Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 261]

EXTRACTED TEXT FROM PAGE:

250

BOARD OF TRUSTEES

[April 18

On motion of Mr. Forsyth, this recommendation was approved by the following vote: Aye, Mrs. Day, Mr. Forsyth, Mrs. Gravenhorst, Mr. Howard, Mr. Logan, Mr. Madden, Mrs. Shepherd, Miss Smith; no, none; absent, Governor Thompson. (Mr. Hahn asked to be recorded as not voting.) (The student advisory vote was: Aye, Mr. Lamm, Mr. Pittman; no, none.)

Addition to Construction Engineering Research Laboratory, U.S. Army Corps of Engineers, Champaign

(34) On January 17, 1968, the Board of Trustees requested the University of Illinois Foundation to provide facilities for the first phase of the Construction Engineering Research Laboratory for the U.S. Army Corps of Engineers at Interstate Research Park, Champaign. Phase I is now occupied and leased to the Corps of Engineers for the period of the Foundation financing obligation which concludes on January 1, 1999, subject to a ninety-day termination right by the Corps. T h e original cost of Phase I, as incorporated in the lease, was $3,500,000. At its meeting of February 16, 1972, the Board of Trustees requested the University of Illinois Foundation to construct for the Corps of Engineers at Interstate Research Park, Champaign, an addition to Phase I — an adjacent freestanding building for housing a Shock Test Machine. T h e addition to Phase I is now occupied and leased to the Corps of Engineers for the period of the Foundation financing obligation, which concludes on January 1, 1999, subject to a ninety-day termination right by the Corps. T h e cost of the building addition, as incorporated in the lease, was approximately $425,000. Additionally, the Corps of Engineers requested that the north 15.175 acres contiguous to the present site of Phase I in the Interstate Research Park be acquired for planned expansion of the project, as provided in the lease between the Foundation and the Corps. T h e lease with the Corps was further modified to include the additional 15.175 acres of land. T h e total principal amount of new bonds issued in 1972 was $550,000. T h e current principal outstanding on the 1968 and 1972 bond issues is $2,848,000. T h e rental under the lease is in an amount necessary to amortize the total cost of Phase I, the 1972 addition to Phase I, and the additional land over the remaining term of the modified lease, which concludes on January 1, 1999. T h e Corps of Engineers has requested that the University construct an addition to the laboratory facility. T h e estimated construction cost is $1,650,000, based on architectural specifications developed under a contract reported to the meeting of the Buildings and Grounds Committee on January 16, 1985. In order to provide financing to construct such addition, it will be necessary for the board to issue revenue bonds: (i) to refund or advance refund the outstanding revenue bonds issued by the Foundation in 1968 and 1972 (the "Foundation Bonds"); (ii) to provide a debt-service reserve; and (iii) to pay the costs of such construction and the expenses of issuing such bonds by the board. I recommend, with the concurrence of appropriate administrative officers, that: 1. T h e comptroller and other authorized officers of this board be and they are hereby authorized to proceed with discussions and negotiations with the Foundation, the holders of the Foundation's bonds, the Corps of Engineers, Clayton Brown & Associates, Inc., and Chapman and Cutler pertaining t o : (i) the financing of such addition to the Construction Engineering Research Laboratory; (ii) the refunding or advance refunding of the Foundation's bonds; (iii) the issuance of revenue bonds of the board to provide for such refunding or advance refunding, the construction of such addition,