Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 1317]

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1314

BOARD O F T R U S T E E S

[February

21

This improvement program has been reviewed with the Champaign City Manager and City Council, who have reported that it meets with their approval and that the City Attorney has been designated to work with the University in developing a mutually satisfactory agreement. The program has also been reviewed with the highway commissioners and supervisors of both Urbana and Champaign Townships, who have indicated that the improvements are highly desirable and have suggested that the Townships will be willing to dedicate any interest they may have in rights-of-way of streets and roads to the University, subject to review and approval by their legal advisers. Funds are available in the University's state capital appropriations from the Universities Building Fund, subject to release by the Governor. The Director of the Physical Plant and the Vice-President and Comptroller recommend that the Board of Trustees authorize its Comptroller and Secretary to execute agreements with the city of Champaign and with Urbana and Champaign Townships for the improvements outlined. Construction contracts and assignments of funds for the same will, of course, be subject to approval by the Board of Trustees. I concur.

On motion of Mr. Johnston, this recommendation was approved, and authority was given as requested.

IMPROVEMENTS AT HOTT MEMORIAL CENTER (30) Mr. and Mrs. Maxwell R. Hott have given the University their home in Monticello, the gift being designated as the Hott Memorial Center for Continuing Education. The property is being given to the University over a period of years. The University now has an undivided one-fourth interest in the title and Mr. and Mrs. Hott have leased their remaining interest in the property to the University of Illinois Foundation for twenty years. They plan to give additional fractional interests to the University until the complete title is transferred. To make the residence more useful as an extension center will require remodeling and additions in order to increase the number of guest rooms required for such use. The estimated cost of the improvements, which would include air conditioning the entire first floor, is $137,500. The First National Bank of Chicago has agreed to loan this amount to the Foundation at one-half the prime interest rate, plus one-fourth per cent (presently a total of two and one-half per cent), with retirement of the principal at the rate of $12,000 per year. Should the Bank incur tax liability on the income from the loan, the Foundation will pay the prime interest rate plus one-fourth per cent. The Dean of the Division of University Extension and the Vice-President and Comptroller recommend that the Foundation be requested to make these improvements to be financed by the Bank loan. To assist in accomplishing this, they recommend that the University transfer title to its interest to the Foundation and that the University lease the property from the Foundation until Tune 30, 1963, at a rental sufficient to cover interest and principal payments on the loan, with option in the lease for renewal for successive biennial periods. During the early years of the operation of the Hott Memorial Center for Continuing Education, income may not be adequate to pay the debt service and funds will be included in the operating budget of the Division of University Extension to cover the difference; however, in a few years the Center should be completely selfsupporting. I concur and recommend adoption of the necessary resolution to implement this transaction.

On motion of Mr. Swain, this recommendation was approved. Resolution

Be It, and It Is Hereby, Resolved by this Board of Trustees 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