Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 610]

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600

BOARD OF TRUSTEES

[April 19

for normal maintenance. T h e improvements will also include the installation of all or a major portion of new seating. The Northern Trust Company has offered to lend the University of Illinois Foundation $1,620,000, which will provide for the additional repairs and liquidate the existing loan from T h e First National Bank of Chicago. The note would be due in ten years and provide for quarterly repayments in the amount of $32,500 each, to be applied first to interest and then to principal. T h e Foundation has the option of a fixed interest rate of 4f£ per cent, or a floating rate initially set at Ai/i per cent, with increases equal to yi of any increase in present prime rate (5 per cent) up to a maximum rate to the Foundation of 5 percent. The minimum rate would be 4y£ per cent. On April 6, the Foundation authorized the loan at the fixed rate of 4$i per cent, subject to approval of the Board of Directors of the Athletic Association and the Board of Trustees of the University. While the loan is due in ten years, it will require approximately nineteen years to repay the entire principal at the proposed rate of repayment. ( T h e present lease of the Stadium from the University to the Foundation runs until May 31, 1982.) The Vice President and Comptroller recommends that this lease be extended until May 31, 1992, or until the indebtedness incurred by the Foundation has been paid and discharged, whichever shall come first. In addition, the Foundation will lease the property back to the University at a rental sufficient to cover the interest, payments on principal and other related costs to the Foundation. I concur and recommend adoption of the following resolution. Third Supplemental Resolution R e University of Illinois Memorial Stadium WHEREAS, T H E B O A R D O F T R U S T E E S O F T H E U N I V E R S I T Y O F I L L I N O I S , a public corporation of the State of Illinois, at its meeting on April 19, 1967, authorized the Comptroller and Secretary of this public corporation in the name of, and on behalf of, this public corporation : d ) to sign, execute and deliver an agreement with and to U N I V E R S I T Y O F I L L I N O I S F O U N D A T I O N , a not-for-profit corporation of the State of Illinois, hereinafter referred to as "Foundation," which agreement shall provide that this public corporation will lease property owned by it in Champaign, Illinois upon which Memorial Stadium is located to Foundation; that Foundation will borrow money for the purpose of constructing, and will construct, on said property a New Press Box and perform repair and maintenance work on Memorial Stadium and secure architectural and engineering services in connection therewith; that Foundation will sublease said premises, including the building and facilities thereon, to this public corporation at a rental sufficient to pay Foundation's indebtedness incurred in connection with the construction, repair and maintenance work for said building and facilities; and that upon completion of the repayment of said indebtedness from said rentals title to said property, including all improvements and facilities thereon, shall be vested in this public corporation; and WHEREAS, pursuant to said authorization, an Agreement, Lease, and Sublease was entered into with Foundation; and Foundation entered into a Loan Agreement dated June 1, 1967, with T H E F I R S T N A T I O N A L B A N K O F C H I C A G O , a national banking association, organized and existing under and by vjrtue of the laws of the United States of America and doing business and haying its principal office in the City of Chicago, County of Cook, and State of Illinois, providing for a loan in the principal amount of One Million Dollars ($1,000,000.00) for the purpose of financing certain improvements and repairs to Memorial Stadium; and WHEREAS, T h e Board of Trustees of the University of Illinois at its meeting on June 19, 1968, authorized an additional program at a cost of Five Hundred Thousand Dollars ($500,000.00) and at its meeting on April 21, 1971, a further program of Seventy-five Thousand Dollars ($75,000.00) both to be financed over the original loan period expiring June 1, 1977; and WHEREAS, it has been determined that an additional amount in the sum of Six Hundred Seventy-five Thousand Dollars ($675,000.00) is required in connection with renovative repairs, new seating and improvements to Memorial Stadium, and that the unpaid principal balance as of March 1, 1972, of the prior loans in