
this period. He said it has been a pleasure for him and all the other deans to work with
Dr. Sagan. Dr. Sagan was asked to stand and be recognized, following which he received
a round of applause. Dr. Nietzel said he was pleased to see so many faculty members
from the College of Education, as well as others, as observers of the meeting.

       Mr. Miles asked for a motion of approval for PR 3. Ms. Sims made the motion.
Her motion, seconded by Mr. Chellgren, carried.

       Dr. Nietzel introduced Dr. Cibulka and asked him to say a few words about
joining the University. Dr. Nietzel said that he had suggested to President Todd that he
begin a tradition of having new deans address the Board at the point where they are
confirmed. It is a lovely opportunity for them to be introduced to the campus and to hear
some of the ideas they have about academic leadership at the University. He asked
everyone to join him in welcoming Dean James Cibulka. Dr. Cibulka received a round of

       Dr. Cibulka thanked President Todd, Provost Nietzel, distinguished members of
the Board of Trustees, and others. He said Kentucky is the ideal place to assume the
important leadership role of dean and gave the following comments.

       First of all, the fact that Kentucky has announced its aspiration to become one of
the Top 20 public universities in the nation is a very important signal of its intent and
seriousness. With regard to excellence in working toward this goal in the College of
Education, he said he thinks there are many fine programs and excellent faculty. So, the
foundation is there upon which to build. The College will have to be strategic in the way
in which it builds on those strengths, and that is part of his responsibility as the dean in
working with the College.

       Dr. Cibulka said he would be working with the faculty to expand the amount of
external funding that the College receives, which is one of the hallmarks of a top ranked
college of education. The College has the strengths of the faculty, and it is a matter of
organizing the resources and efforts toward that end. He said he looked forward to
working with the College and the campus administration with that important national

       Secondly, he said he was really delighted that President Todd announced a
commitment to the higher purpose needs of Kentucky and will be addressing those needs.
The improvement of K-12 education is absolutely essential to the future of the
Commonwealth. The state made a commitment to education reform over a decade ago,
and the nation has been watching this effort and the perseverance of the state. Now that
the agenda has been in place for over a decade, it is important to consolidate its gains and
work with the Commonwealth in strengthening that commitment. That is the role of the


                                        - 6 -

College of Education. One of the very important challenges in turning around the public
school system is to close the achievement gap. President Todd has made it very clear that
this is a top priority in his administration at the University of Kentucky.

       Certainly, the College of Education wants to work closely with the campus, with
the community, and with the Commonwealth. He said that he thinks that a Research I
institution which has a land grant mission, as is the case in Kentucky, has a very special
obligation to serve the needs of the State. That distinguishes it from some other
universities that only have a Research I mission. He said that he is very committed to
trying to serve the needs of the State. The College of Education has a long and
significant record in serving both the local community and the broader needs of the State.
He said the needs and expectations which society has for colleges of education are greater
than ever before; therefore, he will be working with the faculty to determine how they
can most effectively serve the needs of the State and try to make headway on important
educational challenges like the minority achievement gap. He said he shared President
Todd' s view that national excellence and responsiveness to the State are very compatible
with one another and not necessarily in competition. His entire career has been directed
toward trying to reconcile and make compatible those two great goals, national
excellence as well as responsiveness to local and state needs.

       Thirdly, he said he wants to emphasize that the education reform agenda that the
Commonwealth has is so challenging and so complex that it requires, in his view, the full
resources of the University and the community. The College of Education, of course, is a
very major player and perhaps, the major player at the University level in addressing this;
however, the College cannot do it alone. He said his administration will emphasize a
collaborative approach to addressing these needs, and the College will try to reach out to
other units on campus as well as to the broader community. He said he believes that is
the only way the University can really make headway in dealing with these problems.

       Finally, he said he would have to admit that one thing that gave him cause for
reservation about coming to Kentucky is that he will be leaving the Maryland basketball
team just at the top of its game. The consolation is that Kentucky has a great team as
well. He said he is looking forward to the first game where he will have a new loyalty in
that regard.

       In closing, he said that he thinks these are very exciting years for the University of
Kentucky and the College of Education. He thinks the College is going to achieve a lot
working together, and it is really a privilege for him to join everyone in that effort. He
thanked everyone and said that he looks forward to meeting and working with many of
those present in the months and years ahead. Dr. Cibulka received a round of applause.

       F.    Assistant Dean of Admissions and Student Affairs Emeritus be Conferred
Posthumously upon Daniel C. Seaver (PR 4)


7 -

      President Todd said it gives him pleasure to employ the title emeritus staff The
only regret in this case is that it is posthumously to Daniel Seaver. He recommended that
Mr. Seaver be named Assistant Dean of Admission and Student Affairs Emeritus in
recognition of his long service and dedication to the University and its students for more
than 29 years. Dan Seaver served the University in Admissions and Student Affairs, the
College of Allied Health, and the College of Dentistry. Unfortunately, he passed away
on February 1st, just over a month ago.

