Repository: UIHistories Project: Board of Trustees Minutes - 1968 [PAGE 102]

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BOARD OF T R U S T E E S

[July 27

PARKING PROGRAM FOR MEDICAL CENTER CAMPUS (8) T h e Director of the Physical Plant and the Vice-President and Comptroller recommend that the University of Illinois Foundation be requested to assist and participate in the expansion of parking facilities at the Medical Center Campus. Bids for Phase I of the Parking Program at the Medical Center Campus totalling $205,093 have been received and are for the construction of three new parking lots to be designated as Lots E-West, F - l South, and G-3. The bid documents permit the bids to be assigned to the Foundation. It is recommended that the bids for Phase I be assigned to the Foundation and that the Foundation be requested to borrow funds and construct the facilities. It is further recommended that Parking Lots designated as A - l , B-2, C-l, C-3, D - l , D-3, E-VVest, F - l North, F - l South, G-3, and N at the Medical Center Campus be leased to the Foundation for a period of thirty years and that the Foundation be requested to lease the lots back to the University at an annual rental of $34,000, which will be paid from parking fees. The term of the initial lease back to the University will end June 30, 1967, and may be renewed by the University for biennial periods. When the rental paid equals the Foundation's indebtedness and interest, financing, and other costs, the lease and lease back will terminate. Approval of the Illinois Board of Higher Education is required and has been requested. I concur and recommend adoption of the following resolution. Resolution Be It, and It Hereby Is, Resolved by the Executive Committee of The Board of Trustees of the University of Illinois, a public corporation of the State of Illinois, that the Comptroller and Secretary of this public corporation be, and they hereby are, authorized for and in the name of, and on behalf of, this public corporation: (1) to sign, execute, and deliver an agreement with and to University of Illinois Foundation, 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 the hereinafter described property owned by it in Chicago, Illinois, to Foundation; that Foundation will borrow money for the purpose of constructing, and will construct, on said property, certain parking lot facilities; that Foundation will sublease said premises to this public corporation at an annual rental of $34,000.00, which amount when paid for a period of ten (10) years will be sufficient to pay Foundation's indebtedness incurred in connection with the construction of said parking lot facilities and the interest and other expenses thereon; and that upon completion of the repayment of said indebtedness from said rentals Foundation shall release to this public corporation all rights, title and interest in and to said premises, and title to said property so improved shall be vested in this public corporation free of said lease and sublease; (2) to enter into a lease with Foundation providing for the leasing by this public corporation to Foundation of the parking lots designated as A - l , B-2, C-l, C-3, D-l, D-3, E-West, F - l , G-3 and N at the Medical Center Campus, for a term of thirty (30) years commencing the 16th day of July, A.D. 1966 and extending to and including the 15th day of July, A.D. 1996, or until the indebtedness incurred by Foundation in connection with the construction of said parking lot facilities has been paid and liquidated, whichever shall first occur; in consideration of Foundation's constructing thereon parking lot facilities pursuant to and in accordance with plans and specifications therefor as now on file in the Office of the University Architect of this public corporation and for which bids have been received as hereinafter set forth, and of Foundation's subleasing said premises and facilities to this public corporation upon the terms and conditions hereinafter set forth; and providing further that in the event this public corporation 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 facilities thereon for the remainder of the original term of said lease and the right to assign said lease or sublet said premises and facilities thereon to others for the remainder of the original 30-year term of said lease; (3) to enter into a sublease agreement with Foundation providing for subleasing by Foundation to this public corporation of said premises including the facilities thereon, under which sublease this public corporation will agree to pay an annual