Repository: UIHistories Project: Board of Trustees Minutes - 1938 [PAGE 838]

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836

BOARD OF TRUSTEES

[June 9

provided for in the Physical Plant budget for 1938-1939. If the administration finds it necessary to occupy additional parts of the building and thus give up present income from outside parties, a further addition might be necessary. T h e maximum amount of such addition for occupancy of the entire building is estimated to be $12,500 a year, or a total of $27,500 a year. It is unlikely that this maximum addition will be required immediately. Since this lease cannot be made for a period of more than one year due to constitutional limitations, it should carry with it the irrevocable option to the University to renew it for succeeding periods as long as the University may so desire. (2) T h a t an appropriation of $20,000 be made to the Physical Plant Department for immediate repairs on the Union Building, it being understood that a further appropriation of at least $7,000 will be necessary at some future time. (3) That, in consideration of these expenditures and commitments by the University, the Union be required to execute to the University a contract for deed to the University to the Union property, this deed to be delivered to the University when all mortgage obligations on the property have been liquidated; also a contract to convey the Arcade property in the event of any foreclosure of any blanket mortgages covering both of these properties or any extensions of such mortgages. (4) That, in consideration of these arrangements, the University ( a ) cancel existing indebtedness of the Illinois Union to the University in the amount of approximately $10,000 and ( b ) appropriate the sum of $10,000 or so much thereof as may be necessary to be paid to the Union to enable it to liquidate floating obligations and leave it with a working balance of about $2,500. (5) T h a t the request of the Union, for an expenditure by the University of $27,550 toward a new Union Building to be credited to the Union in lieu of the relinquishment of its investment of $51,115 in the property, be received for record so that it may be given consideration if and when a new Union Building is constructed. Respectfully submitted,

ORVILLE M. KARRAKER, HAROLD A. POGUE L O U I S C. MOSCHEL Chairman

During the presentation of this matter, President Mayer, having been called from the room, asked Mrs. Plumb to take the chair. On motion of Mr. Moschel, the Board voted to accept the recommendations of the Committee, provided that the Union be required to execute also a contract for deed to the Arcade property, this deed to be delivered when mortgage obligations are paid, with the understanding that the Union is given the privilege of retaining the management and the operation of the Arcade property until mortgage obligations are paid, the Union to assume all debt service obligations on this property on a basis for complete amortization of principal and interest in twenty years, also all taxes, insurance, and other operating expenses, also all expenses of maintenance in a manner approved by the University, any net income from that property or the operations conducted by the Union in it after providing for these items to be retained by the Union for its student activities.

MATTERS P R E S E N T E D BY P R E S I D E N T WILLARD

The Board resumed consideration of matters presented by the President of the University.