{Lexington, Kentucky}...Sunday, the University of Kentucky Board of Trustees gave the go-ahead for private developer Memphis-based Education Realty Trust to build and manage five new residence halls on four sites. The cost for a total of 2,317 modern beds would be $133.7 million. Under the deal, two Cooperstown Drive buildings would be torn down to build two dorms, the old Wildcat Lodge would be demolished for two dorms on that site and the parking lot next to it and the last dorm would be built on the site of Haggin Hall, set to be demolished in May. Construction is under way for a new $25.2 million dorm next to Haggin Hall near the William T. Young Library. The leases for all the planned buildings would be 75 years. UK would receive 16 percent of gross revenue from rent until Education Realty realizes a 9 percent rate of return, estimated after about 30 years. UK then would receive 25 percent of net income. That revenue would be used to support learning communities in the residence halls. Some of the dorms also could include some commercial spaces.
