1373

Financing
'new men* s
dormitory.

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Minutes of the

Special Meeting  of the State Board of Agriculture

December 9, 1937

Present:  Mr. Brody  (Chairman), Messrs. Berkey, Daane, Downing, Halstead, Mrs. Wilson; President

Shaw, Comptroller Wilkins and Secretary Hannah.

Absent: 

No one*

The meeting was called  to order at 10:30 A.M.

Mr*  Earl Cress and Mr. Hugh Wilson, representing  the Ann Arbor Trust  Company, and Mr.
Byron Ballard, the college  attorney, were present to report on plans for financing a men1 s dormi-
tory.  After discussion, the following actions were taken:

1.  Resolution authorizing  the financing  of a men's dormitory, etc.

WHEREAS, The State Board of Agriculture desires  to  construct  a new donaitory

for the housing of male  students of Michigan State College of Agriculture  and Applied
Science, to be hereafter  named, on property owned by said Board; and

WHEREAS,  it is anticipated  that  the costs incidental  to the  construction of

such a dormitory will  be  approximately  Five Hundred Thousand  ($500,000.00) Dollars in
excess of the funds which  said Board  now has available for that purpose; and

WHEREAS,  in the opinion of said Board, it is necessary and expedient  that it

borrow, through the issuance and sale of Dormitory Revenue Bonds, the sum of Five
Hundred Thousand  ($500,000.00) Dollars, to be used by it in the construction of said
dormitory; and

WHEREAS,  the Ann Arbor Trust  Company, of Ann Arbor, Michigan, has  submitted

for the consideration of  said Board  a Trust Agreement whereby the funds necessary to
be borrowed  in order to make funds available for the construction and  equipping of
said dormitory may be borrowed  through  the issuance  and sale of the Dormitory Revenue
Bonds hereinbefore mentioned;

NOW, THEREFORE, BE IT RESOLVED  BY THE STATE BOARD OF AGRICULTURE, that it

borrow  the sum of Five Hundred Thousand  {$500,000*00}  Dollars, through  the Issuance
of Dormitory Revenue Bonds In the aggregate principal  sum of Five Hundred  Thousand
($500,000) Dollars, all  to be paid from  and  equally  secured  by a pledge of the gross
rents collected from  students of Michigan State College of Agriculture  and Applied
Science, who  shall reside  and occupy rooms in said dormitory to be erected  as herein
provided,  and of the net Income derived from the operation of said dormitory when
completed  and placed in operation.  Said Dormitory Revenue Bonds  to be Issued  in
one series and to be designated  as "Michigan State College of Agriculture and Applied
Science Men's Dormitory Revenue Bonds."

Michigan State College of Agriculture  and Applied Science Men's  Dormitory

revenue Bonds  shall be dated December 1, 1937, or such other later date as shall be
approved  by Robert S. Shew and Charles 0. Wilkins, respectively the President  and
the Treasurer of Michigan State College of Agriculture  and Applied Science, and  shall
consist of five hundred  (500) bonds of the denomination of One Thousand  ($1,000,00)
Dollars each, numbered  one (1) to five hundred  (500),  both inclusive.

Ssid  bonds  shall bear interest  at the rate of four and one-balf  (4g?b} per

cent per annum, payable  semi-annually,  and said bonds  shall mature fifteen (15)
years after issue.

Any and  all Dormitory Revenue Bonds shall  be subject  to redemption on any

interest payment  date; and all bonds redeemed prior to the date of redemption shall
be redeemable on payment  of the face value thereof, together with the amount of all
matured interest  coupons and a premium of one [1%) per  cent of the face value thereof.

BE IT FURTHER RESOLVED, that Robert S. Shaw, President  of Michigan State

College of Agriculture  and Applied  Science, and John A. Hannah, its Secretary, be
and they are hereby  authorized,  empowered  and directed, in the name of the State
Board of Agriculture  a&d  as its corporate act and deed,  to execute and enter into
the aforementioned Trust Agreement  between the said Board  and the Ann Arbor Trust
Company.

.-BE IT'FURTHER RESOLVED-; that said  officers be and they are hereby  authorized,

empowered  and directed, in the name of the State Board of Agriculture  and as its
corporate act and deed, to execute, sign and  countersign the Dormitory Revenue Bonds
hereinbefore provided  for, in such manner as is prescribed  in the  aforementioned
Trust Agreement; and. to pledge the gross  rents to be collected from  students of
Michigan State College of Agriculture  and Applied Science who shall reside and occupy
rooms in said dormitory  to be erected  as herein provided,  and  the net income from
said dormitory when placed  In operation, including  rental  from rooms, income from

1374

financing
men's dormi-
tory.

State Board
of Agricul-
ture to fur-
nish water,
heat and
light for
new dorm.

