University of Kentucky makes deal to have privately developed dorms

New housing is coming to UK’s campus, but will students be the ones paying for these renovations? UK President Eli Capilouto was authorized on Tuesday to let a private developer build a new on-campus dorm.
A 50-year lease will be signed with Education Realty Trust of Memphis, Tenn., to build a 600-bed residence hall on Haggin Field. The private company will finance, build and manage the $26 million dorm. The new residence hall is set to open in August of 2013. It will house Honors Program students along with high-tech classrooms and office space.
Over the next seven years EdR plans to build 9,000 beds for students, nearly 3,000 more than there are now, if UK approves.
Right now UK does not pay property taxes on dorms, but by entering in an agreement with a private company, this may change. Property taxes could mean more money out of students’ pockets.
The agreement with EdR will be finalized in March and construction is scheduled to begin in April.
UK spokesman Jay Blanton said this was the first step in working with the company to replace all residence halls, in what he calls an “alignment of interest.” Blanton believes modernized dorms will help UK remain competitive when it comes to recruiting. Watch below to hear Blanton talk about why he thinks the deal is beneficial to both new and returning students.