Repository: UIHistories Project: Board of Trustees Minutes - 1938 [PAGE 577]

EXTRACTED TEXT FROM PAGE:

1937]

UNIVERSITY OF ILLINOIS

575

mended, by the following vote: Aye, Mr. Cleary, Mrs. Freeman, Mr. Karraker, Mr. Mayer, Mr. Moschel, Mrs. Plumb; no, none; absent, Mr. Adams, Mr. Horner, Dr. Meyer, Mr. Pogue, Mr. Wieland.

L E A S E O F S P A C E IN ILLINOIS UNION BUILDING (10) On July I I , 1934 (Minutes, page 2 ) , the Board authorized a contract with the University of Illinois Union Corporation for the lease of space in the Union Building for use as a student and alumni center, at a rental based upon the total cost of operating the building and the percentage of space leased by the University. At present this amounts to 47.6 per cent of the available space and the rental is $3,553 a year. A special committee, consisting of the Comptroller, the Director of the Physical Plant Department, and the Dean of Men, which has been working on the problems of the Illinois Union and the possibility of the purchase of its building by the University, has submitted a report on the present financial condition of the organization with the recommendation that the lease be renewed for one year from July I, 1937, at an increase in rental of $3,142 for the year. A part of this could be met by waiving, during the current year, the interest charge of five per cent on the deferred account of the Union with the University (that is, the amount of money due the University from the Union for services rendered in past y e a r s ) . When the present arrangement for the lease of space was made with the Union, the interest charge was included to put the University on the same basis as other creditors. T h e Union's other current obligations have been disposed of, some at less than five per cent interest. T h e mortgage has recently been refinanced, and the Union is paving $3,000 a year amortization on this new loan. T h e interest payments due the University amount to $498.36 a year on an indebtedness of $9,967.03, which has been deferred since 1934. All interest has been paid when due. If the lease is renewed at an increased rental and the interest is waived, an additional appropriation of $2,642 should be made to the Physical Plant Department to provide for the increase; if the interest is not waived, an appropriation of $3,142 should be made. Since the chief reason for seeking an increase in the rental is to enable the Union to pay $3,000 a year on the amortization of its new mortgage, if the lease is renewed on the proposed new basis it should be on condition that the increase in rental, and the amount of any interest charges which may be waived, shall apply on the purchase price of the building in case the University buys it in the future.

On motion of Mr. Cleary, the extension of the lease of space in the Illinois Union Building to July 1, 1938, was authorized, but the interest charges were not waived, and an additional appropriation of $3,142 to compensate the Union for increased rental and other operating expenses was made from the General Reserve Fund to the Physical Plant Department, by the following vote: Aye, Mr. Cleary, Mrs. Freeman, Mr. Karraker, Mr. Mayer, Mr. Moschel, Mrs. Plumb; no, none; absent, Mr. Adams, Mr. Horner, Dr. Meyer, Mr. Pogue, Mr. Wieland. On motion of Mr. Moschel, the President of the University was requested to consider the terms of the arrangement with the Illinois Union and to report his recommendations prior to July 1, 1938.

C O N F E R E N C E ON D E V E L O P M E N T O F MEDICAL C E N T E R (11) Mr. Robert Kingery, of the Chicago Plan Commission, wishes to discuss with representatives of the University plans for the future development of the Medical Center on the west side of Chicago, and I have invited him to appear before the Board to present his plan in person.

Mr. Kingery was introduced. He presented a request that the University join in an architectural study of the development of the Medical Park Area.