Major decisions made by public institutions that resulted in the location of a permanent campus of the University of Illinois first within the Chicago area and then at a particular site are examined. The decision-making process is examined from economic, social, and political stances. The respective roles played in the process by the university, city, the public,the state legislature, and the courts are traced. The university's recognition of the need for growth and change is documented, as is the interaction between the university's goals and those of the mayor and the city. Attention is also directed to one neighborhood's efforts to solve its urban renewal problems, how it reacted adversely to its selection as the site for the university, and how its opposition predictably succumbed to the Daley political power. The effect of the decision on the neighborhood, the university, and the city is assessed. Appended are a calendar of significant events and site analysis and preliminary plans for four proposed campus sites. (SW)