Special Report from the Weakley County Press

The University of Tennessee Foundation's proposed purchase of Martin Place Apartments on West Peach Street to be used for student living is not likely to go as originally planned. In an interview with The Press Wednesday, Ely Fly, president of the foundation, said, "The bank backed out on the agreement."

In February of this year, the office of University Relations at UTM made public a statement saying, "The University of Tennessee Foundation Inc. (UTF) and Place Collegiate Properties LC have agreed in principle to sell Martin Place, a privatized student housing community, to the UTF."

Soon after the announcement was released, the university began a campaign to get students to sign up to live in the apartments. According to the press release, the new facility would become part of UTM's inventory when the ownership was supposed to change hands in March 2003.

However, two months later, most people are not certain what will become of Martin Place Apartments.

Fly indicated that the financial situation for purchasing the apartments from Place Properties based in Atlanta, is not anywhere close to what was anticipated.

"We are in a hiatus in that situation, but I don't know about details right at this point to talk with you," Fly said. "It's a matter of financing -- the bank backed out on the agreement, but that's another story."

This "hiatus situation" comes less than a month after Gov. Phil Bredesen told Fly and the UT Foundation they needed to come public with their financial records and begin acting on a higher level of ethical standards.

"I certainly think the minutes of the meeting and other things like the expenditure records -- where is this money going that they are spending -- absolutely ought to be matters of public record," Bredesen said. "If the foundation is going to trade on the UT name, if it's going to take money from UT, if it's going to have contributions directed to it that have come to UT, I think it needs to operate to a higher standard."

Bredesen's comments were made after an investigative story by Phil Williams of News Channel 5 in Nashville showed that a partner in the purchase, Place Properties, has financial ties to one of the foundation's board members.

Fly said he is going to have a board meeting today to discuss these issues.

Discussion of Martin Place, Knoxville Place and approving two new policies are on the agenda for the meeting.

"We're going to approve two new policies, one on public information and one on conflict of interest," Fly said.

While the foundation decides the next steps for Martin Place Apartments, some students at UTM are concerned about what is going to happen.

Martin Place manager Kim Parker said she has been asked what is next for Martin Place by several of her tenants.

"They have asked us questions about it, but we have no answers for them at this time. They hear rumors going around, but we don't want to spread any of that," Parker said.

Parker did say that occupancy for the apartments is 80 percent higher than it has ever been.

Parker is not the only one who is not able to give any answers. When asked if the university was going to purchase Martin Place, Dana Denis, regional director for Place Properties, said, "I don't have any of those details. I'm really not familiar with what is going on today. We usually know something after it is decided."

If the university does not purchase the apartments, some students who moved into Martin Place after being told it would be university-owned are now concerned about what will happen.

Barbara Carr, scholarship coordinator for the university, said students who are receiving money for housing because of their participation in athletics or the ROTC program must live in a university housing facility.

Robby Clapper, a junior cross country runner from Nashville, is one of the students now living in Martin Place because he was told it was to be bought by the university.

"A lot of us are depending on scholarship money to pay for living expenses at Martin Place. Our scholarship money cannot go to off-campus places," Clapper said.

UTM director of housing Earl Wright said he doesn't think there will be any changes for the students.

"I wouldn't expect there'd be any change with the students. If there are any students who moved out there with the understanding that they would be abiding by UTM requirements, I would expect that to continue as it is. We would not want to upset the students by any last minute, unnecessary changes," Wright said.

UTM Chancellor Nick Dunagan said that while he is not able to speak for the foundation or Place Properties, he suspects some things will remain the same and added that he is optimistic the same goal will be accomplished, though it may require a different approach.

"The tactical scenario has somewhat changed, but the strategic goal of Martin Place being a part of the UTM inventory has not changed," Dunagan said. "We just got through approving our master plan for the next years, and the acquisition of Martin Place is in our 10-year master plan. One of the years, it will take place, but, in the meantime, as far as students are concerned, what goes on behind the scenes will not affect their ability to stay there.

"I'm still very optimistic. I'm not in the ins and outs of all the business deals, but in talking with the foundation folks, by no means do I feel the rug has been pulled out from under us."

Editor's note: Kevin Teets is a student at the University of Tennessee at Martin majoring in communications, Spanish and political science.