Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 406]

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396

BOARD OF TRUSTEES

[September 15

from and using as a base the first quarter index for 1971 of "Implicit Price Deflator for Gross National Product for State and Local Government Purchases of Goods and Services" as published in the Survey of Current Business by the United States Department of Commerce.) Provision is also made for further annual renewal periods beginning July 1, 1976, and extending through June 30, 1981, subject to a successful negotiation, prior to June 30, 1976, of a mutually acceptable rental rate for such period. T h e initial lease will be for 6,411 N A S F and the quantity of space thereafter will be increased periodically as required. The total net assignable area of Sisson Hall and Burgess Hall available for lease consists of approximtely 33,000 N A S F . The total rental and operating costs and remodeling reimbursement including parking for Fiscal Year ( F Y ) 1972 is estimated to be $63,500. Funds for F Y 1972 are available in the operating budget of the College of Medicine and from a federal grant to the College for increasing health manpower. Funds required after F Y 1972 will be requested in the operating budget of the College of Medicine on an annual basis. It is also recommended that the Vice President and Comptroller be authorized to modify this lease as required upon the same terms and conditions as outlined above, to provide for increased quantities of space as remodeling costs are defined and as funds are available

On motion of Mr. Swain, these recommendations were approved by the following vote: Aye, Mr. Forsyth, Mr. Grimes, Mr. Hahn, Mr. Howard, Mr. Hughes, Mr. Neal, Mr. Pogue, Mr. Swain; no, none; absent, Dr. Bakalis, Governor Oglivie, Mr. Steger.

LEASE OF SPACE AND OPTION TO PURCHASE PROPERTY FOR ROCKFORD SCHOOL O F MEDICINE (10) The President of the University, with the concurrence of appropriate administrative officers, recommends, subject to the availability of funds, execution of a lease agreement, with an option to purchase as outlined below, with the City of Rockford and The Board of Directors of the Rockford Municipal Tuberculosis Sanitarium. The agreement would provide for the leasing of space for the Rockford School of Medicine in the Rockford Municipal Tuberculosis Sanitarium building, 1601 Parkview Avenue, Rockford, Illinois, at a base rental rate of $4.78 per net assignable square foot ( N A S F ) per year for complete rental and operation of the leased premises, plus, as additional rental, reimbursement to the City and the Sanitarium for costs incurred in remodeling space required by the University. The lease period is to begin on or about October 1, 1971, and extend through June 30, 1972, with an option to renew for additional one-year periods through June 30, 1975. There is also the option of increasing the amount of leased space as required during the lease and option periods at the same base rental rate plus additional rent for remodeling reimbursement. T h e University currently leases office space in the Sanitarium building and it is recommended that this lease be terminated as of October 1, 1971, and superseded by the above lease. Authorization at this time will provide space for students for the fall of 1972. T h e initial lease will be for 1,250 N A S F , to be increased to approximately 7,300 N A S F by June 30, 1972. Thereafter the quantity of space will be increased periodically as required. The total net assignable area of the building is 30,875 N A S F of which 25,850 N A S F is being held available by the Sanitarium for lease by the University. T h e total base rent and additional rental for remodeling reimbursement for F Y 1972 is not to exceed $179,660. An initial sum of $25,000 is available for F Y 1972 in the operating budget of the College of Medicine and from a federal grant to the College for increasing health manpower. It is anticipated that the balance of the funds required for F Y 1972 will be made available in federal grants, private gifts, and in the Contract Research Reserve. Funds required after F Y 1972 will be requested on an annual basis in the operating budget of the College of Medicine. It is also recommended that the Vice President and Comptroller be authorized to modify this lease as required upon the same terms and conditions as outlined above, to provide for increased quantities of space as remodeling costs are defined and as funds are available.