June 19, 1980 L
Memo to File - Discussion with Jack Whitehead and Stuart Peerce
: on June 19, 1980 Daf
mene)

We started looking at models both of what recruitment would
be like and of the different kinds of relationship that might
ensue. With respect to the former we eventually came to the agree-
ment that the three year hiatus between starting and finishing the
institute building would be very awkward from. the point of view
of a director and that we probably would have to find a way to
provide temporary laboratory facilities. So Jack thought that they

would want to pay for the renovation of space for laboratory use

 

for somebody like Y.-W. Kan for a period of three years and that
the résidual value of the renovation versus the lease hold fee would
be included in the general quid pro quo that we would want to think
about. I did not want to offer space other than that but of course
there are other options for renovation to be thought about in similar
terms. As far as possible the physical layout of the renovated area
should match that of the laboratories in the building to be constructed
so as to simplify the move when it happens.

I'm still instructed to go ahead with an attempt to recruit
¥.W. Kan: the next step would be to try to arrange a meeting in
San Francisco with myself, Kan and Jack. I will call him from
Palo Alto. He should be returning to his laboratory approximately
when I get there.

Ditto with trying to get a meeting here with David Baltimore

if that can be done before I leave.
As to the quid pro quos Jack was still somewhat fixated
on the idea that if they built the library that would be a suf-
ficient reimbursement to us. I told eS hat we had pretty well
backed off the idea of a major ediface for that purpose that we
really did have to keep the question of the library totally separate
from their coming in with a building. They're still inclined to the
idea that they might build space for the. use of the Rockefeller Uni-
versity within their institute as the major form of quid pro quo to
us for. the use of the land. I was not too encouraging about that.
The idea that they would have to pay ground rent was a new one for
them and I. think may be a significant obstacle to their going ahead.
I had already told Jack before that that I was more concerned that
he find a satisfying location for his investment than that it had to
be located here. But that in trying to broker the situation I would
be looking for ways in which dollars invested could do double duty
from the standpoint of both the Rockefeller and the Whitehead Institute.
To illustrate that. point I mentionedranansferring ground rent dollars
into endowments for professors who would be working at the Institute;
the other would be the residual value of a building on a lease for a
limited term of:years. Jack was not. too happy about that idea. He
thought they would be walking on eggs for their entire existence but
I asked him not to reject it categorically. |

I was not willing to offer any numbers with respect to the magni-
tude of expected ground rents or sale price stating that it would be
a disservice to all of us to have such figures before we were in a
position to back them up. I would probably want to have somebody

like Dick Dilworth present at any conversations in which the giving
of University assets was such a consideration.

I think that he does still remain interested. When options
for space were reviewed he was even more enthusiastic about the
frontage between 65th and 66th Street although knowing that we
have to find some way to accommodate the concerns of the GSR
existing residents and of course a tennis court. We also brought
up problems of housing and I agreed that we would make every effort
to work with them in a submission to the State Dormitory Authority
for funding.

They will want more information and I promise to furnish it:
zoning problems, a set of ground plans of the overall University
so they could size things out a little better; any borings that
there may be to show sub-soil conditions at the various prospective
sites; the feasibility of the former animal house with respect to
the potential costs of renovation for laboratory use. Besides what
we can provide directly we should brief Squire Bozorth and Max
Abramovitz to make any factual. information freely available to them
in direct conversation. |

Finally, I said.I would do what I could to check out Martin

Raff.