UIHistories Project: A History of the University of Illinois by Kalev Leetaru
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Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 386]

Caption: Board of Trustees Minutes - 1962
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1961]

UNIVERSITY OF ILLINOIS

383

Mr- McDonald reviewed the practice of the University during the past twelve years of making payments "in lieu of taxes" on certain of its incomeproducing properties, as authorized by state law. In 1949, the General Assembly of Illinois amended Section 7 of the Act providing for the organization and maintenance of the University by including a provision that the Board of Trustees •liall have power to agree with the State's Attorney of the county in which any properties of the Board are located to pay for services rendered by the various taxing districts such sums as may be determined by the Board upon properties used solely for income-producing purposes, the title to which is held by the University, and upon properties leased to members of the staff of the University, title to which is held in trust by the Board of Trustees. This legislation is permissive, not mandatory, and the Board may determine on which properties it shall make payments to local government taxing bodies and the sums to be paid In general, the payments agreed upon and made to date on each parcel of property have been in the amount of the taxes which would have been levied thereon if the property had not been tax exempt. Mr. McDonald asked that the Board consider extending this practice to include payments on three properties: the Illini Union Bookstore, parking lots leased to members of the University staff, and the L'niversity of Illinois golf courses on the campus and at Savoy. Following this presentation and answers to questions asked of Mr. McDonald, lie withdrew.

President Henry stated that the operations of the Illini Union Bookstore are an educational service to students and should not be considered in the same category as income-producing properties such as residences and apartments leased to members of the staff. Mr. Lesemann pointed out that the parking lots leased to staff members are maintained by the University, and receive no important services from local taxing bodies to speak of and, of course, there are no residents living upon the properties requiring public school services. Mr, Farber called attention to the fact that in the operation of the University High School the University provides educational services to a significant number of children in the local community and thus relieves the school systems of the cost of educating them. The University golf courses are a recreational facility for students and staff and use of them by the public is only incidental to their chief purpose. The alternative would be to close the courses to the public. Mr. Wilkins stated that the properties on which the University is making payments are not on the tax rolls and consequently the local school districts receive greater allocations from the State School Fund than they would if these properties were included in the rolls. Following further discussion of the State's Attorney's request, on motion of Mr. Pogue, the Board voted that no payments be made by the University "in lieu of taxes" on the properties which Mr. McDonald asked to be included among the properties as to which such payments are now being made.

MEETING O F COMMITTEE O N BUILDINGS AND GROUNDS

A brief meeting of the Committee on Buildings and Grounds was held immediately after the adjournment of the Board. On motion of Mr. Harewood, the Board adjourned.

• J. JANATA

KENNEY E. WILLIAMSON

Secretary

President