Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 156]

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146

BOARD OF TRUSTEES

[November 13

Lease of Space, Educational Assistance Program, Chicago (and Rescission of Earlier Action)

(29) On September 11, 1986, the Board of Trustees approved an agreement with Westgate Associates, owner of the 400 South Green Street Loft Building, Chicago, to lease space in that building, which included facilities for the campus* Educational Assistance Program. Subsequently, the intended lessor revised his previous proposal in a way that would result in a delay in occupancy and a significant payment by the University for remodeling. The revised proposal is unacceptable to the campus. Accordingly, the president of the University, with the concurrence of the appropriate administrative officers, recommends that this action be rescinded. The chancellor at Chicago has now recommended approval of a lease with American National Bank and Trust Company (trustee) for space at 322 South Green Street Building, Chicago. The agreement will provide for the lease of 8,500 square feet for the period February 1, 1987, through January 31, 1992, at a rental rate of $87,550 per year, or an annual unit cost of $10.30 per square foot, subject to annual increases of 50 cents per square foot per year. The rate includes janitorial services and all utilities, heating and air conditioning, except electrical services. The owner will remodel the space to the specifications of the University at the standards of the owner and at the expense of the owner. The University will have the option to cancel the lease at the end of each annual renewal period, subject to a termination fee.1 This fee allows the owner to recapture a portion of the costs of structural improvements built specifically for the University. The Educational Assistance Program is currently housed in the Science and Engineering Offices Building and must relocate to provide space expansion for the College of Engineering and the Department of Mathematics, Statistics, and Computer Science. A search of campus space has failed to identify any suitable options. Funds for the rental payment and contingent termination fee are available from the institutional funds budget of the Office of the Chancellor for Fiscal Year 1987 and will be provided from the same source in subsequent lease periods. The vice president for business and finance recommends approval. I concur. O n m o t i o n of M r . M a d d e n , these r e c o m m e n d a t i o n s w e r e approved by t h e f o l l o w i n g v o t e : Aye, M r s . D a y , M r . Forsyth, M r s . Gravenhorst, M r . H a h n , M r . H o w a r d , M r . L o g a n , M r . M a d d e n , Mrs. Shepherd, Miss S m i t h ; n o , n o n e ; absent, G o v e r n o r T h o m p s o n . ( T h e student advisory v o t e w a s : Aye, M r . Filip, M r . Starkeson; no, none.)

Conveyance of Roadway, Dixon Springs Agricultural Center

(30) The Illinois Department of Transportation has requested that the portion of the right-of-way of Illinois Route 145 in Pope County lying within property owned by the University of Illinois be deeded to the State of Illinois. The University acquired 579 acres of the Dixon Springs Agricultural Center from the United States Forest Service in 1984. The Forest Service did not deed the right-of-way to the State but used a permit system. The Department of Transportation has asked for a quit claim deed. The College of Agriculture has recommended that the roadway be conveyed to the State of Illinois for the use of the Department of Transportation. A reverter clause is being included should the use as a roadway cease. The chancellor at Urbana recommends approval I concur.

1 Termination fees are $83,300 after the first year; $62,475 after the second year; $41,650 after the third year; and $20,825 after the fourth year.