Ninety- Two Years
of
Editorial .Freedom
E t43t.U1
tIai t
MAGICAL
Mostly sunny today with a
high of 60.
Vol. XCII, No. 32
Copyright 1981, The Michigen Daily
Ann Arbor, Michigan-Friday, October 16, 1981
Ten Cents
Sixteen Pages
Hospital
contract
method
displeases
Regent
By BARRY WITT
As the University broke ground
yesterday for its new hospital, one
Regent said he was displeased with the
method of contracting the University
has used managing the project.
Regent Deane Baker (R-Ann Arbor)
said at yesterday's meeting that awar-
ding the contract for construction
management without asking for com-
petitive bids "represents a significant
compromise of the University's
policy."
The Regents voted yesterday to give
the $8.2 million \construction
management contract to Barton-Malow
of Detroit and CM Inc. of Houston,
Texas-the same group that has served
as consultant to the project thus
far-despite Baker's objections.
BAKER SAID that a resolution
passed by the Regents in April, 1979,
forbade the project's consultant from
becoming its contractor.
Baker quoted parst of the resolution
See CONTRACT, Page 8
$285
million
'U' hospital gets
off the
By JENNIFER MILLER State
With a chrome-plated, maize and project
blue be-ribboned shovel, University Buildih
President Harold Shapiro and various million
University, state and hospital officials CHIE
yesterday broke ground for the $285 CIcEJ
million replacement hospital. cost to
Shapiro called the hospital "a joint "much
project of the University of Michigan, be payi
the citizens of Michigan, and the city of benpai
Ann Arbor." Medical School Dean John B ink
Gronvall said, "I view (the new Arbori
hospital) as an act of faith on the part of hike the
the people of Michigan."
REFERRING TO 10 years of plan- "very
ning obstacles and controversy, "I ca
Shapiro said, "It was a bit of a saga made y
reaching this stage."ade to
Replacing the deteriorating, 55-year- have to
old main hospital, the project will be have no
the largest single capital project in THE
state history, and opponents have hospital
called it the most expensive university- $20 mill
owned hospital in the country.$m
to groi
taxpayers are financing the
to the tune of $173 million, of
$140 million is through State
.g Authority bonds and $33
through state appropriations.
F UNIVERSITY Financial Of-1
ames Brinkerhoff said the total
the state will eventually be
higher" because the state will
ng the interest costs on all the
sues.
erhoff called a report in the Ann
News that interest costs could
total project cost to $780 million
nisleading."
r't believe it," Brinkerhoff said.
ed that no estimates have been
et as to how much the state will
pay, because the interest rates
t been determined.
UNIVERSITY'S share of the
i cost will be funded by $102
in hospital revenue bonds and
ion in gifts, Brinkerhoff said.
Shapiro has vowed that project costs'
will not exceed the $285 million budget.
Under state guidelines, the University
could spend a 15 percent inflation'
allowance, or an additional $43 million;
but Shapiro said the University does not
intend to exercise that option.
Hospital planners estimate that the
patient cost per day will be $1,408 in
1987, a year after the new hospital
opens.
WITHOUT THE cost of the new
hospital, that figure only would be $100
less per day, Brinkerhoff said, because
"inflation will nearly double the
present average cost of hospital care."
* In the past, strong opponents of the
replacement hospital, Blue Cross/Blue
Shield and the regional Comprehensive
Health Planning Council, have
criticized the project as too expensive
and elaborate.
See GROUND, Page 9
Daily Photo by PAUL ENGSTROM
MEDICAL SCHOOL Dean John Gronvall digs one of the first spadefuls of the
tons of earth which will ultimately be moved to complete construction of the
new University Hospital
U-Cellar, Union still negotiating;
final decision possible today
By JANET RAE
Lease negotiations between
representatives of the University Cellar,
student bookstore and the Michigan
Union continued yesterday as the
deadline passed for the bookstore to
commit itself to remakn in the Union.
U-Cellar directors, in' a meeting last
night, agreed to discuss today a.
possible decision regarding the
bookstore's lease with Michigan Union
Director Frank Cianciola.
CIANCIOLA, WHO had declared cer-
tain key points in the lease "not
negoMable," informed U-Cellar direc-
tors last week that they would have to
make an agreement by Oct. 15 in order
for the $5.3 million Michigan Union
renovation project-scheduled to begin
in January or February-to stay on
schedule.
Economic considerations are at the
heart of the dispute between the two sides.
Upon signing the new lease proposed
by Cianciola, the U-Cellar would have
to pay $9.07 per square foot of rental
space-a 65 percent increase over the
current $5.48 per square foot.
UNDER THE lease, the U-Cellar also
would have to foot the bill for ap-
proximately $250,000 in Union
renovation costs.
U-Cellar Board of Directors
representatives had said they deter-
mined that provisions mandated by
Cianciola would make it financially im-
possible for the bookstore to remain in
the Michigan Union without substan-
tially increasing prices.
