Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 314]

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1949]

UNIVERSITY OF ILLINOIS

3"

MATTERS PRESENTED BY PRESIDENT STODDARD The Executive Committee considered the following matters presented by the President of the University. CHICAGO HOUSING PROJECTS ( i ) As a result of conferences between representatives of the University, the Medical Center Commission, and the Equitable Life Assurance Society of the United States, concerning the financing of housing projects for the Chicago P r o fessional Colleges, the following procedures are proposed: 1. The Medical Center Commission will request a loan from the Equitable Life Assurance Society of the United States for funds with which to construct a staff apartment building and a student residence hall in Chicago as well as some equipment for the buildings constructed and the remodeling of properties now existing on the site adjacent to the staff apartment building. 2. The Medical Center Commission on the basis of a commitment from the Assurance Society to make such a loan will endeavor, with the cooperation of the University, to secure temporary financing for the purpose of constructing and partially equipping the buildings as well as the remodeling of existing properties. 3. The buildings will be built from plans prepared by the University architects and the construction will be supervised by University architects. 4. The contracts for the construction of the buildings will be let by the Medical Center Commission with the approval of the Board of Trustees of the University. 5. Upon completion of the buildings, the Medical Center Commission will issue its revenue bonds as the basis of the loan from the Assurance Society. 6. The Medical Center Commission will lease the properties so constructed, as well as existing properties, to the University of Illinois at a rental and for a period of time necessary to amortize the loan. This lease will be assigned by the Medical Center Commission to the Assurance Society as Security for the loan. 7. The Medical Center Commission will agree to convey the properties to the University at any time the University is willing to pay the outstanding principal of the loan with any interest due, thus discharging the Medical Center Commission from any liability to the Assurance Society. 8. The Medical Center Commission also agrees that if the University carries the lease until the entire bond issue is paid the Medical Center Commission will convey the property to the University of Illinois at that time. 9. The University agrees to convey the site for the residence hall to the Medical Center Commission, if this is necessary. 10. The loan requested is to be at 4 per cent with level semi-annual payments of principal and interest based on a twenty-five-year amortization schedule, the outstanding balance at the end of twenty years to be due and payable at that time. On motion of Mr. Fornof, the Executive Committee recommended approval of this plan. This will require rescinding a resolution adopted by the Board of Trustees on October 21, 1048 (Minutes, page 136), declared as a matter of general policy that the land for these housing projects be acquired by the University in fee simple and not be leased. CONTRACTS FOR SMALL HOMES COUNCIL HOUSING RESEARCH PROJECT (2) T h e Board of Trustees, through its Committee on Buildings and Grounds and Executive Committee (Minutes, January 13, 1949, pages 196 and 226-227) has authorized the construction under the supervision of the Small Homes Council of approximately thirty houses as a research and demonstration project and for rental to members of the faculty. An appropriation of not to exceed $325,000, to be supplemented by a loan, was made for this project. The total cost was estimated at $412,000. Bids have been received on the general work (complete construction of the houses), site improvements, and landscaping. The lowest bid on house construction