University of North Florida
Board of Trustees
September 23, 2014
President's Conference Room at 4:00 p.m.
Hugh Greene, Joseph Turner, Rad Lovett, Oscar Munoz, Lynn Pappas, Chip Klostermeyer, Bruce Taylor
Joannie Newton, Fred Franklin, Joy Korman, Myron Pincomb, Lanny Russell, Sharon Wamble-King
Item 1 Call to Order
Chair Greene recognized a quorum and called the meeting to order.
Item 2 UNF’s Proposed Purchase of the Flats at Kernan
Chair Greene noted that this meeting was called to discuss the university’s purchase of the Flats at Kernan (Flats). He asked Vice President Shuman to proceed.
Vice President Shuman provided a summary of the proposal, noting UNF and the owner of the Flats negotiated a purchase and sale agreement. She provided details of the agreement:
the purchase price was less than the bank appraisal,
BBVA Compass offered the UNF Financing Corporation mortgage financing,
the university believes the net revenues will provide a fair return on investment, and
UNF will enter into an agreement with the UNF Financing Corporation. The Financing Corporation will purchase the property and the University will manage the property.
Attached is a summary of the financing.
Vice President Shuman asked Mr. Bob Boyle, director of Housing, to provide details on occupancy.
Mr. Boyle stated that the location offered students an option currently lacking in the university’s inventory. He clarified that the complex would operate a 12-month lease and would work to retain UNF students (about 80 percent of current occupancy). Mr. Boyle provided an overview of current occupancy noting that, overall, the university was at 104.5 percent occupancy and the Flats was retaining consistent and strong occupancy. Mr. Boyle also clarified that the apartment complex was in good overall condition. The administration clarified that this overtaking was not atypical for universities.
Chair Greene asked for a MOTION for approval for the university to purchase the Flats at Kernan, according to the proposed summary. Trustee Turner made the MOTION and Trustee Taylor seconded. The MOTION was unanimously carried.
Item 3 Adjournment
Chair Greene adjourned the meeting.