Repository: UIHistories Project: Board of Trustees Minutes - 1948 [PAGE 833]

EXTRACTED TEXT FROM PAGE:

832

BOARD OF TRUSTEES

[September 26

Illinois or to its nominee when all indebtedness against the respective sites and units has been paid.

On motion of Mr. Williamson, the resolution was adopted and the sale of the property and reinvestment of funds realized was authorized as recommended, by the following vote: Aye, Mr. Fornof, Mrs. Holt, Mr. Livingston, Mr. McKelvey, Mr. McLaughlin, Mr. Williamson; no, none; absent, Mr. Davis, Mr. Green, Dr. Luken, Dr. Meyer, Mr. Nickell.

FINANCING SUPPLEMENTARY STAFF HOUSING (6) On April 24, 1947 (Minutes, page 341), the Board of Trustees approved a supplementary staff housing program which provided for the construction of 25 prefabricated houses and six conventional type houses. Funds for this project were to be provided in part by borrowing. As in the original staff housing project, the best medium for borrowing the necessary funds is through the University of Illinois Foundation. The Board of Directors of the Foundation has indicated its willingness to cooperate in this project, and the adoption of the attached resolution is necessary to complete the transfer to the Foundation. I recommend adoption of the following resolution. Whereas, at a meeting on April 24, 1947, the Board of Trustees of the University of Illinois approved in principle the proposed program that the University of Illinois undertake a Staff Housing Program by constructing thirty-one (31) residence units, borrowing $83,700.00 of the required amount and liquidating the loan from income over a ten (10) year period, and Whereas, information since received indicates that a total expenditure of $285,150.00 will be involved in constructing such units, $83,700.00 of which may be borrowed from The 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, The First National Bank of Chicago prefers that the Board of Trustees of the University of Illinois convey the sites for such units to the University of Illinois Foundation and that the loan be made by The 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 thirty-one (31) sites for such units, and Whereas, The Board of Directors of the University of Illinois Foundation has expressed a willingness to cooperate with the Board of Trustees of the University of Illinois by accepting title to the sites and the units to be constructed thereon at the expense of the University of Illinois, and to borrow the necessary funds to complete the proposed project from The First National Bank of Chicago by mortgaging the units and to lease the units to the Board of Trustees of the University of Illinois in order that they may be made available for members of the staff of the University of Illinois; Therefore, be it resolved, that the Comptroller of the University of Illinois and the Secretary of the Board of Trustees of the University of Illinois be and the same are hereby authorized to execute all agreements and documents necessary to construct upon the sites already acquired within the limitation of $201,450 expenditure, including the cost of such sites, to convey such sites and units to the University of Illinois Foundation under an agreement whereby the University of Illinois Foundation will lease all of said properties to the Board of Trustees of the University of Illinois with full right to operate and manage such sites and units; that the University of Illinois Foundation may sell and convey in fee simple, free and clear of encumberance and lease, by appropriate instruments of conveyance any or all of said sites and units to purchasers at reasonable prices per site or unit, but not less, in any event, than the amount required to liquidate a pro rata share of the total indebtedness outstanding at the date of the sale of said sites and units, the proceeds of such sale to be held or disposed of as the Board of Trustees of the University of Illinois shall direct; the purchasers of said sites or units shall