In 1999 Dean of Architecture and Design Marleen Davis and developer David Dewhirst came to an agreement through which Dewhirst provided, at no cost to the College of Architecture and Design, ground floor space to create a downtown studio in a former department store building at 19 Market Square. The original proposal developed by the College of Architecture and Design in the fall of 1999 was to have the urban design studio as the first step in developing a Center for UT Arts in the City that would include studio, exhibition, and performance space for the art, music, theatre, and architecture programs.
At the Urban Design Studio, some 30 architecture and interior design students participated in joint downtown studio courses. In December 1999 Dewhirst indicated he would no longer be able to provide the space rent-free and urged UT to expand the center into the Center for UT Arts in the City, which the College of Architecture and Design had proposed. Vice Chancellor Phil Scheurer indicated that if UT were to decide to create such a center, proposals would be solicited from all interested property owners.
Provost John Peters notified Dewhirst by letter on April 5, 2000, that the Urban Design Studio would be moving out in May. Dewhirst had tried to negotiate an agreement to keep the downtown studio open for another year. Originally, Peters had said that the lack of increased funding from the state had forced UT to cancel all aspects of the plan except the School of Architecture’s studio. But in April, Peters concluded that the budget situation made it imprudent to commit funds to continue the studio.