Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 31]

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BOARD OF TRUSTEES

[July 29

tion of a scheduled air service for the period July 1, 1982, through June 30, 1983. The agreement provides that Air Illinois will have exclusive use of 225 square feet of space in the Willard Airport Administration Building and shared use of the common area. Air Illinois is to pay the University $2,412 annually for rental, and operation and maintenance services. The agreement provides for appropriate reduction in such payment in the event that exclusive use is granted to others in the common area of the Airport Administration Building. The agreement also would grant Air Illinois landing privileges and the use of aircraft parking aprons for loading and discharging passengers in exchange for a fee equivalent to that charged for all scheduled passenger service landings at Willard Airport. The chancellor at the Urbana-Champaign campus and the executive vice president have recommended that an agreement as described be executed, and subsequent annual renewals thereof, subject to adjustment in rates, may be as agreed upon and approved by the executive vice president. I concur.

On motion of Dr. Donoghue, this recommendation was approved.

Landing Fees at Willard Airport

(27) Revenue from fees charged for landing privileges and the use of aircraft parking aprons at Willard Airport is applied to the cost of maintaining and repairing runways, taxiways, aprons, lighting, and airfield grounds area. The Federal Aviation Administration, which requires that the landing fee rates be equivalent for all passenger air service landings, reviews the rates at scheduled intervals and on the occasion of applications for federal grants to reconstruct or extend airfield facilities. The landing fee rates are established through negotiation with the passenger airline companies which provide scheduled service to Willard Airport. Currently, three airlines are serving Willard Airport, but business environment for the airline industry makes it necessary to plan for the potential of other airlines replacing or adding to service provided at this time. Procedures developed to serve as the basis for determining the landing fee rate include consideration of gross landing weights, historical costs, and total number of scheduled landings. The chancellor at the Urbana-Champaign campus and the executive vice president have recommended that the comptroller and the secretary be authorized to approve landing fee rates as described above which would apply to all scheduled passenger airlines and make subsequent adjustments in rates as may be approved by the executive vice president. I concur.

On motion of Dr. Donoghue, this recommendation was approved.

Oil and Gas Lease, White County

(28) In 1912 the University of Illinois received a 20-acre tract of land in White County near Enfield. A gift from community subscribers, it has been used as an experimental tract for agronomic and forestry research. In June 1980 the Board of Trustees approved a leasing agreement with C. E. Brehm. That lease has expired. R K Petroleum Corporation of Mt. Carmel, Illinois, has offered a one-year lease at $25 per acre with a $1,000 location fee payable upon entering the site to drill. The lease provides for the payment of the standard one-eighth royalty for oil or gas produced. The Director of the Agricultural Experiment Station has determined that the production of oil will not interfere with the future research program on the tract. All lease fees and any royalties received will be used in support of agricul-