Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 668]

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658

BOARD OF TRUSTEES

[June 21

for a term of forty-five years; that Foundation would borrow money for the purpose of constructing and would construct or otherwise provide on said property buildings and facilities for use as an Intramural-Physical Education building; that Foundation would expend not to exceed Ten Million One Hundred and Eighty-two Thousand Six Hundred and Fifteen Dollars ($10,182,615) for the completion of said buildings and facilities; that the buildings and facilities to be erected thereunder shall be for all purposes considered as personalty and title to the same shall remain in the Foundation until termination of said Term Lease; that throughout the period of the Term Lease, the University shall have an option to purchase the buildings and facilities and terminate said Term Lease; that said option may be exercised by the University at any time by paying to the Foundation a sum adequate to permit the Foundation to retire its then existing obligations incurred for this project; and B, To sign, execute, and deliver a "Building Lease" with and to the Foundation, which Building Lease would provide that University would sublease the therein-described property together with the buildings and facilities to be erected thereon from the Foundation for a period of two years beginning July 1, 1969, and ending June 30, 1971, for a rental sufficient to amortize the Foundation's obligations incurred for this project over a period of thirty-five years; that no rental shall be due from the University to the Foundation under the terms of said Building Lease until the buildings and facilities 1o be constructed thereon have been completed and ready for occupancy; that said rental shall be payable in quarter annual installments on the first day of January, April, July, and October in each year, beginning on the first such day after said buildings and facilities to be erected pursuant thereto have been completed and ready for occupancy; that said Building Lease shall contain options giving to the University the right to renew said sublease for successive yearly periods to and including June 30, 2006; and C. To enter into an agreement with Foundation whereby Foundation would agree to borrow from T H E FIRST NATIONAL BANK OF CHICAGO, a national banking association, organized and existing under and by virtue of the laws of The United States of America and doing business and having its principal office in the City of Chicago, County of Cook, and State of Illinois, a sum sufficient, approximately Nine Million One Hundred Thousand Dollars ($9,100,000.00), to provide for the construction, equipment, interest costs during construction, and related costs of an Intramural-Physical Education Building and to secure such funds during the construction period at such times and in such amounts as may be agreed upon by the Treasurer of the Foundation and said Bank, and at an effective net interest rate of 4 per cent per annum to said Bank and which permanent loan to be repayable on or before July 1, 1971, with interest from date to maturity at the rate of 4 per cent per annum (on a 365, or where appropriate, 366 day year basis) payable quarterly and at maturity; and WHEREAS, pursuant to said authorization, a Term Lease and Building Sublease was entered into with Foundation; and a Loan Agreement dated September 20, 1968, was entered into by Foundation with T H E FIRST NATIONAL BANK OF CHICAGO, a national banking association, providing for a loan in the principal amount of Nine Million One Hundred Thousand Dollars ($9,100,000.00) for the purpose of financing the construction of the Intramural-Physical Education Building and with a due date of July 1, 1971; and WHEREAS, The Board of Directors of Foundation at its meeting on July 1, 1971, authorized the execution of an Allonge to be attached to the Note and extending its maturity to July 1, 1972, and which Allonge was executed; and WHEREAS, it has been determined that payment of an amount in the sum of Six Hundred Thousand Dollars ($600,000.00) should be made on the principal on July 1, 1972, and the balance of Eight Million Five Hundred Thousand Dollars ($8,500,000.00) should be refinanced; and WHEREAS Foundation is willing to agree, upon appropriate amendments being made to the Term Lease and the Building Sublease, to borrow from T H E FIRST NATIONAL BANK OF CHICAGO the sum of Eight Million Five Hundred Thousand Dollars ($8,500,000.00) and to use the proceeds thereof, and in addition thereto the sum of Six Hundred Thousand Dollars ($600,000.00), to repay the indebtedness incurred pursuant to that certain Note between the Bank and the Foundation dated September 20, 1968, as extended by that certain Allonge made by the Foundation dated July 1, 1971; and to enter into a Loan Agreement with the Bank providing for said Loan to be repayable in twenty (20) principal install-