Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 787]

EXTRACTED TEXT FROM PAGE:

742

BOARD OF TRUSTEES

[August 1

has been agreed upon for the purchase of this property, which is within the limit authorized by the Committee on Buildings and Grounds. It also appears to be the lowest price for which the property can be acquired without condemnation proceedings and incurring the resulting costs. Funds are available in the state capital appropriations to the University from the Universities Building Fund. I recommend authorization of this purchase, and further recommend that the Board rescind its action of June 19 with respect to condemnation proceedings. On motion of Mr. Pogue, the purchase of this property at the price recommended was authorized, and the resolution adopted by the Board on June 19, 1963, was rescinded; these actions were taken by the following vote: Aye, Mr. Clement, Mr. Dilliard, Mr. Hughes, Mr. Johnston, M r . Pogue, Mr. Swain, M r s . Watkins, Mr. Williamson; no, none; absent, M r . Kerner, Mr. Page. FUNDS FOR THE PURCHASE OF MOVABLE EQUIPMENT (2) As reported previously to the Board of Trustees, the Universities Building Fund (proceeds from funds secured from the sale of the State Bond Issue) may not be used to purchase movable equipment. The Board authorized a request to the Seventy-third General Assembly in the amount of $4,779,500 for movable equipment for buildings financed by the State Bond Issue. The buildings include the following: Urbana-Champaign Addition to the Physics Building Addition to the Library Physical Plant Service Building Addition to the Electrical Engineering Building Turner Hall (Plant Sciences Building) Addition to the Armory Chicago Medical Center Addition to the Medical Sciences Building The General Assembly did not appropriate such funds to the University from the General Revenue of the state, but rather declared the movable equipment "to be in the public interest," which authorizes the Illinois State Building Authority to borrow funds to purchase the equipment and to lease it to the University. Some of the above listed buildings can be occupied in the fall of 1963 if movable equipment is available but purchase orders must be placed promptly to insure such availability. The Illinois Building Authority has not yet developed its procedures to a point which will enable it to borrow funds in time to permit the fall occupancy of these buildings. In consultation with the Illinois Building Authority, a procedure has been developed wherein the University of Illinois Foundation can secure short-term financing from the First National Bank of Chicago to buy approximately $900,000 of the equipment needed for the buildings that will be ready for use this year. The Foundation would buy the equipment, lease it to the University of Illinois for a rental adequate to pay the Foundation's fiscal expenses, and, when the Building Authority is in a position to borrow money for movable equipment, it could then purchase the equipment from the Foundation and lease it to the University. The First National Bank of Chicago has agreed to loan the Foundation up to $900,000, the estimated cost of the equipment required, at an interest rate of 2Vi per cent per annum. The Vice-President and Comptroller recommends approval of this arrangement and requests authorization to execute a lease with the University of Illinois Foundation for movable equipment, the annual rental to be an amount equal to 2v£ per cent per annum of the cost of the equipment and the term of which lease