Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 110]

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1980]

UNIVERSITY OF ILLINOIS

99

Agreement with Midstate Aviation Center, Inc., for Facilities, Willard Airport

(17) Midstate Aviation Center, Inc., Savoy, has entered into an agreement to construct and lease certain facilities at the University of Illinois-Willard Airport for it to conduct business as a fixed-base operator. The company is now proposing to enter into an agreement to construct and lease back additional permanent facilities at the airport for maintenance of aircraft. T h e agreement would provide that the following facilities will be constructed by die company at its expense: a metal hangar of approximately 6,000 square feet; an exterior concrete apron; and miscellaneous work. T h e estimated cost of the project is $157,500. All improvements would be designed by a registered architect a n d / o r engineer, and the design and construction are subject to University approval. The improvements would become the property of the University immediately upon completion of construction. Furthermore, the company would maintain the facilities and would receive rent-free use of the premises and the facility for a term of fifteen years. Should the agreement be terminated, all permanent facilities constructed by the company, pursuant to this agreement, would remain the property of die University without cost or obligation to the University. T h e Buildings and Grounds Committee approved the site on September 18, 1980. T h e chancellor at the Urbana-Champaign campus and the executive vice president have recommended that the comptroller and the secretary be authorized to execute an agreement with Midstate Aviation Center, Inc., as described above. I concur.

On motion of Mr. Velasquez, authority was given as recommended. Amendment to Agreement with Midstate Aviation Center, Willard Airport

(18) In June 1979 the Board of Trustees approved an agreement with Midstate Aviation Center, Inc., of Savoy, Illinois, allowing the company to conduct business at Willard Airport as a fixed-base operator. Under the agreement, which terminates on June 30, 1984, the company has constructed and leased certain facilities for its use. Midstate is now in need of additional operating facilities and proposes to amend the present agreement with the University to permit the leasing of additional hangar space and parking spaces from the University. The company currently leases one-third of Hangar No. Three. T h e amendment would provide that Midstate lease the remaining two-thirds of the hangar and an additional ten parking spaces. I n addition to the terms of the present agreement, Midstate would pay $5,800 annually in cash rent (they now pay $2,000) for the additional hangar space and parking. Further, Midstate would be charged $5,500, plus a percent of sales annually (they now are charged $2,300 plus the percentage) as rent — this charge to be as credits against the capital cost incurred by Midstate in providing the aircraft apron and addition thereto as provided in the original agreement. Thus, under the original agreement and the proposed amendment, the University would receive annual rental cash payments of $7,800 and apron capital cost offsets will be allowed in the amount of $7,800 plus a percent of sales for a total annual rental of $15,600 plus a percent of sales. The chancellor at the Urbana campus and the executive vice president have recommended that the present agreement as described be amended. I concur.

On motion of Mr. Velasquez, this recommendation was approved.