Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 700]

EXTRACTED TEXT FROM PAGE:

1941]

UNIVERSITY OF ILLINOIS

697

GRANT FROM ROCKEFELLER FOUNDATION FOR DEVELOPMENT O F NEUROLOGY AND NEUROSURGERY (10) T h e Rockefeller Foundation has offered the University a grant of $15,000 for the development of the educational and research program in the Department of Neurology and Neurosurgery. This grant is to be available from October 1, 1941, to September 30, 1043, and may be expended for salaries, wages, equipment, and supplies. Any funds remaining unexpended at the end of the period will revert to the Foundation. Under the authority granted by the University of Illinois Statutes, I have accepted this grant and request confirmation of my action.

On motion of Mr. Davis, this action was confirmed.

AGREEMENT FOR COOPERATIVE INVESTIGATION (11) A report of the approval of the following agreement for a cooperative investigation: The E d w a r d Orton, Jr., Ceramic Foundation, Columbus, Ohio, extension of agreement for investigation of "Some Factors Controlling the Uses of Clays," for one year from September I, 1941, under the same terms as the original contract ($750 a y e a r ) . O n m o t i o n of M r s . G r i g s b y , t h i s a c t i o n w a s c o n f i r m e d . TRANSFER OF ILLINOIS U N I O N PROPERTIES TO THE UNIVERSITY OF ILLINOIS FOUNDATION (12) A report from the Secretary of the University of Illinois Foundation is presented covering the transfer of the Student Center and Arcade Buildings now owned by the University of Illinois Union, subject to a lease and purchase agreement with the University of Illinois, to the University of Illinois Foundation subject to existing indebtedness; also the transfer of current assets of the Union to the University for use of improvements to the new Mini Union Building. The Foundation requests advice as to additional funds for remodeling and improvements on the properties over and above those necessary for refinancing the indebtedness. With respect to this point, the Director of the Physical Plant Department and the Comptroller now recommend, and I concur: 1. That any remodeling or improvements required on these properties be taken care of from operating funds of the properties, from the special State appropriation for remodeling, or from the general reserve, as may be approved from time to time by the Board of Trustees. 2. That the amount of the new loan on the properties be limited to $130,000, which is the approximate amount needed to pay off existing indebtedness and other expenses connected with the refinancing. The Foundation further requests approval of a new loan to be placed with Farwell, Chapman & Co. of Chicago at 354% interest with a premium of $27, legal expenses (estimated not to exceed $1,000), and a premium of $1,000 on the present first mortgage loan to be paid by the Foundation out of the proceeds of the new loan. Interest on present loans also must be paid to the earliest dates at which present creditors will accept payment and terminate interest. I recommend approval of this proposal. The new loan is to be amortized from present rentals paid by the University under its contract for these buildings and is to be amortized fully in not more than 12 years. In connection with the transfer of the properties from the Union to the Foundation it may be desirable to execute a new agreement with the Foundation to replace the present agreement with the Union. T h e rental paid under the present agreement is $17,500 a year, but the new loan will require a smaller sum for debt service than present loans and it may be possible to reduce the amount of required rental. I recommend that the President and Secretary of the Board be authorized,