08/25/1978

UCCSN Board of Regents' Meeting Minutes
August 25-26, 1978








08-25-1978

Pages 57-60

                         BOARD OF REGENTS

                    UNIVERSITY OF NEVADA SYSTEM

                          August 25, 1978



The Board of Regents met in special session on the above date in

The Center, 1101 N. Virginia, Reno.



Members present:  Fred M. Anderson, M. D.

                  Mr. James L. Buchanan, II

                  Mr. John Buchanan

                  Mr. Chris Karamanos

                  Mrs. Molly Knudtsen

                  Louis E. Lombardi, M. D.

                  Miss Brenda D. Mason

                  Mr. John Tom Ross



Members absent:   Mrs. Lilly Fong



Others present:   Chancellor Donald H. Baepler

                  President Joseph N. Crowley, UNR

                  Mr. Larry Lessly, General Counsel

                  Mrs. Bonnie Smotony, Secretary



The meeting was called to order by Chairman Buchanan at 7:55 P.M.



 1.  Recommendation for Conversion of Harrah's Bonds



     Mr. John Buchanan reported that Harrah's has called for re-

     demption of its 7-1/2% convertible bond at $106.71.  To pro-

     tect the value in the endowment fund portfolio, the Univer-

     sity must either sell the bond or convert it to common stock

     prior to September 14.



     Mr. John Buchanan moved consideration of this matter as an

     emergency item.  Motion seconded by Mrs. Knudtsen, carried

     without dissent.



 2.  Financing of Phase III, WNCC/N



     Chancellor Baepler requested authority to proceed with the

     sale of a $1.2 million debenture to provide interim financ-

     ing for the construction of Phase III of WNCC/N until legis-

     lative clarification is obtained in the 1979 session and

     adequate revenue bonding is available.



     Mr. Karamanos moved adoption of Resolution #78-2, authoriz-

     ing the public sale of the securities of the University of

     Nevada designated as the University of Nevada, Western

     Nevada Community College Interim Debenture, Series October

     1, 1978, in the principal amount of $1.2 million, and fur-

     ther moved the authorization of such other procedures as

     are required to effect such sale.  Motion seconded by Mr.

     Ross, carried without dissent.



Discussion resumed on Item 1, Recommendation for Conversion of

Harrah's Bonds



     Mr. John Buchanan moved that the Harrah's convertible

     bonds be converted to common stock.  Motion seconded

     by Mrs. Knudtsen, carried without dissent.



 3.  Main Station Farm Bids



     Dr. Anderson moved that where the University of Nevada

     System is involved in purchase, sale, exchange or lease of

     any real estate, including buildings and other improvements,

     no real estate agent or other third party who might expect

     a fee or other remuneration from the University System shall

     be involved in such transaction unless by prior specific

     affirmative action by the Board of Regents.  This motion in-

     cludes any transactions regarding the three parcels of the

     Farm presently being considered for sale, trade or lease.

     Motion seconded by Mr. Lombardi.



     Mr. Ross expressed concern that such action would discourage

     activity by real estate agents on behalf of the University

     and would eliminate any cooperation in future sales of

     University property.



     Chancellor Baepler suggested that this be deferred until the

     September meeting to permit some staff work on the proposal

     and to permit some consultation with representatives of the

     real estate industry.



     Mr. Ross moved to table until September.  Motion seconded by

     Mr. Karamanos, carried without dissent.



     A.  Parcel #3 - General Counsel Lessly noted that a lawsuit

         had been filed challenging the bids on Parcel #3 of the

         Main Station Farm and also noted that Dean Bohmont has,

         subsequent to the offering of this property, determined

         that he does not wish to dispose of the Veterinary

         Sciences Facility and the several acres surrounding it.

         Based on those two factors, Mr. Lessly recommended that

         all bids on Parcel #3 be rejected.



         Dr. Lombardi moved approval.  Motion seconded by Mr.

         John Buchanan, carried without dissent.



     B.  Parcels #1 and #2 - President Crowley reported that the

         bids on Parcels 1, 2 and 3 of the Main Station Field

         Laboratory had been reviewed by the College of Agricul-

         ture Citizens Advisory Committee, the Dean and staff of

         the College and the Vice President for Business, and he

         recommended the following:



         1.  That all bids for Parcel 3 be rejected (noting that

             this action had already been taken).



         2.  That a decision as to award or rejection of the bid

             on Parcels 1 and 2 be postponed until such time as

             up-to-date appraisals of all properties involved can

             be completed.  These properties, he noted, would in-

             clude Parcels 1, 2 and 3 of the Main Station Field

             Laboratory and the Jones Ranch land described in the

             Dermody-Jones bid.



         3.  That upon completion of these appraisals, the Admin-

             istration make a recommendation on the reopening of

             bids on Parcel 3, and the award or rejection and

             reopening of bids on Parcels 1 and 2.



         Mr. Ross moved approval.  Motion seconded by Mrs.

         Knudtsen.



         Chancellor Baepler recalled the earlier discussion and

         the sequence in the awarding of these bids, noting that

         it was determined to be desirable to consider Parcel 3

         before considering Parcels 1 and 2 because it was, at

         that time, believed necessary to have cash available to

         develop the properties to be obtained by disposing of

         Parcels 1 and 2 and to improve the Gund Ranch as well as

         other areas.  He suggested that this rationale was still

         valid.  Dr. Baepler also noted that the normal time

         within which bids must be awarded had expired and ex-

         pressed concern that further delay would not be pos-

         sible.  He suggested that if reappraisals were to be

         secured, bids on parcels 1 and 2 also be rejected and

         any further action on the three parcels be handled as a

         package.



         Dr. Crowley suggested that the new appraisals could be

         complete by the September 22 meeting and it would then

         be possible for the Board to make a determination at

         that meeting about the reopening of bids on Parcel 3,

         as well as the appropriate action to be taken on Parcels

         1 and 2.



         Mr. Frank Cassas stated that his clients would agree to

         hold the Dermody-Jones bid open for a reasonable time to

         allow for a reappraisal.



         Motion to accept President Crowley's recommendation car-

         ried with the following roll call vote:



         Yes - Dr. Anderson, Mrs. Knudtsen, Dr. Lombardi, Miss

               Mason, Mr. Ross

         No  - Mr. John Buchanan, Mr. Karamanos

         Abstain - Mr. James Buchanan



The meeting adjourned at 8:25 P.M.



                             Bonnie M. Smotony

                             Secretary of the Board

                                                       08-25-1978