Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 438]

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428

BOARD OF TRUSTEES

[November 12

struction of a third floor over the existing structure, which will be remodeled, and a two- and three-story addition to the southeast wing of the existing building. T h e additions will provide approximately 10,500 net assignable square feet of new space, and the remodeling will involve approximately 14,800 net assignable square feet. In accord with standard University procedures, preliminary steps in selection of an architectural/engineering firm to provide the professional services required for the project through the program analysis and schematic design phases have begun. An interview committee will review qualifications of firms with previous experience in such research projects, and the selection process should be completed by December 1, 1987. I t is estimated that the total architectyengineer's fee through completion of construction will be approximately $1.2 million. However, at this time it is recommended that the comptroller be authorized to enter into an agreement for professional services for this project in an amount not to exceed $200,000 for professional services and reimbursements in connection with the program analysis and schematic design phases. T h e architect/engineer will be authorized to proceed with the remaiinder of the necessary professional services only after the grant has been approved by the National Science Foundation and the additional professional services contract has been authorized by the Board of Trustees. A report of the firms interviewed and firm employed will be presented to the trustees a t the January 1988 meeting. Funds for the initial $200,000 professional services agreement are available from the institutional funds budget of the College of Engineering. It is anticipated that these funds, and any subsequent funds required for professional services and reimbursements, will be recovered when bonds are sold to finance the construction. T h e agreement with the National Science Foundation will require that the University initially provide funds for the project. However, legislative and gubernatorial authorization has been granted to the Board of Trustees to issue revenue bonds for this project, permitting for the first time the use of Federal funds associated with this project (and Federal overhead funds returned to the University on other sponsored programs) to make payments on the bonds. The bond issue will approximate $18.5 million in principal amount to cover construction costs, architectural and engineering fees, land acquisition, capitalized interest, and costs of issuance. Additional bonds may be issued to provide for a debt service reserve and other reserves mandated by the conditions of sale. T h e bond sale would occur prior to the award of construction contract (s), currently expected in midyear 1988. In order to prepare for the sale of such bonds it is recommended that: 1. T h e board approve, in concept, its intention to sell revenue bonds for this project, the proceeds of which would be used for the purposes identified. 2. The firm of John Nuveen & Co. Incorporated, Chicago, be employed as financial advisor. 3. T h e firm of Chapman and Cutler, Chicago, be employed -as bond counsel. 4. T h e comptroller and secretary be authorized to take such steps as are necessary to prepare and distribute a Preliminary Official Statement, a Bond Resolution, and other financial documents that may be required to prepare for the issuance of said bonds. 5. T h e board declare its intent that this approval constitutes preliminary official action toward the issuance of said bonds. T h e interim chancellor at U r b a n a and the vice president for business and finance have recommended approval. I concur.

On motion of Mrs. Gravenhorst, these recommendations were approved by the following vote: Aye, Mr. Forsyth, Mrs. Gravenhorst, Mr.