BOARD01372

• Board Meeting Date: 11/17/1976
• Description: Agenda, Minutes, Resolution
• Board Meetings - Doc Type: Meeting

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MR. LEINSDORF: I would like ,to make a motion that we approve this
project with a stipulation that we direct our counsel to insure that
the contract with the proponents of the project guarantee that so long
as any state funds remain to be repaid, any substantial change in the
purposes of the project must be approved by this Board.

MR. KROEGER: I like those simple motions, and I second.

MR. STAPLETON: I would like to have a little more definition of what
"substantial" is.

MR. SPARKS: H~ about if we say any' more than tim,.,percent,/ ~
MR. LEINSDORF: I wou~d think that would be appropriate.
MR. STAPLETON: Do you accept that?
MR. LEINSDORF: I accept that.
MR. STAPLETON: Do you accept it on the second?

MR. KROEGER: I would accept it. It
our Board review any change, period.
quantity or type at this point.

would seem to me more properly that
And let that be it, no~ set any

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MR. LEINSDORF: I think that might restrict the flexibility of the
Board. I think they ought to be able to make some minimal changes in
the use.

MR. STAPLETON: I think ten percent is restrictive in itself.

MR. SPARKS: But it does give'a little f~exibility without having to
come before this ~oard.

MR. JACKSON: Mr. Chairman, is that ten percent from the ~xisting us!'l,
or from the time of the inception of the project?

MR. SPARKS: I would say ten percent of the shares.

MR. JACKSON: Be changed in use from when" Larry? From the start of
the project or today?

MR:.SPARKS: Not more than ten perc~nt of the shares could be devoted
to other than agr~cultural purposes without the consent of this Board
as long as the loan is outstanding.

MR. JACKSON: Is that the nature of ,the motion?

MR. STAPLETON: That's the hatur~ of the motion as accepted by the
proponent and the second.

Any further discussion?

(No response'.)

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