Repository: UIHistories Project: Board of Trustees Minutes - 1974 Version B [PAGE 451]

EXTRACTED TEXT FROM PAGE:

1974]

UNIVERSITY OF ILLINOIS

443

University, on or before January 1, 1976; and (4) transfer of title to the entire tract to the University by the City at a total cost to the State of not more than $280,000. The resolution contemplated that the City and the University would enter into an agreement on or before January 1, 1974, for the acquisition of the urban renewal site. The Board of Trustees had previously, at its meeting on May 17, 1972, designated approximately 25.8 acres of land at the intersection of Route 74 and Gale Avenue in Peoria as the site for the Peoria School of Medicine (the Gale Avenue site). The Board also authorized a lease and option agreement for the Gale Avenue site under which the University leased the property for one year commencing September 28, 1972, at an annual rental of $10,000, with options exercisable at least 30 days prior to the commencement of an option year to continue the lease for two additional one-year periods at the same annual rental. The first lease option was exercised and the lease will expire September 27, 1974, unless the second lease option to extend is exercised at least 30 days prior to that date. The agreement further provides an option to purchase the Gale Avenue site while the lease is in effect at a price of $275,000 less $1,000 paid upon execution of the agreement, and less any sums previously paid as rental. The November 21, 1973, resolution of the Board with respect to the new urban renewal site states that it is the intent of the Board of Trustees that, should the time schedule for that site not be adhered to, the Board will consider again designating the Gale Avenue site for the Peoria School of Medicine. Since November 21, 1973, negotiations concerning the urban renewal site have proceeded between representatives of the U.S. Department of Housing and Urban Development, the Capital Development Board, the City of Peoria, and the University. As a result, certain modifications of the November 21, 1973, Board of Trustees resolution with respect to the urban renewal site acquisition contract are now recommended, as follows: A. Changes have been negotiated in the configuration of the proposed site, which would now consist of approximately 24.28 acres, being Tract I-A (outlined in or colored orange, red, and brown) and Tract I-B (colored blue) on the attached plat.1 B. Tract I-A on the attached plat would be the new construction site consisting of approximately 10.07 acres. Delivery of title and possession of the area colored brown in Tract I-A could be deferred by the City until January 1, 1975. Delivery of title and possession of the areas colored in red in Tract I-A could be deferred by the City until January 1, 1976. Acquisition by the City of Tract I-A and delivery of title to the balance of Tract I-A, colored orange, would be as specified in C, below. C. The City would be required to acquire title to Tract I-A on or before June 1, 1974. In the event it does not acquire Tract I-A by that date, the City will report acquisition status. If the City has not then acquired substantially all of Tract I-A, or if the report demonstrates that the City cannot reasonably be expected to complete acquisition in time to perform its other obligations under the agreement, the University and the Capital Development Board may jointly terminate the agreement if they determine that the actual or anticipated delays in the City's acquisition will unduly delay the University's medical education program by virtue of construction delays, or if they determine that the City's acquisition delays will jeopardize the availability of acquisition or construction funds. However, the City may at any time eliminate the University and the Capital Development Board termination rights with respect to the City's June 1, 1974, acquisition date by paying to the University $10,000 to be used by it to exercise its option to extend the lease on and option to purchase the Gale Avenue site for an additional year ending September 27, 1975. If the City ultimately conveys Tract I-A to the University, the City may require the University to assign the Gale Avenue site agreement to the City.

' The plat is filed with the Secretary of the Board.