FACILITIESAPPROVED

University of Tennessee Executive Committee Agenda May 2026

UT leases space in National Security Prototype Center

Project Loan $40,097,682; estimated annual lease payment ~$3.3 million; Operating Rent projected at $15.25/sf for 20,947 sq. ft.; UT responsible for 50% of FF&E costs (estimated total $1,538,205)The University Of Tennessee System OfficeROANE COUNTY NSPC LLCMay 2, 2026

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Description

The Executive Committee authorized a 20‑year lease with Roane County NSPC, LLC for University research space at the new National Security Prototype Center in Oak Ridge. UT will cover debt service on a $40.1 million project loan through base rent and pay operating expenses while securing long-term expansion options up to 99 years.

Contract Details

Contract Amount

Project Loan $40,097,682; estimated annual lease payment ~$3.3 million; Operating Rent projected at $15.25/sf for 20,947 sq. ft.; UT responsible for 50% of FF&E costs (estimated total $1,538,205)

Vendor

ROANE COUNTY NSPC LLC

Agency

The University Of Tennessee System Office, TN

Contract Type

FACILITIES

Document Date

May 2, 2026

Contract Term

Initial 20-year lease term beginning on the earlier of issuance of certificate of occupancy/substantial completion or 13 months after loan closing, with 15 additional 5-year extensions and one 4-year extension possible (up to 99 years)

Renewal Info

Initial 20‑year term aligned with project loan amortization, with University options for 15 additional 5‑year periods and one 4‑year period, allowing up to 99 years; no base rent due after year 20, though Operating Rent continues. UT has no early termination right during the Initial Term.

Issuing Agency