YERKES 21 COMMITTEE
W3170 County Road BB
Lake Geneva, WI 53147

June 23, 2005

To: Mr. James S. Crown, Chairman of the Board of Trustees
Dr. Don M. Randel, President,
University of Chicago Board of Trustees
Dr. Henry Webber, Vice-President for Community and Government Affairs

Re: "Yerkes 21" Concept

Ladies and Gentleman

We understand that the University of Chicago is continuing discussions with potential developers and is currently investigating the possible sale of the land surrounding the Yerkes Observatory building to a developer and, at some later time, divestment of the Observatory building as well.

The Observatory building is a unique architectural treasure as well an historically important site. Many significant advances in astronomy and astrophysics were made there during the twentieth century. Indeed, it is a place of pilgrimage and reverence for astronomers worldwide. It is worthy of preservation on its own merits.

However, the site and the environment surrounding the building are also significant and important, and contribute mightily to the whole. The landscaped areas lining the entrance road still retain remnants of the Olmsted brothers notable landscaping from one hundred years ago, and the natural areas on the southern portion of the site leading to the shore of Geneva Lake are the only areas around the lake that are still nearly virgin forest that is virtually untouched since the time the Native Americans populated the area and created ceremonial sites and burial mounds hundreds of years ago. As such the site stands as unique and is significantly differentiated from other sites that have been subject to intensive and insensitive development. The site is eminently deserving of preservation rather than desecration by a developer that will be perceived as facilitated by the University of Chicago. Any such change in the fundamental character of the property is sure to be strongly opposed by local citizens and organizations.

It is for these reasons that we have come together as an assemblage of citizens and organizations, calling ourselves the "Yerkes 21 Committee" to work for the preservation of the Yerkes Observatory building and grounds. Our group, currently consisting of nearly 100 individuals and representatives of commercial, charitable, and eleemosynary organizations around Geneva Lake, believe strongly that the building and the site together are part of the spirit and soul of our community. Their unified preservation is of the highest order of importance. We are, therefore, seeking a way to work with the University of Chicago for the long-term preservation of the building and the surrounding property for our common benefit.

Further, we believe the future of the building and the site are irrevocably linked and the preservation and protection of either one must be considered in terms of the effect on the other. We fear the University of Chicago's efforts to sell portions of the site for development now, with the expressed good intentions of finding a way to preserve the building at some undefined time later, will not come to pass and the Observatory building will be doomed to ultimate destruction in the not-so-distant future.

If the building is to be preserved, the University of Chicago will either have to accept the responsibility of raising an endowment themselves at some future time, or embrace a plan similar to that described in the following pages where the University actively works with a local group that will play the major role in raising the endowment and succeed the University of Chicago as stewards and trustees of the building and the property in perpetuity. In either case, a local board of trustees representing the community, such as the "Yerkes 21" group will be essential to the continuing preservation of the building and the site.

Our analysis, which is summarized on the accompanying spread sheets and in the following sections, indicates that an endowment of $10 to $15 million dollars will be needed to insure the preservation of the building and the site in perpetuity. The range of endowment suggested depends to some extent on how the building is used and the income stream resulting from that use and, in addition, some other type of continuing cash injection.

Some of the real estate surrounding the Observatory building will be an essential element for the local group to use as a resource to raise the endowment. Selected portions of the property will need to be sold off to raise the seed money for the endowment which is anticipated to be several million dollars. Subsequently, a plan would need to be put in place to create a continuing flow of revenue both for current operating expenses and to further build the endowment for long-term survival.

"YERKES 21" PLAN

We believe the key to the historic preservation of the site and facility is, first and foremost, a plan for the preservation of the Observatory building. In the absence of preservation planning by others, our group of interested local citizens and organizations has undertaken this challenge. We believe it would be in the University's best interest, both for practical and reputational reasons, to endorse and support such a preservation initiative.

We call our plan for the future of the site and the observatory building, "Yerkes 21" symbolizing our commitment to craft a new, meaningful future for Yerkes in the 21st century that is respectful of the site and worthy of Yerkes' important contributions in the 19th and 20th centuries. The endorsers of this letter propose to set up a not-for-profit 501(c)3 corporation with a community-based board of trustees. We wish to discuss a proposal to have The University of Chicago transfer the observatory building and the surrounding property to this entity, which we are calling the "Yerkes 21 Corporation," for nominal consideration. This corporation would insure the long-term viability of the building and the site and its administration for the benefit of the public for the foreseeable future

FINANCIAL ANALYSIS

For the Yerkes site and facilities to be preserved as a whole, primary attention must be given to a plan to preserve the building. Two levels of preservation have been analyzed. (1) A preservation only proposal, in essence a mothballed facility of limited access and utility, and (2) a living museum, conference center, and functional observatory. Based on information provided by a number of sources, we believe an endowment of about $10,000,000 would be necessary for the "mothballed proposal, and in excess of $15,000,000 if the facility is to be operated as a program and conference center. If a revenue stream can be developed in connection with either proposal, the endowment required would be less.

Spread sheets showing our analysis of operating expenses and the underlying assumptions have been included with this letter. These spread sheets are based on information provided by several sources and as such are subject to discussion and refinement. They are intended to be working documents lending credence for our proposal and providing a starting point for future discussion. A business plan focusing on revenues to support these costs will be available for review when we meet to discuss this proposal.

