Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 472]

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UNIVERSITY OF ILLINOIS

569

stock and reinvesting the proceeds in some other securities. This suggestion was referred by the President of the Board to the Finance Committee.

R E P O R T O F C H I C A G O D E P A R T M E N T S COMMITTEE

Mr. Livingston presented the following report:

This report of the Chicago Committee of the Board is made for the purpose of bringing up to date developments in the matter of the Chicago Housing projects since February 12, 1951, at which time the Chicago Committee held a meeting; a report of that meeting is hereby filed with the Secretary of the Board for record. As a result of this meeting, an offer was received from White Weld and Company representing a group of security dealers which offered financing either through the Medical Center Commission or the University. A joint offer was also received from F . S. Yantis and Company and the Milwaukee Company proposing a method of financing the project directly by the University. The Legal Committee of the Medical Center Commission met at noon on Wednesday, February 14, 1051, and took action on the request transmitted to them by the Chicago Departments Committee of the Board of Trustees of the University. The Physical Plant Department has consulted with the contractors who were originally the lowest bidders on the projects as well as with the architects. All proposals received offering to finance through the Medical Center Commission which were in the hands of the University at the time of the February 12 meeting of the Committee as well as the offers from White Weld and Company and the F . S. Yantis and Milwaukee Companies offering financing directly by the University and which were received prior to 12:00 noon Wednesday, February 14, have been examined and analyzed. The F . S. Yantis and Milwaukee Companies offer a method of financing directly by the University, the legality of which has been approved by Chapman and Cutler. This offer represents the lowest net interest cost for the financing at an effective interest rate of 2,703. The offer is an offer to furnish minimum funds of $4,500,000 which can be extended to $4,700,000, the additional funds to be furnished in a manner that will not materially affect the effective interest rate. A formal report of the Medical Center Commission's actions has not been received, but informally the University has been notified by the President of the Commission that the Medical Center Commission stands ready to take the actions which the Chicago Departments Committee requested in its letter to the Medical Center Commission under date of February 13, 1951, a copy of which is hereby given to the Secretary of the Board for record. Consultation between the Physical Plant Department and the contractors and architects indicates that it will be necessary for the University to take new bids for the construction of the buildings, and the Physical Plant Department has indicated that it believes this can be done by March 6. Accordingly, the Chicago Departments Committee of the Board of Trustees recommends that the Board of Trustees: (1) Approve the sale of University of Illinois revenue bonds to the F . S. Yantis and Milwaukee Companies in accordance with their offer of February 12, 1951, contingent upon the receipt of bids indicating that the project can be completed within the funds offered or to be made available under the same conditions. (2) Instruct the Physical Plant Department to ask for new bids on the Housing Projects so as to determine the funds needed for the financing. ( 3 ) Authorize the Executive Committee of the Board of Trustees to award contracts for the construction of the buildings upon recommendation of the President of the University and the Chicago Departments Committee.

On motion of Mr. Livingston, this report was adopted and the Committee's recommendations were approved by the following vote: Aye, Mr. Herrick, Mr. Hickman, Mr. Livingston, Mr. McLaughlin, Mrs. Watkins, Mr. Williamson; no, none; absent, Mr. Fornof, Mrs. Holt, Doctor Meyer, Mr. Nickell, Mr. Stevenson.