Board of Visitors minutes :: April 11, 1997 :: University of Virginia Library

WHEREAS, the University of Virginia plans to be the major tenant in a new medical office building to be constructed at the Fontaine Research Park; and
WHEREAS, the University of Virginia intends to use its best effort to seek purchase of such building within two years; and
WHEREAS, the guidelines for the University of Virginia's Endowment Funds provide for loans to the University of Virginia Real Estate Foundation of up to ten percent of the total endowment; and
WHEREAS, the total Endowment, as of January 31, 1997, had a market value of $900 million; and
WHEREAS, the University of Virginia Real Estate Foundation seeks to borrow an additional $6.5 million from the Endowment and such amount, in combination with the currently committed $33 million in non-interest bearing loans and $5.1 million in interest bearing loans, falls below the ten percent cap;
RESOLVED that The Board of Visitors of the University of Virginia approves and authorizes the Executive Vice President and Chief Financial Officer to effect capital advances to the University of Virginia Real Estate Foundation in an amount not to exceed six million five hundred thousand dollars ($6,500,000.00) for use by the Foundation to finance the construction of the Medical Office Building Project. The loan from the University will carry an interest rate to be calculated in the same manner it is calculated for the University's Internal Loan Program;
RESOLVED FURTHER that the Executive Vice President and Chief Financial Officer be authorized to give the University of Virginia Real Estate Foundation assurances that if the University is unable to purchase the building that the University will provide financing for up to 30 years; and
RESOLVED FURTHER that the obligation of the University of Virginia Real Estate Foundation to repay such advances from the University shall be evidenced by a Promissory Note(s).