Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 459]

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446

BOARD OF TRUSTEES

[October 19

Chicago Circle Union Revenue Bonds, Series 19771

(16) On March 23, 1977, the Board of Trustees approved the construction of Parking Structure Number Two at the Chicago Circle campus to be financed by the sale of revenue bonds. The University has received a purchase offer for the bonds from John Nuveen and Co., Inc. (a copy of which is filed with die secretary of the board), for $5,000,000 of the Board of Trustees of the University of Illinois, Chicago Circle Union Revenue Bonds, Series 1977, at a price of $4,830,000, plus accrued interest to the date of delivery. The offer is considered economically acceptable in current market conditions, and the amount offered is sufficient to finance the project. Under die proposed arrangement the effective rate of interest on the bonds would be 5.746 percent. The vice president for administration and comptroller has recommended the adoption of "A Resolution Creating and Authorizing the Issue, Authentication, and Delivery of $5,000,000 Chicago Circle Union Revenue Bonds, Series 1977, and Supplementing a Resolution Duly Adopted by die Board of Trustees of the University of Illinois on June 19, 1963," authorizing and providing for the issuance of $5,000,000 of Chicago Circle Union Revenue Bonds, Series 1977, for the financing of this project and also has recommended acceptance of die above offer of John Nuveen and Co., Inc., to purchase the same. (A copy of the resolution has been filed with die secretary of the board for record.) He has further recommended that the board (1) authorize the execution of die bonds by Earl W. Porter, secretary of the board, by facsimile signature of the president of die board and by facsimile signatures of Park Livingston and Earl L. Neal, members of die board; and (2) authorize, ratify, and confirm all actions taken or to be taken by die officers and members of the board in connection with die sale and delivery of the bonds to the purchaser indicated above. I concur. T h e student advisory v o t e w a s : Aye, M i s s C o n l o n , M r . Overstreet, M i s s W i n t e r ; n o , none. O n m o t i o n of M r . Livingston, the resolution w a s adopted, and a u thority w a s g i v e n as r e c o m m e n d e d by the f o l l o w i n g v o t e : Aye, M r . F o r syth, M r . H a h n , M r . H o w a r d , M r . Livingston, M r . N e a l , M r s . R a d e r , Mrs. S h e p h e r d ; no, n o n e ; absent, G o v e r n o r T h o m p s o n , M r . Velasquez. M r . L e n z asked t o be recorded as n o t voting.

"Award of Contracts for Parking Structure Number Two, Chicago Circle

( 1 7 ) T h e president of the University, with die concurrence of appropriate administrative officers, r e c o m m e n d s award of the following contracts for the c o n struction of Parking Structure N u m b e r T w o at d i e C h i c a g o Circle c a m p u s , the award in each case being to die lowest base b i d d e r : General Work Walsh Bros., I n c . , C h i c a g o Additive Alternate # 1 Base Bid $3 598 000 23 5 0 0

1 Prior to action on this recommendation, there was general discussion concerning, the use of student fees as a "subsidy" — that is, a pledge to guarantee financing of the parking structure. A number of trustees expressed concern about this step. The president pointed out that it is not possible to guarantee absolutely that no use of the funds will be made, although the clear intention is to support the debt service and operations through the parking fees themselves. A new fast-food service is to be undertaken at the Chicago Circle Center. Should it be profitable, there would be funds available in the Union Reserve, and the questions would arise: What should be done with such funds? Could they be available to support the parking structure and, therefore, reduce ^parking fees? Alternatively, should these funds be available for student programs? In short, the point was made that, if one is to protect the student fees, the option could be to raise parking fees, which students will also pay. Nonetheless, President Corbally made clear that thereis a general administrative understanding of the trustees' concern over the possible use of student fees for this purpose.