To fund the substantial endowment required for either plan, the "Yerkes 21" Corporation would initially sell select portions of property around the perimeter of the site that are not essential to preservation of the unique environment surrounding the building. This is estimated to provide from 25% to 40 % of the necessary endowment.

Under this plan, the entrance road, the ellipse, and the south lawn, would be protected from development to preserve the environment. This land would be available to the community for use as a park and possibly a library or museum annex later. The Geneva Lake Conservancy, a local nonprofit land trust, has stressed the need to preserve the lake shore property because of its unique value as a natural, untouched resource with great environmental education potential. The Yerkes 21 Corporation would work with the Conservancy to effect the permanent protection of this area.

The balance of the endowment would have to be raised by (1) developing other sources of income such as conference and program fees, (2) soliciting contributions and grants from local, regional, and national sources, (3) working with local governments for support, (4) an endowment contribution provided by the University of Chicago. The success of the project would depend significantly on the Yerkes 21 Corporation's ability to obtain adequate funding.

It should be pointed out that, while the underlying projections may be debatable, any entity seeking to preserve the building now or in the future will face similar challenges.

WHAT IS IN THIS PLAN FOR THE UNIVERSITY OF CHICAGO?

* The University of Chicago is relieved of the responsibility of funding a substantial endowment or leading a fund raising drive to fund an endowment to preserve the observatory building that could run from $10 to $15 million dollars. In the alternative, the University of Chicago is spared the public controversy if the building would have to be razed at some future time because the University of Chicago has not provided adequate funds for its preservation

* The University of Chicago is currently spending in excess of $300,000 annually to maintain the site. This money can be redeployed to fund a professor's chair, for example, and the asset that is earning this money can also be redeployed. As a corollary to this point, without a plan such as this, the University of Chicago will need to continue to subsidize the operation of the observatory as well as fund the capital maintenance requirements which will consume more of its resources.

* The public entity and board of trustees we propose to create that will administer the site and facility will, in effect, assure the University of Chicago that Yerkes will remain a credit to the innovative spirit fostered by the university, and provide an outstanding example of the university's commitment to historical preservation and social responsibility, thereby furthering the good reputation of a great university.

* This plan solves a very difficult problem for the University of Chicago in dealing with the observatory building in a way that is acceptable to the local community and that is widely perceived as noble stewardship of this precious property. Without a plan similar to the plan put forth by this group, the University of Chicago will reap a tremendous and long-lived out-pouring of negative publicity and alienate a large portion of the residents of the community, interested people world-wide, the astronomy community, and its own alumni who have taken a profound interest.

* It helps the community and in doing so supports the University of Chicago's oft expressed support of community initiatives.

* It will avoid what will surely be hotly contested hearings before the local village board, which, at the end of the day, are highly unlikely to result in rezoning for a high-end residential/commercial development or destination resort/spa or any other change that would be to the detriment of the current environment and building use or function not perceived to be in the public's best interest.

WHAT IS IN THIS PLAN FOR THE COMMUNITY?

* Preservation of an important part of the Village heritage which is part of the spirit and soul of the Village of which they are justifiably proud.

* Use of the grounds for a park for the benefit of all residents.

* Use of the facility for a library and Village cultural center.

* Use of the facility as a program and conference center thereby enhancing the cultural development of the community.

WHAT IS IN THIS PLAN FOR THE PEOPLE OF THE LARGER GENEVA LAKE COMMUNITY?

* Preservation of a world-renowned site of astronomical discovery and astrophysics history, and a place of recognition and respect for the great men and women who helped open the modern space age.

* Preservation and conservation of an important environmental site.

* An opportunity for Aurora University to realize their future vision for a performing arts center and for future development of their programs.

* An opportunity for Adler Planetarium to expand their mission in a way that is economically viable for them.

* Stable, long-term management of the site and facility that will be provided by the Yerkes 21 Corporation that will be composed of local individuals and organizations that will continue to be responsible for the entity for the indefinite future.

* An opportunity to protect and conserve the undisturbed natural lakefront and other select densely-wooded areas of the site through a perpetual conservation easement.

WHAT IS IN THE PLAN FOR STUDENTS, EDUCATORS, AND THE WORLD ASTRONOMICAL COMMUNITY?

* Retaining the potential of Yerkes for the education and inspiration of young people in the sciences, in the conservation of natural resources, and archeological research.

* Greatly enhance Yerkes as a site for quality tourism of both grounds and facilities, aggregating to the credit of the University of Chicago and the Village.

We believe the pristine quality of the site, the architectural and historical importance of the facility, and the roles it can play in the future of the community make this facility absolutely unique and its preservation deserving of the highest priority. This proposal, we believe, is conceived and put forth in the best interests of the University of Chicago; the citizens of Williams Bay; the greater Geneva Lake community; those interested in history, astronomy, astrophysics, and space exploration; the world-wide astronomical community; and the public at large. We have, therefore come together with the urgent mission of insuring its preservation.

We would be pleased to meet with University representatives and continue refinement of this proposal to implement the "Yerkes 21" plan. Many community members have devoted much time and thought as to the best way to preserve the Yerkes building and site. We are deeply committed to this effort. We ask you to join with us in this process.

Sincerely

Larry Larkin
For the Yerkes 21 Committee