December 9, 1937

1.  Resolution authorizing the ^ine.ncing of a men's  dormitory,  etc*  (continued):

dining room  and other service  charges, for the purpose of  securing and paying  the Sinking
Fund payments provided  in said Trust Agreement  and to assure  the payment of interest and
principal  on said Dormitory Revenue Bonds hereinbefore provided  for; and to perform all
acts and  execute all instruments and documents necessary,  expedient and proper in connec-
tion with the borrowing of said Five Hundred  Thousand  ($500,000•00) Dollars, the issuance
and sale of  said Dormitory Revenue Bonds, and. the pledging of the gross rents snd net
income from  said dormitory.

BE IT FURTHER RESQEVED, that said  officers be and  they are hereby  authorized

and empowered,  for ana in the name of The State Board of Agriculture and as its  corporate
act and deed, to make, consent  to and agree to any changes in the terms or  conditions
of said Trust Agreement which they may deem  necessary, expedient  or proper, prior to or
at the time of the execution of said Trust Agreement, but no  such amendments  shall  change
the provisions  therein for the amount to be borrowed, the interest  to be paid thereon, the
payments required  to be made to the Sinking Fund, or of the security to be pledged, nor
may the redemption date be made later than fifteen (15) years from the date of issue of
said bonds, (provided, however, nothing herein contained -shall be construed  as limiting
the right of said officers to alter or change the date of issue of said  bonds or date
for payment  of interest or the dates fixed for Sinking Fund  payments as provided  in said
Trust Agreement):  and said officers, either in said Trust Agreement or by the issuance of
said Dormitory Revenue Bonds, shell not pledge  the credit of or create any liability  on
the part of the State of Michigan, The State Board of Agriculture, or on any member or
officer of said Board, or any of their successors, other than to pledge the gross room
rents and. net income from said dormitory for the payment  of said Dormitory Revenue -^onds,
as herein set forth.

BE IT FURTHER  RILSOLVED,  that  should, it develop  that Robert S. Shaw as Presi-
dent of Michigan State College of Agriculture  and Applied Science, through illness, ab-
sence or otherwise, should  be unable to perform  the acts that he is herein authorized,
empowered  and directed  to perform, then, in that  case, Charles 0. Wilkins, Treasurer of
Michigan State College of Agriculture and Applied  Science, is hereby  authorized,  em-
powered  and directed to perform any and all acts and deeds herein authorized  and direc-
ted to be performed  by said Robert S« Shaw; and  any action so taken by said Charles 0.
Wilkins  shall be as binding on The State Board  of Agriculture  as if performed  by said
Robert S. Shaw.

ti IT FURTHER RESOLVED, that  should  it develop that John A. Hannah, as Secre-

tary of Michigan State College of Agriculture  and Applied Science, through illness, ab-
sence or otherwise, is unable to perform the acts that he is herein authorized,  empowered
and directed  to perform,  then, in that  case, said Charles 0, Wilkins, Treasurer of Michi-
gan State College  of Agriculture  and Applied. Science, is hereby authorized,  empowered  and
directed  to perform any and all acts and deeds herein authorized  and directed  to be per-
formed by said John A. Hannah; and  any action so taken by said Charles 0. Wilkins  shall be
as binding on The State Board of Agriculture  as if performed  by said John A. Hannah•

On motion of Mr#  Daane, seconded by Mrs. Wilson, it was voted  to approve the above resolution*

2.  Resolution authorizing the State Board of Agriculture  to furnish water, heat, and  light

for new dormitory*

YSERIAS^  The State Board of Agriculture  is desirous of constructing  a new.

dormitory for the housing of male  students of Michigan State College and Applied Science,
to be hereafter named, on property now owned by The State Board of Agriculture; and

WHEREAS, under the plan contemplated  for the construction of such new dormi-
tory, it is necessary  to borrow the sum of Five Hundred Thousand  (§500,000.00) Dollars
through  the issuance and  sale of Dormitory Revenue Bonds, and to pledge as security there-
for the gross rents received from  students of Michigan tState College of Agriculture  and
Applied  Science who reside and occupy rooms therein, and  the net income derived from the
operation of said dormitory when the same is placed  in operation; and

VvHEEEAS, it is the desire of said Board  that  the purchasers of said  Dormitory
Revenue  Bonds be given the maximum, security  and  assurance that Sinking Fund payments and
payments of interest  and principal will be paid  in accordance with the terms of their
issuance,

M)!»V, THEREFORE, BE IT RESOLVED BY THE STATE BOARD OF AGKICULTUPi that  so long
as any of the'. Dormitory Revenue Bonds above referred  to remain outstanding, in making up
the annual  budget of said College, the procedure  shall be to pey the water, heating  and
lighting  costs of said dormitory  to be constructed  from such other funds than the gross
rents and  net income from said dormitory as may  be legally used  for that purpose.

