Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 623]

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612

BOARD OF TRUSTEES

[June 12

On motion of Mr. Logan, the petition was adopted by the following vote: Aye, Mrs. Day, Mr. Forsyth, Mrs. Gravenhorst, Mr. Hahn. Mr. Logan, Mr. Madden, Mrs. Shepherd, Miss Smith; no, none; absent, Mr. Howard, Governor Thompson. (The student advisory vote was: Aye, Mr. Becker, Mr. Lamm; no, none.)

Lease of Space, Buildings at Harrison Street and Des Plaines Avenue, Chicago

(40) T h e chancellor at Chicago has recommended that the University have the option to contract with American National Bank and Trust Co. of Chicago as trustee and Hiffman, Shaffer, Anderson to lease 82,106 square feet of space in the 707 West Harrison Street and 612 South Des Plaines Avenue buildings, Chicago, for the period July 1, 1986, through June 30, 1991. T h e lease will provide warehouse space to accommodate consolidation of the Business Office Stores as well as other storage needs of the Physical Plant, Library, Campus Auxiliary Services, and academic and other service units. T h e facility will also provide space for the office and shop of the Publications Department. T h e lease will be at a base rate of $185,000 during the first year, a unit cost of $2.25 per square foot T h e second year base cost is $185,000. There is a three percent increase in the third, fourth, and fifth years of the lease over the cost of the second year. T h e University will pay for all utilities and maintenance costs at the site, estimated at $145,000 for the first year. T h e University will pay, as additional rent, the cost of taxes, insurance coverage (including property, premises, and boiler insurance), and the cost of remodeling to accommodate the special needs of the Library and Publications Department. Remodeling is to be done by the landlord. It is estimated that these additional costs will average approximately $1.25 per square foot per year over the term of the initial lease period. T h e lease will include an option period to extend for an additional five years after the initial term. T h e escalation of the lease cost during the option period will be equal to an annual increase of three percent for each year of the extension. Ongoing and planned remodeling is required to relocate these storage and work functions from their present locations in the Library, Alumni Hall, Roosevelt Road Building, and Bumham Hall. T h e space presently occupied by the various units amounts to approximately 67,000 square feet. A search failed to identify any available University-owned space to house these needs. State appropriated funds and restricted operating funds of the units occupying the facilities will be provided in the Fiscal Year 1987 campus operating budget to be submitted to the board for approval. Funds from the same sources are anticipated for subsequent lease periods. T h e lease is subject to the availability of funds in each fiscal year. T h e vice president for business and finance has recommended approval. I concur.

On motion of Mr. Logan, this recommendation was approved by the following vote: Aye, Mrs. Day, Mr. Forsyth, Mrs. Gravenhorst, Mr. Hahn, Mr. Logan, Mr. Madden, Mrs. Shepherd, Miss Smith; no, none; absent, Mr. Howard, Governor Thompson. (The student advisory vote was: Aye, Mr. Becker, Mr. Lamm; no, none.)