Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 325]

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314

BOARD OF TRUSTEES

[June 18

ston, Mr. Neal, Mrs. Rader, Mrs. Shepherd; no, Mr. Forsyth; absent, Governor Walker. Mr. Velasquez asked to be recorded as not voting.

Agreement among the University, the University Club, and the University of Illinois Foundation, Urbana

(17) In 1943, 1960, and in 1965, the Board of Trustees took actions relating to the University Club at Urbana. A review of those actions and subsequent events follows: In 1943, the Board provided for the initiation of a trust fund to be devoted to the financing of a future building project a n d / o r furnishing and equipping space to be occupied by the Club, the University agreeing to match the Club's contribution. Contributions from Club members amounted to $7,101.92, a sum the University matched, to provide a total of $14,203.84. No expenditures have been made from this fund, but income from its investment has since raised the total to $32,221.23 as of April 30, 1975. T h e trust fund is held by the University of Illinois Foundation. In 1960, the Board provided for (1) the purchase of the Club property at 1201 West Oregon Street, Urbana, at a price of $90,000, subject to availability of funds, and (2) conveyance of the property at 1108 and 1110 West Illinois Street, Urbana, to the Club as a site for a new Club House, which conveyance would require adoption by the Board of Trustees of a formal resolution which was to be submitted for consideration later. In 1965, the Board authorized the University to enter into an option agreement with the Club whereby, for a consideration of $10,000, the University received an option to purchase the Oregon Street property for $90,000, with the $10,000 as a credit on the purchase price. The option expires on September 1, 1975. In 1961 and 1969 fund drives were undertaken by the Foundation to build a University faculty club center to serve the needs of all faculty and staff. These drives raised a portion of the funds used in the construction of the Levis Faculty Center. Disputes have arisen among the Club, the University, and the Foundation with regard to the funds received by the Foundation, the use of facilities within the Levis Faculty Center, and the rights of the parties in the real property. To resolve these disputes and claims, the Chancellor at Urbana-Champaign has recommended an agreement among the Board of Trustees, the University Club, and the University of Illinois Foundation, an agreement which has received the concurrence of the Foundation and the Club. T h e agreement provides that: The University would: 1. Grant to the University Club certain rights and privileges regarding the use of facilities within the Levis Faculty Center. 2. Exercise its option to purchase the University Club's property at 1201 West Oregon Street, at the price of $90,000, receiving credit for the $10,000 previously paid for the option. 3. Continue until September 1, 1976, the existence of the Trust Fund created in December 1943 (the sum in the Fund now totalling in excess of $32,000), and allow the use of the entire Fund by the Club for refurbishing and remodeling the Faculty Center, as approved by the University. Funds not so used by September 1, 1976, would be divided equally between the Club and the University. The University Club would: 1. Transfer title to the property at 1201 West Oregon to the University or its assignee. 2. Pay balances currently due the University on open account of approximately $23,000, less a credit of $821.34.