Repository: UIHistories Project: Board of Trustees Minutes - 1970 [PAGE 216]

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216

BOARD OF TRUSTEES

[December 18

the financing plan developed by the University of Illinois Foundation for this project; and WHEREAS, as a part of that financing plan, the University entered into an agreement providing that if the lease of the premises between the University of Illinois Foundation and the United States of America should be cancelled or terminated for cause or otherwise, that the University would lease the facility from the Foundation for not less than the remaining unexpired term of the lease with the United States of America at the time of said termination or cancellation, at a rental not less than the annual renewal rental as provided in the lease with the United States of America, said rental to be sufficient in amount to meet the annual amortization of the outstanding principal and interest on the bonds issued by the Foundation for the financing of this project; and WHEREAS, the execution of the mortgage by the Foundation and the issuance of the bonds have been delayed pending negotiations for a lower interest r a t e ; and WHEREAS, it now appears that the annual interest rate on said bonds may be reduced from 6i/2 per cent to 5y£ per cent by committing income or additions to the University's Contract Research Reserve account to the payment of the rental obligation undertaken by the University as outlined above. Now, Therefore, after discussion and upon motion duly made and carried, the following resolutions were adopted: Resolved, that in the event that the lease between the United States of America and the University of Illinois Foundation concerning the Construction Materials Research Laboratory to be located in the vicinity of the Urbana-Champaign campus should be cancelled or terminated for cause or otherwise, the Vice President and Comptroller and the Secretary are authorized to lease said facility from the Foundation for not less than the remaining unexpired term of the lease with the United States of America at the time of said cancellation or termination, at a rental not less than the annual rental as provided in the Foundation's lease with the United States of America, said rental to be sufficient to meet the annual amortization of the outstanding principal and interest on the bonds to be issued by the Foundation for the financing of said project, and on terms otherwise no less favorable to the bond holders than those contained in the Foundation's lease with the United States of America. Resolved, that the Comptroller of the Board be and hereby is authorized to pledge as additional security for the bonds to be issued by the Foundation for the financing of this project all additions or income to the University's Contract Research Reserve up to $300,000 per annum to the payment of the rental obligation with respect to said facilities referred to in the previous resolution. Resolved, that the Comptroller of the Board be and hereby is authorized and directed to accept delivery of title to the real estate and premises comprising the Construction Materials Research Laboratory, subject to the lien of the mortgage and the rights of the United States of America, on behalf of the Board of Trustees. Resolved, that the Comptroller and Secretary of the Board be and they hereby are authorized and directed to execute such documents, contracts, written understandings or commitments as may be necessary to adequately evidence and affirm the actions taken herewith. O n m o t i o n of M r . W i l l i a m s o n , t h e f o r e g o i n g r e s o l u t i o n w a s a d o p t e d by the following vote: Aye, M r . Clement, M r . Grimes, M r . H a h n , M r . H u g h e s , M r . P o g u e , M r . Swain, M r . Williamson; no, n o n e ; absent, Mr. Jones, Mr. Page, Governor Shapiro, Dr. Weatherly. LAND ACQUISITION PROGRAM

T h e Vice President and Comptroller and the Director of the Office of Physical Plant Planning and Construction presented a comprehensive