Repository: UIHistories Project: Board of Trustees Minutes - 1974 Version B [PAGE 58]

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50

BOARD OF TRUSTEES

[September 20

the Corps will be modified to include both the building and the additional land. The rental will be the amount necessary to amortize the total cost of Phase I, the addition to Phase I, and the additional land over the remaining term of the modified lease until 1999. In connection with the above financing, it is requested that the attached resolution be adopted. Resolution of the Executive Committee of the Board of Trustees of the University of Illinois WHEREAS, in its meeting of January 17, 1968, the Board of Trustees approved the establishment of a Construction Engineering Research Laboratory (the "Laboratory") in the vicinity of the Urbana-Champaign campus and requested and directed the University of Illinois Foundation to provide the facilities in accordance with a Plan outlined to the Board, and WHEREAS, pursuant to that request and direction, the University of Illinois Foundation (the "Foundation"), on December 31, 1968, issued $3,500,000 aggregate principal amount of its General Obligation Bonds (the "1968 Bonds"), the proceeds of which were utilized to provide said Construction Engineering Research Laboratory, which such Laboratory was, and is now, occupied and leased to the United States Corps of Engineers for the period of the Foundation's financing obligation (thirty years), and WHEREAS, at the regular meetings of the Board of Trustees held on February 16, 1972, and July 19, 1972, the Trustees approved the recommendations of the President of the University that the Foundation be requested and directed (1) to construct an addition to said Laboratory, such an addition being a free-standing building for housing a shock-testing machine ("Shock Test Building") at a cost of approximately $425,000, on approximately 1.915 acres of land which the Trustees would convey to the Foundation; and (2) to acquire title to the North 15.175 acres contiguous to the present site of the Laboratory in anticipation of planned expansion of the Laboratory project, at a cost of approximately $105,000, and WHEREAS, the Executive Committee of the Board of Trustees has been informed that the Foundation proposes to issue up to $550,000 aggregate principal amount of its General Obligation Bonds (the "1972 Bonds") in accordance with and subject to the terms and conditions of a mortgage (the "Mortgage") substantially in the form approved by the Board of Trustees in its meeting of July 24, 1968, in connection with the 1968 Bonds, a copy of which, as altered to reflect, in draft form, the financing of the 1972 Bonds has been presented to the Executive Committee of the Board of Trustees for its inspection and review, and WHEREAS, the Comptroller of the Board and legal counsel to the University have approved the form of said obligation, and WHEREAS, it has been determined that, if the United States Corps of Engineers shall refuse to amend, or terminates, its lease with respect to the Shock Test Building, or shall not request the planned expansion of the Laboratory project, the Shock Test Building is adaptable for direct use by the Department of Civil Engineering and the North 15.175 acres would be readily available for use or sale by the University, and WHEREAS, the Executive Committee of the Board of Trustees has been informed that the Board of Directors of the Foundation shall, prior to the issuance of the 1972 Bonds, resolve to cause title to the approximately 1.915 acres of land upon which the Shock Test Building shall be constructed, to be reconveyed to the Board of Trustees, subject to the lien of the Mortgage and the amended lease between the Foundation and the United States Corps of Engineers, as soon as practicable subsequent to the execution of the Mortgage and the amendment of said lease, but in no event later than December 31, 1972, the right of the Board of Trustees to cause such land to be reconveyed to be evidenced and secured by the delivery to the Comptroller of the Board, or legal counsel to the University, in form acceptable to said legal counsel, of an option to acquire title to said 1.915 acres on or after December 31, 1972, if not conveyed prior thereto, in consideration of the payment of $1, and WHEREAS, the Executive Committee of the Board of Trustees has been informed that the Board of Directors of the Foundation shall, prior to the issuance