U-Cellar directors had requested a
number of changes in the lease before
they would agree to remain 'in the
Union. Among the requests singled out
at last night's board meeting were a
deferment of the rent hike until the
bookstore moved into a new location in
the Union, a reduced rate per square
foot for space used for storage and a
defined formula for future rent in-
creases.
IN A NEW proposal yesterday, Cian-
ciola reaffirmed the $9.07 rate, calling
it "fair and competitive." He also
agreed to charge half that rate for the
U-Cellar's present storage space, with
the full rate charged for storage space
after the move.
Cianciola also agreed not to add any
See UNION, Page 7
Taiwanese stage a quietfeud
By JOHN ADAM
Angry signs plastered on kiosks
across the campus are part of a quiet
feud among the several factions of
Taiwanese students on campus.
One faction supports Taiwan's current
Nationalist Chinese (KMT) gover-
nment. The others support the
Taiwanese Independent Movement - a
group that believes Taiwan should be
independent from the Nationalist
Chinese who took over in 1949 after the
communist revolution on the Chinese
mainland.
THE CURRENT dispute centers
around the mysterious death of former
University student Chen Wen-Chen.
Chen, who graduated from the Univer-
sity in 1978 was found dead in Taiwan
last July shortly after he had undergone
an intensive interrogation by KMT's
national security police.
One faction has accused the KMT of
murdering Chen for his suspected anti-
KMT activities in the United States.
The other group claims the Taiwanese
Independednt .Movement murdered
Chen to try to discredit the KMT gover-
nment.
Campus kiosk signs such as "Dictator.
KMT agents go to hell" and ,"Prof.
Chen's death/Taiwanese students here
fear murder/KMT campus spies out!"
represent the view of the so-called
ethnic Taiwanese-those who were on
See TAIWANESE, Page 11
Chen
... his death sparks debate
Further state cuts recommended
LANSING (UPI)- Gov. William Milliken's budget
staff recommended yesterday that $270 million be
whacked from Michigan's fiscal 1981-82 spen-
ding-meaning cuts of around 5 percent in welfare
benefits.
A vote on the as-yet-unreleased executive budget
* slashing order, the largest reduction in state history
is set for October 22, to provide time to negotiate on
proper spending reductions.
Cuts are recommended across state government,
with mental health and education taking com-
paratively small reductions in light of the large
proposed welfare cut.
THE PROPOSED figures include a $20 million
reduction for four-year colleges and universities, $4.1
million for community colleges and $15.1 million
from public elementary and secondary schools.
A spokesman for Milliken, Robert Berg, said
although the governor had spoken out against further
welfare benefit reduction over the summer, the $152
million Department of Social Services cut could not
be made without trimming payments.
"When you have to cut that much money, a sub-
stantial amount has to come from DSS," he said, ad-
ding a 5 percent benefit reduction probably will be
necessary. Berg also downplayed significance of the
document released by budget staff at a meeting of
House Republicans.
n. ,
"It's premature to start talking about specific
numbers," he said.
GOP lawmakers have taken a position that
education and mental health should be protected
from the cuts and have backed reductions in welfare
programs.
Daily Photo by BRIAN MASCK
Ring our bells
The University's new part-time carillonneur, William De Turk, plays the set
of 53 bronze bells housed in Burton Tower. See story, Page 3.
TODAY
Plaza for the people
HE PEOPLE'S PLAZA is back and so is a
band of crusaders known as the Peoples Plaza
Brigade. The group has repainted the signs that
used to read "Regents Plaza" to read "Peoples
Plaza." "Oh, they're back at it again, huh?" remarked an
official at the paint division of the University plant depar-
tment. El
dergraduate satirists at the Harvard Lampoon."We thought
that since People is so successful, it is therefore ripe for
parody," said Paul Sax, one of the Lampoon writers.
"People is relentlessly readable. It's sort of the prose
equivalent of Muzak. We wanted ours to be like that." And
it is; the parody issue matches People's exactly, and is full
of real advertisements, including one from the authentic
magazine that reads, "Compliments from the real thing."
"I got a few chuckles out of it " said Hal Wingo, assistant
managing editor of People. "I think there were points at
which they had our style down pretty well." Covergirl
First lady battle
Betty Ford says there's nothing wrong- with Nancy
Reagan replacing the White House china, even if Rosalyn
Carter doesn't think it's such a good idea. "I commend her
for bringing it up to good condition," Ford said Wednesday
about the expenditure of $210,000 on a new 220-place china
service for the White House. Ford said the money for the
china came from private donations. Q
Getting into the act
to hold the other arm and we held him until police arrived."
The third man later disappeared. Davis, a 27-year-old
Republican attorney, said he rode with the police to the 19th
Precinct stationhouse, where he was told by other wit,
nesses the man had knocked down an 81-year-old woman
and taken her purse, leaving her with a cut on her head.
Police said the suspect was being booked on a charge of
second-degree robbery. Q
On the inside
SDorts profiles Iowa Hawkeve defensive end Andre Tin-
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