Repository: UIHistories Project: Board of Trustees Minutes - 1946 [PAGE 1121]

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IH4

BOARD OF TRUSTEES

[May 29

ness to cooperate in the project. T h e program as developed in detail by the Director of the Physical Plant and the Comptroller is as follows: Scope 50 units, including 30 National Homes three-bedroom and basement houses, and 20 Willisway two-bedroom houses, which have been tentatively reserved for the University. Sites In various residential areas in Urbana and Champaign, on lots on which options have been secured. Cost Estimated $351,750 ($6,800 each for National houses and $4,500 each for Willisway estimated) including houses, utility connections, walks and grading, $204,000; land, $57,750. Estimated Annual Income At rentals of $60 and $50 monthly, allowing for 5 % vacancy, $31,920. Estimated Annual Net Income Available for debt service, after maintenance, insurance, and t a x e s : $17,874, sufficient to amortize half the cost in 12 years. Plan of Financing: ( a ) Appropriation from General Reserve Fund, $176,000. ( b ) Mortgage loan to be secured by University of Illinois Foundation from First National Bank of Chicago, at 3 % interest for 10 years, no financing charge, quarterly payments, and full prepayment privilege, $176,000. Plan of Procedure: ( a ) University to purchase lots, contract for houses, and complete same to extent of its appropriation. (b) University to convey all properties to Foundation with provision that, when all indebtedness and expenses incurred by Foundation are paid, they shall be reconveyed to the University. (c) Foundation to complete loan above-described and apply proceeds thereof to the completion of the project. ( d ) Foundation to lease properties back to University at an annual rental sufficient to cover debt service. (e) University to control rent and supervise properties; whenever sales can be made, proceeds are to be divided between loan and University. I recommend approval of this program, an appropriation of $176,000 from the General Reserve Fund and the adoption of the following resolution to authorize the Comptroller and Secretary of the Board to execute all necessary contracts. Whereas, at a meeting on April 18th, 1046, the Board of Trustees of the University of Illinois approved in principle the proposed program that the University undertake a Staff Housing P r o g r a m by constructing fifty (50) residence units, borrowing one-half of the required amount and liquidating the loan from income over a ten-year period, and Whereas, information since received indicates that a total expenditure of $352,000 will be involved in constructing such units, one-half of which may be borrowed from T h e First National Bank of Chicago, payable over a period of ten (10) years and bearing an interest rate of three per cent ( 3 % ) , and Whereas, T h e First National Bank of Chicago prefers that the Board of Trustees of the University of Illinois convey the sites for such units with as many units located thereon as may be constructed at a total cost of $176,000, including the purchase price of the sites, to the University of Illinois Foundation, and that the loan be made by T h e First National Bank of Chicago to the University of Illinois Foundation, and not directly to the Board of Trustees of the University of Illinois, such loan to be secured by a mortgage, and Whereas, the University of Illinois has obtained options o r reached oral understandings whereby fifty (50) sites for such units are available at a total cost of $57,750, and Whereas, the application by the University for a priority rating which will permit immediate construction of the units has been given approval on the conditions that the units be occupied only by veterans and their families and that control be retained by the University, and