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The following motion is recommended:

VOTED that the Board of Regents accepts the report of the Investment Policy Committee and approves a total return income payout rate to the pooled Smithsonian Endowment Funds of $5.50 per unit in Fiscal Year 1981. 

[[underlined]] South Quadrangle Parking Garage [[/underlined]].

The Committee was informed of the construction plans in the South Quadrangle, including the underground parking garage, and discussed the possibility of funding this $6,215,000 parking facility as an investment from Unrestricted Endowment Funds.  Early analysis of the parking operation indicates that the facility can fully recover construction costs, plus a 10% return on investment, over a twenty-year period, and that the planned transfer to Unrestricted Endowment over FY 1981-1983 ($2,000,000/year) could provide the necessary funding, without drawing down on the investment portfolio.  While this represents only a modest investment opportunity, the Committee was favorable towards participation of the Institution's endowments in this project and supportive of the Secretary's efforts to secure funding for the other components of the Quadrangle.  The Committee will await further plans with interest.

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