On motion of Mr, Brody, seconded  by Mrs, Wilson, it was voted to approve  the sbove resolution.

3.  Resolution authorizing  the State Board of Agriculture  to transfer a sum not to exceed

£•100,000 to the Ann Arbor Trust Company, etc*

December  9, 1937

3.  (Continued):

WHEREAS, the State Board of Agriculture has this day authorized the execution

of a Trust Agreement with the Ann Arbor Trust Company  relative to the issuance of
£500,000 par value of dormitory revenue bonds to be used in the construction of a new
dormitory for men to be hereafter nsmed, and

WHEREAS, additional  funds will be required to complete the new dormitory,

M)W, THEREFORE BE IT RESOLVED,  that the Treasurer be and hereby is authorized

and directed to transfer to the Ann Arbor Trust Company, Trustee, a sum not to. exceed
$100,000 to be held by said Ann Arbor Trust Company, Trustee, as trust funds and dis-.
bursements made in accordance with and for the purpose set forth in the Trust Inden-
ture this day authorized.

1375

State Board
to  transfer
$100,000
to Ann Arbor
Trust Co,

3E IT FURTHER RESOLVED,  that #50,000 of said amount be transferred from the 

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Retirement Fund and that a proper note or certificate of indebtedness  therefor be exe-
cuted by the President and Treasurer to the Retirement Fund providing for interest at
5% per annum payable or on before fifteen years from date.

On motion of Mr. Berkey, seconded by Mr. Halstead, it was voted to approve the above resolution,

4.  Resolution relative to the sale of bonds, etc.

WHEREAS, the State Board of Agriculture has authorized the issuance of $500,000

par value dormitory  revenue bonds for the erection of a new men*s  dormitory and it is 
necessary to sell and dispose of such bonds,

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Sale  of  bonds
for  new men' s
dormitory.

NOW, THEREFORE, BE IT RESOLVED  that the President, Secretary and Treasurer or any

two of them be and are hereby  authorized to enter into a contract for the sale of and to  :
sell and deliver  said dormitory revenue bonds at not less than 97?J of their par value plus
accrued interest.

Employment
of Ann Arbor
Trust Co.  as
trustee.

Resolution
letting
contract•

On motion of Mr. Downing, seconded by Mr. Brody, it was voted to approve the above resolution.

5.  Resolution relative to the employment of Ann Arbor Trust Company, as Trustee, etc.

WHEREAS, the State Board of Agriculture has this day authorized the execution

of a Trust Agreement with the Ann Arbor Trust Company, as Trustee, for the purpose of
erecting a nev; men* s dormitory at Michigan State College and it is desired to fix the
compensation of said Trustee,

NOW, THEREFORE, 3E IT RESOLVED  that the President and Secretary be and hereby

are authorized to execute on behalf of this Board an agreement  covering the compensation
to be paid by the State Board of Agriculture to the Ann Arbor Trust  Company as Trustee
under the Trust Indenture  this day authorized, and employing said Ann Arbor Trust  Company
as Trustee, to complete the financing and the sale of the $500,000 of dormitory  revenue
bonds.

On motion of Mr. Brody, seconded by Mr. Berkey, it was voted to approve the above resolution.

6.  Resolution letting  contract, etc.

VvEEREAS, the State Board of Agriculture has advertised for bids for the new men's

dormitory to be hereafter named and erected on the campus at Michigan State College and,

WHEREAS, the Reniger Construction Company has submitted the lowest  responsible bid

for the general  construction  contract in accordance with plans and specifications heretofore;
prepared and it being desirable to proceed with the construction of said dormitory,

NOW, THEREFORE, BE IT RESOLVED that the President and Secretary be and hereby are

authorized to enter into a contract on behalf of the State Board of Agriculture with the
Reniger Construction Company of Lansing, Michigan, or some other responsible  contractor for
#455,899, it being understood  that  this includes plumbing, heating, ventilating, wiring
and electrical,  cost of tunnel and service  connections, changes in the basement providing
for 21 additional  rooms and the general  construction of the building, providing the con-
tractor gives a completion bond  satisfactory to the officers of this Board  guaranteeing
completion of the building on or before September 1, 1938, in accordance with bids  submitted;
and, also to execute and enter into  suck other  contracts with sub-contractors and material
men as may be approved by the architects for the completion of the dormitory in accordance
with the plans and specifications  now on file or as may be approved by the architects and
make  such purchases of equipment and furnishings as may be necessary to furnish  said dormi-
tory when completed.

On motion of Mr. Daane, seconded by Mr. Brody, it was voted to approve the above resolution.

The meeting  adjourned at 12:20 P.M.

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