Repository: UIHistories Project: Board of Trustees Minutes - 1956 [PAGE 931]

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928

BOARD OF TRUSTEES

[January 28

pancy in September, 1956. Northwood, Inc., Champaign, submitted (along with the bid of the Dean Evans Company on the student-staff residences project) the following offer under a lease arrangement: 1. Northwood, Inc., proposes to construct, and t o finance this construction, seven apartment buildings on the north side of Gregory Drive in Champaign (across the street from the Parade Ground U n i t s ) , five buildings to be located between Third and Arbor Streets and two buildings between First and Second Streets. T h e buildings will be three stories high, of brick and frame construction with four apartments on each floor, twelve apartments in each building. Each apartment will consist of a living room, bedroom, bathroom, and kitchenette. 2. The apartments will be adaptable for use as residences for unmarried women students by conversion of the kitchen unit into a closet and each apartment will accommodate six students. One apartment in each building will be used for lounge, recreation, and laundry facilities and one apartment will be occupied by the house mother. Thus ten apartments in each building will be available for student occupancy, providing housing for sixty students or a total of 420 in the seven buildings. 3. T h e proposal does not include furnishings which would be purchased by and remain the property of the University. 4. It is proposed that these buildings be constructed on land covering which Northwood, Inc., has arranged to obtain a sixty-nine year lease from the owner. T h e proposal contemplates the leasing of the buildings, when completed in accordance with certain specifications approved by the University, by the then lessee under the sixty-nine year lease, as lessor, to the University of Illinois Foundation, as lessee, for a period of ten years at an annual rental of $8,400.34 per building of which $7,528.92 is for rental of the building and $871.42 for the rental of the ground upon which it is located; and it is contemplated that the Foundation will then sublet the buildings to the University for the remainder of the current biennium with the right to renew the sublease for successive periods of not more than two years each, but not exceeding a total of ten years. In addition to said rentals, the University, while holding a sublease to the properties, will pay, through the Foundation, an amount equal to the taxes thereon and will also pay all operating and maintenance expenses, including the cost of utilities, maintenance, and repairs. The sixty-nine year lease Northwood, Inc., has arranged to secure from the owner will contain provisions rendering the rental payable to the owner thereunder subject to being increased or decreased in accordance with a national index. The rental to be paid by the Foundation under the ten-year lease, and that to be paid by the University under the sublease, will also be subject to corresponding increases or decreases. As a result of the location of Gregory Drive the University has title to a small strip of land between the lots on which the buildings are to be erected and the street. T h e proposal contemplates that the University lease this strip to the builder or its assignee at an annual rental of $1.00 during the period during which the lease between the builder or its assignee and the Foundation will be in effect, and at the same rental per square foot as is paid by the builder or its assignee to the owner under the lease between them for the land covered by that lease during the remainder of the sixty nine-year period covered by the latter unless that lease is sooner terminated. This proposal has been carefully considered by the Housing Division, the Dean of Students' Office, and the Business Office. The proposal is advantageous because of its location near existing University food service facilities (in the Men's Residence H a l l s ) . It will eliminate the necessity of converting temporary buildings in Illini Village into dormitories for single undergraduate women, and the project will require no investment of University funds other than the initial expenditure for furnishings which can be recovered from rental income. The rental would be sufficient to meet also the obligations under the lease. The housing to be thus leased will offer considerable flexibility in the University's housing program during the period of construction of permanent housing. These buildings can be used for housing unmarried undergraduate men or unmarried graduate students, and can be converted at any time into apartments for