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direction 450 feet to a corner; thence in an Easterly direction 900 feet to a corner; thence Northerly 450 feet to the iron pipe, point of BEGINNING, and containing 9.204 acres, and more clearly defined on State Highway Commission's Property Survey Section No. L-990, dated August 31, 1962.

On motion of Mr. Taylor, seconded by Mr. Barber the above recommendation to transfer State College property to the State Highway Commission was unanimously approved.

Changes in Lease Arrangements for fraternity housing on University-owned Mason Farm Property.

President Friday also presented the following resolution authoriz­ ing certain changes in the lease arrangements for fraternity housing at Chapel Hill, and requested its adoption:

WHEREAS, on May 23, I960, the Executive Committee of the Board of Trustees of the University of North Carolina approved the following recommendation of the Committee on Use and Disposition of Real Property;

"In an effort to help fraternities that are housed in sub-standard and hazardous buildings, available sites for a fraternity court have been surveyed by the University administration. An 18 acre tract of University owned Mason Farm is most suitable.

"We recommend the approval of long-term leases for $5,000 each for this site to individual fraternities, under operational regulations of the University. These regulations, among other things, will require (1) approval of house plans by the Buildings and Grounds Committee of the University; (2) a house mother in each house, and (3) reversion of house and lot to the University in case a fraternity ceases to operate,"

and

WHEREAS, on July 1, I960, the University requested the State of North Carolina to dispose of a building lot located in this proposed fraternity court to Alpha Pi of ZBT Foundation, Inc. , under the above provisions; and

WHEREAS, the request by the University was approved by the Department of Administration on October 18, 1961; and

WHEREAS, on November 21, 1961, the Governor and Council of State approved a lease from the State of North Carolina to Alpha Pi of ZBT Foundation, Inc., of 1.42 acres for a term of 99 years for a consideration of $5,000. The lease contained provisions for: (1) termination at the end of 3 years from date of the lease unless a fraternity house had been constructed on the lot, with provision for an extension of construction time, in the discretion of the Chancellor, if construction should be delayed by reason beyond the lessee's control; (2) retention of the $5, 000 as rental for the land in case of termination due to the lesser's fault; (3) the improvements located on the lot to become University property at the conclusion of the 99 year term. The State retained the right to cancel the lease and purchase the improvements by paying the fair market value of the property and improvements at any time; (4) right of re-entry in case of termination; (5) payment of ad valorem taxes on the property and improvements to proper taxing authorities by the lessee; (6) no sub-leases without the University's written permission; (7) the property would be used for fraternity house purposes only; (8) the termination of the lease if the