Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 450]

EXTRACTED TEXT FROM PAGE:

1985]

Date 9/23 9/24 $

UNIVERSITY OF ILLINOIS

439

Number Description Cost/Yield Amount 299 000 Chevron demand notes 7.97% $ 299 000 00 100 000 General Motors Acceptance demand notes 7.85 100 000 00 9/26 3 000 000 U.S. Treasury bills due 12/19/85 7.10 2 951 140 00 9/27 4 300 000 General Electric Credit 6V4 percent commercial paper due 9/30/85 6.50 4 300 000 00 9/27 2 000 000 U.S. Treasury bills due 2/27/86 7.36 1 939 333 33 9/27 2 000 000 U.S. Treasury 15% percent notes due 10/15/88 9.30 2 320 000 00 9/30 125 000 U.S. Treasury 15% percent notes due 10/15/88 9.40 144 648 44 10/3 80 000 U.S. Treasury 13% percent notes due 8/15/89 9.93 90 535 00 10/3 722 000 Texaco Financial Services 7V4 percent commercial paper due 10/4/85 7.50 722 000 00 10/4 722 000 Quaker Oats demand notes 7.41 722 000 00 10/4 40 000 Quaker Oats demand notes 7.41 40 000 00 10/11 2 000 000 U.S. Treasury bills due 6/12/86 7.78 1 899 824 44 O n m o t i o n of M r s . G r a v e n h o r s t , this r e p o r t w a s a p p r o v e d a s p r e sented.

Lease of Out-Patient Clinic Space, Continental Plaza Apartments, Chicago

(32) The chancellor at Chicago has recommended that the University contract with the Urban Service and Management Group, Inc., to lease 11,375 square feet of space at Continental Plaza Apartments, 7600 South Racine, Chicago, for the period December 1, 1985, through November 30, 1992. This space will house a University Hospital out-patient clinic serving the residents of the Continental Plaza complex (which contains a 164-unit apartment building for the elderly and 128 townhouses for families) and the surrounding community. It is contemplated that the ambulatory care facility would serve a portion of the 200,000 population residing within a two-mile radius of Continental Plaza. Primary and secondary care in internal medicine, pediatrics, and obstetrics and gynecology would be provided a clientele expected to generate 18,000 patient visits per year a t the site and additional days at the University Hospital when inpatient treatment is required. The lease will be at a rate of $193,375 per year, at a base rental of $7.73 per square foot plus construction build-out costs not to exceed $9.27 per square foot amortized over twenty years. The total annual rental would not exceed $17 per square foot per year. The lessor will construct the clinic space to the specifications of the University, at the standards of the lessor, and at the expense of the lessor. The University would have the right to extend this lease for three additional periods of five years each. A rent increase of four percent is provided for on the fourth, eighth, twelfth, and twentieth anniversaries of the commencement date of the initial term or any extension ihereof. The University will pay for utilities, cleaning, and moveable equipment. It is planned that 4.5 F T E physicians and 11.5 F T E support staff will be required to operate the clinic at the level necessary to accommodate 18,000 patient visits per year. Annual revenues associated with the servicing of this patient base are expected to be sufficient to meet all operating costs of the facility, including the lease-payment, staff salaries, utility costs, operation and maintenance costs, and other routine operating expenses. Funds are available in the Medical Service Plan operating budget for Fiscal Year 1986. Funds for the estimated cost of this seven-year lease will be sequestered