      Mr. Seaver is survived by his wife, Cindy Weaver, who works part-time in the
public school system. His daughter, Nancy, is 23 years old and pursuing a masters
degree in higher education at UK. Nancy received her undergraduate degree at Centre
College. His twin sons James and Robert are 20 years old and both pursuing
undergraduate degrees at UK. James was accepted into the Gaines Program the day
before the Board meeting.

      Dan was nominated for this honor by numerous colleagues and at the request of
many student organizations. He was an outstanding advocate for students and touched
the lives of many. He will be sorely missed.

      President Todd asked the members of the family to step forward. He presented
them with a framed certificate for this recognition. The family received a round of

      G.    Honorary Degree Recipients (PR 5)

      President Todd said he was extremely pleased to announce the recipients of the
honorary degrees who will be recognized at the Commencement on May 5th. He gave
remarks about the following recipients:

                                  Wimberly C. Royster

      Wimberly Royster came to the University of Kentucky as a graduate student in
1946. At the time of his retirement, he was the university's first Vice President for
Research and Graduate Studies.

      Dr. Royster was a leader on campus for over 50 years. He chaired the
Mathematics Department in 1963, then became Director of the School of Mathematical
Sciences, then Dean of the College of Sciences, followed by the Dean of the Graduate
School and Vice Chancellor for Research. Under his leadership, the Mathematics
Department was awarded major funding from the National Science Foundation in 1968
and that provided the impetus for one of the institution' s most distinguished research and
graduate education programs which continues with that reputation to this day.

      On a national level, Dr. Royster was President of the Conference of Southern
Graduate Schools, President of the Council of Graduate Schools in the United States and
Canada and served on numerous other boards.


- 8 -

      Even after he retired, Dr. Royster worked for a couple of years on ASTeCC. He
was the key person in getting the ASTeCC building on campus, working closely with
Senator Wendell Ford and Dr. Charles Wethington. He was very instrumental in
bringing that about.

      Since his retirement, and everyone knows that he has not truly retired, he went to
work for the Kentucky Science and Technology Council, an operation co-founded by
President Todd. There, Dr. Royster oversaw the EPSCoR program that has probably
brought over $100 million to the state for research for young professors. In addition to
that, is his idea to find a new way to cause systemic change in Appalachia for math and
science. He wrote a proposal to the National Science Foundation, and Kentucky is now
the headquarters for a project called ARSI, Appalachian Regional Systemic Initiative,
which oversees about 13 states. Dr. Royster, who is a gentleman and has boundless
energy, has overseen that.

      In view of his personal attributes and his professional accomplishments, his
service to the University, the Commonwealth and the nation, Wimberly Royster is
recommended as a recipient of the 2002 Honorary Doctor of Science Degree.

                                   Stanford T. Roach

      Sanford T. Roach, also known as Coach Roach, has made major contributions to
society in the areas of athletics, education, and public service. He was the original
Dunbar High School coach in Lexington where he taught science and coached basketball
for 24 years. He later served as assistant principal at Lexington Junior High School.

      He was salutatorian of his high school class. He received his bachelor's degree
from Kentucky State College and his master' s degree from the University of Kentucky,
where he was one of the very early African-Americans to graduate from this institution.

      At Dunbar, he amassed a record of 512 wins to 142 losses for a lifetime coaching
record of 610 wins and 166 losses, a phenomenal record.

      He is also a leader in the community and in his church. A long-time member of
the St. Paul African Methodist Episcopal Church, he is a church steward, former trustee,
class leader, and choir member.

      His work with children has benefited many young people in the community,
where he served on the board of Boy Scouts of America and Big Brothers/Big Sisters.

      He has been awarded an honorary doctorate degree from Kentucky State
University and inducted into the Kentucky High School Athletic Association Dawahare' s
Hall of Fame, and the Kentucky Athletic Hall of Fame, and that is just to name a few.
The new Dunbar High School gymnasium has been dedicated the S. T. Roach Sports
Center, where the



S. T. Roach Basketball Classic occurs annually.

      For his distinguished record of service to the community, to athletics, and to the
University of Kentucky, Sanford T. Roach is recommended as the recipient of the 2002
Honorary Doctor of Humanities degree from the University of Kentucky

                                Sister Rosemary Howarth

      Sister Rosemary Howarth is the General Superior of the School Sisters of Notre
Dame and has served as the international leader of the sisters since 1998. In this capacity
she oversees 4,000 sisters working in 33 countries. Recipients of the University of
Kentucky' s honorary degrees are required to attend a special ceremony, and Sister
Howarth is coming from Rome to receive this degree on behalf of all the Sisters of Notre

      Sister Rosemary' s work has had a direct impact on the University of Kentucky
through her involvement with the "Nun Study," in which 2,500 sisters have undergone
extensive examination and review, as well as a commitment at their death to donate their
brains to the Sanders-Brown Center on Aging. The sister' s involvement in this study has
resulted in significant advances and discoveries in the areas of Alzheimer' s disease as
well as other neurological problems. The Nun Study has received national and
international acclaim and has brought great credit to University of Kentucky and its
research programs.

      Sister Rosemary has been heavily involved throughout her time with the School
Sisters of Notre Dame and with the poorest of the people in an effort to bring physical
and spiritual relief to their lives.

