Inhouse > Board of Regents Meeting, May 17, 2002

PURCHASE OF SANTA FE AND MOZART RESIDENCE HALLS

PERTINENT FACTS

Santa Fe and Mozart residence halls are privately owned residence halls located within the University’s Master Plan.  The Marai Corporation owns these facilities and has offered to sell them to the University for $9.3 million.

The halls are currently operated through contract by the University and have been a welcomed addition to our housing inventory with 150 beds in Santa Fe and 250 beds in Mozart.  Mozart, with its location at the main entrance to the University, provides an important first impression for campus visitors.  By owning Mozart and Santa Fe the University can insure that these facilities will continue to provide the image and service our students have come to rely on.   Revenues generated by the facilities are projected to be sufficient to cover the related debt service and operating costs.

The University still needs to complete an engineering review and environmental testing to make sure there are no significant issues that could affect the future maintenance and operation of the facilities.

RECOMMENDATION TO THE BOARD OF REGENTS

The President, with the concurrence of the Chancellor, recommends that the Board of Regents approve the purchase of Mozart and Santa Fe residence halls for $9.3 million plus related closing and debt issuance costs.  The purchase is subject to no material cost issues being identified by the engineering and environmental review that would significantly affect the future operations and maintenance of the facilities.  The purchase is also subject to approval by the Coordinating Board, and the Bond Review Board’s approval of the related bond sale.