Repository: UIHistories Project: Board of Trustees Minutes - 1970 [PAGE 17]

EXTRACTED TEXT FROM PAGE:

1968]

UNIVERSITY OF ILLINOIS

17

in student fees of $18 per semester per student will still be adequate to finance both this project and the Women's Gymnasium Addition. This is possible because of receipt of a federal grant. However, as the funds to be borrowed on the Intramural-Physical Education Building will exceed the amount which has been declared in the public interest for Illinois Building Authority financing, and in view of the desire to curtail the expenditure of state appropriations, it is proposed that the project be financed and constructed other than by the Illinois Building Authority. It is desired to arrange for financing through the Foundation or through University revenue bonds, whichever is feasible. In either event, approval of the State Board of Higher Education will be required for financing the project as a "noninstructional facility." Accordingly, it is recommended that: 1. Approval be requested from the State Board of Higher Education for treatment of the Intramural-Physical Education Building as a "noninstructional facility." A copy of the application required by the Board of Higher Education is being filed for record in the Office of the Secretary. 2. The Illinois Building Authority be requested t o : a. Terminate the interim lease dated December 1, 1967, on project IBA-75-15. b . Assign to the University of Illinois Foundation, or to the University (as determined by the financing), all contracts relating to this project which were previously assigned to the Illinois Building Authority by the University. c. Assign the bids for this project received on June 18, 1968, to the University of Illinois Foundation or to the University (as determined by the financing). 3. The University of Illinois Foundation be requested to finance and construct this project and lease it to the University at a rental in an amount sufficient to liquidate the debt service payments. Concurrently, the University will explore the feasibility of financing the project through revenue bonds. When the preferred method of financing is identified, further action by the Board or the Executive Committee may be necessary. 4. A student service charge for use of the Intramural-Physical Education Building and the Women's Gymnasium Addition projects be assessed at the rate of $18 per student per semester beginning with the semester following the date of substantial completion of the Intramural-Physical Education Building, which is presently estimated to be September, 1970. O n m o t i o n of M r . G r i m e s , 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 by the following v o t e : A y e , M r . Clement, M r . Grimes, M r . H a h n , M r . H u g h e s , M r . Jones, M r . Pogue, M r . Swain, M r . Williamson; no, none; absent, M r . Page, Governor Shapiro, Dr. Weatherly. REQUEST TO ILLINOIS BUILDING AUTHORITY TO TRANSFER TITLE TO LAND FOR PARKING STRUCTURE, URBAN A (33) In accord with the approval of the Committee on Buildings and Grounds on April 17, 1968, the University is planning the construction of a parking structure at the Urbana campus to be located on a portion of the block bounded by Sixth, Daniel, Fifth, and John Streets. This structure will be financed by income from the parking program at the Urbana campus and by the sale of revenue bonds by the University. Within this site, the Illinois Building Authority in 1964 purchased 507 East John Street, Champaign, for $65,000 and 509 East John Street, Champaign, for $53,500 (total cost, $118,500). Under the lease dated March 20, 1964, between the Illinois Building Authority and the University, land costs for the Urbana campus totaling $1,000,200 (including the purchase of 507 and 509 East John Street) were financed by the Authority. T h e University is scheduled to make rental payments totaling $1,857,856. Through September 1, 1967, the University has paid $331,681 in rentals. Before construction can begin, it will be necessary to have title to the land owned by the Authority transferred to the University. In accordance with Paragraph 9 of the lease, sufficient rental payments have been made to request transfer at this time. Accordingly, the President of the University, with the concurrence of appropriate administrative officers, recommends that The Board of Trustees of the University of Illinois request the Illinois Building Authority to transfer title to 507 and 509 East John Street, Champaign, Illinois, to the University.