Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 441]

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BOARD OF TRUSTEES

[November 19

following vote: Aye, Mrs. Day, Dr. Donoghue, M r . Forsyth, M r . Howard, Mr. Madden, Mr. Neal, Mrs. Shepherd, Mr. Stone; no, none; absent, Governor Thompson. (Mr. H a h n asked to be recorded as not voting.) (The student advisory vote was: Aye, M r . Bandala, M r . Bettenhausen, Mr. Persons; no, none.) Lease of the Easter Seal Building, Chicago Campuses

(19) T h e chancellors at the Medical Center and the Chicago Circle campuses have recommended the lease of the National Easter Seal Building at 2023 West Ogden Avenue, Chicago, as location for the combined Chicago campuses' personnel services offices and related activities of the Chicago campuses. The property consists of 0.98 acres of land and a masonry building of approximately 18,000 interior gross square feet equipped for office use. The Easter Seal property is within the Medical Center District and the acquisition of such property is a responsibility usually assigned to the Medical Center Commission. On behalf of the University, and with the participation of University representatives, the commission has negotiated a lease/purchase agreement with the Easter Seal Society. The society will lease this facility to the University from January 1, 1982, through June 30, 1982, for $7,916 per month ($5.28 per square foot). The University would pay all operating, maintenance, and utility costs. T h e agreement would further provide for annual renewals, subject to the availability of funds, for the period July 1, 1982, through June 30, 1983, for $8,750 per month ($5.83 per square foot); and for the period July 1, 1983, through June 30, 1984, for $9,712 per month ($6.48 per square foot). The renewal would be at the sole option of the University. T h e agreement will also give the University the option to purchase the property at any time prior to January 31, 1984, for a purchase price of $550,000. If the option is exercised and the transfer completed prior to January 31, 1983, all rental payments to date of closing will be applied against the purchase price; and if the option is exercised and the transfer completed prior to January 31, 1984, but after January 31, 1983, one half of all rental payments to date of closing will be applied against the purchase price. Institutional funds are available in the operating budgets of the Chicago campuses to lease, operate, and maintain the property for FY 1982. Funds for similar costs for FY 1983 and FY 1984 will be included in the appropriate budgets of the Chicago campuses and the exercise of options to extend the lease is subject to the availability of these funds. The Medical Center Commission approved a resolution on September 18, 1981, authorizing the purchase cf the building by the appropriation of $200,000, with the balance to be paid by the University. The commission will include a request for $200,000 in its FY 1983 budget from the Medical Center Income Fund. T h e Board of Trustees has included a capital request for $350,000 in its FY 1983 budget for the University, which has been submitted to the Illinois Board of Higher Education. Exercising the option to purchase the property is subject to the availability of such funds for both the University and the Medical Center Commission. It is recommended that the comptroller and the secretary be authorized to (1) seek all necessary Medical Center Commission approval for this transaction and if granted, to execute the lease agreement described above; and (2) exercise the options to renew described above, subject to the continuing need and availability of funds and to execute a contract for the sale of real estate between the University, the owners, and, if appropriate, the Medical Center Commission, if funds become available for the purchase. I concur.