      On the basis of her leadership of a humanitarian organization that serves the poor
across the world, as well as her efforts to provide understanding of one of the most
debilitating diseases of the modern world, Sister Rosemary is recommended as a recipient
of the 2002 Honorary Doctor of Letters degree.

      On motion made by Elaine Wilson, seconded by Mr. Guthrie and carried, PR 5
was approved.

      H.    Investment Committee Report

      Mr. Miles said that he was changing the order of the agenda and called upon Mr.
Wilcoxson for the Investment Committee.

      Mr. Wilcoxson, Chairperson of the Investment Committee, reported that the
endowment investment assets had a market value on December 31, 2001 of $442 million,
compared to $432 million for June 30, 2001, for an increase of $10 million. Overall, the
endowment posted an average return of minus 1.3% for the year ended December 31,
2001, compared to minus 3.3% for a blended market index of allocated assets and an out


10 -

performance of 200 basis points over the capital market indexes. The Committee has
preliminary data from Cambridge Associates, who is the consultant to the Investment
Committee, that indicate that the University of Kentucky endowment performance was
favorable when compared to the college and university endowment median return for the
same period which was 2.3% or 100 basis points. He said he hoped the market kept
going up and asked for any questions.

      Mr. Shoop made a motion to accept the Investment Committee report. His
motion, seconded by Mr. Reed, carried.

      I.    Academic Affairs Committee Report

      Ms. Alice Sparks, Chairperson of the Academic Affairs Committee, reported that
the Committee had two very good reports from The Futures Committee and The Top 20
Task Force. Unfortunately, there was not enough time to complete The Top 20 Task
Force report. When their report is finished, they will be allowed time to report to the full
Board. The Top 20 Task Force is working very hard and very diligently, and it is really

      J.    Finance Committee Report

      Mr. Chellgren, Chairperson of the Finance Committee, reported that the
Committee met that morning and had a comparatively light agenda. The Committee, as
always, constructively used its time.

      He said the first thing the Finance Committee dealt with was a report from the
Audit Subcommittee of the Finance Committee, and he gave that report. The Audit
Subcommittee met that morning with the external auditors of the University, who are
Deloitte and Touche. The Subcommittee reviewed the scope of the audit services for the
current fiscal year. The scope of the audit services is just under 3700 audit hours. This
will result in audits of the University, itself, and about 10 of the affiliated organizations,
including the various foundations, the Athletics Department, and the Research
Foundation and will also include audits of the hospital, Kentucky Healthcare Enterprises,
the Credit Union, estimated bond arbitrage liability for our housing and dining bonds, and
the like.

      The Audit Subcommittee also made reference to the fact that this year the
Financial Statements are going to be significantly different than in previous years as the
University implements the Government Accounting Standards Board (GASB) Number
35, which means the University does account for accumulated depreciation on its
property, plant and equipment. That will result in a reduction of University net worth of
something over $600 million, an annual charge to the income statement of over $60
million for a non-cash charge for depreciation expense. So, the Financial Statements this
coming fall will be quite different than in previous years.


11 -

      The other item the Audit Subcommittee dealt with was a review of the audit
approach and risk areas, indication of areas of special audits significance that the auditors
will be focusing on including cash, investments, property, plant equipment, self insurance
reserves, and some other items. This was part of the regular scheduled Audit
Subcommittee meeting.

      K.    Report of Leases (FCR 1)

      Following the Audit Subcommittee report, the Finance Committee moved into its
normal agenda. Mr. Chellgren stated that FCR 1 is a Report of Leases. There are two
new leases to report since the last meeting of the Finance Committee. These are modest
leases, one for 420 square feet and the other for a little over 1100 square feet of office
space. He said the specifics of the leases are described in FCR 1 and moved the adoption
of FCR 1. Ms. Wilson seconded his motion, and it passed. (See FCR 1 at the end of the

      L.    Authorization to Lease 1.76 Acres on College Way to American Cancer
Society (FCR 2)

      Mr. Chellgren said that FCR 2 is an unusual item. It is to negotiate and execute a
lease for 1.76 acres on south campus to the Mid-South Division of the American Cancer
Society to build a physical facility by the name of "Hope Lodge" for housing of cancer
patients who are having treatments. The University would then enter into a 15-year lease
for the sum of $1 a year with renewal options. He asked Drs. Blanton and Holsinger to
mention a few facts about this somewhat unusual item.

      Dr. Blanton said that Dr. Holsinger will outline the benefits that will accrue to the
University, and Mr. Warren Denny, University Architect, will give the Board some idea
of the plan.

      Dr. Holsinger said it is a real pleasure for him to present to the Board a variety of
benefits that accrue to the Medical Center and to the community at large by having a
"Hope Lodge." This partnership with the American Cancer Society provides benefits
such as free accommodations to cancer patients and their caregivers when they are
referred by their physician. It will also provide free transportation to local locations
where they are being treated and the interesting and best part of it is that it will serve all
the Lexington hospitals and all the physicians who treat cancer patients in the

      He said that it is interesting to remember that Lexington has 37,000 qualifying
cancer treatment days per year for use of a "Hope Lodge." He noted that 27,000