Eastern expands into downtown Richmond, looks at future growth

On Sept. 22, 1874, Central University opened its doors in Richmond, Ky. But Richmond was not the first choice for the university that would eventually become Eastern Kentucky University.

The original choice for Central's location was Anchorage, Ky., according to a history compiled by Eastern's library. But when the people of Richmond and Madison County promised to give $101,000, Central relocated, the history recounts.

Ever since then, the city and the university community have been growing side-by-side. Today, Richmond has a population of 30,000 and is the biggest city along Interstate 75 between Lexington and Knoxville, Tenn., and Eastern has an enrollment of more than 16,000, with four extended campuses in southeastern Kentucky.

As Eastern expanded, it purchased many residential properties along the borders of campus.

An analysis of property records by The Eastern Progress shows the university currently owns 45 properties in the central area of Richmond.

Eastern's policy of property acquisition in the Richmond area was created with two goals in mind, said James Street, Eastern's director of capital planning and facilities management. To the north and west, Eastern buys residential properties when they become available in order to create a "buffer zone." To the south, Eastern buys farmland when it becomes available in order to provide space for expansion.

Street said the buffer zone allows Eastern to minimize conflicts with owners of property that borders university land.

"By using the middle of a street as a line of demarcation between the university and whatever, you eliminate those sorts of conflicts," Street said.

The buffer zone also provides Eastern with the option of development in the future, he said.

"We're in a unique position," Street said. "It's a fairly wise long-ranging view to purchase these properties as they come on the market."

Street said the University of Kentucky had property condemned at one point in order to acquire it. By purchasing the residential properties around campus before Eastern needs them, Street said Eastern avoids situations like UK's that cause "ill will" in the community.

Eastern does have to jump through some hoops to buy property: Any time the university wants to purchase land, they have to get it appraised by two state-approved appraisers, Street said. After that, Eastern can offer up to 10 percent more than the average of the two appraisals.

On the southern side, Eastern recently purchased two parcels of farmland totaling more than 280 acres on the university's southern border.

The 140-acre Carnes farm and farmhouse were purchased in 1997 for a total of $1,493,250, and in 2001 Eastern bought the 142-acre Tudor farm for $428,325.

In its campus master plan, Eastern has a list of other properties it has a standing interest in, including more farmland to the south and the YUASA-Exide plant next to Kidd Stadium.

The list also includes residential properties on Cardinal Lane, Hycliff Drive, High Street, Oak Street, South Second Street, Summit Street and the two large estates on Lancaster across from campus-the Lackey property, across from the Marathon gas station at Barnes Mill and Lancaster, and the large Elmwood estate across Lancaster from the Coates building.

A minor financial impact of Eastern's property acquisitions is the loss of property taxes collected on those properties. Eastern is a state institution, which means land owned by it is tax-exempt.

Chris West, deputy clerk for the Madison County Property Value Administrator's (PVA) office, said while Eastern's farmland acquisitions are much larger than its residential ones, the residential acquisitions are actually where the most tax income is lost.

Farmland is often assessed at an "agricultural value" reduced rate designed to help out farmers. Good farmland can sell for $15,000 per acre, but the PVA often assesses farmland at just $350 to $550 an acre, West said. That reduced rate can mean a difference of thousands in property taxes when discussing hundreds of acres.

Residential properties do not receive a reduced rate, meaning they generate much more property tax for the city and county.

Going by West's estimations, if Eastern's 300 acres to the south were still privately owned, they would generate about the same amount of property tax as a single $125,000 property in downtown Richmond.

Analysis of property records and University Counsel documents by The Progress shows that Eastern has spent more than $2.6 million on properties in the downtown Richmond area since 1966. When adjusted for inflation, that number equals more than $6.4 million. City and county property tax on $6.4 million of assessed property value inside the Richmond city limits would equal approximately $66,000 a year.

But main Richmond officials are quick to highlight other areas where the presence of Eastern increases the city's tax income. Students who work jobs in Richmond while attending college pay a 2 percent occupational tax on every paycheck, Richmond Mayor Connie Lawson said.

Lawson said many residents will bring complaints to the city commissioners, even though they don't pay much in city taxes, either because they don't work in Richmond or don't own property in Richmond.

"The students of Eastern.in many cases pay more taxes than the people who sit in this room and complain," Lawson said while standing in the City Hall meeting room.

Lawson said Richmond is working more and more with Eastern in many ways as both the city and university continue to grow.

"We just need Eastern so badly, and I just love it," she said.

Taking care of the property

While the university has no current plans for developing the residential properties it owns in Richmond, Street said it's possible the land could be used for parking or housing developments in the future.