Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 574]

EXTRACTED TEXT FROM PAGE:

19591

U N I V E R S I T Y OF I L L I N O I S

571

determined that a laundry building can be financed and constructed according to the following plan. 1. The University will convey to the Foundation the site for the laundry, to which the University now has title. 2. The Foundation will borrow $650,000 from the First National Bank of Chicago to construct and equip the laundry. 3. The Foundation will request the University to act as its agent in taking bids and supervising the construction and equipping of the building. 4. The University will recommend to the Foundation awards of contracts by the Foundation for the construction and equipping of the building. 5. The Foundation and the University will execute a lease under which the Foundation will lease the building and equipment to the University for the purpose of carrying on laundry operations. 6. The University will pay under this lease a rental to the Foundation sufficient to repay the funds borrowed from the First National Bank over a period of from ten to twelve years, depending on the interest rate at which the loan is made. 7. The loan will be made by the First National Bank of Chicago at an interest rate of 2J/2 per cent. A ruling has been secured from the Department of Internal Revenue that the interest paid to the Bank by the Foundation is exempt from income tax. At 2J/2 per cent the loan will be repayable in ten years. 8. The University will charge departments of the University in Chicago rates for laundry work performed, which will provide income to cover the operations of the laundry and pay the necessary rentals to the Foundation. 9. Upon repayment of the loan by the Foundation, the property will be conveyed by the Foundation to the University. The Foundation has taken the necessary actions. Bids taken by the University on the construction of the laundry and installation of equipment will be turned over to the Foundation with a recommendation for the awards of the contracts. It is necessary that an easement be granted by the University to the Medical Center Steam Company, which will supply steam to the laundry, before conveyance of the laundry site to,the Foundation. Accordingly, the Director of the Physical Plant, the Vice-President in charge of the Chicago Professional Colleges, and the Vice-President and Comptroller recommend that: 1. The Board adopt a resolution (submitted herewith) granting an easement to the Medical Center Steam Company. 2. The Board adopt a resolution (submitted herewith) authorizing the Comptroller and the Secretary of the Board to execute the necessary documents and to take other actions as may be necessary to implement the plan recommended. 3. The University of Illinois Foundation be requested to award contracts for the construction and equipment of the laundry building as follows: Construction — George Sollitt Construction Company, Chicago $443 540 00 Equipment — American Laundry Machine Company, Chicago 108 620 00 Super Laundry Machinery Company, Chicago 35 763 80 Total Contracts $587 923 80 The budget for this project indicates a total cost of $768,600. The University will provide $118,600 in ( a ) useable equipment in the present laundry, valued at $33,600; (b) $45,000 in reserves resulting from operation of the present laundry; and (c) $40,000 representing the value of the site. This leaves $650,000 to be financed. All approvals are subject to completion of the necessary legal documents in a form and manner satisfactory to the University's Legal Counsel, the University of Illinois Foundation, and the First National Bank of Chicago. Submitted herewith is a report with recommendations from the Physical Plant Department relating to the awards of contracts, including a schedule of all bids received and a budget for the project. A copy of this report is being filed with the Secretary of the Board for record.