Repository: UIHistories Project: Board of Trustees Minutes - 1970 [PAGE 719]

EXTRACTED TEXT FROM PAGE:

1969]

UNIVERSITY OF ILLINOIS

719

constructing, and will consfruct, on said property buildings and facilities for use as a parking structure for approximately 658 motor vehicles in two units, one unit to be located at Sixth and John Streets in Champaign, Illinois, and the other unit to be located at Fifth and Daniel Streets in Champaign, Illinois, and which units are hereinafter referred to as "Parking Structure"; that University will make available to Foundation, to be used to pay part of the cost of said construction, the sum of Five Hundred Thousand Dollars ($500,000.00); that Foundation will sublease said premises, including the buildings and facilities to be erected thereon, to University at a rental sufficient to pay Foundation's indebtedness incurred in connection with the construction and equipping of said buildings 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 University: (2) to enter into a lease with Foundation providing for the leasing by University to Foundation of the following described property, viz : "All of Lots one (1), two (2), three (3), six (6), seven (7), eight (8), and nine (9) and the South Twenty (20) feet of Lot four (4) and the South Fiftyfive and Five Tenths (55.5) feet of Lot five (5) of Block Fourteen (14) of Assessor's Subdivision of Blocks Ten (10), Eleven (11), and Fourteen (14) of J. S. Wright's Addition to the City of Champaign, situated in the City of Champaign, in the County of Champaign, and State of Illinois." for a term of thirty years commencing on the first day of August, A.D. 1969, and extending to and including the 31st day of July, A.D. 1999, or until the indebtedness incurred by Foundation in connection with the construction and equipping of said buildings and facilities has been paid and liquidated, whichever shall first occur; in consideration of Foundation's constructing thereon buildings and facilities for use as a Parking Structure pursuant to plans and specifications therefor as now on file in the office of the University Architect of University and for which bids have been received and contracts awarded by Foundation, and in consideration of Foundation's reimbursing University for architectural and engineering fees incurred in connection with said construction and the plans and specifications therefor, and in consideration of Foundation's subleasing said premises and the buildings and facilities to be erected thereon to University upon the terms and conditions hereinafter set forth; and providing further that in the event University should become in default under the terms of said sublease or fail to exercise any option for renewal of the term of said sublease under the terms and conditions therein set forth that thereupon Foundation shall have the full and unrestricted right to the use and possession of said premises and the buildings and facilities erected thereon for the remainder of the original term of said lease and the right to assign said lease or sublet said premises with the buildings and facilities thereon to others for the remainder of the original thirty year term of said lease; (3) to enter into a sublease agreement with Foundation when the construction of said buildings and facilities has been completed, providing for the subleasing by Foundation to University of said premises including the buildings and facilities thereon, under which sublease University will agree to pay a rental sufficient to meet all current installment payments becoming due and required to be paid by Foundation during the term of said sublease on Foundation's indebtedness incurred in connection with the construction of said buildings and facilities; said sublease to run from the date of the closing of Foundation's permanent loan secured for the financing of said improvements and extend to the next following June 30, and which permanent loan it is contemplated will be repayable in forty quarterly installments of approximately Fifty-Nine Thousand Seven Hundred Fifty Dollars ($59,750.00) each with interest at an effective net interest rate of Five Percent (5%) due each quarter on the unpaid balance; and which sublease shall contain options giving to University the right to renew said sublease for successive annual periods from July 1 of one year to June 30 of the next following year by giving written notice to Foundation between the first and fifteenth day of July in each year when such renewal is to be made, until said sublease is finally terminated by the payment and liquidation of the above mentioned indebtedness;