Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 256]

EXTRACTED TEXT FROM PAGE:

1975]

UNIVERSITY OF ILLINOIS

245

Whereas, the replacement Hospital has been approved by the West Side Planning Agency, the Comprehensive Health Planning Agency, the Health Education Commission, the Board of Higher Education, the Bureau of the Budget, the Governor; and Whereas, the Board of Trustees has authorized a joint financing for the replacement Hospital with the State of Illinois; and Whereas, the planning funds in the amount of $1,750,000 have been appropriated by the General Assembly and Phase I has been released by the Governor and additional appropriations of $57,250,000 are required to provide the replacement Hospital; and Whereas, the ability of the University of Illinois to repay the interest and at least one-half the capital costs of the project has been certified by the firm of Herman Smith & Associates (Hospital Consultants), and the calculations have been accepted by the Board of Higher Education and the Bureau of the Budget; and Whereas, the accelerated capital program of the Governor now contemplates the entire $57,250,000 of CDB bonds to be authorized and appropriated for the replacement Hospital in FY 1976, subject to the willingness of the University to express the undertakings contained in this Resolution; and Whereas, Section 6d of "AN A C T in relation to State finance," approved June 10, 1919, as amended (111. Rev. Stat., Ch. 127, Sec. 142d), provides that the University shall retain in its own treasury funds received from service activities and other auxiliary enterprises which are self-supporting in whole or in part, provided that any income derived from such auxiliary enterprises or activities which is not necessary to their support, maintenance, or development shall not be applied to any general operational or educational purpose of the University but shall be paid into the University Income Fund in the State Treasury; and Whereas, the University of Illinois Hospital, including the proposed 500-bed replacement Hospital facility, is and will continue to be operated as a service activity or auxiliary enterprise of the University of Illinois, as contemplated by the aforesaid Section 6d, and the application of revenues therefrom to discharge a portion of the costs of providing the replacement Hospital is deemed to be necessary and appropriate for the support, maintenance, and development of said University of Illinois Hospital's service activity and auxiliary enterprise by increasing the quantum of services and income therefrom; Now, Therefore, Be It Resolved by The Board of Trustees of the University of Illinois, as follows: 1. In the event that the State of Illinois provides the University of Illinois, through direct appropriations therefore or otherwise, a new 500-bed replacement Hospital at the University's Medical Center campus in Chicago, Illinois; and, in the further event that said replacement Hospital may continue to be operated by the University of Illinois as a service activity or auxiliary enterprise, as a part of the University of Illinois Hospital, under substantially the same authorizations and provisions as are now contained in Section 6d of "AN A C T in relation to State finance," approved June 10, 1919, as amended; then, in such events the University of Illinois undertakes to pay into the general revenue fund of the State of Illinois, from funds generated by the operation of said University of Illinois Hospital, each year for a period of twenty-five years the amounts hereinafter stated, on the terms hereinafter set forth. 2. (a) Each of said twenty-five annual payments by the University of Illinois shall be in the amount of $3,306,898.00, subject to reduction as hereinafter provided. (b) Each of said annual payments shall be reduced if the effective interest rate on the next public sale of bonds by the State of Illinois after the date of adoption of this Resolution pursuant to the "Capita] Development Bond