Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 256]

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246

BOARD OF TRUSTEES

[April 9

Whereas, on the 17th day of June 1986, the County resolved to pledge four million dollars ($4,000,000) to the University of Illinois-Willard Airport Expansion Project in resolution 2516; and Whereas, the County further resolved in said resolution 2516 to enter into an intergovernmental agreement with the University to evidence the County's pledge commitment and to detail the responsibilities of the parties. Now, Therefore, in consideration of the foregoing and of the mutual covenants and agreements herein contained, the County and the University hereby agree as follows: 1. The University shall have constructed the University of Illinois-Willard Airport Terminal Building Complex, constructed as described in Exhibit A ("the Airport Project"). 2. The University shall issue bonds in 1987 in a principal amount of at least six million dollars ($6,000,000) to finance the construction and improvement of the Airport Project. 3. The County shall provide revenue to the University to retire such bonds in the principal amount of four million dollars ($4,000,000) and the interest thereon at an average rate estimated to be 7.0 percent in twenty (20) semiannual payments beginning no sooner than July 1, 1989, but no later than the scheduled fourth (4th) semiannual payment due to bondholders, subject to annual appropriations. The actual average rate of interest on the bonds shall be determined at the time of sale. 4. The County acknowledges that the bond issue described in paragraph 2 herein may exceed the stated six million dollar ($6,000,000) principal in order to provide revenues to cover the interest which will accrue on the six million dollar ($6,000,000) principal between the issue date and the date of the County's first payment as described in paragraph 3 ("the interim interest"). 5. The County shall provide revenue to the University to repay the principal and interest on such bonds issued to provide for the interim interest on four million dollars ($4,000,000). Such revenue payments shall be made in twenty (20) semiannual payments as described in paragraph 3. 6. The University shall pay the balance of the principal and interest due on such bonds described in paragraph 2. 7. The University, if permitted by law, shall continue to own, operate, and maintain the University of Illinois-Willard Airport for the term of this agreement. 8. The University shall apply for grants in a total amount of approximately two million two hundred thirty-one thousand dollars ($2,231,000) in entitlement funds from the appropriate agency of the Federal government sufficient to complete the Airport Project. 9. The University shall seek the release of funds which have been appropriated by the Illinois legislature in the amount of three million, five hundred and sixty thousand dollars ($3,560,000) to the State of Illinois Department of Transportation to be expended on the Airport Project. 10. The University agrees to use reasonable efforts to substantially complete the Airport Project prior to the scheduled fourth (4th) semiannual payment to bondholders. If the University fails to substantially complete the project by such date, the County shall not be required to make payments until the project is substantially completed. In such latter event, all payments which are withheld by the County shall become due and payable to the University when the Airport Project is substantially completed. 11. The University further agrees to provide an annual report to the County on the status of the construction and financing of the Airport Project during the term of this agreement.