Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 425]

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1991]

UNIVERSITY OF ILLINOIS

413

equivalent to the terms of the previous agreements and for a long-term fixed-base operator lease to permit Flightstar to finance the construction of an 8,000 square foot general aviation building. Flightstar was given consent to assign and pledge the agreement, as amended, to First Federal of Champaign-Urbana as collateral for the purpose of obtaining a building loan and an operating loan. T h e amendment provided that upon completion of this building, the ownership of the building would be transferred to the University. An attractive, functional facility was completed and opened in late 1989. Because of the recession and associated problems felt throughout the aviation industry, Flightstar has had difficulty complying with the payment terms of the 1989 amendment, which calls for Flightstar to make an annual payment of $112,062 to the University. T h e agreement, as amended, contains specific procedures to be followed in case of a default by the fixed-base operator. Because the Flightstar Corporation is in arrears in meeting their monthly payments, the Flightstar Corporation and First Federal of Champaign-Urbana were notified, in accordance with the terms of the agreement, of the existing default. If the default is not cured by the close of business on November 18, 1991, the facility currently housing the Flightstar Corporation will revert to the University of Illinois. In view of these circumstances, the University has reviewed the Flightstar Corporation's present operation and has determined that it is in the best interest of the University to amend the agreement, effective July 1, 1991, to require an annual payment of $69,900. This fixed payment will be in effect for a period of eighteen months from July 1, 1991, through December 31, 1992. A total payment of $34,950 will be required for the last six months of this time period. T h e original terms will be resumed effective January 1, 1993. In addition, the fixed-base operator will be required to pay monthly payments of $500 toward the cost of a fuel spill cleanup. These payments will be retroactive to July 1, 1991, and continue through February 28, 1993, or until an amount equal to $10,000 has been received by the University. T h e chancellor at Urbana and the vice president for business and finance recommend that the comptroller and secretary be authorized to execute an amendment to the agreement as described above. I concur.

On motion of Ms. Reese, this recommendation was approved.

Increase in Contract, Plant and Animal Biotechnology Laboratory, Urbana (Report of President's Action)

(12) On January 12, 1989, the Board of Trustees authorized the award of a contract for $1,882,000 to Johnson Contracting Company, Inc., East Moline, for the ventilating work for the Plant and Animal Biotechnology Laboratory, Urbana campus. Since occupying the building, there have been problems in the HVAC system. After an independent study, it has been determined that the lower level mechanical room requires the installation of a modified exhaust system to improve the air handling system in the area, the cost of which is $31,790. Inasmuch as it was essential that this work be done immediately, the president authorized an increase to the contractor, Johnson Contracting Company, Inc., in order that the work proceed immediately. In accordance with the General Rules Concerning University Organization and Procedure, the president reports his action and requests confirmation of it. Funds for this project are available from a United States Department of Agriculture grant.

On motion of Ms. Reese, this report was received and confirmed.