Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 483]

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1996]

UNIVERSITY OF ILLINOIS

471

climate has resulted in extensive "D" cracking. "D" cracking occurs in concrete runways due to the environmental stress of freezing and thawing of concrete. A nine-month study, sponsored by airport management and conducted by faculty of the University of Illinois' Civil Engineering Department, with expertise as pavement specialists, has indicated that the proposed project is the next step in solving the problem. The airport's consultants have reviewed this study and have verified the seriousness of this problem after taking and examining several full-depth core samples of the runway and taxi way pavements this fall. Accordingly, the chancellor at Urbana and the vice president for business and finance recommend that the board approve the grant application to the FAA and accept the grant offer. I concur.

On motion of Ms. Reese, this recommendation was approved. By consensus, the board agreed that one roll call vote would be taken and considered the vote on each agenda item nos. 11 through 17 inclusive. The recommendations were individually discussed but acted upon at one time. (The record of board action appears at the end of each item.)

Auxiliary Facilities System Revenue Bonds, Series 1996

(11) The board, at its meeting of November 9, 1995, authorized a number of actions leading toward the issuance of revenue bonds for the Auxiliary Facilities System (AFS). Since that time, University staff and financial advisor, bond counsel, senior and co-senior managing underwriters, and underwriter's counsel, have: 1. Prepared an Official Statement, Escrow Agreement, Continuing Disclosure Agreement and Supplemental Bond Resolution, 2. Pursued and received ratings from Moodys and Standard & Poors, 3. Solicited proposals from bond insurers, and 4. Developed a recommended structure for the bond issue. At its November meeting, the board approved projects totaling $62.47 million to be funded from $50.62 in bond proceeds. Since that meeting a multi-year gift has been received by the University of Illinois Foundation on behalf of the Division of Intercollegiate Athletics to provide for the renovation of a University-owned property to be converted into an Academic Services Building for student athletes. It is necessary to include this project so that funds can be available for renovation to proceed and make the facility available for use. This gift was reported to the board at its special meeting of the Executive Committee on November 29, 1995. In addition, it is desirable to fold the auxiliary units of the University of Illinois at Springfield campus (UIS) into the University's AFS. Underwriters and counsel have studied this issue and have concluded that all but a portion of the UIS auxiliary units can be incorporated into the AFS via an advanced refunding of their existing debt and inclusion of the new debt in the AFS. The advanced refunding is estimated to be $4,125,000. When the Academic Service Building for the DIA and the refunding of prior UIS debt are included with the projects previously approved, it is estimated that a par amount of Series 1996 bonds in an original principal amount of $62,835,000 (net of original issue discount, if any) will be issued and that the total Sources and Uses of funds will approximate: Sources1: Original Principal Amount Subject to change. $62 835 000