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UA officials and the Kennedy family on East Sixth Street have reached an agreement that will allow the family's home to be demolished to make way for a new dorm.

The agreement comes more than a decade after the university bought the home under a deal that included a life-estate provision that allowed William Kennedy, 78, to live out his days in the home his father built in 1919.

The agreement calls for the University of Arizona to pay Kennedy $243,000 for his remaining interest in the property. The transaction is scheduled to close May 1.

The UA approached Kennedy this summer with an initial offer of $67,000 to buy out the life estate. When plans for the new dorm began moving forward, the Kennedys took their case to the Arizona Board of Regents.

The UA upped its offer to $100,000, but the Kennedys said that amount was nowhere near sufficient for them to find other housing. William Kennedy said the $57,000 he was paid for the home in 1996 had all gone to maintenance and repairs. The Kennedys told the board a sum of $244,000 would be fair.

"I think all parties are pleased," said UA President Robert Shelton.

Barbara Kennedy declined to comment Monday but said the family would have a statement when they sign the paperwork.

The Kennedy home, in the 800 block of East Sixth Street, will be demolished by September so work can progress on a new residence hall. Part of a three-dorm project that will bring nearly 1,200 new beds to campus at a cost of $178 million, the new building will be south of Coronado Residence Hall.

Shelton said the agreement is good news for other neighborhoods around campus, which have been pushing the UA to house more students on campus.