Repository: UIHistories Project: Board of Trustees Minutes - 1956 [PAGE 1087]

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1084

BOARD OF TRUSTEES

[June 27

On motion of Mr. Johnston, this recommendation was approved and authority was given as requested. This action was taken by the following vote: Aye, Mr. Bissell, Mr. Herrick, Mrs. Holt, Mr. Johnston, Mr. Livingston, Mr. Megran, Mr. Williamson; no, none; absent, Mr. Nickell, Mr. Stratton, Mr. Swain, Mrs. Watkins.

LEASE OF REAL ESTATE FOR RESEARCH PROJECT BEING SPONSORED BY THE U. S. NAVY (17) On June 16, 1955, the Board of Trustees authorized a contract with the Bureau of Ships, Department of the Navy, providing for classified research in electrical engineering. T h e leasing of a suitable site on which to construct a small laboratory and other equipment is specified in the contract, now in force, and a site meeting the technical requirements has been located that is available under a lease purchase arrangement worked out by the parties involved. T h e site to be leased is described as follows: The Northeast quarter ( N E J 4 ) of the Southwest quarter ( S W J 4 ) of Section seventeen (17) and the North one-half ( N j 4 ) acre of the Northwest quarter ( N W ^ i ) of the Southwest quarter ( S W J 4 ) of said Section seventeen (17), all in Township eighteen (18) North, Range eight (8) East of the Third Principal Meridian in Champaign County, Illinois, consisting of 40^2 acres more or less. T h e land is owned by Elizabeth T. Dunckel. Since she does not wish to enter into a lease arrangement, a third party, the Twin City Development Company of Champaign, Illinois, has agreed to purchase the land and lease it to the University, with an option to purchase. All costs of the lease to the University will be reimbursed under the Navy contract now in effect. T h e pertinent terms of this lease are: 1. T e r m — fifteen years from July I, 1956; rental payments of $2,025 a year in advance. 2. Privilege of cancellation by the lessee on any July 1, upon ninety days'_ notice. 3. Payment to the lessor of liquidated damages of $14,400; $7,200 to be paid upon the signing of the lease, $7,200 on July 1, 1957. T h e liquidated damages paid shall be applied to the purchase price, if the University or the Navy elects to purchase at any time during the period of the lease. 4. Right to purchase the land by lessee for $34,4^5 until July 1, 1961, and at a negotiated price after that date, but not to exceed $32400. 5. T h e lease shall be assignable to the U. S. Government at any time, upon the request of the Department of the Navy. These lease arrangements have been cleared with the Legal Counsel of the University, subject to acceptable title in the lessor, and with the understanding that no state funds will be advanced for lease payments. T h e Dean of the College of Engineering and the Comptroller recommend approval of these arrangements. I concur and recommend that the Comptroller and the Secretary of the Board be authorized to execute the necessary documents. T h e Building P r o g r a m Committee of the Board has reviewed this proposal and joins in the recommendation.

On motion of Mr. Williamson, this recommendation was approved and authority was given as requested. This action was taken by the following vote: Aye, Mr. Bissell, Mr. Herrick, Mrs. Holt, Mr. Johnston, Mr. Livingston, Mr. Megran, Mr. Williamson; no, none; absent, Mr. Nickell, Mr. Stratton, Mr. Swain, Mrs. Watkins.

POLICY GOVERNING WITHDRAWALS OF BIDS ON UNIVERSITY WORK Return of Bid D e p o s i t of Gallaher and Speck, Inc., o n Heating and Refrigeration Installations in H o m e E c o n o m i c s Building (18) The withdrawal by Gallaher and Speck, Inc., of their lowest bid on the heating and refrigeration installations in the construction of the Home Economics