Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 659]

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656

BOAED OF TRUSTEES

[August 10

Renewal of the lease of the south one-half of the first floor for an additional eight-year period beginning September 1, 1963, at the same rental rate of $1.64 per square foot per year and on the same terms and conditions as in th» present lease. When the Institute moves into its new building, a. portion of the space on the second floor will be used for the relocation of that part of the Architectural Division of the Physical Plant Department which is presently^ housed in a frame residence property at 1003 West Green Street and the remaining space will be used by the Audio-Visual Aids Service of the Division of University Extension. The house at 1003 West Green Street will eventually be removed to clear the land for construction of residence halls scheduled for occupancy in September, 1%4, Since the University can not enter into contracts extending beyond the current fiscal biennium, it will be necessary to make the lease arrangements through the University of Illinois Foundation. Rentals to be paid by the University to the Foundation have been included in the operating budget of the Physical Plant Department and the additional funds required for the increased rental commencing September 1, 1963, will be included in the future biennial budget estimates. I recommend that the Board of Directors of the University of Illinois Foundation be asked to enter into the leases for the ten-year period indicated and to sublease _ the quarters to the University for the period ending June 30, 1%J, with an option to renew.

On motion of Mr, Pogue, this recommendation was approved, and the lease was authorized by the following vote: Aye, Mr. Gement, Mr. Dilliard, Mr. Harewood, Mr. Hughes, Mr. Johnston, Mr. Pogue, Mr, Swain, Mrs. Watkins, Mr. Wilkins, Mr. Williamson; no, none; absent, Mr. Kerner.

LEASE OF SPACE AT 6 0 1 , 6 0 3 , AND 6 0 5 EAST GREEN STREET, CHAMPAIGN

(20) The University has been leasing the entire second floors of the business buildings at 601, 603, 605, 607, 609, 611, and 613 East Green Street for the Audio-Visual Aids Service of the Division of University Extension, A fire on February 21, 1961, destroyed all the University leasehold improvements except for those at 611 and 613 East Green Street. Property owners at 607 and 609 East Green Street are not restoring the second floor space and therefore the leases c:" these properties have been terminated. The properties at 601, 603, and 605 East Green Street are being restored ami the owners are willing again to lease the second floor to the University. Restoration of this space without that formerly leased at 607 and 609 East Green Street will not be adequate for the Audio-Visual Aids Service and other provisions are being made to relocate its operations contiguous to 611 and 613 East Green Street. Rental of the second floor at 601, 603, and 605 East Green Street will pr^ vide space for the relocation of those operations of the Architectural Division °t the Physical Plant Department now housed on the second floor of the Administration Building (West) which in turn will release space needed in that building for offices. This move will also ultimately provide for consolidation of tli* Architectural Division's operations when the second floor at 704 South Six* Street is vacated by the Institute of Labor and Industrial Relations and is nade available to the Physical Plant Department. The Director of the Physical Plant and the Vice-President and Comptroller recommend authorization of the lease of the property at 601, 603, and 605 East Green Street at a rental of $600 per month, or $1.70 per square foot per vear,' for approximately 4,200 square feet, for a ten-year period. The cost of heating will be paid by the owners. A nonrecurring appropriation of $6,100 is al» requested to provide for construction of a bridge connection at the second no*1

1 In comparing the rate of $1.70 per square foot per year with rentals paid by the VPL'J! sity on other properties leased in the Urbana-Champaign area these factors should he caVi!lnj< An expenditure of $31,000 for remodeling the quarters to meet the University's reauirHnt"amortization of which over a ten.year period is equivalent to 73 cents per square toot; ^ owners will pay for heating which is equivalent to an annual cost of approximately is *™j per square foot. Deducting these factors the net rent to the owner is approximately '^ ^ per square foot per year. The remodeling wit! be in addition to the repairs and ttsm" necessary as a result of the Are damage.