Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 1265]

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1362

BOARD OF TRUSTEES

[February 22

and the law firm of Milliken, Vollers, and Parsons, Chicago, were employed. It was estimated that the total accounting and legal fees would be approximately $S,ooo. The University agreed to pay 30 per cent; the city of Champaign, 40 per cent; and the city of Urbana, 30 per cent of the total cost. The amount of work required in these hearings has exceeded expectations and the revised estimate of cost is $10,000. The cities of Champaign and Urbana will pay their proportionate shares of additional cost. The University's share is now estimated at $3,000. I recommend authorization of payment of the additional costs incurred. Funds are available in the Physical Plant operating budget. On motion of Mrs. Watkins, this payment was authorized.

PAYMENTS TO MEDICAL CENTER STEAM COMPANY

(13) In the organization of the Medical Center Steam Company, expenses of $21,742.53 were incurred in the issuance and delivery of the bonds to finance construction of the plant, $6,850 for legal services (financing, group organization matters, and land acquisition), and $519.40 in the issuance of class A stock. These costs, totaling $29,111.93, have been checked by the Business Office and found reasonable. They can be capitalized and amortized through annual charges to the University. This would require additional record keeping and approval by the Illinois Commerce Commission. Funds totaling $69,72448 have accumulated from the sale of land by the University to the Medical Center Steam Company, and may be applied to pay directly the charges described above. The balance may be paid as an "aid to construction," thus reducing the amount the Medical Center Steam Company must borrow for the construction of the steam plant and hence reducing the interest cost to the University. The Comptroller recommends the latter procedure and the appropriation of $69,724.48 from the proceeds of the sale of land to the Medical Center Steam Company to be applied: (a) for costs of organizing the Medical Center Steam Company, issuance of bonds and legal services, $29,111.93; (b) as an aid to construction to reduce the amount the Company must borrow to pay for the steam plant, $40,612.55. I concur. On motion of Mr. Herrick, this recommendation was approved and the appropriation was made by the following vote: Aye, Mr. Fornof, Mr. Herrick, Mr. Hickman, Mr. Johnston, Mr. Livingston, Mr. Nickell, Mrs. Watkins; no, none; absent, Mr. Grange, Mrs. Holt, Mr. Megran, Mr. Stevenson.

BUSINESS RELATING TO RESIDENCE HALLS BOND ISSUE

The Board considered the following matters of business presented by the Executive Committee and by the Chairman of the Finance Committee relating to the new issue of Urbana-Champaign Residence Halls Bonds.

SALE OF RESIDENCE HALLS BOND ISSUE

Bids were received, pursuant to public notice, for the issue of $1,750,000 University of Illinois Urbana-Champaign Residence Halls Revenue Bonds, Series of 1952, and were opened at a meeting of the Executive Committee of the Board of Trustees held in the Mini Center of the LaSalle Hotel, Chicago, Illinois, on February 14, 1952. The Executive Committee awarded the bond issue to John Nuveen and Company and Associates, including also: Stranahan, Harris, and Co.; Dempsey and Company; Merrill, Lynch, Pierce, Fennef, and Beane; A. C. Allyn and Company, Inc.; Hornblower and Weeks; Stifel, Nicolaus, and Co., Inc.; and R. J. Edwards, Inc., whose bid meets all conditions of the bidding and represents the lowest interest cost to the University.