Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 365]

EXTRACTED TEXT FROM PAGE:

1995]

UNIVERSITY OF ILLINOIS

353

Employment of Broker and Sale of Farm Land for the College of Agriculture, Urbana

(31) In 1991, the University received title to four farms (three farms are located in McLean County and one is located in Iroquois County) totaling 1,910 acres with an appraised value of approximately $4.6 million from the estate of Francoise A. Addington. The will of Ms. Addington stipulated that the trust was to be distributed "to the University of Illinois for the use of its Agricultural Department for research grants in the agricultural field." The College of Agriculture proposed establishment of a quasi-endowment with all resources received from the Addington Estate, the income to be used in support of a graduate research fellowship grants program and for support of young faculty research programs. The College of Agriculture now wishes to sell these farms because it has an inappropriately large amount of its endowment in farmland (approximately 50 percent) and the overall return of the University's endowment pool has exceeded the income from farm operations. Through this action, the college believes it will be able to increase support of research activities for graduate students and faculty. The Office of the University Counsel has reviewed the will and other documents and finds no restrictions to the sale of the farms. Proposals were sought state-wide from firms that sell agricultural properties. A committee consisting of representatives of the college, Office of Cash Management and Investments, university counsel, and the Office of Real Estate Planning and Services has interviewed nine firms and has recommended that Hertz Farm Management, Inc., Monticello, be employed to sell the farms by "open auction." This is a process that provides equal opportunity to all potential buyers and should maximize the price to be received. The sale will be scheduled for late Fall 1995, probably after the crops have been harvested. The net proceeds of the sale will be deposited in the University's endowment pool for the benefit of the College of Agriculture. Accordingly, the president of the University, with the concurrence of the appropriate administrative officers, recommends that the farms received from the Addington Estate be sold by open auction and that the comptroller be authorized to employ Hertz Farm Management, Inc., to conduct the sale of the farms for a total amount not less than their cumulative fair market appraised value, at a fee of three percent of the gross proceeds. An additional fee of one percent of the gross sale price will be paid to properly registered brokers who represent successful bidders. The results of the sale will be reported to the Board of Trustees.

On motion of Dr. Gindorf, this recommendation was approved by the following vote: Aye, Mr. Engelbrecht, Dr. Gindorf, Mrs. Gravenhorst, Mr. Lamont, Mrs. O'Malley, Ms. Reese; no, none; absent, Dr. Bacon, Mrs. Calder, Governor Edgar, Ms. Lopez. (The student advisory vote was: Aye, Mr. Malone, Mr. Rose; no, none; absent, Mr. Mathew.)

Purchase of Warehouse Buildings and Land, Chicago

(32) The chancellor at Chicago, with the concurrence of appropriate administrative officers, recommends the purchase of two warehouse buildings, totaling 260,000 square feet of space, and approximately 2.29 acres of land from LaSalle Bank, acting as trustee for the property. The property is located on the east side of the campus just south of the property purchased from the Chicago and Northwestern Transportation Company (approved by the Board of Trustees for acquisition, February 11, 1994). The east and west property boundaries are Halsted and Morgan streets respectively. The south border of the property is the Chicago Burlington and Quincy railroad tracks.