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Built in 1982, UCAR North has a total of 47,972 usable square feet. UCAR-affiliated occupants now take up about 90% of that space, according to assistant UCAR treasurer Dan Wilson. Once the purchase is complete, UCAR will rent space to the two present non-UCAR tenants, Laser Tech and Grasp Systems, until their leases expire in 1999 and 2000, respectively.
UCAR is purchasing the building from Eric Kramer and Associates, a partnership with offices in Boulder and California. Financing will be through a mixture of tax-exempt Boulder County bonds and taxable bonds, with emphasis on the former. "Only 5% of tax-exempt county bond proceeds can pay for non-tax-exempt occupants," explains Dan. The inclusion of taxable bonds will help ensure that any growth in profit-making enterprises such as WITI does not jeopardize the tax-exempt county bonds.
The three-story building will undergo a thorough inspection before the deal is closed, says Dan. "It's structurally sound. There are a few things we'll have to do." Immediate repairs will include recaulking the windows and balancing the heating/ventilation/air conditioning systems. On the plus side, Dan says, "The savings in rent passed on to the government are significant." About $180,000 a year will be saved at first, with the total savings rising each year as the interest on the debt decreases and the amount that would have been paid in rent goes up. Also, says Dan, "the savings will begin immediately because we are amortizing the financing costs." •BH