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Board of Regents Meeting August

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					                                                                           Board of Regents Meeting
                                                                           August 16-17, 2005
                                                                           Agenda Item #21
                                                                           University of Arizona
                                                                           Page 1 of 1
EXECUTIVE SUMMARY


                ACTION ITEM: Ratification of an Amendment to an Existing Lease
                             for the Sky View Apartments

ISSUE:

         The University of Arizona requests Board ratification to extend the existing Sky View
         Apartments lease for an additional two years in order to supplement on-campus housing for
         undergraduate students.

BACKGROUND:

         •       At the February 24-25, 2000, meeting, the Board approved the rental of the Sky View
                 Apartment complex for a total of six years (years 2000 - 2006) to address limited on-
                 campus housing options. The subject property consists of 76 apartment units and is
                 owned by 8th Street Apartments, L.P. It is located at 1050 E. 8th Street and currently
                 serves as student housing.

         •       On January 24, 2004, the owner and the University executed an amendment to the lease,
                 which extended the term for two additional years through June 30, 2008. This was done,
                 at the owner’s request, to take advantage of an immediate opportunity to lease the
                 property at a reduced rate for the remaining four years of the amended term.

         •       ABOR auditors identified that the two-year extension exceeded the term approved by the
                 Board by two years and now requires Board ratification.

         •       The negotiated annual lease cost for the new four-year lease term, July 1, 2004, through
                 June 30, 2008, is $778,800 per year, which is a reduction of $65,300 per year. Funding is
                 provided by Residence Life.

         •       The Real Estate Administration Office is implementing new lease management software
                 to ensure that future date-sensitive lease approvals are monitored more efficiently.

RECOMMENDATION/CONCLUSION:

         RESOLVED: That the lease of the property known as Sky View Apartments located at 1050 E.
         8th Street by the University of Arizona be, and hereby is, approved and ratified for an additional
         two years at a fixed rate of $778,800 per year.


Contact:         Joel D. Valdez, (520) 621-5977
                 Sr. Vice President, Business Affairs
                 jdvaldez@u.arizona.edu

				
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