Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 152]

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UNIVERSITY OF ILLINOIS

149

units. Construction bids for these three projects have been received, and the total project budget is $3,150,000. T h e Housing and H o m e Finance Agency has approved a reservation of funds in the amount of $1,350,000 but has indicated that it will now approve $1,525,000 since construction costs are greater than originally estimated. T h e remainder of the $3,150,000 will be provided from a public offering of bonds. T h e Graduate Student Residence Hall has been resubmitted to the Housing and Home Finance Agency as a separate project. Decision on the time schedule for the Men's Residence Halls and two hundred and fifty apartments will be deferred until further studies of enrollment estimates are completed. T h e bonds should be sold, if possible, prior t o the November meeting of the Board. Accordingly, I recommend: ( a ) confirmation of the above actions; (b) that the Executive Committee be authorized to sell the bonds to the bidder offering the lowest net interest cost to the University; and (c) that the Executive Committee be authorized to award construction contracts when the bonds have been sold. O n m o t i o n of M r . B i s s e l l , t h e s e r e c o m m e n d a t i o n s w e r e a p p r o v e d b y the following v o t e : A y e , M r . Bissell, M r . H e r r i c k , M r s . H o l t , M r . Hughes, M r . Johnston, M r . Livingston, M r . Nickell, M r s . W a t k i n s , Mr. Williamson; no, none; absent, M r . Stratton, Mr. Swain. FINANCING OF CONSTRUCTION OF PARKING LOTS (10) It is necessary that the Board of Trustees adopt a formal resolution implementing its action of July 29, 1958, authorizing the construction of parking lots on the campus at Urbana-Champaign. T h e improvements will be financed through a bank loan secured by the University of Illinois Foundation. T h e Foundation will acquire title to the lots and will lease them to the University until the loan has been paid, when title will revert to the University. It was anticipated that interest on this loan would be ZV2 P e r cent, but the Foundation has received a ruling from the Bureau of Internal Revenue that interest in its obligations is exempt from federal income tax and as a result the First National Bank of Chicago has agreed to reduce the interest rate on the loan from 3J/2 per cent to 2 per cent. M r . W i l l i a m s o n o f f e r e d t h e f o l l o w i n g r e s o l u t i o n a n d m o v e d its adoption. Resolution WHEREAS, this Board of Trustees of the Board of Trustees of the University of Illinois, a public corporation of the State of Illinois, which public corporation is hereinafter referred to as "University," at a regular meeting of this Board of Trustees held on July 29, 1958, approved in principle a parking lot program then outlined to it; and WHEREAS, pursuant thereto, an agreement was entered into, in the name and on behalf of University under date of October 15, 1958, by the Comptroller and Secretary of University with University of Illinois Foundation, a not-forprofit corporation of the State of Illinois, hereinafter referred to as "Foundation," whereby University agreed to convey the premises therein described to Foundation by good and sufficient W a r r a n t y Deed; Foundation agreed to pay to University the sum of $440,000 upon such transfer of title; Foundation agreed to borrow said sum from the First National Bank of Chicago; Foundation agreed to lease back the properties so sold for an original term extending from the date of transfer of title through June 30, 1959, and automatically renewed for subsequent two-year periods thereafter unless written notice to the contrary from University to Foundation is given sixty (60) days prior to June 30, 1959, or prior to the end of any subsequent biennial period; University agreed to pay to Foundation an annual rental of Ninety Thousand Dollars ($90,000) payable Forty-Five Thousand Dollars ($45,000) on April 15, 1959; Forty-Five Thousand Dollars ($45,000) payable on October 15, 1959; and Forty-Five Thousand Dollars ($45,000) on each April 15 and October 15 thereafter until Foundation's indebtedness to the First National Bank of Chicago, including interest, incurred for this purpose, has been liquidated; University agreed to keep the parking lots