Repository: UIHistories Project: Board of Trustees Minutes - 1938 [PAGE 837]

EXTRACTED TEXT FROM PAGE:

1938]

UNIVERSITY OF ILLINOIS

835

west of this building with a frontage of about 50 feet on John Street, and the Union Arcade Building, formerly known as the Bradley Building, immediately north of the Union Building. T h e properties are directly opposite the Law Building. The original investment in these properties by the Union amounted to approximately $210,000 and additional improvements bring the total investment at cost to $235,204 subject to mortgage obligations of $156,325. T h e Union also has floating indebtedness, resulting mainly from outlays for property improvements, amounting to about $15,000, including $10,000 owing the University. The investment in the Union Building property is $132,565 subject to mortgage obligations of $84,950. All mortgages, however, a r e blanket mortgages on the two properties. The University is now leasing a part of the Union Building and assuming the expense of maintenance and operation of this building at a total annual cost of about $11,000. Other portions of the building which are leased to other parties are self-supporting. However, the building is in very poor condition due to the lack of adequate maintenance, and the Physical Plant Department estimates an expenditure of $27,000 as necessary to put it in condition comparable with University buildings. T h e Arcade Building is in good condition and is self-supporting both as to operation and maintenance expense and as to debt service. Conclusions of the Committee.— (1) The Committee feels that it is desirable that the University, on its own account or through agencies connected with it, retain control of these properties. It is essential to have the present Union Building for use as a center of student and alumni activities until such time as a new Union Building can be provided. It is also important that commercial development be kept out of this area, in view of its proximity to the campus. Both of these buildings will be permanently useful to the University, even when their use as a student and alumni center terminates. (2) Since the Union has acted as a recognized agency of the University in endeavoring to meet the needs for a student and alumni center as fully as possible, it should be assisted in relieving itself of the financial responsibility assumed by it in good faith in doing this. (3) It is impossible for the Illinois Union to carry the Union Building without the aid of the University. It would also be essential that the University provide funds for putting the building in satisfactory condition. In view of these outlays by the University it is essential that provision be made that title to the Union Building property ultimately come to the University and that provision to this end be made now. (4) T h e proposals of the Union for conveyance of the Union Building property appear to the Committee to be in general satisfactory except that we do not believe the University could commit itself to a future expenditure of $27,550 for the credit of the Union on a new Union Building. W e recognize that the Union has invested approximately $78,000 of its own income in the present properties and has rendered an important and valuable service in maintaining a student and alumni center when neither the University nor other agencies were in a position to do this. On the other hand the condition of the properties does not, in our opinion, justify the payment of this amount to the Union at the present time, and we deem it impossible for the present Board of Trustees to commit future Boards to such a program. Recommendations.—In view of these facts and considerations, the Committee submits the following recommendations: (1) That the Board of Trustees enter into a lease with the University of Illinois Union for the Union Building property for a consideration of $10,000 a year, the Union to meet debt service requirements, taxes, and insurance, the University to assume all expense of operation, maintenance, and management of this property. This will involve, if no increase is made in the space used for University purposes, an increased expenditure of $4,000 a year to provide for better maintenance, or a total of $15,000 which the Committee understands is